In 2018, home shopping demonstrated single-digit growth in current value terms. However, as value sales continued to decline at constant 2018 prices, growth was significantly impacted by inflation.
The interest in ordering goods by mail or phone has largely been on the decrease amongst Ukrainian consumers, with adherents of traditional physical retailing benefiting from a wide variety of options, and consumers who formerly preferred home shopping also opting to order merchandise online. This situation is likely to persist in the future.
Despite the move away from home shopping by some consumers, it should be noted that home shopping in Ukraine is a popular retail channel for some types of goods. Notable categories include apparel and footwear, beauty and personal care and homewares.
One possible explanation for the relative stagnation of home shopping as a retail channel in Ukraine is the fact that most product categories are headlined by only one or two leading players. For instance, the main player in apparel and footwear is Bonprix, which holds a vastly higher share than its competitors.
Bonprix, a brand from Otto-Posyltorg, representing Otto Group, a globally active mail order and home shopping company, was amongst the top international brands in 2018. Bonprix followed Top Shop from Studio Moderna Ukraine, representative of a major Eastern European player Studio Moderna, with its headquarters in Slovenia.
Since home shopping in Ukraine is seeing a poor performance, only players with solid expertise at promoting their offerings, as well as good fulfilment and ordering processes, show promising sales performances. These companies can invest far greater effort and resources in better promotional materials and outreach, and are likely to maintain their strong positions in the market in the near future.
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This industry report originates from Passport, our Retailing market research database.