Ukraine - Direct MarketingUkraine - Direct Marketing
Direct marketing has mixed success in Ukraine, and U.S. companies should rely on the guidance of their local partner and local advertising companies when deciding on techniques. Telemarketing and direct mail are unlikely to be successful, except in niche segments. Traditionally, telemarketing consists of companies making telephone calls to potential customers. With new technology, telemarketing has expanded to include video conferencing calls, although these are typically conducted with existing customers. Excepting e-marketing, no particular law in Ukraine governs how companies may telemarket their products.
Regarding e-marketing, Ukraine’s law "On Electronic Commerce" passed in September 2015 regulates the distribution of commercial electronic messages. Commercial electronic messages may only be distributed with either the consent of the individual to whom such messages are addressed or if the recipient has an option to refuse from receiving of such messages in future.
In addition to this requirement, commercial electronic messages must also satisfy the following criteria:
- Commercial electronic messages must unequivocally be identified as such
- The recipient must have easy access to information regarding the person sending the message
- Commercial electronic messages regarding sales, promotional gifts, premiums, etc. must be unequivocally identified as such and the terms and conditions of promotions must be clearly stated to avoid their ambiguous understanding
- Commercial electronic messages must comply with advertising legislation.
When electronic marketing involves the processing of an individual's personal data, it should take place in compliance with the requirements of Ukrainian data protection legislation. Most notably, companies must obtain appropriate consent from the individual to process his/her personal data for marketing purposes.
Despite the lack of popularity of direct marketing, direct sales have worked remarkably well in Ukraine for a variety of goods such as herbal products, cosmetics, and small-scale consumer goods. Seven U.S. direct sales companies are currently operating in Ukraine: Amway, Avon, Mary Kay, Herbalife, NuSkin Enterprises, Morinda, and Tahitian Noni International, all of which are members of the Ukrainian Association of Direct Sales, established in 2001.