EXTERNAL ENVIRONMENT ANALYSIS OF CONSUMER GOODS INDUSTRY IN UKRAINE

Abstract

The article presents the results of external analysis of consumer goods sector in Ukraine, one of the largest in Europe which offers a wide range of products: fabrics, garments and knitwear, shoes, hosiery items, natural and artificial fur, leather goods, garment accessories, porcelain, etc. which to a great extent underpins the socioeconomic situation in the society and the state of the national security. However, in recent years the Ukrainian consumer goods industry is facing a large-scale protracted systemic crisis that translates into the ongoing manufacturing decline in major products; the domestic market is almost 90% filled with illegally imported goods and products; at the same time, up to 80% of domestically produced goods are exported onto foreign markets (mainly the European ones). An emphasis is put on critical importance of consumer goods industry in the Ukrainian economy since it contributes to creating new jobs, enhancing the domestic products competitiveness and increasing fiscal inflows to state and local budgets, etc. To assist management entities in their goal setting, the study employs a structured logical framework of a cognitive analysis of the consumer goods market to explore the relationships and interactions within the external and internal environment, as well as identifies the key economic, legal, technological and sociocultural factors of environmental effects on consumer manufacturing performance in Ukraine. Based on the PEST analysis results, weighted estimates to assess the macroeconomic environment factors of consumer goods industry have been provided using a proposed scale with regard to each factor significance indices, since for each of the four groups a different number of these factors have been determined.