The document discusses opportunities for online trade and e-commerce in Ukraine. It notes that Ukraine has a population of 45.6 million people and retail sales of €90 billion in 2012, with estimated B2C e-sales reaching €1.1 billion. Internet penetration is growing rapidly, reaching 18 million users in 2011. The economy is also growing, with GDP growth estimated at 3.0% in 2012 and 3.5% in 2013. The document outlines two methods for foreign companies to enter the Ukrainian market - via consignment or direct import - and notes the healthy year-over-year growth in the volume of items forwarded to Ukraine.

1. UKRAINE: Land of Opportunities
Trade Mission Odessa, September 2012
By Juraj SEBO and Aad Weening

2. Global Online Trends
• World Internet users: 2.4 bn to reach 3.5 billion in 2015
• Global e-Spend 2011: $969billion (set to double in 5 years)
• Mobile Commerce will reach 20% of total e-sales this year
• BRIC countries to lead (Brazil, Russia, India, China): e-Sales up 500% since
2007; China’s e-sales 2012 will grow with 88%, India plus 50%, Russia plus
35% and Brazil plus 30%
• Watch the MIKT countries: Mexico, Indonesia, (South) Korea and Turkey!
• And....the CIVETS countries: Columbia, Indonesia, Vietnam, Egypt, Turkey
and South Africa
• Global e-Shoppers to reach 1 bn in 2012, more than tripled since 2005
• Integration of tradional and digital media

3. Global e-Commerce View
2012 2011 2012/2011
USA $355bn $311bn +15%
Europe $390bn $343bn +20%
Asia Pacific $290bn $220bn +35%
Latin America $55bn $43bn +30%
MENA $14.5bn €10bn +45%
World $1,160bn $969bn +20%
Estimated Annual Increase Ukraine: +/- 50% Y-on-Y
Source: IMRG estimates, IMRG Global B2C e-Commerce Overview 2011
NOTE: estimated average annual rate of exchange EUR/USD: 1.25 for
2012; down from 1.3920 in 2011

4. Identifying Markets
* Mature markets in USA & Western Europe: growth per annum between 10
and 15%
* Southern Europe catching up: led by Italy and Spain, growth per annum around
30 to 40 %, Turkey coming up fast!
* Emerging markets in Eastern Europe, led by Russia, followed by Poland and
Ukraine, growth per annum (safely) estimated at 35 - 50%
* Asia-Pacific: fastest growing region; China: 88% up in 2012 and a shift from C2C to
B2C. India plus 50% expected in 2012, more (local) retailers online
* MENA(P) countries coming up, led by Israel & UAE, growing around 45% per year
* Latin America coming up fast, led by Brazil with 60% of total B2C e-sales, followed
by Mexico, Argentina, Caribbean and Columbia. Growth rate around 30%
* Africa still in its infancy, led by Egypt & South Africa

5. Online Issues
* Trust & Confidence: trust marks like Trusted Shops
* Increasing Offer: retailers online, getting local businesses online
* Ordering: availability
* Delivery Options: Standard, 24/48 hours, @Home, Click &
Collect, address systems
*Payment: Security & Options; moving from a “cash-oriented” society
to digital payments
* Returns, setting up a reliable and trusted return system is essential

6. UA Country Facts and Figures
KEY FIGURES Ukraine
Area: 603,550 km2
3rd largest and the 7th most populated of Europe
Currency: Hryvnia (UAH)
Population 2012: 45,6 million
Men: 46,1%
Women: 53,9%
Retail Sales 2012: €90bn (e)
Up: 16% (e)
B2C e-Sales 2012: €1,100mn(e)
Internet Users 2011: 18 million
% of population: 39,5%
Spend per user: €40
Facebook Users: 2,004,420
Penetration: 4,4%
Ranking: #63/213
Internet Domain: .ua
Dialling Code: +380

7. Economy: % growth GDP
Source: IMF
2010 2011 2012 2013
USA 3,0 1,7 2,0 2,3
Euro Zone 1,9 1,5 -0,4 0,7
C&E Europe 4,5 5,3 1,9 2,8
Russia 4,3 4,3 4,0 3,9
Poland 3,9 4,4 2,6 3,2
Ukraine 4,1 5,2 3,0 3,5

8. UA Internet Users
30.0
2000
2005
18.0
15.0 2010
2011
5.0
0.2 2016
million
estimate: 66% buys online
2016: estimate 65% of the population

9. 48% of UA Consumers likely to shop
online

10. Entering the UA Market
A distance selling company or an online retailer can
enter the Ukrainian market in two ways:
• Consignment
no certification needed with some exceptions and no customs duty and no VAT
longer delivery period
• Direct Import
faster delivery, but certification needed and customs duties and VAT will be charged
The following slide shows the number of parcels sent via Slovakia: Y-on-Y a healthy growth

11. Volume of items forwarded to
Ukraine

12. Thank you very much for your kind attention
Juraj Sebo: sebo.juraj1@gmail.com
Aad Weening: aad.weening@imrg.org