The Czech Republic continued to struggle with inflation and financial crisis this year, but according to all forecasts and the growing optimism of Czech consumers, the situation is slowly improving. However, the worse economic situation has created a good space for development of private brands. Foreign marketplaces such as Temu or Trendyol have had a significant impact on advertising in the online space. Also of interest is the growing role of ESG in marketing communications, the increased use of artificial intelligence, the more consistent use of loyalty programs and the increasingly longer Black Friday. We've put together a roundup of 10 trends that have influenced marketing this year.
(1) Private brands are growing in the Czech Republic, but they are far from the top
According to data from NIQ, private labels achieved a 27% share of the Czech market last year. They exceeded the global average of 22%, but still lag behind Europe (36%). In Switzerland or the UK, for example, they have a share of around 50%. The most popular private label products include meat products, non-perishable foodstuffs such as cereal bars, baking products and broths, as well as fresh fish or drug products. There is also growing consumer interest in healthier food options or packs with ingredients and recipes for home preparation of wholesome hot meals, specialty baked goods such as spelt, gluten-free and organic products, and berries and fruiting vegetables.
Chains are responding by expanding their private offerings - Billa this year introduced a private Heart of Home offering Czech delicacies, liqueurs and spirits U Sedmi kašen or a selection of wines Sol Vineus, Globus launched the Your Choice, with which it offers quality food and drugstore "at very reasonable prices", Kaufland with privates accounting for over a fifth of turnover. Online players are also betting on them -online supermarket Kosik started offering French privates Casino, Naturalia and Monoprix this year, and is also planning its own Baskeeto.
(2) ESG is increasingly important, but quality is king
Czech consumers are changing, they are more interested in second-life products, trying not to waste, buying more from local producers and in some categories buying eco-friendly products, even if they are more expensive. In addition, up to 87% of Czechs believe that companies should help them to behave Ipsos responsibly, according to Ipsos. Products from brands that themselves behave responsibly are bought by 52% of them despite the higher price, compared to 65% worldwide. The Deloitte survey shows that the younger generation in particular expects even greater efforts from companies in the area of sustainability.
Sustainability and CSR are becoming increasingly important in marketing strategy. Packaging, production, point of sale and the carbon footprint of advertising are all being addressed. Large companies such as CEZ, KB or Škoda Auto have released their ESG reports, TV Nova offers its business partners advertising space in BAFTA-certified shows, chains are investing in greener operations of their branches - XXXLutz opened a store in Hradec Kralove with a solar power plant and a water collection field, for example, Tesco in Slane is working not only with photovoltaics, but also with automatic adjustment of LED lighting according to the time of day and season.
(3) Artificial intelligence is increasingly speaking into communication
Artificial intelligence is making its way into more and more areas of company operations, not least marketing and communication. This year alone, it has been used in advertising by Direct Insurance, Jihočeská univerzita or Bohém beer, for example. However, in marketing departments and agencies it is also often used for brainstorming, sorting ideas, checking, etc. AI is also already common in customer contact, with three-quarters of Czechs aged 18 to 65 having their own experience with chatbots, voicebots or virtual assistants, according to an analysis by Enehano.
However, Czechs are still ambivalent about AI. According to Ipsos research, they are rather skeptical about it, with mistrust mainly about whether AI will discriminate and show prejudice. A study published in the Journal of Hospitality Marketing & Management in turn shows that mentioning AI in product descriptions reduces consumers' willingness to buy, and on the contrary, can even cause fear and concern.
(4) Foreign players speak up in online advertising
The prices of online advertising in the Czech market have been heavily influenced by strong advertisers from foreign marketplaces. Massive marketing budgets have been allocated here by players such as Temu, Shein or Trendyol. Chinese ultra fast fashion e-shops are investing in social networks, influencers and also a lot of discount codes and gamification, while Turkey's Trendyol ventured into outdoor towards the end of the year and is open to TV.
