Economic Instability Restrict Purchase of Food Appliances in Ukraine: Ken Research
Majority of the food preparation appliances in Ukraine are categorised as non-essential products. Due to unstable economy in the past years and low purchase rate the sales in the food preparation appliances has declined. Majority of the manufacture are not focusing on innovation but rather focusing on the efficiency of the food preparation appliances. They also increased production of a variety of appliances with low cost, which automatically resulted in increased sales of the food preparation appliances market. Most food preparation appliances are generally considered non-essential products in Ukraine. As a result, low purchasing power and economic instability resulted in a 19% volume decline in the category in 2016. Despite the pressure of the economic crisis, the range of products available in the category was significantly widened during the year by the entrance of unknown brands in the lower-price segment, with most consumers tending either to favour high-quality products offered under better. According to the market research report “Food Preparation Appliances in Ukraine”, the electrical or mechanical appliances used in preparing food are known as food preparation appliances or kitchen appliances. The food preparing appliances available in Ukraine are electric ovens, cookers, cooking plates, boiling rings, grillers and roasters in Ukraine. Supermarket, hypermarkets, or franchise outlets are the basic distribution channels of the food preparation appliances. Majority of the consumers prefer low cost and quality products. Majority of the Ukrainians limit the purchase of food preparation appliances or reschedule purchases for other time. Consumers are inclined to buy second hand goods as a better option to save money. The sales of the food preparation appliances depend on the income levels of the Ukrainians. The well-off consumers prefer high quality and well-known brands, compared to the medium and high-level income consumers. The low-level income consumers choose to buy only the primary food preparing appliances. The leading competitors in the food preparation appliances industry are BSH Pobutova Technika TOV, Groupe SEB and Philips Ukraine TOV. BSH Pobutova Technika TOV offers a wide range of food preparation appliances through the leading brand name Bosch and accounts for majority of the volume sales in Ukraine. Bosch is a well-recognised brand with high quality products. With the positive view in the country’s economy the food preparation appliances market will witness best results with a steady growth.