Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The popularity of smuggled goods among consumers eng

51 views

Published on

5/08/2020

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

The popularity of smuggled goods among consumers eng

  1. 1. The popularity of "smuggled" goods among consumers According to the results of an online survey For Fair and Transparent Customs * In this questionnaire "smuggling" meant moving across the customs border of Ukraine outside customs control or with concealment from customs control of goods that are not covered by the current Criminal Code of Ukraine.
  2. 2. ABOUTTHESURVEY The popularity of "smuggled" goods among consumers Survey "Popularity of "smuggled" goods among consumers" was conducted by the Public Initiative "For Fair and Transparent Customs“ (Initiative) online from 6 to 15 July 2020. This is the fifth in a series of surveys conducted by the Initiative twice a month. The purpose of the survey was to assess the prevalence in the Ukrainian market of goods imported in violation of customs regulations, to determine the attitude of consumers to such goods and willingness to consume such goods. • We found out how often and where (in stores, markets, online, etc.) consumers can buy goods imported in violation of customs regulations. Such goods can occur in various categories: from food and clothing to perfumes, toys or household appliances. • In order to determine consumer awareness of whether there is “smuggled” goods among the goods they buy, we asked whether consumers assumed the presence of “smuggled“ goods among those they bought and whether they bought such goods knowingly. • Respondents also indicated whether it mattered to them whether the goods they had purchased had been officially imported and how, in their opinion, the smuggling of commercial goods affected Ukraine's economy and the well-being of citizens. Finally, respondents were asked to say whether it is necessary to combat the smuggling of goods, and if so - who exactly (the state, business, consumers) should do it. • 76 respondents took part in the survey. 2 The project Public Initiative "For Fair and Transparent Customs" is implemented by the IER with the financial support of the European Union, the International Renaissance Foundation and AtlasNetwork.
  3. 3. RESPONDENTS • Respondents from 15 regions of Ukraine (Vinnytsia, Volyn, Dnipropetrovsk, Zhytomyr, Zakarpattia, Kyiv, Lviv, Odesa, Poltava, Rivne, Kharkiv, Kherson, Cherkasy, Chernivtsi and Chernihiv) and Kyiv city took part in the online survey. • The age of the respondents is from 23 to 60 years, the average age is 40 years 55%45% RESPONDENTS 3The popularity of "smuggled" goods among consumers
  4. 4. How often do Ukrainians buy? Weekly Monthly From monthly to annually Every year Less often than every year HowoftendoUkrainiansbuy? 1% 9% 1% 72% 5% 5% 17% 11% 38% 24% 5% 24% 1% 24% 18% 57% 1% 1% 16% 20% 63% 22% 50% 20% 20% 3% 50% 1% 24% 1% 12% 24% 5% 63% 1% 1% 29% 22%у 46% 9% 45% 25% 1% 20% 4The popularity of "smuggled" goods among consumers
  5. 5. Where do Ukrainians buy? * WheredoUkrainiansbuy? 80% In large stores, supermarkets 74% Online 50% In small shops, in shops near the house 46% In the markets 20% In SAFs (small architectural form), small shops 17% By acquaintances 5 * The sum of % is more than 100, because the respondents chose more than one answer The popularity of "smuggled" goods among consumers
  6. 6. Consumers assume the presence of "smuggled" goods when buying *: Doyoubuy"smuggled"goods? 55% Household appliances 54% Food 54% Gadgets 45% Clothes 41% Household chemicals 37% Footwear 29% Perfumes 24% Excisable goods (alcohol) 18% Toys 11% I do not assume that "smuggled" goods were among my purchasesNO 6 * The sum of % is more than 100, because the respondents chose more than one answerThe popularity of "smuggled" goods among consumers
  7. 7. Did you know that you buy "smuggled" goods? Doyoubuy"smuggled"goods? ? 12% 18% 29% 41% Not interested in how these goods were imported Mostly did not know Knew in some cases Knew in all or most cases 7The popularity of "smuggled" goods among consumers
  8. 8. Would you buy "smuggled" goods?Doesitmatterthatitis"smuggling"? Yes, in some cases (if they are of better quality, cheaper or such goods can not be bought anywhere else) No Hard to say / Don't know Yes, in any case 10% 13% 18% 58% How would you know in advance that the goods you are buying were imported in violation of the customs regime, or would you buy them? Does it matter to you that the goods you bought were imported into Ukraine in violation of the customs regime? 9% 16% 19% 28% 28% Yes Rather yes Probably not No Hard to tell 8The popularity of "smuggled" goods among consumers
