The lump sum of cost of companies’ brands, included in Ukrainian Association of Furniture-makers, makes the 83,25 million dollars USA (47% from a lump sum).Furniture manufacturers at promotion
brands emphasises on exhibitions and internetshops
Ukrainian furniture market will not name uninteresting: it is increased annually, at least, on 20%. However enterprises which is working in this segment such indexes obviously are not enough. Producers aim to enter the foreign markets, to the markets of the CIS and Europe. Logic of furniture-makers is enough simple: expansion of sales geography allows to decrease the risks of company in the case of sales volumes falling at the home market. The fear of enterprises leaders is caused by probability of economic crisis in our country. As a result, in some companies confess, that in 2007 they will make an attempt to sell abroad more than third of the made products. Another advantage of the work at the foreign markets is the appreciation of business value in the case of its sale.
Nowdays furniture manufacturers, who decided to sell the products abroad, act in two ways. One works under their own trade mark, others implement products under the brands of foreign partners. Such known producers of furniture, as «Enran», «Merx», «Ecmi», AMF, do not create another brand for work abroad, preferring to promote already known trade marks. Presently companies are not affraid to promote their goods marked “Made in Ukraine”, arguing it that their brands are known in Europe.
Some producers work on drafts and under the brands of foreign partners. Particularly, a company «Mopan Ukraine, Ltd» (Uzhgorod) cooperates|collaborate| with the largest|major| European furniture operator IÊÅÀ|. For the management of producer it is the simplest form of work, because all expenses and risks, related to the sales and promoting are undertaken by the foreign partner. The «minus» of such collaboration for the Ukrainian side is low mark-ups, which, as a rule, do not allow to allocate means on further development, modernization and powers increasing. Producers mark, that they produce under the foreign brand just the 30% of their volumes. In opinion of specialists, the observance of such proportion allows to avoid the disbalance of powers and take dependence on will and desire of a customer to the minimum .
One of the most working marketing decisions at promoting is participating in international exhibitions. Thus furniture manufactures specify on the interesting fact: expenses on the exhibition, for example, in Germany can be covered during two months, in Ukraine — in 8 months, and in Russia — after almost year. Besides, producers try to take part in all catalogues, to take a place in all internetshops in which western users order products very often.
Furniture manufacturers don't hurry to use such marketings instruments, as indirect advertising, In their opinion, the effect from the such campaigns has short duration.