As Polish companies continue to expand into foreign markets, tackling challenges that deter others, one lesson many have yet to learn is how to transform a brilliant idea into a money-making machine. By Beata Socha
“WHEN IS THE RIGHT TIME TO LOOK OUTSIDE YOUR DOMESTIC MARKET?”
This is a question many Polish companies keep asking themselves. The hard truth is that the time to think about expansion is when you launch your business. However, for historical reasons and due to its significant consumer base, most Polish businesses start by operating locally. Their modus operandi is usually the same: validate your idea, gain a client base, attract investors, and then look for new markets. There are certain flaws in this approach.
For one, while many Polish companies excel in determination and ingenuity, they fall behind in long-term planning. “In Poland, your business may thrive because you intuitively understand the market you grew up in. But other markets can be drastically different,” said Piotr Kubalka, Head of J. Dauman Poland, which specializes in facilitating the expansion of Polish businesses into the UK, offering legal and logistics services, as well as management and coaching support.
The UK market has always been enticing but not without challenges. While Brexit may have dampened the enthusiasm of some businesses, Poles, whose enterprises grew amidst limitations and difficulties, have proven themselves resilient and more than capable of navigating adversity.
However, it is essential for Polish companies to understand the chief differences between markets to make a successful splash rather than crash against the steep cliffs of Dover. The British have always operated globally. Due to its former imperial status, the UK has long been familiar with places as diverse as Birmingham and Burma, almost equally comfortable in Newcastle as in Nairobi. Poles, having been isolated within the Eastern Bloc for the longest time, still have homework to do.
Nowhere is this more obvious than in the food market. Polish food producers offer excellent, high-quality products with modern and efficient production lines. Yet, they still cater predominantly to Polish tastes. Polish shelves can be found in most UK supermarkets, even in dedicated Polish stores, but the flavors and varieties offered are nearly identical to those in Warsaw or Katowice. However, British consumers have different tastes, and it is hubris to assume that Polish preferences are superior. “Polish food producers who understand that they need to give customers what they want, even if it differs entirely from Polish tastes, will win the market,” said Kubalka.
He stressed that Poles are finally beginning to see themselves as true Europeans, adopting common values, including in business. One of these values is seeking and taking advantage of opportunities as they present themselves.
The trailer market is a prime example of the natural and mature expansion of Polish firms. Wielton has long been a frontrunner among Polish trailer producers, having spent the last decade acquiring competitors in Germany (Langendorf), the UK (Lawrence David), Spain, Italy, and other markets. While global uncertainties have taken a toll on logistics, the company remains strong and has ventured into different market niches, such as scrap and wood transport.
Another Polish trailer producer with grand ambitions is Emtech, based near Bełchatów, which manufactures specialist trailers, including those for military use. Last year, the company acquired Andover Trailers, a British firm with a tradition dating back to the 19th century. “Something that used to be reserved for strategists from major consulting firms is now achievable for regular Polish entrepreneurs,” Kubalka noted.
Trailer producers are not the only group of manufacturers carving out a sizable portion of the European market. Poles have long been leaders in furniture, window, and door manufacturing. They are no longer merely shipping their high-quality products from Poland. Companies like Pressglass, a high-rise glass producer, have evolved beyond being simple exporters by building production plants in target markets, such as the UK, and acquiring international competitors.
Emtech’s bold move was not the only high-profile acquisition of a century-old enterprise by a Polish business last year. Thomas Cook, the oldest tourist brand, was acquired by Grupa eSky, a Polish company already operating in 50 markets.
Naturally, some of the biggest opportunities for Polish businesses lie in tech, especially those with clever, practical ideas. Polish giant InPost needs no introduction. It already operates in several European markets, including the UK, Spain, France, and Italy.
Most recently, Rafał Brzoska, founder and CEO of InPost, expressed interest in expanding into the U.S. market, eyeing significant opportunities in its advanced e-commerce sector, high labor costs, and less-developed delivery technology compared to Europe. This makes last-mile delivery automation highly attractive. Previously, Brexit enabled InPost to expand into the broader European market.
Despite former President Trump’s focus on protecting U.S. jobs, Brzoska believes InPost could thrive there. He suggested in a Bloomberg interview that after strengthening its position in the UK, InPost might expand to the U.S. within four years.
The tech industry is where Polish ingenuity has long shone brightest. CD Projekt and Codewise are already household names, while a number of successful startups and new ventures are capitalizing on the ongoing AI revolution. ASBIS Group’s subsidiary, Breezy, has launched an AI-driven robotic production line in Raszyn, Poland, specializing in refurbishing and remarketing used digital devices.
Meanwhile, ElevenLabs, specializing in generative AI for audio applications, has just secured a $180 million investment from prominent venture capital firms a16z (Andreessen Horowitz) and ICONIQ Growth, tripling its valuation to a staggering $3.3 billion. The company has earmarked the new funds for AI audio research and plans to expand product offerings, targeting not just local but global markets.
These high-profile wins may well pave the way for a number of startups in the still nascent AI market. And even though startups have a long way to go before they can dominate international markets, there is no shortage of determination and appetite for success.
Of course, the real challenge is translating an idea into a money-making machine, scaling up, and finding investors. After all, even risk-loving VCs “invest in a money-making machine, not just an idea,” Kubalka said.
While Polish business is still young, barely 30 years old, and often competing against century-old giants, many of these companies have already reached impressive sizes. Once they master global expansion, Polish companies could soon dominate the continent.