  9. 9. “Contraband" or NOT? "Contraband"orNOT? Why do people buy "smuggled" goods in Ukraine? Are you ready to buy "official" goods if their value is higher than the value of goods imported duty-free (in violation of the customs regime)? 81% Because of the better price 51% Because of the opportunity to buy goods that are not available in the country 28% Due to higher quality 22% Due to the larger range 5% Most do not know what they are buying "smuggled" goods 32% In some cases 23% Rather yes 17% Yes 13% Probably not 7% Hard to say / Don't know 7% No 9The popularity of "smuggled" goods among consumers
  10. 10. Theimpactof"contraband" The impact of “contraband" on the economy of Ukraine and the welfare of citizens 3% 42% 55% "Smuggling" has a negative impact on both Ukraine's economy and the well-being of its citizens "Smuggling" has a negative impact on Ukraine's economy, but has a positive effect on the well-being of citizens "Smuggling" has a positive effect on both Ukraine's economy and the well-being of its citizens 10The popularity of "smuggled" goods among consumers
  11. 11. Is it necessary to fight "smuggling"? * Isitnecessarytofight"smuggling"? It is necessary to fight, first of all, with "smuggling" on a large scale, and not with "smuggling" in which small consignments of goods are imported No need to fight "smuggling" Customs rates need to be reduced to eliminate the need for "smuggling" Ukraine needs to create jobs and develop its economy to eliminate the need for "smuggling" All "smuggling“ must be combated, regardless of what goods are imported and in what quantities 30% 46% 38% 47% 1% 11 * The sum of % is more than 100, because the respondents chose more than one answer The popularity of "smuggled" goods among consumers
  12. 12. Is it possible to solve the problem of commodity "smuggling" in Ukraine? Isitnecessarytofight"smuggling"? 16% 28% 19% 37%It is possible to stop large-scale "smuggling", but small-scale "smuggling" will remain It is possible to stop all or most of the "smuggling" Certain "smuggling" schemes or certain participants in these schemes may be stopped, but new ones will emerge in their place The problem of commodity "smuggling" cannot be solved in Ukraine 12The popularity of "smuggled" goods among consumers
  13. 13. Whoshouldsolvetheproblemof commodity"smuggling"inUkraine? * The sum of % is more than 100, because the respondents chose more than one answer Who should solve the problem of commodity "smuggling" in Ukraine? * 89% State Customs Service of Ukraine 55% State Border Guard Service of Ukraine 48% Government of Ukraine 43% A consumer who will not buy smuggled products 37% Security Service of Ukraine 33% Market participants (business) who pay all import duties 32% State Tax Service of Ukraine 32% Verkhovna Rada of Ukraine 20% National Police of Ukraine 17% Local governments 16% President 8% National Security and Defense Council of Ukraine 8% Countries from which goods are imported to Ukraine 7% National Reform Council 3% European Union 13
  14. 14. CONCLUSIONS ATTITUDE TO CONSUMPTION OF "SMUGGLED" GOODS • As expected, food and household chemicals are among the goods that consumers buy most often. Home appliances, electronic devices ("gadgets") and toys are rarely bought. • Buying goods online is almost as common as buying them in large stores or supermarkets - three quarters of respondents said they buy goods online. However, this indicator could be influenced by the fact that the survey was conducted online, i.e. respondents who use the Internet and social networks are likely to be more likely to shop online. • According to the respondents, they could buy the most "smuggled" goods among food, household appliances and electronic devices. Also, these products can be quite common among clothing and household chemicals. • Competitive price is the main reason why, according to respondents, "smuggled" goods are in demand. The ability to buy unavailable goods is also an important reason for buying such goods, but not as decisive as the best price. • One third of respondents knew or were mostly informed that his or her purchases included goods imported in violation of customs regulations, although two out of five respondents said they did not know or were not interested in whether they were among the goods they bought, such that were imported in violation of customs regulations. 14The popularity of "smuggled" goods among consumers
