Results of GfK TEMAX® Ukraine for the third quarter of 2011: Sound performance continues in Q3 2011

November 21, 2011 - The Technical Consumer Goods (TCG) market in Ukraine con-tinues to show growth, recording a rise of 25% in Q3 when compared to the same period of last year. The market has experienced strong increases since the start of the year and stands at UAH 11 million. IT and Major Domestic Appliances are still the best performing sectors and make up 50% of all sales within the TCG market. The IT sector witnessed impressive figures from August – September 2011 due to "Back to School” period.

Office equipment: MFD outperform scanners

Within the OE sector, scanners showed a drop in sales when com-pared to Q3 2010; 26% in units and 4% in value. There was a reduc-tion in the sales of scanners; however, manufacturers were reluctant to lower prices. Thus multifunctional devices (MFD) still have market dominance within OE sector with a share of 65%. MFD market has risen by 15% while printers increased by 8%.

Small Domestic Appliances: Moderate market changes

Sales of small domestic appliances in Ukraine amounted to UAH 0.63 billion, which represents an increase of 13% when compared to Q3 2010. Once again, there was a demand for coffee machines; 37% more were sold against the Q3 2010, however, the segment remains relatively small.

Vacuum cleaners formed the largest segment within the SDA sector in Q3, generating almost a third of all sales. This quarter, however, there was decrease in value when compared to the same period in 2010.

Irons also experienced a negative trend, remaining almost stationary (11% of sales within the sector).

On the other hand, within the hair care segment, haircutting and hair-styling products increased by 20% and 27% respectively. This was mainly because of effective promotional campaigns. Kitchen appli-ances witnessed a revival, recording an increase of 90% in sales vol-ume and now account for 5% of the total SDA market.

Telecommunications: Mobile phones remain biggest segment

In third quarter 2011, the Telecommunication sector showed a minor growth of 15%. Mobile phones remain the biggest segment of the sector, however, smartphones are becoming an increasingly dominant force – they now take up a third of all sales and have grown by 91.7% to reach UAH 821 million. One of the main reasons for this is the price increase of 9%. Furthermore, touch screen and larger screen displays are becoming more popular. There is also an interest-ing trend towards mobile phones with two sim cards.

Despite an 18% rise in phones with color displays, the total market for traditional telephones has fallen by 6% and accounts for only 1.5% of the whole sector.

Major Domestic Appliances: Freezers are on top

With the exception of dishwashers and tumble dryers, all MDA seg-ments saw increases to help the sector post 16% growth.
Freezers and washing machines were the best performing sectors when compared to Q3 2010, showing growth of 34% and 23% re-spectively. The remaining segments also showed solid growth. Refrig-erators increased by 11%. Hoods achieved the same growth while microwave ovens performed slightly better with 12%. Additionally, hobs and built in ovens increased by 19% and cooking surfaces by 16%.

Photo: Overwhelming results in Q3

In Q3 2011, the Photo sector increased by 30% when compared to the same period of last year. Figures so far are significantly better than the first of the year and the sector is expected to experience a strong end to the year.

Consumer Electronics: Market revival

In Q3 2011, the Consumer Electronics sector showed growth of 31% over the same period of 2010. However, as expected, in the third quarter there was a slowdown. This was largely because of the strong comparison base from the second half of last year. It is impor-tant to note that, for the first three quarters of 2011, sales were higher than the "pre-crisis” year of 2008. This is shows that the mar-ket is developing well.

Once again, the TV segment was important for the Ukrainian CE mar-ket, taking a share of 76%.3D TVs, which have seen a recent influx in demand, occupied 15% of all flat TVs sold in Q3 2011; this is a 6% rise when compared to Q2 2011. LED TVs have also performed well, increasing their share by 31% in Q3 2011 when compared to the cor-responding period of 2010.

Information technology: Laptops beat Netbooks

Overall, the IT sector showed a growth of 46% compared to the same period in 2010 making it the fastest growing sector.
Laptops demonstrated an incredible growth rate of 50% and helped maintain the IT sector’s leading position in the TCG market (70%). The share of netbooks continued to decline in Ukraine.
The 26% growth of LCD monitors was mainly caused by an almost fourfold increase in sales of LED monitors. Widescreen dis-play monitors (16:9) virtually replaced all other products in the mar-ket. 3D monitors showed slow but steady growth; nevertheless it is too soon to predict their leadership. The monitor segment remained stable with a share of 20.5%.
Sales of desktops grew by 32% compared with the same period of 2010 and still have a minor share in whole IT sector – 10%.

Conclusions

Despite the reserved forecasts, Q3 2011 was a continuation of the success experienced in the first half of the year. Robust growth was experienced in all sectors, with IT performing exceptionally well. Con-sumer Electronics and Photo also experienced sound growth. Based on Q3 results, Q4 is expected to be a strong quarter.

The survey

GfK TEMAX® is an index developed by GfK Retail and Technology to track the technical consumer goods markets. The findings are based on surveys carried out on a regular basis by the retail panel of GfK Retail and Technology. The retail panel comprises data from over 340,000 retail outlets worldwide. Since February 2009, GfK Retail and Technology has also been compiling the GfK TEMAX® index at interna-tional level, in more than 30 countries. It is the first index that in-cludes all of the markets for technical consumer goods in different countries. All reports and press releases are available at www.gfktemax.com.

If information from this press release or www.gfktemax.com is cited, GfK TEMAX® should be explicitly indicated as the source.

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Yevhenia Yegorova
Business Development Manager
GfK Ukraine
Tel. +380 44 230-0260
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