Newsletter VALIANS 07 2016

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NEWSLETTER VALIANS
Trends and opportunities in Eastern Europe
July 2016
The content of this newsletter is based on:
-
The reports and market analysis of PMR (www.pmrpublications.com), leader in market analysis and publications in Eastern Europe,
and partner of VALIANS INTERNATIONAL.
Contacts and experiences of our team of consultants gathered during their different projects on a daily basis. You will find below an
overview of the trends and opportunities on the markets gathered from their main players.
VALIANS INTERNATIONAL Sp. z o.o.
ul. Feldmana 4/7, 31-130 Kraków, Poland, Tel: (+48) 12 631 12 89 Fax: (+48) 12 423 47 02
valians@valians-international.com www.valians-international.com
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Newsletter Valians
July 2016
Industry / Construction / Environment
POLAND : Funds for strategic transportation axes in Łódź
Łódź, the 3rd largest Polish city with over 700
thousand citizens, will get 2.3bn PLN grants from
Infrastructure and Environment Programme for 20142020 approved by the Ministry of Development. The
funds, 411m PLN of which is estimated to come from
EU contribution, will not only enable construction of the tunnel between the two
largest train stations in the city but will also help develop the project known as
“The tram for Łódź” which will encompass an integrated network of low-carbon
public transport. Thereby Łódź will gain 11km of modernized or new tram ways.
The network will be linked with local and regional railway systems. The plans also
include the purchase of 30 new trams. Estimated time of completion of the final
stages of the project is 2021. Source: WNP
ROMANIA : Civil engineering boosts construction activity
According to preliminary estimates construction
activity in Romania has expanded by 10,4% in 2015
after a few years of slowdown. The increase in
total construction output was solely driven by the
performance of civil engineering subgroup (year
on year up by 20%). The main factor behind the fluctuation is politics as the
government first reduced capital investments to have more resources for social
benefits and then boosted capital investments (mainly in transport infrastructure
projects) again in 2015 in attempts to absorb as much of the EU funding as
possible. Romania is due to have access to €5.1bn of EU funds for the
development of its transport infrastructure in the 2014-2020
programming period, which is 19% more than in the previous period.
Source: PMR
BULGARIA/SLOVAKIA: Agreement
pipeline
reached
on
Eastring
In the field
Poland reduces its
dependence on
Russian gas
The first commercial shipment of
Liquefied Natural Gas (LNG) has
docked at the Świnoujście terminal
in Poland. The vessel delivered
210,000 cubic metres of gas.
Shipments will be made under a deal
between Polish gas monopoly PGNiG
and Qatargas. The contract between
the two groups should last 20 years.
The terminal, one of the largest
Polish energy investments in recent
years, was officially opened in
September 2015. Half Poland's gas
consumption will go through this
port. Beyond the gas supply, the
terminal will help reduce Polish
dependence on Gazprom and Russia.
Having this infrastructure, Warsaw
could see itself as gas supplier for
Central Europe. Currently, 1/3 of the
gas in Poland comes from its own
resources, about 40% is imported
from Russia and 20% from Asia.
Under the memorandum of understanding
Source: RadioPoland
signed by Bulgartransgaz and Eustream in Sofia,
the operators will work jointly to provide EU financing for the project as well as
test market interest in the Eastring pipeline. It had been proposed by Slovakia after the suspension of the
South Stream project, which would have brought Russian gas to Europe via a pipeline under the Black Sea
coming ashore in Bulgaria. The proposed pipeline is among the priority projects under the European
Commission investment plan. The pipeline would link Slovakia with the Balkans and existing gas pipelines
in Ukraine, Slovakia, Czech Republic, Hungary and Romania to the planned Balkan gas hub near Bulgaria's
Black Sea port of Varna. The project could help Bulgaria reduce its almost total dependence on imports of
Russian gas via a single transit pipeline crossing Ukraine. Source: UATODAY.TV
VALIANS INTERNATIONAL Sp. z o.o.
ul. Feldmana 4/7, 31-130 Kraków, Poland, Tel: (+48) 12 631 12 89 Fax: (+48) 12 423 47 02
valians@valians-international.com www.valians-international.com
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Newsletter Valians
July 2016
Retail / Food / Pharma / ICT
Ukraine : Baby product sales volume forecasted to grow in 2016
In 2015 sales value of baby and child-specific products
registered 26% growth, reaching UAH977 million,
reflecting the needs of 7 million Ukrainians aged 0-14.
The number of consumers kept on growing but the
trend was not reflected in sales volume dynamics. In
spite of the tradition, Ukrainian parents were forced to
limit the usage of such products for economic reasons.
