As part of our training program in Export Alliance Mastery, organized by the Visionest Institute, the Ukrainian Association of Furniture Manufacturers (UAFM) has launched the first module dedicated to market research. This program aims to equip our members with the knowledge and skills necessary to create an effective export strategy and achieve their set goals.

The first training module was devoted to market research. For the company selected through an open announcement on UAFM’s channels, we chose a target market. The countries the selected company aimed to enter included Germany, Italy, and Belgium. The UAFM team also suggested considering the United Kingdom as a potential market.

 

1. Analysis of Macroeconomic Indicators

 

The first stage of research involves analyzing the target market’s macroeconomic indicators. This includes assessing factors such as:

• Gross Domestic Product (GDP): to determine the overall size and dynamics of the economy.
• Foreign Trade: studying import and export indicators, key trade partners, to understand the competitiveness of the manufacturer’s products.
• Population of the country.
• Inflation Rate.
• Trade conditions with a particular country, including information on customs duties and VAT.

 

Sources of such information can include Wikipedia, the ITC’s Export Potential Map, Google’s Market Finder, Eurostat, Euromonitor, Coface for trade, Epingalert, Trade Concerns Database, Market Access Net, government websites, or the cumulative information systematized on the Diia website.

 

 

2. Use of Open Market Research

 

The next stage involves using open sources of information, such as market reports and studies published by international organizations, government institutions, and analytical centers. This provides a general understanding of trends, needs, and consumer requirements in the selected market.

At this stage, we can find information on furniture turnover in the target country’s domestic market, estimate the “average check” of a furniture buyer, and review data on real estate market trends, including average property sizes. For example, the “average furniture buyer check” in Germany is $663, while Ukraine’s furniture market turnover per capita in 2024 is projected at $10.

 

 

Depending on the product specifics, it’s essential to determine indicators that will help assess the market potential.

For instance, to evaluate the potential of space-efficient furniture, a key indicator is the percentage of people living in apartments. In the UK and Belgium, only 22% of the population lives in apartments, while in Germany, this figure is 63%, and in Italy, it is 57%. Real estate costs the most in Germany, where, according to Deloitte’s August 2024 report “Property Index Overview of European Residential Markets,” one square meter costs $5,123. In the UK, it’s $4,195; Belgium, $3,496; and Italy, $2,309. In Ukraine, the average cost per square meter of residential real estate is $1,294, according to Lun.ua.

 

 

After calculating over ten selected evaluation criteria, we created a ranking system for each indicator. Summing up the points, we determined that Germany was the best country from the list for promoting the selected company’s product.

 

3. Google Tools for Analyzing Product Popularity Online

 

Modern tools such as Google Trends, Google Analytics, and Google Keyword Planner can be extremely useful in this research process. They allow:

• Analyzing search popularity for furniture products.
• Studying consumer behavior in real-time.
• Identifying keywords potential customers use to search for products.

After choosing a country, it’s essential to gauge the popularity of various products purchased online. According to research by Statista, the e-commerce penetration rate in Germany is 60%, so the popularity of keywords should closely match actual demand.

 

4. Research of Furniture Store Websites and Brands, and Conducting Surveys in the Country

 

Using the identified keywords, it’s helpful to compile a list of the most popular websites according to search engine rankings that sell similar products in the target country. Reviewing these websites will reveal preferences in design, popular product sizes, production times, and retail prices.

 

 

The final stage involves conducting surveys and interviews with potential consumers, distributors, and other stakeholders in the target market. This provides direct information about:

• Consumer needs and preferences.
• Identifying potential market entry barriers.

Based on all collected data and conclusions, we will proceed with the next module on developing an export strategy tailored to the selected market’s specifics.

This first training module has become a significant step towards establishing UAFM’s new service—export strategy development. In-depth market and consumer understanding will enable our members to plan effectively and succeed internationally. The upcoming program modules promise even more practical knowledge and strategies to ensure the successful export of Ukrainian furniture.

Author: Oksana Donska, UAFM Board Member