Bosnia and Herzegovina flag Bosnia and Herzegovina: Buying and Selling

Advertising and marketing in Bosnia and Herzegovina

Marketing opportunities

Consumer Profile
The per capita income in the country is significantly less than in other European countries (USD 6,730 in 2021 - IMF). Unemployment remains high (17.5% of the total labour force in 2021 - IMF), including among heads of households, while rural household income is low. These factors limit the growth potential of certain markets and increase price sensitivity. The CPI or cost of items has been on the rise since the global recession and is now significantly higher than it was in 2005 (nevertheless, the price level of goods and services in Bosnia and Herzegovina is relatively low due to the low cost of labour). The Bosnian consumer is mainly focused on buying basic commodities. The informal sector is still considered to be substantial. However, with Bosnia and Herzegovina's path towards EU accession, the movement of goods between the EU and the country may rise rise significantly.

The median age in Bosnia and Herzegovina is 43.1 years (United Nations, 2020). The population is currently declining and ageing, increasing the number of single-person households, although couple-with-children households remain dominant. Urbanization is continuing, with over 48.6% of the population now living in urban areas in 2019 (World Bank, latest data available).

Consumer Behaviour
Bosnia appears as one of the least economically developed European countries. Household consumption accounts for a significant share of Bosnia and Herzegovina's GDP: more than 75% in 2019 (World Bank, latest data available). Most household spending is oriented towards commodities. Other consumption sectors are developing with difficulty.

Ever since 2017 the consumer price index increases progressively reaching 104.8 in 2019 (World Bank, latest data available). The main marketing technique in the country is direct response marketing. However, the spread of credit cards allows the development of other media such as sales catalogues, advertising on television, radio, in the press. E-commerce is starting to develop in Bosnia. In 2019, 69.9% of the population used the internet (World Bank, latest data available).

Most consumers prefer to pay in monthly instalments, even low-cost products. For the sale of capital goods, customer service and sales services are essential for maintenance and training. For consumer goods, consumers prefer domestic products. Flagship products focus on creating permanent contact with consumers and aggressive promotions.

Consumers Associations
Consumers International
Main Advertising Agencies
Via Media
RE:Design
M.I.T.A Group (Publicis)
McCann-Erickson

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Latest Update: September 2022

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