Positive developments were noted in apparel in Ukraine during 2011 as the industry showed signs that it had begun to emerge from the most difficult times of economic crisis. Volume sales picked up even though the levels of volume sales which were typically during the period immediately preceding the onset to the economic crisis have not yet been achieved. Consumer spending power remains severely restricted and many Ukrainian people continue to economise on clothes and footwear wherever possible. The most active shoppers in Ukraine can be found in large cities such a Kyiv, Donetsk and Dnipropetrovsk, among others and it is in these cities that the majority of value sales in apparel are generated. Ukraine’s rural inhabitants remain more economical as the high level of price sensitivity among rural Ukrainians is forcing many of them to continue wearing old clothes, while new clothes are purchased at the lowest possible prices at bazaars. The strong appeal of second hand apparel continued in Ukraine during 2011 as this represents a very cheap alternative to new clothes.

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Published: May 2012

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Consumers become fussier during the economic crisis as value for money becomes a requirement

Towards the end of the review period, consumer patterns in apparel in Ukraine evolved in a reflection of the growing interest among Ukrainians in product quality, irrespective of price. Ukrainians are more than willing to pay more for high quality apparel which represents good value for money products as many consumers have finally begun to realise that cheap apparel are often unable to be justified as the poor quality of economy apparel represents false economy. However, the trend towards higher quality apparel is becoming much more prominent in Ukraine’s urban areas, in which consumer incomes are high enough to allow a significant number of people to afford high quality apparel. In Ukraine’s more remote rural areas, low unit price remains the core demand factor in both clothes and footwear, and this is a reflection of the low incomes levels of Ukraine’s rural consumers.

Imported apparel remains much more popular than domestic products

Ukraine’s domestic apparel manufacturers tend not to fare particularly well and imported clothes and footwear continue to flood into Ukraine. The country’s leading importers of apparel dominate in all apparel categories and many of these companies find it very easy to compete with local companies, offering wide product ranges across all price ranges. The competitiveness of local apparel manufacturers remains inferior in comparison to foreign companies who manufacture their garments and footwear in Asian countries with lower-paid workforces. Another factor benefiting apparel importers is the lowering of the prices of imported products in order to save on taxes. Towards the end of the review period, several new foreign players were attracted into apparel in Ukraine, including Gap, New Yorker and BoscoSport, among others. Mid-priced apparel is a particularly attractive area for new entrants.