Over the forecast period baby and child-specific products are expected to
eventually recover its consumption volume, with the economic situation stabilising,
parents are likely to return to child-specific products for their children rather than
using “family” products. Source: Euromonitor International
In the field
HUNGARY
Gedeon Richter
strengthens its position
on the European market
Czech Republic : 9% year on year growth in furniture spending
Czech consumers are spending record sums on
furniture. According to the Association of Czech
Furniture Makers, Czechs spent some 35 billion crowns
on furniture last year, which is three billion more than
in 2014. Experts expect the figures to rise even higher in
the future. Higher salaries, the booming reality market
and a willingness to invest in homes are said to be the main factors behind the
positive situation on furniture markets. At the moment, more than 50% of the
country’s furniture market is controlled by the six largest furniture retailers: Ikea,
XXX Lutz, Jysk, Asko Nábytek, Sconto Nábytek and Kika. According to Hospodářské
noviny, these retailers want to use the favourable situation to their advantage and
are planning further expansion. Ikea’s sales accounted for nearly 8.5 billion crowns
and its profit rose by more than 50% compared to the previous year to 600 million
crowns. Source: CzechRadio
Poland: Growing demand for traditional and bio food products
Hungarian drug maker Gedeon
Richter is acquiring Swiss biotech
company Finox Holding for a
purchase price of CHF 190
million. Finox focuses on
development
and
commercialization of innovative
and cost effective products
addressing female fertility. With
the acquisition, Richter obtains
global rights for BEMFOLA®
fertility drug for which marketing
authorization
was
already
granted in EU in May 2014 and is
currently sold in more than 20
countries. According to Richter,
benefits of the purchase
complements the company’s
existing Women’s Healthcare
franchise, further strengthens
Richter’s presence in main
European markets, and increases
Richter’s exposure to biosimilar
markets. Source : bbj.hu
The growing popularity of organic, certified products or those
coming “straight from the farmer” can be observed in Poland.
Poles are equally eager to reach for the food labelled as
traditional or local. The organic food market is still
unsaturated and the demand for such products is growing
very fast. The estimated value of the market is about 700
million zlotys - which represents less than 0.3% of the entire
food sector. Polish market of certified organic products is still a novice compared
with those in other EU countries. Sales grow at double digit rates every yearapprox. 20% annually. Looking at the level of saturation (approx. 3%) and
continuing pace of growth of other EU organic food markets, the appetite for such
products in Poland will not be satisfied for a long time and the interest will
continue to increase. There are about 800 specialized health food stores in Poland but multiple retailers and
discounters also continue to expand their offer. 2016 was the first year when the organizers of the WorldFood fair
in Warsaw opened a dedicated EcoFood zone proving the validity of the market trend forecasts.
Source: Ekologia.pl/Newseria.pl
VALIANS INTERNATIONAL Sp. z o.o.
ul. Feldmana 4/7, 31-130 Kraków, Poland, Tel: (+48) 12 631 12 89 Fax: (+48) 12 423 47 02
valians@valians-international.com www.valians-international.com
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Newsletter Valians
July 2016
FOCUS : Sports industry in Poland
At the time of major international sporting events such as the European Football Championships and the Olympic games in Rio, Polish sport
has never been better. Whether it is for:
- The recent performance of its athletes / teams on the European and world stage (football, volleyball, handball, athletics, tennis, cycling ...)
- The organization of major events: World and European Championships (football, volleyball, handball, hockey)
- The continuing and growing popularity of recreational sports (running, swimming, cycling) among Poles
This rise of the sport in the country leads to an important dynamism of related areas: sponsorship, merchandising, sports facilities and
equipment.
This trend will accelerate in the coming years with significant needs in these areas.
The Polish delegation at the Olympics in Rio will consist of 240 athletes: one of the biggest representation in the country history.
Leisure activities
Professional sport
Sport marketing
The turnover of the
market of sponsorship
accounted for 3.83 billion
zloty or € 920 million in
2014. The most profitable
sports are usually football,
ski jumping and basketball.
Major sponsors :
Recent international sport
events:
Fitness clubs
Sporting goods
 Construction and renovation
of 6 stadiums and 7 arenas
●2
500 fitness clubs
●Turnover : 900 mln EUR
●Growth: 7% vs. 2014
●2,7 million subscribers
●Penetration rate: 7.3%
●Average price of a monthly
pass: 28,4 €
●Turnover:
1,7 billion EUR
% annually
●Growing
demand for
professional,
technical
clothing and equipment
●Main distribution channels
●Growth: 5-6
Most popular sports
Some of the polish sport
stars
Recent Polish
achievements
●Volleyball :
European
Champion in 2009 and
World Champions in 2014
●Leading position in the
European Championships
in Athletics 2016
●Handball : Vive Kielce
the winner of the
champions league 2016
●Football : quarterfinal of
Euro 2016
Robert Lewandowski Michal Kwiatkowski
Football (4th best Cycling (World champion
of 2014)
European scorer)
Activity by age
Your opinion is important to us
Adam Małysz
Formerly ski jumping
/ Rally
National stadium in
Warsaw
Cycling
Jogging
Swimming
Football
Bodybuilding
Gymnastics
Volleyball
Nordic walking
Fitness
Basketball
Tennis
Martial arts
Marcin Gortat
Basketball - NBA
Robert Kubica
Formule 1 / Rally
Do you want us to cover a specific topic in our next
newsletter ?
You have some comments on the newsletter ?
You would like to share with us your project or
experience in Eastern Europe ?
Do not hesitate to contact us :
valians@valians-international.com
Agnieszka Radwańska
Tennis (4ème player at
WTP ranking)
VALIANS INTERNATIONAL Sp. z o.o.
ul. Feldmana 4/7, 31-130 Kraków, Poland, Tel: (+48) 12 631 12 89 Fax: (+48) 12 423 47 02
valians@valians-international.com www.valians-international.com
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