by Real Business - Thursday, 30th August 2007

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What the exporters say The British-Polish Chamber of Commerce features these anonymous comments from UK exporters to Poland: Any list of negatives will begin with the bureaucracy . at best tiresome, at worst stupid and corrupt. Young, educated Polish employees are more highly motivated than their opposite numbers in the UK. Poles seem to be a dour, miserable bunch until they open up . then they�fre amazingly hospitable and friendly. Standards of driving are abysmal; there�fs too much aggression on the roads, no civility. Weather is much better than back home . proper summers, proper winters. From a personal point of view, Wroclaw or Krakow are better postings than Warsaw. The people are friendlier, the architecture nicer, the restaurants cheaper, and only an hour�fs drive to the ski slopes. Be warned . Polish consumers are far poorer and far more cost-aware than western European consumers. Poland faces social, political and economic problems quite different from those facing the UK.

With regular no-frills flights to Warsaw, Krakow, Poznan and Gdansk, and 58bn of EU funds set to flow in between 2007 and 2013, Poland is fast becoming the emerging market to watch in Europe.

But while Polish exports to the UK have tripled over the past eight years, UK exports to Poland have stayed around £1.2bn to £1.5bn a year. British exporters have failed to exploit the growing strength of the zloty and the opportunities in Poland’s key sectors: manufacturing, financial services, food and drink, retail, automotive, electrical goods, transport and infrastructure. True, there are few wealthy customers. But with Poland’s 38m inhabitants, consumer markets around the high-growth urban areas should not be ignored.

You’ll need something special, however, to beat Polish suppliers and their low-cost manufacturing base. Cox & Plant Products, which makes conveying systems for the food industry, broke into the market after a number of trade missions with UK Trade and Investment, and since 2000 has exported products worth around £4.5m to Poland via its agent.

Commercial director Andy Cox says the economy isn’t yet on easy street. “The red tape has got a lot easier since Poland joined the EU. I remember one time when we sent three identical lorries: two got through fine and the third got held back for three weeks. Things have changed – now we can get products delivered the next day. But if you’re struggling to succeed in the UK, don’t even think about Poland.”

Cox visits around nine times a year and says travelling is the biggest difficulty. “I cover up to 3,000km on Polish roads every time I’m there. In many cases, we are the first English company that’s ever made the effort to visit.”

Horizon Global Electronics, a manufacturer of test equipment for satellite dish and TV antenna installation, deals directly with major clients in Gdansk. Sales director John McLoone agrees that being on the ground is crucial after initial research. “The market is developing so fast, you really do need to get out there. You can’t tell from phone calls, emails and websites whether you are dealing with a one-man-band or a large company.” Andel, a maker of pollution prevention products, has gone beyond using agents and distributors by setting up its own Polish subsidiary. Managing director Ian Pogson says Andel Polska is on target to cover the £25,000 setup costs within a year of opening, with sales predicted to reach £350,000 within four years.

“We found a Polish non-executive director to hold our hands throughout setting up the company, and it’s been hairy at times, but fun. I love the Poles to bits, but their bureaucracy drives me nuts sometimes. You need a good solicitor more than a good accountant. It’s also extremely difficult to get help accessing all the EU grants, loans and awards – it’s still a post- Communist government without an enterprise mindset.”

For David Nelson, director of Extrusion Advanced Technology (EAT), which makes ice creams bearing logos and designs, Polish business etiquette was one of the hardest things to grasp: “For instance, in Poland you are always treated as the guest. So you can’t buy meals, even if you are a supplier. You also need to bear in mind that they earn a lot less, so while a £5 meal seems incredibly cheap to us, you notice that everyone else is ordering food for £1.50.”

He says an interpreter was useful initially – only the under-30s have learned English as a second language – but Pogson says the lingo is rarely a barrier. “If you take the trouble to learn a few words of Polish, the proud Poles are extremely flattered.”

Where next?
The British-Polish Chamber of Commerce conference, 24-25 April in Warsaw, will feature market briefings and a Matchmaker Marketplace for companies seeking Polish partners. See www.bpcc.org.pl, and see www.britishembassy.pl for details of how the British Embassy can help you with the trip.

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