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The volume of the gray consumer electronics market in 2021 is known in numbers

25/ 11/ 2021
  In 2021, the transparent market for home appliances and electronics grew by an average of 10% in units of products and 24% in monetary terms. The largest growth happens in such categories as computers, laptops, tablets, and small appliances, and other equipment, which Ukrainians began to actively buy after the transition to remote work. This is the first good news stated by Viktoriia Kulykova, EBA Consumer Electronics Committee Manager during a press conference with a presentation of a study conducted by GfK on the volume of the gray market of home appliances and electronics in Ukraine in 2021. The second good news is that the market for illegal imports of equipment and electronics in Ukraine has declined. After all, this is not the first study of this type, the previous one was conducted by Gfk in the pre-pandemic time, namely 2019. Therefore, the participants of the event not only noted the new indicators on the number of illegal imports of electronics in 2021 but also compared the figures with similar results in 2019. In particular, the average share of the gray market of home appliances and electronics decreased from 23% in 2019 to 16% in 2021 as commented by Tetyana Sytnyk, a GfK representative. Meanwhile, the event participants were forced to state the bad news, namely the decrease in the share of the gray market mainly due to certain situational factors caused by the pandemic, and not due to qualitative changes in customs reform or improved control over illegally imported products on the territory of Ukraine. Such factors include a global shortage of equipment components caused by downtime of plants during hard lockdowns, a reduction in import schemes due to border closures, and efforts by the market itself to reduce the attractiveness of gray equipment. The tendency for reduction of gray imports was confirmed by Yevhen Shkola, Head of the Legal Department of Samsung Electronics. At the same time, he stressed that there has been a significant increase in the share of the gray electronics market in the category of so-called premium goods. According to the Gfk survey, the main reasons for gray imports include corruption in customs authorities, the possibility of non-payment of customs duties and taxes, the ability to the risk-free sale of illegally imported goods in the country. Besides, the participants stressed that when the pandemic recedes into the background - there is a high risk of a rollback and even a worsening of the situation with the volume of illegal imports of equipment and electronics in Ukraine. Therefore, in order to finally eliminate the problem of illegal trade in imported / counterfeit products, the participants called on the authorities and state bodies to implement a consistent state policy aimed at reducing the economic attractiveness of selling illegally imported or counterfeit goods in Ukraine. Thus, the GfK study showed that the greatest support among market participants are government initiatives to expand the use of RSO (as well as software registrars of settlement transactions). Thus, 73% of respondents believe in the high efficiency of such initiatives. 47% support such a tool as registration of equipment on the websites of manufacturers and registration of electronic warranty, and 29% believe in the effectiveness of the idea of ​​creating a voluntary register of online stores to address the identification of online sellers. Therefore, the European Business Association hopes that public authorities will listen to business advice and implement long-awaited legislative changes, including the return of the cashback mechanism for consumers who find that they have been issued a fictitious check. Besides, civilized conditions for e-commerce will be created, which will be the key to a systematic solution to the problem of illegal imports, rather than a short-term improvement.   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

In 2021, the transparent market for home appliances and electronics grew by an average of 10% in units of products and 24% in monetary terms. The largest growth happens in such categories as computers, laptops, tablets, and small appliances, and other equipment, which Ukrainians began to actively buy after the transition to remote work. This is the first good news stated by Viktoriia Kulykova, EBA Consumer Electronics Committee Manager during a press conference with a presentation of a study conducted by GfK on the volume of the “gray” market of home appliances and electronics in Ukraine in 2021.

The second good news is that the market for illegal imports of equipment and electronics in Ukraine has declined. After all, this is not the first study of this type, the previous one was conducted by Gfk in the pre-pandemic time, namely 2019. Therefore, the participants of the event not only noted the new indicators on the number of illegal imports of electronics in 2021 but also compared the figures with similar results in 2019. In particular, the average share of the “gray” market of home appliances and electronics decreased from 23% in 2019 to 16% in 2021 as commented by Tetyana Sytnyk, a GfK representative.

Meanwhile, the event participants were forced to state the bad news, namely the decrease in the share of the “gray” market mainly due to certain situational factors caused by the pandemic, and not due to qualitative changes in customs reform or improved control over illegally imported products on the territory of Ukraine. Such factors include a global shortage of equipment components caused by downtime of plants during hard lockdowns, a reduction in “import” schemes due to border closures, and efforts by the market itself to reduce the attractiveness of “gray” equipment.

The tendency for reduction of “gray” imports was confirmed by Yevhen Shkola, Head of the Legal Department of Samsung Electronics. At the same time, he stressed that there has been a significant increase in the share of the “gray” electronics market in the category of so-called premium goods.

According to the Gfk survey, the main reasons for “gray” imports include corruption in customs authorities, the possibility of non-payment of customs duties and taxes, the ability to the risk-free sale of illegally imported goods in the country.

Besides, the participants stressed that when the pandemic recedes into the background – there is a high risk of a rollback and even a worsening of the situation with the volume of illegal imports of equipment and electronics in Ukraine.

Therefore, in order to finally eliminate the problem of illegal trade in imported / counterfeit products, the participants called on the authorities and state bodies to implement a consistent state policy aimed at reducing the economic attractiveness of selling illegally imported or counterfeit goods in Ukraine. Thus, the GfK study showed that the greatest support among market participants are government initiatives to expand the use of RSO (as well as software registrars of settlement transactions). Thus, 73% of respondents believe in the high efficiency of such initiatives. 47% support such a tool as registration of equipment on the websites of manufacturers and registration of electronic warranty, and 29% believe in the effectiveness of the idea of ​​creating a voluntary register of online stores to address the identification of online sellers.

Therefore, the European Business Association hopes that public authorities will listen to business advice and implement long-awaited legislative changes, including the return of the cashback mechanism for consumers who find that they have been issued a fictitious check. Besides, civilized conditions for e-commerce will be created, which will be the key to a systematic solution to the problem of illegal imports, rather than a short-term improvement.

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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