Private joint-stock company AvtoKrAZ (Kremenchuk, Poltava region), the sole Ukrainian manufacturer of heavy trucks, plans to boost production and sales of trucks to 1,200 units in 2018, while in 2017 the enterprise made 629 trucks and sold 677 units, according to a financial report of the enterprise for 2017. According to the document, it is planned to increase production and sales of vehicles thanks to retaining positions in the domestic market and increasing export orders.
The main sales market will remain internal, where it is planned to supply about 800 trucks, or 66% in the sales volume. The share of supplies for export is expected to increase to 34% compared with 19% in 2017. In supplies to the Ukrainian market for the current year, it is expected that 41% will be orders for state-owned structures, and supplies for municipal companies are planned to quadruple.
According to the report, in 2018, AvtoKrAZ intends to continue work on the adaptation of power units to the Euro 6 emission standard and the creation of promising truck models. At the same time, the main attention will be paid to expanding the lines of special equipment for the Armed Forces and compact trucks for public utilities companies. The main rivals of AvtoKrAZ are the trucks of manufacturers from the CIS (MAZ, KamAZ, UralAZ), which are in the same strategic group with KrAZ in terms of the price/quality ratio.
In addition, among the rivals in the markets of Asia and Africa are trucks of Chinese, South Korean and Indian manufacturers.
At the same time, according to the document, such Western manufacturers as Daimler AG (Mercedes, Freightliner, Mitsubishi, Western Star), Scania, Iveco, MAN, DAF, as well as American, Japanese and South Korean companies, which main markets were Western Europe, Japan and North America, in recent years, due to a sharp drop in demand in these markets, are forced to look for new markets in Southeast Asia, Eastern Europe, CIS countries and Africa, that is, where the positions of AvtoKrAZ are traditionally strong.
According to the company, in 2017, out of the 629 trucks produced, 43% of the trucks were dropside trucks, 35% – automobile chassis, 19% – tractor trucks, and 3% – dump trucks.
The main consumers of equipment in Ukraine in 2017 were power structures, oil and gas and municipal sectors. Abroad, the main importing countries are Georgia and Kazakhstan, Turkmenistan, African countries (Nigeria, Egypt, Mali and Ethiopia) and the Middle East (the UAE, Iran). At the same time, the volume of supplies to Ukrainian customers was increased by 50% compared with 2016.
At the same time, the company recalled that until 2013 the main sales market was Russia, where more than 50% of sales were made, and in 2013-2015, this share was reduced to 10%.
Revenue from sales of trucks in 2017 totaled UAH 945 million (90% of total revenue). Spare parts for UAH 64 million were sold (6%), casting products for UAH 23 million (2%) and other products and services for UAH 16 million. AvtoKrAZ adjusted net loss seen in 2017: it was UAH 89.73 million (according to the preliminary data it was UAH 235.6 million), which is 52.4% less than in 2016. Net revenue totaled UAH 1.048 billion (15% down).
The largest online shop Rozetka.ua increased own sales (not taking into account external shops using Rozetka.ua as a marketplace) by some 40% in 2017, the founder and co-owner of the company Vladyslav Chechotkin told Interfax-Ukraine on the sidelines of the SUP Day Forum 2018 held in Kyiv on April 19.
“We are developing. We would like to do this faster,” he said. He found it difficult to predict what will be growth of sales in 2018.
Speaking at the Forum, Chechotkin recalled that since 2014, the company started working as a marketplace, offering its platform to external sellers. Now the company has over 2,000 external sellers.
He said that the share of stock keeping units (SKU) of external sellers at Rozetka.ua is growing, and it has reached 28%. Soon it would exceed 30%. The founder of the company said that in money terms these are other shares. Chechotkin said that for example, Rozetka.ua does not sell books itself, as they are too cheap.
He said that in general, the company has 193,790 SKU in its warehouses, while there are 1.6 million SKU on its website. The range of products was achieved thanks to the attraction of external sellers to the marketplace. He said that the main advantage of the company for them is traffic: 12 million people visit the website every day or use the mobile application. Rozetka.ua is actively advertising its services, being the largest advertiser online and one of the largest on TV.
The founder of Rozetka.ua said that some concerns during the implementation of the marketplace were associated with the risk of a decline in the quality of services, but they turned out to be in vain, since taking into account the strict control of the company for the marketplace participants, the NPS loyalty index is 3% higher than the Rozetka.ua has itself.
Chechotkin said, referring to the data of the TNS research conducted this year, that 63% of consumers visit Rozetka.ua before purchase, and every fifth starts searching from this website.
At the same time, he said that despite the fact that 71% of buyers are searching for goods online, 41% of them buy these goods offline. In this regard, the company’s founder said, it plans to develop its own retail network in Kyiv.
