Ukraine: Buying and Selling
The Gross Domestic Product per capita in Ukraine (PPP) stood at USD 13,341 in 2019 (World Bank), 75.5% of the world’s average.
In April 2020, the average nominal salary in Ukraine amounted to UAH 10,430, which is 1.6% higher compared with April 2019, according to the State Statistics Service. In 2020, household real income will end its three-year growth streak due to COVID-19 related crisis. The key underlying reasons are the deceleration in business activity, lower wages, and growth in unemployment. Consumer sentiment deteriorated sharply alongside a decline in incomes (National Bank of Ukraine). The final consumption expenditure of households stood at UAH 649,262 million (almost USD 23 billion) at the end of Q2 2020 (UKR Stat).
The Gini index was at 26.1 in 2018 (World Bank, latest data available), with an ascending trend in recent years. Ukraine ranks 39th out of 153 countries in the Global Gender Gap Report 2020. According to the United Nations, despite the existing gender equality and women’s empowerment frameworks, Ukraine still faces challenges affecting the enjoyment of equal opportunities and rights by women in general and those facing compound discrimination in particular. The root causes can be found in patriarchal attitudes and stereotypes, but also in deeply rooted systemic gaps, which have not been addressed. These include weak rule of law, low capacity of the institutional mechanisms for gender equality and lack of political will. Some examples of systemic gender inequality in Ukraine include low level of participation by Ukrainian women in political and civic processes, especially in higher positions, patriarchal culture and deeply entrenched gender stereotypes, widespread gender-based violence, etc.
According to Euromonitor International, low consumer confidence is affecting consumer-shopping habits. Ukrainians are generally reluctant to shop for groceries online because of trust issues. Many consumers are afraid that they would get products of lower quality if ordering online. Young consumers are driving substantial growth in internet retailing and young adults in online shopping. Mobile internet retailing showed double-digit growth in recent years, while continuing the long-term trend of shifting to “mobile first” internet use amongst the population. The development of the mobile internet infrastructure in Ukraine, driven by the expansion of 3G/LTE network coverage across the country, was a major influencing factor for the channel.
Locally produced promotional advertising is an effective method to inform Ukrainians about new products. Including the name of a Ukrainian or Russian distributor and local address on original packaging increases consumer confidence. Second-hand shopping is also growing in popularity.
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Latest Update: June 2022