Baby and Child-Specific Products in Ukraine

PROSPECTS

Babies and toddlers – important consumers of baby and child-specific products in Ukraine

In Ukraine, where consumer income levels remained low in 2017, despite recent economic stability and growth in salaries, baby and child-specific products remains an area where parents often economise on. One exception is babies and toddlers for whom Ukrainians try to buy the best products possible, whether it be toiletries, skin or hair care etc.

Unfavourable demographics hamper category potential

In 2017, the population in Ukraine aged 0-11 years continued falling, from 5,395,000 in 2016 to 5,380,000 in 2017, according to Euromonitor International, while the birth rate did not see any improvement. The unfavourable situation with core consumers of such products means reduced category potential.

Innovation restricted by low consumer spending power

In 2017, new product development was not particularly active in baby and child-specific products in Ukraine. While the price factor remained important, manufacturers could not experiment much with offering unique formulations or advanced packaging.

COMPETITIVE LANDSCAPE

Multinational brands are strong while locals attract with lower prices

Multinational brands such as Johnson's Baby and Bubchen are well established in baby and child-specific products in Ukraine thanks to their early entry, wide assortments of high-quality products, innovations as well as active advertising support and distribution. Meeting a good price/quality balance is another factor allowing the companies to maintain top positions in the category.

Internet retailing – distribution channel with potential

Chained operators, whether hypermarkets, drugstores/parapharmacies or other specialists, are highly important distribution channels for baby and child-specific products in Ukraine. However, at the end of the review period, in line with the evolving culture of online purchasing and growing internet penetration (in spring 2017, internet penetration reached 64.

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