Ukrainian sanitary e-commerce overview

Evgeniy Khanin

UKRAINIAN DIY E-COMMERCE OVERVIEW

E-COMMERCE OVERVIEW

• Internet penetration in Ukraine 42-51%. In USA and Europe 80-90%

• At the end of the 2013th growth of e-commerce in the country will be 49%. Market turnover will reach $2.2 – 2.4 billion.

• The population of Ukraine is 45.5 million. Around 19.3 million use internet and only 2.1 million make purchases online.

Research: comScore, Forrester and Ashmanov and Partners

E-COMMERCE OVERVIEW

PROM.UA 2012 (1-3Q) VS 2013 (1-3Q)

+205% growth of buying on prom.ua platformGrowth by categories:Auto, motorcycle, bike 314%Clothes, shoes 457%DIY segment 602%

Nikolay Palienko, CEO of Prom.ua

CASH CULTURE IN UKRAINIAN WEB

E-COMMERCE TRENDS 2013

Ukrainian offline players has target to sell via internet

Russian shoes retailer ЦентрОбувь, Zara and Motivi are about to open e-shops

UKRAINIAN E-COMMERCE PIE

In Ukraine exist one biggest e-retailer Rozetka.ua, few a bit smaller e-shops and “other”. They get biggest part of pie.

99% of “other” Ukrainian e-shops earn on customers, who:1. find product on Hotline.ua;2. watch video guide and reviews on Rozetka.ua;3. buy in small e-shop, who gave best price

This is a best practice for most European and USA e-shops.Egor Anchishkin, CEO of Zakaz.ua

ONLINE VS OFFLINE RETAIL

Source: Consumer Barometer 2013 with Google

ONLINE/OFFLINE BUYING IN UA, RU AND UK

Source: Consumer Barometer 2013 with Google

UKRAINIAN SANITARY E-MARKET OVERVIEW

Currently in Ukraine actively working about 100+ internet stores with sanitary assortment.80% of them working only with sanitary. Other 20% - internet hypermarkets like Rozetka.ua, Fotomag.ua, Mobilluck.com.ua, Sokol.ua

SANITARY BRANDS, REPRESENTED IN INTERNET

Unofficial web shop

Unofficial web shop

Official site. E-catalog. w/o ordering

Official site. E-catalog. w/o ordering

Source: hotline.ua

UKRAINIAN DIY CHAINS WITH E-SHOP

EUROPEAN DIY CHAINS WITH E-SHOPS

(before Praktiker)

OWN BRAND E-SHOPGROHE DOMAIN NAME

Forward to ubm.com.ua

For saleSoon will be available

Not used yet

OWN BRAND E-SHOPJOYOU DOMAIN NAME

OWN BRAND WEB SHOPDIFFERENT WAYS

OWN BRAND WEB SHOPDIFFERENT WAYS

• Add to the site grohe/joyou functional of online store

• Develop a modern online store grohe/joyou

ADD TO THE SITE GROHE.COM/RU (UA) FUNCTIONAL OF ONLINE STORE

People used to use old siteGood history; many links

Difficult to change worldwide siteLinks from site coming to competitors

DEVELOP A MODERN ONLINE STORE

UsabilitySEONew site engine

TimeMoney

CUSTOMER SOURCES

• Referral traffic

• Organic traffic (SEO)

CUSTOMER SOURCES

• Paid search traffic

• Social traffic

OPERATIONAL ACTIVITY

• Central warehouse using for whole Ukraine

• Own call center

• Own Kiev (region) delivery

• On-line acquiring contract with bank

• Delivery service (Nova Poshta – 1000+ post offices)

HOW OFTEN PEOPLE SEARCH FAUCETSRU UA

MIRROR SITE AT PROM.UA

Additional 30% of turnover

High Google rating

“Warm” audience - ready to buy

ANALYTICS IS A KING!

PHONE CALLS TRACKING

COMPETITORS AND RESELLERS PRICE CHECKING

Thank you!

Evgeniy Khanin