News of Ukrainian Retail in May 2019

News of Ukrainian Retail in May 2019

15-08-2019

We continue to post the most interesting news of the world and Ukrainian retail. This article contains the best May publications about Ukrainian retail.

VC.ru outlined retail digitalization trends

According to VC.ru top trends influencing worldwide retail include:

  • Big Data;
  • artificial intelligence;
  • augmented reality;
  • blockchain.

Retail is a sphere strongly influenced by all kinds of innovations. One of them is digitalization, which keeps changing retail market fundamentally, including consumers’ patterns of behavior. In general, there is an increase in consumption rates. Modern technologies are evermore actively implemented and retailers are striving for much deeper levels of analysis and understanding of their target audience.

The main digitalization directions in retail are:

  • client work: from the emergence of interest in brand to actual purchase;
  • supply supervision and logistics;
  • improvements in staff performance and in work with layouts and price tags;
  • IT infrastructure security and control systems.

State Statistics Service of Ukraine calculated retailers’ average salary

Roughly one in ten Ukrainians is now working in retail. State Statistics Service of Ukraine released its latest 2019 data according to which Ukrainian retailers’ salary averages around UAH 10,269. This is two and a half times more than minimum salary level in Ukraine (UAH 4,173).

A general pattern indicates 21% increase in salary rates compared to 2018. Besides, the highest earners live in Kyiv, Dnipropetrovsk and Donetsk regions. For example, Kyiv salaries are 55% and Donetsk region salaries are 18% higher compared to an average salary level nationwide.

Retail is characterized by relatively high remuneration if compared to other spheres in Ukraine. An average nominal wage in retail in April 2019 reached UAH 11,022, which is 7.3% higher than in other markets. In Ukraine, there are only a few sectors, which can outrank retail when it comes to salaries. Those include IT, finance, industry, transport, telecommunications, public management, and defense.

Fears and saving preferences of Ukrainians

The Conference Board and Nielsen recently published the results of the major consumer confidence study conducted in Ukraine. Сonsumer confidence index took into account three criteria:

  1. Prospects on the labor market (for one year in advance).
  2. Financial wellbeing (for the same period).
  3. Willingness to spend money (right now).

Although the third quarter of 2018 showed an increase in confidence index of Ukrainian consumers, the first quarter of 2019 indicated a major nine points drop – down to 55.

But constant increase of price for utilities is not the only reason for such a drop. Unstable and unpredictable political situation before presidential elections also played its part. However, it did not affect the increase in consumer spending and the growth of FMCG market continues with double effect.

According to Nielsen and The Conference Board research, war seems less threatening to Ukrainians than utilities prices increase. This fear topped all other categories: health care, economy, food prices etc. Prices for gas, electricity, water, heating and other utilities occupy first place among top fears among Ukrainians.

Moreover, at least 70% of Ukrainian population is trying to save money. And the most popular saving category is utilities. However, Ukrainians save a little bit less when it comes to clothes, food, household appliances and gadgets.

The Parliament passed the Law on the Ukrainian language

Finally, the news that are impossible to ignore. By absolute majority, the Ukrainian Parliament has officially passed the law №5670-д, which should secure the Ukrainian language as the only official national language. Authors hope that new law will change language policy in Ukraine.

What does this mean for Ukrainian retailers? From now on all services and information for clients in Ukraine should be provided in its official language. This also concerns remote services and all digital content: advertising campaigns, articles, publications etc. Otherwise, business owner would be at risk of paying a fine and losing reputation in professional circles, among customers and mass media.