"Introductory Presentation on Remittances" by Dominique Villeneuve, PlaNet Fi...
Digest U A D M 3rd 2011
1. 3rd
Issue
JANUARY 2011
APRIL 2011
CROSS-BORDER
DISTANCE SELLING
IN UKRAINE: INFO DIGEST
Dear Colleagues,
Traditionally I would like to present We also would like to remind you about up-coming interna-
you the third issue of our information tional business forum Direct Marketing Days in Ukraine 2011.
digest of distance selling possibilities Details you will find below.
in Ukraine. We continue to inform you
about Ukrainian market potential and If you have any questions, comments or additional information
are sure the most actual data will help please do not hesitate to contact us via e-mail or our Hot Line
you to take decision about developing +380 (44) 495 7885
your business in Ukraine.
In this issue you will read about Euro- Valentin Kalashnik,
pean investments to Ukraine, find out President of UADM
where Ukrainians prefer to buy clothes and what share of their
income is spent on food and beverages.
eCoNoMIC NeWs
INvestMeNt froM europe: Who gIves More?
Starting year 2011 Ukrainian business could notice interesting So, after the last change of supreme governmental authorities
trends happening in investments coming from Europe. (and foreign policy priorities accordingly) in Ukraine process of
direct foreign investments redistribution in favor of European
According to the recently published data of State Statistics counties taking “neutral” (Austria, Netherlands) or frankly
Services following the results of 2010 growth of direct foreign friendly (Germany, France) position towards Russia (new main
investments from countries of European Union in Ukrainian strategic partner of Ukraine) continues.
economy made up 3 bln 616 mln USD (total investments are
35 bln 255,2 mln USD) Source: intercredit.com.ua
Comparing investments made by each country the undisputed
leader by reinvesting of Ukrainian capital is Cyprus (+909,3 mln Cyprus
USD – up to 9 bln 914,6 mln). Three remaining prize places 9,915 bln USD gerMaNy
4,708 bln USD
occupy German (+475,3 mln USD – up to 4 bln 707,8 mln),
Netherlands (+753,3 mln USD – up to 4 bln 707,8 mln) and austrIa NetherlaNDs
2,658 bln USD
Austria (+53 mln USD - 2 bln 658,2 mln). Once could also note fraNCe 4,708 bln USD
activation of money flows from France. Taking fourth place 2,367 bln USD
(2 bln 367,1 mln of direct investments) by the annual level of
its investments increase (+736,3 mln USD) this country is the
second one after main leader.
During the previous year the following countries decreased its
investments in Ukraine: Spain, Slovakia, Slovenia, Finland and
Czech Republic. The main leader in investments run off became
Great Britain. From January 2010 to January 2011 volume of its
investments decreased on +8,7 mln USD – up to 2 bln 298,8
mln USD).
2. Cross-borDer DIstaNCe sellINg IN ukraINe: Info DIGEST April 2011
the experts are CoNvINCeD:
baNks profIt WIll CoNtINue groWINg
According to the analytical terest revenue reached 9,1 bln UAH, that is 9 % higher than
survey conducted by Foyil Se- within the same period last year.
curities. Ukrainian banks have
already accumulated enough Analytics note that net commission income from trading trans-
money to repay expenses and actions also grew 13% and 18% accordingly comparing to the
henceforth could continue in- same period last year. Deductions for credit costs coverage
crease its profit. decreased 40% and made up 4,2 bln UAH.
According to the data pro- “Development of bank sector is going on according to our ex-
vided by National Bank of pectations. Great number of banks accumulated essential pro-
Ukraine net profit of Ukrai- visions to cover credit loss in 2009-2010. Decrease of deduc-
nian banks in January-Febru- tions in this sector is the main reason of its profitability growth.
ary made up 205 mln UAH. Therefore till the end of year we expect further increase of
Within first two months of banks income” said Analytics department head of Foyil Securi-
the current year bank net in- ties Agshin Mirzazade.
Source: finance.ua
Market NeWs
Where ukraINIaNs Dress up:
Clothes froM boutIques vs WorN-DoWN-Clothes
Ukraine is listed as country where retailers are recommended Experts observe a different approach to shopping in our
“to go immediately.” Experts estimate that if Europeans spend fashion-conscious people. Between two extremes - boutiques
only 14 % of their budget on clothing and footwear in Ukraine and bazars niche occupied by so-called middle-price segment
this figure reaches 22 %. stores appeared. Among clothes and footwear retailers Ukrai-
nian buyer prefers such brands as Marks & Spencer, Zara, Ben-
Portal finance.tochka.net found out which brands are pre- etton, Intertop, Plato, Monarch.
