Is running a business in Poland very profitable?

catsoldierThreads: 90 Posts: 697 Joined: Sep 27, 09 ♂	Aug 29, 11, 23:02 #1
Is running a business in Poland very profitable? Wages are low. Sale prices are fairly high.

wielki panThreads: 3 Posts: 278 Joined: Jan 7, 11 ♂	Aug 29, 11, 23:09 #2
Wages are low. If wages are low and things expensive, what do you think this tells me!

pawianThreads: 90 Posts: 5,395 Joined: May 30, 08 ♂	Aug 29, 11, 23:12 #3
Is running a business in Poland very profitable? As a small businessman, I can say running a business in Poland is tiring but profitable.

wielki panThreads: 3 Posts: 278 Joined: Jan 7, 11 ♂	Aug 30, 11, 07:15 #4
[quote=pawian]As a small businessman, I can say running a business in Poland is tiring but profitable. And what may I ask is your line of business?? profitable omg ?? How much do you make???

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Aug 30, 11, 14:09 #5

Retail appears to be very profitable in Poland.

For example a £5 T Shirt in the UK will cost you £40 in Poland. The identical product.

Why is this? The only conclusion I can draw from this and what I have seen in Poznan, is that big retail is controlled by a very few, very rich people. No competition.

I have considered openning a shop myself, but I have a feeling the consequences would be dire for an English man.

There are other ways!

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Edited by: delphiandomine Aug 30, 11, 14:30 #6

For example a £5 T Shirt in the UK will cost you £40 in Poland. The identical product.

Curious, what store? Most Polish clothes shops have prices not only in zloty, but also in Czech Koruna, Hungarian Forint and Euro. H&M and M&S being a great example.

And if the price difference is so massive, why haven't you already bought up lots of stock in the UK to sell on the Polish market?

I have considered openning a shop myself, but I have a feeling the consequences would be dire for an English man.

The consequences would be dire for the simple fact that you're unlikely (as an Englishman) to put the hours needed into making it work for a salary that would be far less than you'd get in the UK. I can't imagine that you'd be happy to earn 3000zl brutto after putting in 50-60 hours, for the simple reason that you could go and work in the UK for far more money.

Why is this? The only conclusion I can draw from this and what I have seen in Poznan, is that big retail is controlled by a very few, very rich people. No competition.

Actually, in Poznan, retail isn't controlled at all. In fact, quite the opposite - there's way too much competition on the market. The margins are tiny due to immense competition - heck, there's about 4 clothes shops within a 2 minute walk of my flat.

As for the chain stores - there's a lot of competition there, too.

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Aug 30, 11, 14:58 #7

Actually, in Poznan, retail isn't controlled at all. In fact, quite the opposite - there's way too much competition on the market. The margins are tiny due to immense competition - heck, there's about 4 clothes shops within a 2 minute walk of my flat.

Actually, Ant68 says he's unemployed. He is probably too lazy to walk out of his place to see any competition. Instead, he is ready to to sit at the computer typing rubbish about a £5 T Shirt in the UK that will cost you £40 in Poland.

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Aug 30, 11, 15:29 #8

Actually, Ant68 says he's unemployed. He is probably too lazy to walk out of his place to see any competition. Instead, he is ready to to sit at the computer typing rubbish about a £5 T Shirt in the UK that will cost you £40 in Poland.

I'm really wondering where this was - I can only assume that he's made the usual mistake of comparing CLOSING DOWN SALE!1111!!!!11OMGLOL prices to normal shop prices.

One thing that is odd (for me, as a foreigner) in Poland is when the sales are - there's no huge after-Christmas sale period, for instance, but you tend to see quite good sales throughout the year.

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Aug 30, 11, 15:45 #9

Actually, Ant68 says he's unemployed. He is probably too lazy to walk out of his place to see any competition. Instead, he is ready to to sit at the computer typing rubbish about a £5 T Shirt in the UK that will cost you £40 in Poland.

Go to Sports World and check the prices. Then go to the big sports shop in Kings Cross in Poznan.

See for yourself.

Lazy. I think not. Sold a successful business in January. Spent most of the proceeds recovering two abused children from Poland. Did all the legal work UK side myself. Did most of the Polish legal work myself. In between times developed what is now a successful e-commerce site with 3000+ products. Currently developing a second site. I work like a Pole except I don't stop when I'm sick. I'm pretty busy really. Today I have a Jquery problem and I need to relieve some stress.

