QRCA Views Magazine, Spring 2016

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24 QRCA VIEWS SPRING 2016
clothing across the region. While the
share of luxury brands in the fashion
industry is 4% on average in Eastern
Europe, it reaches 8% in Russia. When
the rouble collapsed at the end of 2014,
Russians bought Cartier watches and
rings from Tiffany en masse as a safe
investment. Also, the large discrepancy in
wealth distribution leads to the special
importance of status symbols (note that
80% of Russia’s financial potential is con-
centrated in Moscow).
Although power and status are of great
importance in Russia, is would be a mis-
take to think Russians are ruthless and
cold. In fact, they are quite the opposite, a
very emotional people, captured by the
term “the Russian soul.” Accordingly, it is
absolutely fine for a high-ranking politi-
cian to shed a few tears publicly on the fate
of poor children or mishandled animals.
When it comes to consumer behavior,
this means an inclination for impulsive
decisions. Unlike the rest of the region,
prices of goods and services are second-
ary in their purchasing decision. Brands
and their emotional appeal are much
more important. An emotional approach
is also widely used in Russian advertis-
ing—a striking example from Pantene
can be found here:
Czech Republic
On the other side of the Indulgence/
Restraint scale we find the Czech
Republic, where people pay little atten-
tion to status symbols. They appreciate
tranquility, comfort, domesticity, and
nature. The latter is particularly appreci-
ated by Czechs—even their national
anthem is about their beautiful land-
scapes, their rivers, and their rocks in
the woods.
The Czech passion for outdoor clothing
therefore is no surprise. Outdoor outfits
are worn not only for travel to the coun-
tryside but also on a typical weekday in
the city. Luxury goods vendors, therefore,
only look for Russian tourists on the
shopping streets of Prague.
Romania
While many Eastern European coun-
tries are individualistic, Romanians are
a strongly collective society. Group
members, be it family or friends, have
strong influence on tastes, product
choices, and even life decisions. Also,
group loyalty here is more important
than many other social norms. Not sur-
prisingly, group opinion will affect
clothing, food, and almost any other
purchase. This is both a challenge and
an opportunity for marketers—in
Romania, it is often sufficient to con-
vince a few people to achieve success.
Summary
The Eastern European countries are
often viewed from a Western perspec-
tive as a homogenous bloc. Although
they share several decades of common
history under the communist regime,
they are fundamentally different in their
history, culture, and traditions. These
differences mean the key fundamental
values in the Eastern European societies
are different, and this has a direct
impact on purchasing behavior. Despite
the more or less equal level of affluence
across the region, it is most likely that a
single marketing strategy will be hard to
find. At first glance, this cultural diver-
sity may be considered an obstacle, but
thanks to market research, we can
explore these differences in order to
develop a sound foundation for success-
ful brands.
Consumers in Eastern Europe: After 25 Years, Their Different Ways to Enjoy Freedom CONT INUED
Monthly spending on housing
24.3%
Germany
21.4%
Poland
16.4%
Lithuania
18.8%
Bulgaria
Cultural differences: Although Eastern European countries share several decades of soviet history
and a few shared attitudes, their cultural patterns are very different.
Luxury brands are more attractive to Russians.
Czechs Russians