ferred by Ukrainians and how much they spend to look stylish
and follow fashion. In general recent economic crisis taught Ukrainians to save on
clothes. Average sum of consumer receipt in Kiev as before
According to the study of sociological group “Rating” [TV1] ranges from 1000 UAH to $1000 but now people buy more
overwhelming majority of Ukrainians (84%) still continue to items on for this money. “Before people were buying 4-3 items
dress at the bazars. One third of respondents buy clothes in for this amount and pay no attention to the price for they just
small stores, 14% — in department stores and supermarkets, simply liked clothes and shoes. Now the buyers wait for dis-
5% — in stores of branded clothes. Despite the absolute lead- counts and sales. They want to buy something 100-200 UAH
ership of bazars after the crisis Ukrainians began to pay more cheaper“ — shares her impressions Elena Tkachenko, a cashier
attention to product quality. of a shopping center in Kiev.
Source: finance.tochka.net
ukraINIaNs speND 51,5% of theIr INCoMe oN fooD
According to the statistics Ukrainian people spend more than Only 3,2 % of income in Ukraine is spent on health services
half of their income on food. people. It is less than amount of money being spent on poor
habits.
According to the official data in 2009 average Ukrainian spent
about 50,4% of their income on food and beverages and in According to the data provided by State Statistics Services total
2010 this figure grew up 51,5%. average monthly expenses of one family made up 3308 UAH
(3440 UAH for families living in urban areas and 3012 UAH for
Every 18th gryvnya was spent on wardrobe renewal, each families living in rural areas). Money distribution is very unbal-
30th — on alcohol drinks and tobacco products and each anced. Income of 10% of the most wealthiest people are 5,4
25th — on transportation. Currently average Ukrainian spends times higher than income of 10% of the poorest ones. At that
each 11th gryvnya on housing and public utility services and in 20% of wealth population made up 37% of total expenses.
near future this sum will grow.
Source: utro.ua
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3. Cross-borDer DIstaNCe sellINg IN ukraINe: Info DIGEST April 2011
INterNet NeWs
INterNet peNetratIoN Is oN a rIsINg Curve
Starting from 4th quarter of 2009 till 4th quarters of 2010 num- ternet access point. During 2010 this share increased 11 % and
ber of Ukrainian people having Internet access at home grew made up total of 77%.
45%. At the end of year 2009 only 18% of Ukrainians had pos-
sibility to use Internet at home. During 2010 percentage of During last few years one could also observe tendency of Inter-
“connected” people grew 26%. net and mobile communication providers starting paying more
attention to attracting consumers in middle and small towns.
The highest growth rate was fixed in Northern region of As a result in 2010 share of those who considered their home
Ukraine in cities with population 51-100 thousand inhabitants as main Internet access point grew in cities with population
(100% and 129% accordingly). around 51-100 thousand inhabitants.
Still there is great distinction of Internet availability in villages Communication in Internet shifts to social networks.
and small towns and metropolitan cities. In last quarter of 2010
only 12% of village people and 25% of people living in town In 2010 for the first time of such researches conduction one can
up to 50 thousand population had access to Internet at home note tendency of decreasing of classic e-mail popularity. At the
compare to cities with population over 500 thousand people end of 2009 52% of Ukrainian Internet users were regularly using
where Internet penetration index reached 38%. e-mails for communication. However in 2010 its share decreased
to 48%. At the same time popularity of social networks grew
Home becomes a place of main Internet access. almost the same percentage. 31% of users were using social
networks on regular basis in 2009 and in 2010 their share grew
During the last year share of the people considering their up to 38%. Especially this tendencies took place among users
home place as their main point of Internet access grew. At the aged 16-19 (57% said they are active users of social networks
end of 2009 66% of Internet users indicated home as main In- and only 48% considered e-mails on the first place).
Source: gfk.ua
soCIal NetWorks IN ukraINe
Expert in social networks SarafannoeRadio has published TOP-20 rating of the most visited social networks in Ukraine.
1. 2. 3. 4. 5. 6. 7.
2 36 11,1 4 31 6,5 7 4 >0,4 8 6 >0,4 10 93 7,7 11 82 6,3 19 294 11,5
8. 9. 10. 11. 12. 13. 14.
22 7 >0,4 24 2 >0,4 32 12 >0,4 48 1727 17,5 50 33 >0,4 67 140 >0,4 78 10186 97,6
15. 16. 17. 18. 19. 20. Place in Ukraine
Place in world
Ukrainian share
91 37 >0,4 98 998 7,5 105 1582 10 134 2051 9,5 168 1102 5,5 206 21135 55,6
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4. Cross-borDer DIstaNCe sellINg IN ukraINe: Info DIGEST April 2011
As you can see the most popular social network is Vkontakte. According to the Facebook age distribution
statistics 50% of
Ukrainians continue occupying first place in the world by Face- Ukrainian users are
book penetration growth rate. women and 50% —
men.
