Knowledge is power

Kopp sat down with WBJ to discuss Austrian-Polish economic cooperation and ways to help Austrian companies become familiar with the Polish market

Konrad Kiedrzyński: How would you assess the volume of Austrian exports to Poland?

Ernst Kopp: We are satisfied with the current level of exports to Poland, but we could do better. Export growth to Poland is much more dynamic than to the Czech Republic, the biggest importer of Austrian goods in the CEE region in terms of value. Still, if we compare the amount of exports per head, Poland is behind many other CEE countries, including Slovakia, Hungary and Slovenia. There is a lot of room for growth.

Exports or investments - which is more important for Austrian businesses?

It is difficult to say which is more important. If we compare volume, exports prevail. But Poland is a big market, with strong domestic demand. Therefore many Austrian companies are beginning to see the opportunity for investments.

Austrian investors in Poland operate mainly in the paper, construction, real estate and renewable energy sectors. In what industry do you see the greatest potential for growth?

The sector which I think has particularly bright prospects for growth is food. Of course the Polish food branch is very strong in terms of quality, packaging and branding. However a lot depends on the consumers' individual tastes in this business.

We are also counting on the growing interest in foreign cuisine among Poles, more and more of whom are visiting foreign countries. I want to stress that Austrian food is not going to compete with Polish products on a mass scale, but rather on the premium level. We want to focus on the quality of the product rather than on volume.

What challenges do Austrian companies face in targeting the Polish market?

Austrian companies often come and ask me what obstacles there are to investing in Poland. And I reply that there are none, not really. Poland has undergone a huge amount of development over the last 20 years. Today you can communicate with most Polish partners in English and the legal system complies with EU legislation. Finally, there is also strong demand on the market - something that does not apply to Western European markets anymore, due to their high level of saturation.

Thus, the image of Poland in Austria needs to be changed. A lot of our people are not aware of the immense development that has taken place in Poland. And what I have to do whenever I am in Austria is to say that this is no longer a backward, communist country.

One thing needs to be mentioned though. As an Austrian investor you should not take Poland lightly. If you want to enter this market you need to get to know it well. Only then will you be able to achieve success here.

There are many small companies in Austria that would like to enter the Polish market - how do you help them?

The Austrian economy is heavily based on small companies. We support their foreign expansion by creating promotional and informational materials on foreign markets - including Poland. We also offer marketing support, including the organization of a lot of promotional events.

What do you stress while promoting Poland among Austrians as destination for investment?

The cost and quality of the labor force are most interesting for Austrians. The opportunities for establishing BPO centers for accounting or IT are also interesting, and we educate Austrians about them.

How would you assess the potential for growth in the renewable resources sector?

This is not an easy sale, since environmental consciousness still needs to be raised. I think that in a few years this business will be much more profitable in Poland, but will require a lot of information and awareness-raising initiatives first.

Austria is an attractive skiing destination among Poles, but competes with other countries to attract them. How are you competing for tourists this winter?

We want to focus on our strengths rather than on the weaknesses of others. We are tourism professionals, because our country heavily relies on it. We have one of the most competitive tourism agencies and infrastructures in the world. We are also very close to the Polish border.