This document provides an overview of the Ukrainian DIY e-commerce market. It finds that while internet penetration in Ukraine is 42-51%, only 2.1 million Ukrainians make online purchases, compared to 19.3 million internet users. The DIY segment saw 602% growth on the Prom.ua e-commerce platform from 2012 to 2013. Most Ukrainian e-shops earn revenue by driving customers to find products on price comparison sites and then purchase from a smaller e-shop with the best price. The top e-retailer in Ukraine is Rozetka.ua, while other major players like Grohe and Joyou currently only offer online product catalogs without purchasing capabilities.

1. UKRAINIAN DIY E-COMMERCE OVERVIEW
Evgeniy Khanin

2. E-COMMERCE OVERVIEW
• Internet penetration in Ukraine 42-51%. In USA and Europe 80-90%
• At the end of the 2013th growth of e-commerce in the country will be
49%. Market turnover will reach $2.2 – 2.4 billion.
• The population of Ukraine is 45.5 million. Around 19.3 million use
internet and only 2.1 million make purchases online.
Research: comScore, Forrester and Ashmanov and Partners

3. E-COMMERCE OVERVIEW

4. PROM.UA 2012 (1-3Q) VS 2013 (1-3Q)
+205% growth of buying on prom.ua platform
Growth by categories:
Auto, motorcycle, bike 314%
Clothes, shoes
457%
DIY segment
602%
Nikolay Palienko, CEO of Prom.ua

5. CASH CULTURE IN UKRAINIAN WEB

6. E-COMMERCE TRENDS 2013
Ukrainian offline players has target to sell via internet
Russian shoes retailer ЦентрОбувь, Zara and Motivi are about to
open e-shops

7. UKRAINIAN E-COMMERCE PIE
In Ukraine exist one biggest e-retailer Rozetka.ua, few a bit smaller
e-shops and “other”. They get biggest part of pie.
99% of “other” Ukrainian e-shops earn on customers, who:
1. find product on Hotline.ua;
2. watch video guide and reviews on Rozetka.ua;
3. buy in small e-shop, who gave best price 
This is a best practice for most European and USA e-shops.
Egor Anchishkin, CEO of Zakaz.ua

8. ONLINE VS OFFLINE RETAIL
Source: Consumer Barometer 2013 with Google

9. ONLINE/OFFLINE BUYING IN UA, RU AND UK
Source: Consumer Barometer 2013 with Google

10. UKRAINIAN SANITARY E-MARKET OVERVIEW
Currently in Ukraine actively working about 100+ internet stores
with sanitary assortment.
80% of them working only with sanitary. Other 20% - internet
hypermarkets like
Rozetka.ua, Fotomag.ua, Mobilluck.com.ua, Sokol.ua

11. SANITARY BRANDS, REPRESENTED IN INTERNET
Unofficial web shop
Unofficial web shop
Official site. E-catalog. w/o ordering
Official site. E-catalog. w/o ordering
Source: hotline.ua

12. UKRAINIAN DIY CHAINS WITH E-SHOP

13. EUROPEAN DIY CHAINS WITH E-SHOPS
(before Praktiker)

14. OWN BRAND E-SHOP
GROHE DOMAIN NAME
Forward to ubm.com.ua
For sale
Soon will be available
Not used yet

15. OWN BRAND E-SHOP
JOYOU DOMAIN NAME

16. OWN BRAND WEB SHOP
DIFFERENT WAYS

17. OWN BRAND WEB SHOP
DIFFERENT WAYS
• Add to the site grohe/joyou functional of online store
• Develop a modern online store grohe/joyou

18. ADD TO THE SITE GROHE.COM/RU (UA)
FUNCTIONAL OF ONLINE STORE
People used to use old site
Good history; many links
Difficult to change worldwide site
Links from site coming to competitors

19. DEVELOP A MODERN ONLINE STORE
Usability
SEO
New site engine
Time
Money

20. CUSTOMER SOURCES
• Referral traffic
• Organic traffic (SEO)

21. CUSTOMER SOURCES
• Paid search traffic
• Social traffic

22. OPERATIONAL ACTIVITY
• Central warehouse using for whole Ukraine
• Own call center
• Own Kiev (region) delivery
• On-line acquiring contract with bank
• Delivery service (Nova Poshta – 1000+ post offices)

23. HOW OFTEN PEOPLE SEARCH FAUCETS
RU
UA

24. MIRROR SITE AT PROM.UA
Additional 30% of turnover
High Google rating
“Warm” audience - ready to buy

25. ANALYTICS IS A KING!

26. PHONE CALLS TRACKING

27. COMPETITORS AND RESELLERS PRICE CHECKING

28. Thank you!
Evgeniy Khanin