  15. 15. CONCLUSIONS(CONTINUED) ATTITUDE TO CONSUMPTION OF "SMUGGLED" GOODS • At the same time, almost two thirds of respondents (58%) said that they would buy or in some cases buy goods, even if they knew in advance that they were imported unofficially. This indicates that the benefits of buying such goods (better price, range, quality, etc.) are a more important factor for a significant proportion of consumers than the financial and legal aspects of importing goods in violation of customs regulations. • The main factor in the consumption of "smuggled" goods is the price (88% of respondents), also important is the ability to buy goods that are not officially imported, "which are not in the country" (55% of respondents). • More than half of respondents (52%) said that it was important for them that the goods were imported in violation of the customs regime, and 55% of respondents expressed a willingness to buy officially imported goods instead of those imported unofficially, even at higher prices. BRIEFLY: So, the attitude of Ukrainian consumers to "smuggled" goods consists of contradictory judgments. On the one hand, such goods are often bought because of the lower price and better range. On the other hand, it is important for the consumer how the goods are imported, and he or she is ready or rather ready to buy a similar product, officially imported, even at a higher price. WHAT TO DO: Information activities and campaigns aimed at raising consumer awareness of the origin of goods in the market can potentially change consumer behavior towards increasing the conscious choice to buy officially cleared goods. 15The popularity of "smuggled" goods among consumers
  16. 16. CONCLUSIONS(CONTINUED) INFLUENCE OF "SMUGGLING" ON THE ECONOMY AND WELL-BEING OF CITIZENS • 55% of respondents believe that the "smuggling" of goods has a negative impact on both the country's economy and citizens. Slightly fewer respondents (42%) believe that "smuggling" has a positive effect on the welfare of citizens, although negatively - on the economy of Ukraine. The rest (3%) believe that this is positive for both the economy and citizens. BRIEFLY: There are two opposing views on the impact of "smuggling" on the welfare of citizens, who have about the same share of supporters (according to our online survey). WHAT TO DO: Citizens need to be made more aware of the direct link between the economic situation in the country and their own well-being. 16The popularity of "smuggled" goods among consumers
  17. 17. FIGHT AGAINST "SMUGGLING" OF COMMERCIAL GOODS • 47% of respondents believe that all smuggling should be tackled, regardless of size, and 46% of respondents think that it is necessary to “create jobs and develop the economy to eliminate the need for smuggling.” 38% believe that customs rates should be reduced to eliminate the need for smuggling, and 30% believe that it is necessary to fight smuggling only on a large scale. • Only less than a third of respondents (28%) believe that it is possible to stop all or virtually all "smuggling" of goods, the rest are less optimistic and have reservations. 35% of respondents are pessimistic about the possibility of combating "smuggling" (they think that this phenomenon can not be stopped, because "by stopping some schemes, others will immediately appear"), 37% believe that "big smuggling" can be overcome, but smuggling in small volumes will still remain. • The main participants in the fight against "smuggling" of commercial goods, according to respondents, are the State Customs Service (88%), the State Border Service (55%), the Government of Ukraine (48%), conscious consumers (43%), the Security Service of Ukraine (38%), business that pays all duties (33%), the State Tax Service (32%) and the Verkhovna Rada (32%). CONCLUSIONS(CONTINUED) 17The popularity of "smuggled" goods among consumers
  18. 18. FIGHT AGAINST "SMUGGLING" BRIEFLY: Large-scale "smuggling" must be combated. And the chance of success is quite high: it is necessary not only to counter "smuggling", but also to create economic opportunities when "smuggling" becomes economically unprofitable and unnecessary. This is the important role of citizens (or consumers) and their conscious attitude to consumption, understanding the relationship between their own well-being and the economic situation in the country. WHAT TO DO: It is necessary to counteract "smuggling" by using a set of border control tools, and to create conditions when "smuggling" becomes unprofitable for business and unnecessary for the consumer, to increase consumer awareness of the connection between their own well-being and the economic situation in the country. It is necessary to raise public awareness of how state and local budgets are used. CONCLUSIONS(CONTINUED) 18The popularity of "smuggled" goods among consumers
  19. 19. CONTACTINFORMATION The project Public Initiative "For Fair and Transparent Customs" is implemented by the IER with the financial support of the European Union, the International Renaissance Foundation and AtlasNetwork. CONTACT сайт: www.tfd.ier.com.ua e-mail: customs@ier.kyiv.ua​ Facebook: www.facebook.com/TFD.IER Facebook The Institute for Economic Research and Policy Consulting Reytarska str. 8/5-A, Kyiv 01054, Ukraine tel. + 38 044 278-63-42 fax + 38 044 278-63-36 institute@ier.kiev.ua www.ier.com.ua

×