And if the price difference is so massive, why haven't you already bought up lots of stock in the UK to sell on the Polish market?

Whose to say I haven't?

Check out what a childs bicycle costs in Poland and then the UK. The whole economy is fixed in Poland. Manufacturing is protected by low wages. The chinese are coming.

Why is there such a massive business in shipping secondhand clothes to Poland?

I did buy a few shoes in Poland. Difficult finding nice shoes in the UK.

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Aug 30, 11, 15:50 #10

Go to Sports World and check the prices. Then go to the big sports shop in Kings Cross in Poznan.

You're comparing apples and oranges - Sports World is a downmarket shop for chavs, whereas InterSport is a high-end sports clothing shop. Different countries will pitch products at different markets - for example, Zara is a downmarket brand in Spain, but a mid-class brand in Poland and the UK.

Check out what a childs bicycle costs in Poland and then the UK. The whole economy is fixed in Poland.

Similar sorts of prices, unless, of course, you're trying to compare cheap UK shops with upmarket Polish shops.

Why is there such a massive business in shipping secondhand clothes to Poland?

Because British people are dumb enough to donate clothes to a vague sounding "charity collection"? Combine that with the Polish perception that foreign = better, and you have a huge market.

rozumiemnicThreads: 4 Posts: 1,019 Joined: Nov 16, 09 ♀	Aug 30, 11, 16:24 #11
Sports World is a downmarket shop for chavs, not really "chavs" more for normal families, for example, it sells all the top shoe brands,just cheaper,or cricket or ski gear at reasonable prices. My outlaws go crazy in there.

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Aug 30, 11, 16:27 #12

You're comparing apples and oranges - Sports World is a downmarket shop for chavs, whereas InterSport is a high-end sports clothing shop. Different countries will pitch products at different markets - for example, Zara is a downmarket brand in Spain, but a mid-class brand in Poland and the UK.

How can you say that is comparing apples with oranges. It's like for like.

Personally I would quite like to set up shop in Poland. I quite like the place really but I was advised it might not be safe to do so. As you say the Polish perception of some products is different to ours in the UK. If you were very selective on your products, I think there is huge potential in Poland. I spent pretty much the last six moths going back and forth to Poznan and having spent the 20 years buying and selling I don't miss much. The competition talked about exists mostly at the lower end of the market. The upper end looks to me likes it's controlled by a Cartel. I was researching shoes a month or so ago and one brand which was available in Warsaw only, was 600% higher in Warsaw than in it's native country. The brand escapes me now.

I would think with the growth in internet facilities (more people with computers so we don't light a fire) in Poland and peoples level of trust in Internet Commerce growing that these higher prices are not going to last forever. Things change.

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Aug 30, 11, 16:28 #13

not really "chavs" more for normal families, for example, it sells all the top shoe brands,just cheaper,or cricket or ski gear at reasonable prices.

Have you seen Mike Ashley, though? ;)

Nah, it's just not a fair comparison to compare InterSport in Poland to Sports World - the two are pitched completely differently. Try getting someone in Sports World to help you with anything, then compare to InterSport in Poland - it's a world of difference.

(used to use Sports World all the time for things like cheap footballs and pool cue chalk...)

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Edited by: delphiandomine Aug 30, 11, 16:44 #14

How can you say that is comparing apples with oranges. It's like for like.

How on earth can you compare a high-end sports shop with a store that packs in clothes/equipment and provides **** all customer service? It's just not comparable - Sports World is downmarket, Intersport is upmarket.

Personally I would quite like to set up shop in Poland. I quite like the place really but I was advised it might not be safe to do so.

Not safe? Who advised you that?

No-one is going to bother you in Poland if you open a clothes shop. I suspect the fact that you don't speak the language (and seem to be afraid of foreigners) is clouding your judgement. In fact, the only threat to you is your money before you realise how different Poland is.

As you say the Polish perception of some products is different to ours in the UK. If you were very selective on your products, I think there is huge potential in Poland. I spent pretty much the last six moths going back and forth to Poznan and having spent the 20 years buying and selling I don't miss much. The competition talked about exists mostly at the lower end of the market. The upper end looks to me likes it's controlled by a Cartel. I was researching shoes a month or so ago and one brand which was available in Warsaw only, was 600% higher in Warsaw than in it's native country. The brand escapes me now.

