Research of the Ukraine Light Industry Main Market Segments During the COVID-19 Pandemic

2021;
: pp. 338 - 352
1
Lviv Polytechnic National University, Department of Marketing and Logistics
2
Lviv Polytechnic National University, Ukraine

Purpose — This article aims to improve the theoretical and applied bases of activating the development of the light industry market in Ukraine by determining the factors that influence this process.

Design / methodology / approach — In the article, authors use a set of scientific methods that ensured the conceptual integrity of the study, in particular: logic — to study the evolution of development of the light industry market; system аnd observation -to highlight the conceptual foundations of the light industry market; methods of dialectical reasoning, induction, deduction — to justify principles of development; statistical analysis — to study the peculiarities of the development of the light industry market in Ukraine (under the influence of the COVID pandemic — 19). The concept of sustainable development of the industry is adhered to in the work.

Ukraine’s light industry is a multi-segment industry for the production of final consumer goods with rapid capital turnover. This industry has significant production potential in the process of meeting the domestic needs of consumers in non-food products. Nevertheless, the demand of the domestic market is predominantly met by imports. Only certain segments of light industry (for example, textile, etc.) have a promising growth in terms of entering foreign markets, but with a high share of tolling operations in Ukrainian exports.

The light industry market needs to overcome the high dependence of imported raw materials; increase price competitiveness of domestic goods, reduction of illegal imports and shadow production of goods in the domestic market of light industry.

The analysis of the influence of factors on the development of the light industry market revealed the following main trends in the industry: reduction of aggregate demand and production of goods (through consumers’ appeals to meet basic needs during the pandemic); consolidation of participants in the domestic market of light industry and exit from the market of weak counterparties; high dependence on world prices for raw materials, which has a low level of quality; growth of consignments of groupage cargoes; emergence of logistical and transport problems; deepening outsourcing in value chains; development of contactless delivery of goods to home; intensification of intra-industry competition and a significant share of the shadow sector; low productivity in the industry and shortage of qualified personnel.

The industry needs to gain a highly competitive status through the production of high quality goods and increase supplies of products for export with a high share of value added, reduce the flow of used clothing, government support for the development of the sector. Prospects for the development of the sector are supported by the high adaptability of Ukrainian enterprises to changing market conditions, especially in the context of the COVID-19 pandemic.

The development potential of the light industry market should be realized in terms of ensuring the competitiveness of Ukrainian products: by improving the quality of raw materials imports, improving the production structure, taking into account the innovative potential of the industry and the prospects for expanding the capacity of the light industry market, through the formation of industrial technology parks, clusters, vertically integrated structures with the involvement of representatives small and medium-sized businesses, as the most adaptable to the light industry market, as well as improving logistics chains for creating added value, a network of wholesale and branded trade, strengthening the marketing and logistics departments of light industry enterprises.

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