(5) Black Friday gets longer, post-Christmas sales fade in importance
Originally a one-day discount event, Black Friday, or Black Friday, has taken on a completely different form domestically. It is not unusual for big e-commerce players such as Alza, Allegro or Datart to extend it to a month. They explain this by the greater convenience of shopping without unnecessary rush as well as avoiding crowded stores and overloaded websites. However, according to Tomáš Čupr, director of PPC Profits agency, because of this, even gradually decreasing importance of post-Christmas discounts.
(6) Major sporting events have also spoken into marketing
This year, marketing communication has also been influenced by major sporting events. Whether it was the World Ice Hockey Championship, which took place in our country, or the Uefa football championship or the summer Olympics. The partners of the events and the national teams prepared their activations and also used the theme in their campaigns. According to the findings of Czech Hockey, for example, the way of watching matches has changed a lot, with much more of it happening in the family and women watching hockey more often with men. As a result, ice hockey also appealed to brands that would not normally consider sports sponsorship.
(7) It doesn't pay to lie, the Tlustý Baggage Store case shows
It is a general truth that you should not lie. But the Tlustý Baggage Store case this year showed how it works when someone does it in marketing communications. While the company announced one day on its FB profile that it was facing bankruptcy, on Thursday its owner and director Ivan Petrův admitted to Novinky.cz that he "may have used expressive words." According to him, it was just "a human appeal to customers to give them more work in weak months." The result of these "expressive words" was initially a wave of solidarity that flooded the company in the form of orders, but the clarification subsequently brought with it disappointment, angry customers and a boycott.
(8) Customer engagement takes on a new dimension
An interesting development this year was the involvement of customers in deciding what would be on sale. Earlier this year, the online supermarket Kosik came up with this, letting Czech households choose which products would be included in a sale or discounted offer; before the Christmas holidays, Penny also came up with a similar activity, giving its customers the space to choose what they wanted on sale.
Pricing was an important communication theme for other players as well. Ikea continued to discount its products across the board, and Jysk took a similar step. Promotions played a significant role in the first quarter, but their share decreased in the second quarter, according to NIQ data, and this trend was confirmed in the third quarter.
(9) Czechs are using loyalty programmes more consistently than before
The increase in prices has also motivated Czech consumers to use loyalty programmes more consistently. At the same time, knowledge of them has increased over the last year, with 86% of Czechs knowing at least one. More than two-thirds (68%) are using them more, most often at food retailers (98%), medicine retailers (88%) and drug and cosmetics retailers (80%), according to research ResSolution Group.
(10) CGI advertising has found its place
Computer-generated images in a real environment have become part of Czech advertising. CGI technology has found its way into the advertising campaigns of many Czech brands. Ikea has created the illusion of a tram pulling inflatable chairs from its range through the centre of Prague past the National Theatre. The Czech Sokol Community created a controversial artwork by David Černý on the facade of the Máj department store. During this year's World Cup in the Czech Republic, the Skoda car company dressed the Powder Gate in Prague in a hockey jersey, and in Ostrava added" a giant goalie hockey stick to a former mine, and in Brno, giant hockey gloves on springs "healed" a salina. CGI has also been used several times by Butterfly, Rossmann or Makro.
Signs coming and going
In addition to the trends described above, as every year, some brands withdrew from the Czech market, including Hamleys or fashionable Esprit, whose stores were renamed Catches. De facto, the e-shop CZC.cz has also ceased its activity, which since autumn no longer serves for the purchase of goods.
Other brands, on the other hand, were created, for example OlaOla Martin Bernátka, many came to the country - among luxury brands came Balmain Hair Couture, Parfums Christian Dior and Le Labo, In the cosmetics section, Sister's Aroma from Ukraine and Spa Ceylon from Sri Lanka entered the market, while in the gastronomy sector, the Czech brand Rio or the Georgian concept Ska launched their activities. Announcing their arrival are Five Guys or Dean&david.
There have also been many redesigns - new logos have been introduced this year by Kofola, Birell, Magnesia or the psychotherapy platform Hedepy. A number of established brands have in turn ventured into new categories - Birell has entered the category of functional non-alcoholic beers, which are enriched with caffeine or a range of vitamins, while Cool from Pivovary Staropramen has made a similar move.
Source: mediaguru.cz