You do realise that the UK is also exceptionally expensive for certain brands that you can buy in the USA for peanuts? It's swings and roundabouts - different countries pitch products at different prices. As I said - Zara is a great example - it's a downmarket brand in Spain, but middle market in Poland and the UK. But there's certainly no cartel here - or at least - nothing that doesn't exist in the UK as well.

Just maybe, instead of blaming imaginary cartels and suchlike, you should look at what the brand owners think? Perhaps they don't want their products to be sold cheaply in Poland?

Sorry, but you don't speak the language and don't live here - you haven't got a clue. By the way, if you want to speak of cartels - perhaps you might want to ask the supermarkets in the UK about milk prices.

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Aug 30, 11, 18:34 #15

As someone who know a fair bit about retail I can tell you this, Primark is coming to Poland very soon and there are a lot of other chains watching to see how they do. Primark will clean up over here because while there are clothes shops everywhere there is a severe lack of budget stores. This is also true of the sports shops which have been mentioned. I would never describe Intersport as a high end store they tend to sell end line products at very high prices and this is the problem most of these retail chains just don't get it. A large percentage of the market want cheap product (especially here where disposable income is so low.) There are going to be some tough lessons to be learned by Polish retail chains very soon.

Wroclaw BoyThreads: 57 Posts: 5,470 Joined: Jul 3, 09 MEMBER ♂	Edited by: Wroclaw Boy Aug 30, 11, 20:23 #16
Ive always found Decathlon quite comparable to the rest of Europe in terms of price, the quality is obviously the same as other Decathlon stores too. Its a brilliant shop.

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Aug 30, 11, 21:19 #17

As someone who know a fair bit about retail I can tell you this, Primark is coming to Poland very soon and there are a lot of other chains watching to see how they do. Primark will clean up over here because while there are clothes shops everywhere there is a severe lack of budget stores. This is also true of the sports shops which have been mentioned. I would never describe Intersport as a high end store they tend to sell end line products at very high prices and this is the problem most of these retail chains just don't get it. A large percentage of the market want cheap product (especially here where disposable income is so low.) There are going to be some tough lessons to be learned by Polish retail chains very soon.

Retail in Poland is an enigma- there doesn't seem to be rhyme or reason to what will fly and what doesn't. TK Maxx does well- it does well everywhere in the world but I think it is so successful here is that Poles LOVE name brands.
I have never been to a Primark, but it looks good to me. I would never buy expensive clothes for my kids and I don't wear name brands- I really like Old Navy.....but unfortunately it isn't here--I would shop at Primark if the quality was good.
I think the few Polish retail chains, like Reserved, will not be effected so much by Primark. They have good sales and they have built up a following- also, in the cities there is enough population to support it. But I agree that a large percentage of the market do want cheap products.

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Aug 30, 11, 21:32 #18

Check out what a childs bicycle costs in Poland and then the UK. The whole economy is fixed in Poland. Manufacturing is protected by low wages. The chinese are coming.

I agree with your main point here. Also, the price of CD's and books can be treble the price of Ireland. Saw a book the other day about Irish writers, in a language shop in Lublin, was 85 Euro. I bought the same book new for less than 10 over five years ago in Ireland.

pawianThreads: 90 Posts: 5,395 Joined: May 30, 08 ♂	Edited by: pawian Aug 30, 11, 21:40 #19
=milky]Saw a book the other day about Irish writers, in a language shop in Lublin, was 85 Euro. ????? It makes over 250 zlotys. Simply impossible. Was it made of gold?

milkyThreads: 10 Posts: 1,224 Joined: Oct 26, 09 ♀	Aug 30, 11, 21:50 #20
/ Quote #19 =milky]Saw a book the other day about Irish writers, in a language shop in Lublin, was 85 Euro. It's the truth....Kollataja street,the shop there,,check for yourself!

pawianThreads: 90 Posts: 5,395 Joined: May 30, 08 ♂	Aug 30, 11, 21:52 #21
=milky]It's the truth....Kollataja street,the shop there,,check for yourself! What is the title of the book?

