Microwaves in Ukraine

PROSPECTS

Microwaves sees strong recovery as prices fall and offer expands

Microwaves witnessed dynamic retail volume growth in 2019 with sales benefiting from a number of factors. Firstly, with Ukraine’s economy on the path to recovery and with incomes rising microwaves continued to benefit from postponed demand in 2019, with sales struggling in the early part of the review period due to the financial crisis.

Falling prices and more elegant designs sees sales of built-in microwaves soar

Built-in microwaves outperformed freestanding models in 2019, with this primarily down to the increasing importance of design to Ukrainian consumers and a steep drop in the category’s average unit price. With rising purchasing power and a recovery in the property market, more Ukrainians started to use the services of designers when renovating their kitchens, in turn opting for built-in appliances for a cleaner and more elegant look.

Ukrainians demand functionality

When buying microwaves, Ukrainians typically want not only affordability but also functionality. Although only a niche area in 2019, smart microwaves continued to gain attention, with these devices able to send push-notifications once a meal is cooked; meanwhile, microwaves equipped with a camera allow the user to view a video of their food cooking on a mobile phone.

COMPETITIVE LANDSCAPE

Samsung Electronics remains the leading player

Samsung Electronics further extended its strong lead in microwaves in 2019. This can be attributed to the company’s wide range of good quality microwaves which offer different functionalities and designs, largely across the mid-priced spectrum.

Local player’s struggles persist as consumers focus on functionality

The only popular domestic brand of microwaves in Ukraine is Saturn from KTD Group. After very strong growth in 2016 and 2017, driven by rising demand for more affordable microwaves, the company’s volume share declined in 2018 and again in 2019.

LG bounces back with multifunctional microwaves

While lower-priced brands and private label lost share in 2019 brands offering innovative and multifunctional microwaves staged a recovery, in line with the improving economy. LG Electronics Ukraine TOV was one of the key beneficiaries of this having seen its retail volume share eroded during the economic crisis earlier in the review period.

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