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€24B and Growing: CEE’s eCommerce Goes Global

by News Editor

Central and Eastern Europe (CEE) is no longer playing catch-up. Once seen as Europe’s digital underdog, the region is now making bold moves in online retail. With eCommerce growing by 12% in 2024 and on track to hit €124 billion, CEE has become one of the continent’s most compelling digital markets.

But behind the headline numbers lies a fierce battleground. As Chinese platforms like Temu, Shein, and AliExpress flood the market with ultra-low prices and speedy shipping, local retailers are forced to rethink everything—from pricing strategies to tech investments. The winners will be those who adapt fast, go cross-border, and build defensible brands. Everyone else risks being outpaced.

Under Pressure: A Marketplace In Flux

CEE’s digital economy is thriving, powered by faster internet, smartphone-first habits, and a younger, digitally fluent population. But the game is changing fast.

Chinese players are rewriting the rules of engagement. Temu, for example, has seen a 200% spike in European users in just a year, luring consumers with rock-bottom prices and frictionless shipping. Shein, with its addictive fast-fashion model, has captured the Gen Z audience across the region.

For CEE retailers, it’s a wake-up call: price wars are unwinnable. The path forward lies in brand differentiation, curated offerings, and a better customer experience.

Cross-Border Commerce: From Trend To Lifeline

Domestic eCommerce remains strong—but the real growth story is international. According to the 2024 CEE Ecommerce Survey by Mediaposte Hit Mail, cross-border purchases are expected to surge by 15% this year, reaching a record €24 billion. Over 70% of European consumers are already shopping from international platforms.

Faster delivery networks, improved payment systems, and the appeal of global products are fuelling this trend. But cross-border selling isn’t plug-and-play. Legal red tape, taxes, translations, and customer service expectations vary by market. Merchants that master this complexity will unlock exponential growth.

Platform Or Independence? The Great Marketplace Dilemma

One major strategic question hangs over every CEE eCommerce player: Should you build your brand on marketplaces, or own your sales channels?

According to Mediaposte’s survey:

  • 48% of merchants are active or planning to be active on marketplaces.
  • eMAG dominates in Romania, Bulgaria, and Hungary, with 50% of surveyed sellers using it.
  • Skroutz (Greece) and Amazon are key players offering regional reach.

Marketplaces offer reach, built-in traffic, and lower marketing overhead. But they also come with downsides: tight margins, limited brand control, and high competition. The smart play? A hybrid strategy—use marketplaces for scale, but invest in a standalone e-shop to build brand equity and customer loyalty.

Tech-Powered Retail: AI, Automation & What’s Next

As demand scales, so do operational challenges. That’s where technology steps in.

AI is helping merchants personalize shopping journeys, reduce cart abandonment, and automate follow-ups—solving a pain point that still costs retailers billions. Logistics automation, smart inventory tools, and integrated customer service are now standard requirements, not nice-to-haves.

Sustainability is also becoming a deciding factor for consumers. Nearly 73% of global shoppers, per Nielsen, now favor brands with eco-conscious practices. For CEE retailers, that means ethical sourcing, green packaging, and carbon-smart logistics are no longer optional—they’re expected.

The Winning Playbook For 2024

To thrive in the new era of CEE eCommerce, here’s what smart retailers are doing:

  • Move Fast – Don’t wait for the perfect system. Launch, learn, and iterate.
  • Go Global – Think beyond borders, optimize for compliance, and localize the experience.
  • Use Marketplaces, but Build Your Brand – Leverage their traffic, but don’t rely on them entirely.
  • Automate Everything – From warehousing to CX, automation is your scalability engine.
  • Think Green – Sustainability sells. Period.

CEE’s eCommerce Moment Is Now

The CEE region has stepped into the global eCommerce spotlight. Cross-border commerce is exploding, AI is rewriting retail operations, and sustainability is no longer just a buzzword—it’s a business imperative.

The race isn’t about who sells online. It’s about who adapts fast, scales smart, and builds for the long term. The question for CEE merchants isn’t whether to go digital. It’s how far—and how fast—they’re willing to go.

Because in this game, those who act now won’t just keep up—they’ll lead.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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