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Aug 30, 11, 22:49 #22

Ive always found Decathlon quite comparable to the rest of Europe in terms of price

It's funny because I was going to mention this store, they are cheap and good value for money, the one in Poznan is out of town though. I think if they were on the high streets competing they would take a big market share from the likes of Intersport.

TK Maxx does well- it does well everywhere in the world but I think it is so successful here is that Poles LOVE name brands.

Yeah and also because it is cheap. For example you can buy a pair of jeans in there for about 120zl yet in somewhere like Zara you will pay 200+

delphiandomineThreads: 42 Posts: 9,954 Joined: Nov 25, 08 ♂ [Suspended]	Aug 30, 11, 23:01 #23
It's funny because I was going to mention this store, they are cheap and good value for money, the one in Poznan is out of town though. There's a new one going in at the M1 centre in Franowo, apparently.

grubasThreads: 20 Posts: 1,452 Joined: Feb 1, 10 ♂	Aug 30, 11, 23:02 #24
Yeah and also because it is cheap. For example you can buy a pair of jeans in there for about 120zl yet in somewhere like Zara you will pay 200+ 120PLN and you call it cheap?This is $41.For $41 I bought 2 pairs of Levi's jeans on sale and still had $11 left in my wallet.

EnglishpoznanThreads: 14 Posts: 152 Joined: Apr 21, 09 ♂	Edited by: Englishpoznan Aug 31, 11, 00:35 #25
120PLN and you call it cheap? But thats just the thing that is cheap for here and to be honest everyone knows that you can pick up jeans for next to nothing in the states

OWELL

Aug 31, 11, 03:44 #26

120PLN and you call it cheap?This is $41.For $41 I bought 2 pairs of Levi's jeans on sale and still had $11 left in my wallet

I agree and some wise guys will use them for a month and return it for new pair:) where can you do that in Poland?

Is running a business in Poland very profitable?

Wages are low.
Sale prices are fairly high.

again abusiness for me is making money and taking risks,why would I take risk and make money in PLN when i can do it in $ or pounds?Ok maybe i am wrong as you may love to live in poland? In my opinion its living cheap high life!Dude enjoy it while it lasts:)

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Aug 31, 11, 14:58 #27

Interesting views, but it's also good to point this out that most Poles would rather save than spend.(so if u're a businessman better read between the lines) Most of my colleagues are not brand conscious at all ( should also mention the missus) brands don't mean nothing to them here. It's also good to note that teenagers are when it comes to jeans and trainers and those who live in Bigger city will Know their Brands well. My observation having gone around the country is that a large Population of the Country Lives in Small Towns and Villages. Disposable incomes in these areas are very low. Once read a topic on how Tesco first came into Poland, the Polish Market is not as easy as most outsiders might perceive.(they were very ambitious thinking they could put up shop in every street like they'd done back home) On the other hand i have someone i know whose a good client of the Missus, he's selling Clothes at Open Markets in small Towns. He sells mainly women's clothes and underwear (most of the stuff get's shipped in from Turkey of coz) and i should say he's doing pretty well. He works only 3days a week and "officially" (in quotation of coz) he makes 3000zł a week so if u look into this and understand the Market and the Demographics business is quite profitable in Poland, but not in all sectors...

LwowskaKrakowThreads: 49 Posts: 504 Joined: Mar 9, 07 MEMBER ♀	Aug 31, 11, 17:30 #28
al111 He must only work a few months per year then or freeze his feet during Polish Winter.. I agree that clothes are super expensive in poland compared with other countries. A Polish friend of mine told me he got 2 euros tee-shirts of great design and quality in Vienna. If Austria can be cheaper than Poland ......

wielki panThreads: 3 Posts: 278 Joined: Jan 7, 11 ♂	Sep 1, 11, 03:13 #29
I agree that clothes are super expensive in poland compared with other countries. You mean to say designer clothes are more expensive compared to overseas... local and chinese imports are very cheap..

rehanThreads: 1 Posts: 3 Joined: Sep 2, 11 ♂	Sep 2, 11, 11:29 #30
hi, I read your correspondence with much intrest, Basically i also own company in Poland & deals in both clothing(denim) & home textile. If you intrested please contact me on following address; rehanwajih@gmail.com rgds/rehan

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