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QUALITATIVE RESEARCH CONSULTANTS ASSOCIATION
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one had to spend ten average monthly sal-
aries to buy a TV set; 20 years later Poles
could afford almost four TVs for their
average monthly salary.
Still, Western researchers have to keep
in mind that the average gross annual
salary across the region is somewhere in
the range of $10,000-$15,000. That means
consumers are not only price sensitive as
they strive to squeeze value from every
penny but also live under considerable
stress, toiling long hours and accepting
poor working conditions. They cannot
afford to spend as much as their Western
counterparts. Eventually, market growth is
limited by the size of the economy.
Even if Eastern salaries don’t match
those in Western Europe, economic growth
is evident. Although all Eastern European
countries started from a similar economic
level, their current situations now vary
considerably. In the early years of freedom,
each Eastern European economy struggled
with devaluation of its national currency as
well as with high inflation and rising
unemployment. All countries introduced
market-economy reforms, but they adopted
different strategies.
Now, after more than 25 years, we can
see significant differences within the
region. It may be surprising at first
glance, but the richest countries are not
exactly the biggest ones. The GDP per
capita is now highest in smaller countries
like the Czech Republic, Slovakia, and
Lithuania. The largest country in the
world—Russia—does not even place in
the middle of the ranking.
The most obvious difference of sepa-
rate worlds within the region is between
two neighboring countries, Ukraine and
Slovakia. In 2013, Slovakia’s GDP was
more than three times as high as
Ukraine’s. As the consequence of war in
Eastern Ukraine, its economy shrank by
half, so the factor is now closer to seven
times lower than Slovakia. Differences
among the remaining Eastern European
countries are not as spectacular but have
an influence on their consumers’ respec-
tive buying behaviors. At the same time,
the most striking fact is that even
Slovakia, a country with the highest GDP
per capita in the region, has not yet
reached one-half of the German level.
Spending Priorities
A good indication of the economic situ-
ation of each country is the proportion of
its expenditures on food in the monthly
household budget. In all Eastern European
countries the cost of food has fallen over
the past two decades, while there was little
change in Germany or in the UK.
Nevertheless, the proportion of the budget
going to necessities like food and drink is
quite high in Eastern European countries.
It is particularly noteworthy that Russians
spend nearly one-third of their household
budget on food, while the residents of
other countries in the region spend an
average of only one-fifth or less of their
household budget on food.
Beginning of the 1990s: First signs of capitalism in Warsaw
Mid-1990s: A big bazaar in Warsaw’s city center
Number of TV sets one could buy for an
average monthly pay in Poland:
1988
1/10 of a TV
2015
almost 4
TVs
“For brands that want to conquer Eastern European markets, i t is
always a good idea to present the advert ised product as safe and long
last ing. Claims such as ‘ for decades’ or ‘wi thout surpr ises’ are
part icular ly popular in Pol ish and Russian advert ising.”