Poland is a dynamic, fast-growing market that is attracting more and more European and international companies. Succeeding in this market requires the implementation of a well-adapted development strategy, an in-depth understanding of local specificities and a long-term commitment. In this article, Cédric FROMONT, Managing Partner of Valians International, an expert in Poland and Eastern Europe and a member of Globallians, shares his strategies and advice for developing your business in Poland.
What are the keys to entering the Polish market?
Adapting your strategy to the specific characteristics of the Polish market
Understanding Poland’s commercial, cultural and legal landscape is essential. Companies that succeed in the Polish market are those that adapt their approach to local practices. The challenge is to meet the expectations of Polish consumers, which can vary considerably from other European markets. This includes adapting products, sales practices and marketing communications to meet the specific needs of the Polish market. This is why in-depth upstream research is decisive to ensure a successful roll-out.
Establishing a local presence
Having a local presence, in the form of an office or staff on site, can greatly contribute to a foreign company’s credibility and accessibility. It helps to establish a degree of trust and a positive reputation with Polish partners, distributors and even consumers, who value the company’s commitment to the local market. Investing in a business address or local representatives can make a big difference to the way business is perceived and conducted.
Building local partnerships
Working with local partners can be a successful strategy for operating in the Polish business environment. Whether for distribution, production or legal and financial services, having strong local partners can accelerate your ability to operate efficiently and avoid the common mistakes that foreign companies can make when launching their activities in Poland.
Polish industry: a sector with great potential
The importance of industry in the Polish economy
Poland’s industrial sector has undergone considerable change since the 1990s, with the modernisation of factories and the development of new industrial centres in previously less industrialised regions. Today, industry plays a significant role in the Polish economy, accounting for 21.9% of GDP and 21.6% of jobs in 2021. The country has become a major player in several fields, including electric batteries, household appliances, furniture, food processing, steel and plastics, and the automotive industry. Poland also has mining resources and raw materials used by industry (coal and lignite, copper, silver, zinc, etc.).
Poland is the EU’s 5th largest industrial power and has become increasingly important since joining the EU in 2004[1] . The country exports over 70% of its production to its European partners, including 28% to Germany.
[1] https://www.tresor.economie.gouv.fr/Articles/2023/03/17/l-industrie-polonaise
Poland is the EU’s 5th largest industrial power and has become increasingly important since joining the EU in 2004[1] . The country exports over 70% of its production to its European partners, including 28% to Germany.
[1] https://www.tresor.economie.gouv.fr/Articles/2023/03/17/l-industrie-polonaise
The case of the SME specializing in the distribution of industrial materials
This particularly dynamic industrial environment offers attractive business development opportunities[2] for companies supplying the materials and raw materials needed in a wide range of industrial sectors.
Nevertheless, despite the potential of the Polish industrial market, foreign companies can encounter difficulties in their commercial development. This was the case for an SME specializing in the distribution of industrial materials, including stainless steel and titanium for industry, which Valians International has been supporting since 2021. The company was faced with cultural and linguistic difficulties, as well as strategic difficulties in increasing its sales in Poland, despite a potentially lucrative market.
[2] “Focus : opportunités commerciales en Pologne 2024” par Valians International https://valians-international.com/wp-content/uploads/2024/02/2024-03-FR-Opportunites-majeures-en-PL.pdf
Issues and strategy
The consultancy’s first recommendation was to rethink the sales representation strategy. Instead of relying on sales agents, who are often ineffective in Poland, Cédric Fromont recommended a more direct engagement strategy based on local teams trained in advance in the products of the company they would be representing. Initially, Valians International relied on its own teams of part-time project managers with knowledge of the Polish industrial fabric to boost the SME’s sales. A commercial address in Poland has also been set up to strengthen its local presence and credibility with potential customers.
Targeted prospecting and long-term commitment
Valians International identified and targeted more than 250 key accounts in key sectors such as aerospace, defence and medical, and then accompanied the SME through all the phases leading up to the conclusion of the sale. More than 5 sales roadshows were organised, resulting in meetings with more than 50 new prospects in the strategic sectors identified, increasing the company’s visibility and sales opportunities. A strong commitment, including participation in sales events, regular visits and exchanges with customers, is essential to building a lasting presence in Poland.
Two years later, the company had opened more than 10 new accounts and seen its sales in Poland increase by more than 150%. Building on this success, the SME now plans to replicate this model to expand into other neighbouring markets such as Hungary.
Two years later, the company had opened more than 10 new accounts and seen its sales in Poland increase by more than 150%. Building on this success, the SME now plans to replicate this model to expand into other neighbouring markets such as Hungary.
Conclusion
The Polish market, with its dynamic economy and strategic location, offers many business opportunities for international companies. By adapting their approach, establishing a local presence and building lasting relationships with local partners, customers and distributors, foreign companies can prosper in Poland.
You can also find the analysis and advice of Cédric Fromont, an expert in business development in Poland and Eastern Europe, on our YouTube channel:
