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 Publications  Business #28 (599) July, 12 2004

Today, in the domestic market of plastic furniture is a great repartition. The initiator is a company, called "UKRPLASTIC XXI CENTURY" Ltd. (Obuhiv town). In spring of the past year it has released an initial batch of the goods, and in one year has managed to retake from the importers of the Italian and Hungarian furniture about 80 % of market of the corporate orders. In 2004 the majority of the "drinking" companies - corporate buyers of plastic furniture gave preference to production of this Ukrainian manufacturer.

According to the director of "UKRPLASTIC XXI CENTURY" Ltd., N. Leschenko - "In year 2004 we have set a problem "to beat out" from the Ukrainian market European manufacturers, which worked in a mean price category, and to retake a niche of the corporate customers of plastic furniture - pubs and nonalcoholic companies. I think this task we have performed approximately on 80 %". "To be at war" in a segment of expensive plastic furniture we are not going to. There is no necessity in this. Probably, to a question on its production we'll return in one and a half or two years. We consider that nowadays in Ukraine there is no mass demand for this kind of production. And "to be at war" with the Italian manufacturers, it is necessary to have trade channels not only in Ukraine and countries of CIS but also in the countries of Eastern and Western Europe. At their presence the release of similar production would have sense". If the past year the set consisting of plastic table and four chairs, cost by retail about 200 hrn., in 2004 the set, comparable on quality, from the corporation "UKRPLASTIC XXI CENTURY" can be bought by retail for 145 hrn. This step of the domestic manufacturer threatened to make an unclaimed the majority of price-average production of import production. Not "to fly by", some of the importers this year have make a decision to refuse from mass import of such goods.

The potential of plastic furniture production in Ukraine yet is not exhausted. In 2003 the operators evaluate the capacity of the Ukrainian market of plastic furniture approximately in 100-120 thousand of sets. From them, as the minimum, quarter is smuggling, at least, so is affirmed by the experienced dealers. They consider, that the sizeable part of import in view of the high rates of the customs duties (chair - 15 % of the customs cost, table - 25 %) falls within the Ukrainian market under the underestimated customs costs.

Past years the operators marked two most noticeable tendencies in the market of plastic furniture: displacement of consumer demand in the direction of expensive goods and diversification. As the market of corporate clients almost completely has passed to the domestic manufacturer, the importers nothing remains to actively develop these tendencies. That is, to completely redirect on import of expensive "peoplem's" furniture for suburban rest, that is not made and in a near future will not made in Ukraine. The domestic manufacturers while developed the release of several most popular types of tables, chairs and stools from the plastic, to improve quality and to widen the colour spectrum of the production.

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"Aleana" Ltd. was founded in August 5, 2002


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