Dramatic sales drops in Ukraine luxury market

January 2009 has seen dramatic sales drops across all luxury industry segments in Ukraine. Sales of monobrand luxury fashion and accesories boutiques has dropped as much as 25%, while car sales dropped more than 35%. Also deeply affected is the watches and jewelry segment, with estimated 28% sales drops. All figures are at the end of January 2009 compared to same period last year.
The international crisis, the political instability and the lack of strategy by the major luxury retails have lead to this worrying situation. Some international luxury brands present in Ukraine blame the concentration of franchises in too few hands. We believe only the set up of a international standard retail business will likely save the Ukraine luxury industry.