Poland's ambitious goals

She says a measure of her homeland’s ambition is the aim of making Poland the sixth largest economy in Europe (from ninth now) by 2030.  That would push it ahead of Sweden and Belgium, based on current rankings.

Poland is also aiming for above five percent average annual growth between now and 2030 and for gross domestic product per person to match the EU average.

Just back from a visit to Poland, Wesolowska says one of the distinguishing features of the Polish business scene is its determination to succeed.  “The Poles are very optimistic about the opportunities arising from the fall of communism and joining the European Union.

“This is the biggest driver of Polish business and Poles are very serious to keep their excellent position in the economic ranking of all EU members, based on the first six months of 2009.”

The Polish economy has greatly profited by joining the EU. It is rated as the best place for new investment in Europe and is intent on making itself the sixth largest economy there by 2030.

The Poles are backing up their aspirations with heavy investments in infrastructure and housing – the latter offering huge opportunities for FRAMECAD’s time-saving steel frame design and build processes.

Wesolowska says her company is forecasting 50 percent growth a year in Poland.

FRAMECAD is one of a growing band of New Zealand exporters finding Poland to be a fulfilling and promising market, albeit a challenging one.

Balancing issues such as distance, language and competition are the significant opportunities for exporters willing to take the plunge into a developing market remarkable for its ambition and optimism.

Jennifer Scoular, New Zealand Trade and Enterprise Trade Commissioner based in Hamburg, Germany, says businesses should have an open mind on possible export markets and sometimes ‘a road less ordinary’ like Poland can be a good way to go.

She says Poland’s point of difference is that it is not a saturated market like the United Kingdom or France. It is an ‘undeveloped EU country’ – an apparently contradictory term that contains two lots of good news for exporters: a growing and immature market that has recognisable and consistent rules.

When a group of people familiar with both New Zealand exporters and the Polish market were asked ‘what were the major constraints holding back New Zealand taking advantage of opportunities in Poland?’ insufficient knowledge of the country among New Zealand businesses was top of the list.

The feeling was that companies tended to take advantage of opportunities in places they knew better, or where there were other New Zealand business interests.

Poland’s positives include:

• a growing market of 38 million people
• EU membership
• strong investment. Poland has been rated the best place for new investment in Europe and it is estimated that seven billion Euro (NZ$15.5 billion) will be pumped into the economy during 2009
• pivotal geographical positioning in central Europe. Poland is the gateway to eastern Europe and Russia.

Indications are that Poland will also ride out the global recession better than most of its European neighbours. The International Monetary Fund predicts Poland’s gross domestic product will shrink 0.7 percent in 2009 before returning to positive territory next year.

Gavin Thompson, who has experience in Poland dating back to the late 1970s says “if you can sell in France, you can sell in Poland. It’s a similar-sized, open and dynamic market”.

Thompson, now central and eastern Europe manager for Bentley Instruments – the sales and service agent for New Zealand agritech companies Tru-Test and Zeetags in central Europe – explored opportunities for New Zealand exporters in central Europe as an assistant trade commissioner in the late 1970s and early 80s.

The companies spoken to by bright are, however, also upfront about the challenges Poland presents New Zealand exporters.  “There's no room for the New Zealand cowboy exporter,” says Thompson.

Poland is becoming increasingly attractive for exporters compared with the bad old days in the early 1990s, when New Zealand exports to Poland collapsed to around $2.4 million a year. In 2008, they were worth $21 million – still lower than the $23 million recorded in 1988.

Seeing the big picture

Challenges such as distance, bureaucracy, tough competition and New Zealand’s low profile in the Polish market haven’t turned off some New Zealand exporters.

Many are driven by the big picture: where Poland will be in 10 years rather than what can be sold now.

Poland joined the EU in 2004 and is expected, overtime, to catch up with EU living standards. The Polish economy has profited more than any other from joining the EU club. Between 2004 and 2008, it received 26.5 billion Euro -
14 billion more than it contributed to the EU budget.

Charlotte Read, Villa Maria’s European market manager, says the wine maker believes Poland represents huge opportunities.

Though it’s predominantly a vodka and beer market, drinking habits – along with the Poles general outlook – are slowly shifting from eastern European tastes to those of the west, ie. more wine consumption.