The East European Consumer Paul Flatters, CEO, The Future Foundation June 2007

Presentation structure Economic well being and life satisfaction Socio-demographics Values and attitudes Leisure, tourism and travel

Presentation structure Economic well being and life satisfaction Socio-demographics Values and attitudes Leisure, tourism and travel

24643: Mobility and Movement Correlation between satisfaction with life vs. satisfaction with the economy By country See notes pages for an explanation of this map Source: European Social Survey/nVision Research Base: 1,000 per country aged 15+, 2005

24803: Mobility and Movement Satisfaction with life forecast: CEE 13 vs EU 15 % who are very satisfied or fairly with the life that they lead 2006-based nVision forecast – “On the whole are you very satisfied, fairly satisfied or not at all satisfied with the life you lead?” Source: Eurobarometer/nVision Base: 29,000 aged 15+

17035: Mobility and Movement Positive expectations for the next 12 months – Life in general Index by age in relation to the national average who thinks that their life in general will get better in the next 12 months “What are your expectations for the next twelve months: will he next twelve months be better, worse or the same, when it comes to…your life in general?” Source: Eurobarometer/nVision Base: 1,000 per country aged 15+, 2007

Yet for affluent consumers life is already changing beyond recognition

Presentation structure Economic well being and life satisfaction Socio-demographics Values and attitudes Leisure, tourism and travel

Size of CEE economies (population) 38 Million 10 Million 5 Million 2 Million 3.7 Million 2.7 Million 1.3 Million 22 Million 8 Million 148 Million

Population over 65 years as a % of total Source: World Bank/nVision

…but the big story of demographics is not the ageing of the population… Population decline in transition economies Source: World Bank/nVision

Russia’s demographic meltdown Number of people, World Bank forecast Source: World Bank/nVision

Life expectancy Source: WHO/nVision 2003 At Birth

Presentation structure Economic well being and life satisfaction Socio-demographics Values and attitudes Leisure, tourism and travel

Importance of being rich Proportion who say it is like/very much like them to want to have a lot of money and expensive things, by gender within country Source: The European Social Survey/nVision 2003

Proportion who chose a main wish from a list of five given options, by country "If you had just one wish, which one of these would you choose?" Source: nVision Research Base: 11,000 aged 15+ / 3,500 aged 16+ (Nordic), 2007

Source: nVision Research Base: 11,000 aged 15+ / 3,500 aged 16+ (Nordic), 2007 Proportion who feel a strong or moderate need to own more things than they have now, by age “For each item, will you tell me whether you feel the need for it strongly, moderately, slightly, or not at all?” To own more things than I have now

20316: Perception of luxury in Europe: East Vs. West “Looking at all these things, can you tell me, for you, which of the following things would be the best description of ‘luxury’ in your life?… and which of the others is the second best description, if any?" Source: nVision Research Base: 11,000 aged 15+ / 3,500 aged 16 + (Nordic), 2007

19668: Perception of luxury in Europe: Materialism, enrichment or time? “Looking at all these things, can you tell me, for you, which of the following things would be the best description of ‘luxury’ in your life?…and which of the others is the second best description of luxury in your life, if any?” Source: nVision Research Base: 11,000 aged 15+ / 3,500 aged 16 + (Nordic), 2007

19753: Mobility and Movement ‘Going on expensive holidays’ as the best description of luxury % who choose it as the best or second best description of ‘luxury’ in their life, by country “I would now like you to think about what ‘luxury’ means to you. Looking at all these things, can you tell me, for you, which of the following things would be the best description of 'luxury' in your life? And which of the others is the second best description of luxury in your life?” Source: nVision Research Base: 11,000 aged 15+ / 3,500 aged 16+ (Nordics), 2007

Traditional attitudes towards gender roles Proportion who agree slightly or strongly that a man’s role is to earn money and a woman’s to look after the home, by country Source: Changing Lives in Europe’, nVision Base: 1000 aged 15+ per country, 2003 “Please indicate how much you agree or disagree with each of the following statements I read out…A man’s job is to earn money; a woman’s job is to look after the home and family?”

Ethical purchasing Source: The European Social Survey 2003 % Bought product for political /ethical/ environment reason last 12 months

Presentation structure Economic well being and life satisfaction Socio-demographics Values and attitudes Leisure, tourism and travel

23681: Mobility and Movement Inexorable leisure seekers in Europe, by age % who agree / strongly agree that they always look out for new experiences, dread being bored and like trying lots of different leisure activities See notes for question wording Source: nVision Research Base: 11,000 aged 15+ / 5,000 aged (Nordic), 2006

Importance of leisure time in people’s lives % who claim leisure time is very important, by country “Please say for each of the following how important it is in your life… Leisure time ” Source: European Value Study/Eurobarometer/nVision Base: 1,000-2,000 per country aged 15+, 2007

Tourists to other countries in Europe, % by region Source: World Tourism Organisation/nVision In 2005 there were 1 million Polish tourists visiting the UK CEE tourists to other countries in Europe, % by country In 2005 there were 13 million more tourist from the CEE than in 2002

22010: Mobility and Movement International tourism expenditure In US$ million Source: World Tourism Organisation/nVision

23860: Travel and Tourism in Europe % who have bought package holidays, by country In the last 12 months “In the last 12 months, have you purchased a package holiday that is a combination of transport and accommodation from a company based in the EU?” Source: Eurobarometer/nVision Base: 1,000 per country aged 15+, 2006

19753: Mobility and Movement Interest in different types of holiday in Czech Rep. and Poland EU= 12 countries Source: nVision Research Base: 1,000 per country aged 15+, 2005 CulturalHealth farmSpecialistAdventure

23000: Mobility and Movement Importance of experiencing the authentic culture on holidays, by country % who agree / strongly agree “Please indicate how much you agree or disagree with each of the statements that I read out…When I go on holiday, the most important thing for me is to experience the authentic culture of a place” Source: nVision Research Base: 11,000 aged 15+ / 5,000 aged (Nordics), 2006

23001: Travel and Tourism in Europe Importance of experiencing the authentic culture on holidays % who agree / strongly agree, by age within country “Please indicate how much you agree or disagree with each of the statements that I read out…When I go on holiday, the most important thing for me is to experience the authentic culture of a place” Source: nVision Research Base: 11,000 aged 15+ / 5,000 aged (Nordics), 2006

Using the internet for travel related activities % of internet users who have used the internet for travel services or to order travel and accommodation Source: Eurostat annual survey on ICT/nVision Base: Internet users aged 15+

22829: Mobility and Movement Language skills % who can speak at least another language, by country “Which languages do you speak well enough in order to be able to have a conversation, excluding your mother tongue?” Source: Eurobarometer/nVision Base: 1,000 per country aged 15+, 2006

23515: Mobility and Movement % considering moving to another EU country to work or study or after retirement, by country Source: Eurobarometer/nVision Base: 24,642 aged 15+, 2005 “Have you, yourself, ever considered living in another Member State in order to study/work/after retirement?”

23515: Mobility and Movement Willingness to move to another EU country to find employment % who answered 'yes' "Would you be willing to move to another EU country to find employment if you were unemployed?" Source: Eurobarometer/nVision Base: 24,642 aged 15+, 2005

Summary CEE consumers still display distinctive characteristics – but attitudes and behaviours are converging with those in the west Continued convergence not inevitable – highly dependent on continued economic growth CEE not at the leading edge of many trends such as ethical purchasing and show more traditional attitudes towards consumption, materialism and luxury Leisure and tourism is an increasing consumer spending priority – though again not as likely to be looking for ‘leading edge’ holiday experiences Highly mobile younger populations create a strong VFR market