As of January 1st, 2011 total number of users registered
in Facebook stating Ukraine as their country of living was Newcomer in rating
1 020 320 people. is LinkedIn.com so-
cial network actively
At the moment 2,25% of Ukrainians are registered in Face- wining popularity in
book. Ukraine occupies 68th place among countries world- Russia and Ukraine.
wide by number of Facebook users.
Source: sarafannoeradio.org
uDMa speCIal
For classic DM specialists this is not a secret but time to relax
yet didn’t come! New communication tools are constantly ap-
pearing. Nowadays success of the real professional is in the
ability to combine strong basis with the new opportunities.
DM Days will traditionally consist
of separate informational flows:
loyalty Day
The message is always the same! Love your customer just like
you love yourself :) Don’t send spam, don’t call without reason,
don’t text at night, take care, protect and give him joy – and
the customer won’t look for anyone else but you. But if you
Traditionally for spring on May, 26 – 27 2011 Dialog Marketing have 5 customers and 10 account managers this is more or less
Days in Ukraine is going to take place. For 10 years now DM possible. But when we talk about thousands – there should be
Days is the leading forum for experts in communications. This a system.
time the event is planning on not only to keep up with its pace
but also engage a wider audience. What kind of a system? We will get to know!
Rendering tribute to the revolutionary slogans but holding CoMMuNICatIoN strategy Day
evolutionary way as DM Days 2011 slogan simple but compre-
hensive one was chosen. Down with monolog, up with dialog! Is direct marketing style business possible? Yes, moreover, it is
impossible to run it in any other way!
Reason is obvious. Brands that fail to communicate with
their consumers are in the past. Of course none forbids to While many marketing people were leading towards personal
bring your ideas by mass communication but if you want to communications, these tools have already come to take over.
be heard (meaning: bought, ordered, recommended) bare ATL weapon does not provide desired results. How to change
speaking is not enough. Listening, hearing and communicat- your strategy – hear, discuss, understand.
ing are important.
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5. Cross-borDer DIstaNCe sellINg IN ukraINe: Info DIGEST April 2011
DM tools Day 5. E-merchandising: how to sell more and better via online
catalogue
Is mobile and social media marketing among the DM tools?
Experienced DM specialists have no doubt about that. As they 6. Loyalty programs for the distance selling customers
imply personalized communication. But does one understand
the specific features of these instruments? Practice of applica- 7. Mobile marketing as an instrument of distance selling com-
tion? Skills of effective application? Unfortunately, very often pany
this is not the case. Let us correct the situation!
8. Social networks – new opportunities of customers engage-
CoMpeteNCe Day ment for distance selling companies
Knowing WHAT to do we can pass on to WHO and HOW. 9. Organization of effective service at a distance selling com-
Literally – which competences and character features should pany
modern marketing manager have? Does he or she have to be
smart, good-looking? Should he or she take the lead of every- It’s already a tradition that the national post offices of Europe-
thing and everyone, be able to enjoy life and be always ready an countries take part with presentations. The representatives
to create? And the main thing – how to fit everything into 24 of the national postal services cover the subject of distance
hours… selling strategies, development strategies and entering the in-
ternational market. Thus, last year the program included the
DIreCt hIt Day speeches of the Hungarian Post and Swiss Post delegates. In
2011 the Austrian Post and the Ukrainian monopolist Ukrpoch-
Practice, practice and practice! Implemented ideas, proven ta have agreed to make presentations at the conference.
results. Source of ideas. Pride in the colleagues and envy of
competitors – all this at the public defense of the season 2010- The Ukrpochta representatives will speak about the existing
2011 best projects according to the competent jury. services and projects, special services for distance selling com-
panies and other information, which cannot be found on the
МО Day internet. Conference participants will have an opportunity to
ask questions.
Pace of distance selling development and rising turnovers of
this market imply confidence in its prosperity in near future. Of The presentation will consist of the following parts:
course there are still more obstacles to overcome and more
issues to solve. 1. Introduction about distance selling market by Ukrpochta
The conference will initiate the discussion 2. Ukrpochta as the major operator of the postal logistics in
of the following key points: Ukraine, advantages of its infrastructure
1. Catalogue mail order customer: who is that? Psychology of 3. Existing and potential services for distance selling companies
the distance purchase and the ways of effective application
of the collected data 4. Consignment mechanism for distance selling
2. E-customers engagement and retention 5. Safety of the information the company passes to the
Ukrpochta
3. Responsibility of the distance selling companies to the cus-
tomer Please not hesitate to contact us or DM Days organizing com-
mittee in you have any questions.
4. Online catalogue as an important distribution channel for
traditional catalogue companies
Organizing committee: +38 044 490-90-88; org@dmdays.com.ua; www.dmdays.com.ua
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