Overview of the Polish market and its e-commerce development trends

Poland is located at the junction of Eastern Europe and Western Europe and is the center of Europe. As a democratic republic consisting of 16 provinces, Poland borders the Baltic Sea to the north, Germany to the west, the Czech Republic and Slovakia to the south, Ukraine and Belarus to the east, and Lithuania and the Kaliningrad Oblast of Russia to the northeast. Poland’s population accounts for about 1/3 of the total population of Central and Eastern Europe, and its economic aggregate accounts for about 1/3 of the total economic output of Central and Eastern Europe. The bilateral trade volume between China and Poland also accounts for 1/3 of the total trade volume between China and Central and Eastern Europe. As the largest economy in Central Europe, Poland has nearly 40 million consumers, which is more than the combined total of the Czech Republic, Slovakia and Hungary.

Since 1989, Poland has transformed from a planned economy under the Soviet model to a market economy. From 1993 to 2000, the GDP growth rate was obvious. However, by 2001, due to the decrease in domestic consumption and investment and the impact of the global economic slowdown, , Poland’s economic growth also began to slow down. After joining the EU, the economy resumed growth. As a major automobile producer in Europe, international automobile giants such as Fiat, Volkswagen, and Toyota have invested and built factories in Poland. Auto parts manufacturing and vehicle assembly and export are important parts of its industry, mainly in the electromechanical industry. Including metal processing, machine manufacturing, automobiles, shipbuilding, precision instruments, transportation, electrical and electronic industries, etc. Among them, the automobile industry is one of the largest new industries that is developing rapidly.

China-Poland economic and trade cooperation has a solid foundation, strong complementarity in economic and trade cooperation, and huge potential for cooperation. Poland was one of the first countries to respond to the Belt and Road Initiative and to sign an intergovernmental memorandum of understanding on the Belt and Road Initiative with China. In recent years, trade between the two countries has maintained growth at an average annual rate of 8%. In 2018, the bilateral trade volume reached US$24.58 billion, a year-on-year increase of 15.3%. China and Poland are each other’s largest trading partners in their respective regions. 90% of China-Europe freight trains pass through or arrive in Poland. The Port of Gdansk is COSCO Shipping’s distribution center in the Baltic Sea. Nearly 20,000 TEU container ships travel between Poland and the Far East every week. As an emerging economy in the EU, Poland is committed to reindustrialization and is eager to connect its “Three Seas Cooperation” initiative with the “One Belt, One Road” initiative. Poland is a processing industry center. Poland imports many products from China, reprocesses them, and then exports them to other European countries.

Many superior conditions have promoted the rapid development of Poland’s exhibition industry. The Poznan International Exhibition Center (MTP), which has a history of hundreds of years, has long been ranked first in Central and Eastern Europe in terms of exhibition scale and history. Although the Kielce International Exhibition Center (Targikielce) has only a history of 26 years, it has grown rapidly with its rapid development. With its speed of development and reputation for establishing well-known professional exhibitions, as well as the scale of organizing 70 exhibitions every year, it has become the second largest convention and exhibition center in Central and Eastern Europe. In the past three years, the newly built Warsaw Convention and Exhibition Center (PTAK) has surpassed MTP to become the largest convention and exhibition center in Poland and Central and Eastern Europe with its exhibition hall area of ​​143,000 square meters. Poland’s exhibition industry covers various fields, and many exhibitions have become the largest and most well-known exhibitions in Central and Eastern Europe. For example, Kielce International Defense Supplies Exhibition, Polish Agricultural Machinery Exhibition, Polish Plastics Industry Exhibition, Polish Industry Week, Polish Lighting Exhibition, Polish Automobile and Accessories Exhibition, Polish Food Exhibition, Polish Railway Transportation Exhibition, etc. In recent years, Chinese companies have achieved very good trade results by participating in Polish exhibitions voluntarily or through relevant organizations. Some powerful domestic exhibition organizers or government agencies have also organized Chinese product exhibitions with different themes in Poland. The participation of enterprises in Polish exhibitions has brought a positive impact on the economy and trade of Poland and surrounding areas, and also promoted cooperation between surrounding areas and foreign investors.

The number of Internet users and the frequency of Internet access have made e-commerce develop more rapidly in Poland. A survey report released by PricewaterhouseCoopers shows that about 55% of Polish people have participated in online shopping. Among them, 65% of people choose online shopping because online shopping can be done anytime and anywhere; 61% of people choose online shopping because of convenience; 60% of people think that online shopping has a price advantage. At the same time, 38% of people still like to shop in physical stores because they can check the quality and model of the goods on the spot and take them away directly after paying. There are also 43% of people who choose to browse and select products in online stores before purchasing them in physical stores. A market research report by Nokaut, a leading Polish e-commerce company, shows that the Polish online shopping community is growing rapidly. In the report, more than 50% of people have more than two years of online shopping experience, and 25% of people purchase more than 10 times a year. Men purchase online more often than women, but the growth rate of the number of women online shopping is higher than that of men. This trend will change in the future. Active online shoppers are between the ages of 25 and 34, 16.4% of them purchased more than 20 products or services online in the past year, and 27.4% purchased 10 to 20 items. Followed by people aged between 35 and 50, 15.5% of them purchased more than 20 products or services online in the past year, and 25.9% purchased 10-20 items. Residents living in large cities with a population of more than 500,000 have the highest online shopping rates.