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New Europe
17

Eastern European Markets, Trends And Online

Jan 16, 2015

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Business

Andrej Nabergoj

Overview of Eastern European markets, trends, internet - and why doing business in Eastern Europe is more similar to doing business in China than in W.Europe.
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Page 1: Eastern European Markets, Trends And Online

New Europe

Page 2: Eastern European Markets, Trends And Online

23 countries

Total population of

76 million internet users.

Emerging Europe

276 million.

Page 3: Eastern European Markets, Trends And Online

Heterogeneous

(source InternetWorldStats, CIA)

+20MTurkeyUkrainePolandRomania

+10MBelarusSerbiaGreeceHungaryCzech

+4MCroatiaBosniaSlovakiaBulgaria

+2M AlbaniaMacedoniaMoldova

SloveniaLatviaLithuania

< 2MEstonia Cyprus MaltaMontenegro

Population

Page 4: Eastern European Markets, Trends And Online

Heterogeneous

(source IMF)

Over 20.000 USDSloveniaCzechGreeceHungaryEstoniaMalta

Over 10.000 USDSlovakiaLithuaniaLatviaPolandCroatiaRomaniaBulgariaCyprus

Below 10.000 USDBosniaTurkeyBelarusUkraineMacedoniaSerbiaAlbaniaMoldovaMontenegro

GDP per capita

EU member since 1981

Joined EU in 2004

Joined EU in 2007

Official member candidates

Page 5: Eastern European Markets, Trends And Online

Heterogeneous

(source InternetWorldStats, CIA)

+50%SloveniaCzechEstonia

+40%SlovakiaLatviaPoland

+30%LithuaniaCroatiaCyprusGreeceHungaryMalta Belarus

+20%RomaniaBulgariaBosniaTurkey

< 20%UkraineMacedoniaSerbiaAlbaniaMoldovaMontenegro

Internet Penetration

Broadband+60% of all connections

Page 6: Eastern European Markets, Trends And Online

Heterogeneous

Annual Broadband Growth Rate

Page 7: Eastern European Markets, Trends And Online

Heterogeneous

+4%HungaryEstonia

+2%PolandSloveniaCzechBulgaria

+1%LithuaniaRomania SlovakiaLatvia Greece

+0.2%BosniaTurkeyBelarusCroatiaUkraineMacedoniaSerbiaAlbaniaMoldovaMontenegro

Online Advertising

Page 8: Eastern European Markets, Trends And Online

Commonalities

CultureHigh growthTransitionAttitude

Page 9: Eastern European Markets, Trends And Online

Commonalities

CultureHigh growthTransition Attitude

Eastern Europe Language Shared Historical Perspective

(=socialism, communism) New Consumerism Rise of the middle class

Page 10: Eastern European Markets, Trends And Online

Commonalities

CultureHigh growthTransition Attitude

Eastern Europe Language Shared Historical Perspective

(=socialism, communism) New Consumerism Rise of the middle class

Zagreb, Croatia

Page 11: Eastern European Markets, Trends And Online

Commonalities

CultureHigh growthTransition Attitude

GDP growth 5-10% FDI and EU funds Infrastructure Purchasing power Internet penetration

(-> e-commerce) Advertising Online advertising

Page 12: Eastern European Markets, Trends And Online

CultureHigh growthAttitude

Commonalities

CultureHigh growthTransitionAttitude

Liberalization Privatization Opening Economy Harmonization Political Stability (EU, NATO) Leapfrogging

Page 13: Eastern European Markets, Trends And Online

Commonalities

CultureHigh growthTransitionAttitude

Open ‘Hungry’ Build Knowledge Economy

Page 14: Eastern European Markets, Trends And Online

Leapfrogging

Few legacy systems Quick adoption due to smaller size Strong FDI

Directly to mobile (avg. 68%)

ADSL2+ and FTTH projects across Eastern Europe

Macedonia: 2 national WiMax operators, and 4 regional WiMAX operators.

Page 15: Eastern European Markets, Trends And Online

Local Markets

Local Leaders

Page 16: Eastern European Markets, Trends And Online

Challenges

PassiveDiversityPoliticsTransparencyCorruption

Page 17: Eastern European Markets, Trends And Online

New Europe

Andrej Nabergoj

http://andrej.nabergoj.com

[email protected]