Emerging Europe 2014 presentation

Wednesday, 5th February 2014Wednesday, 5th February 2014

Radisson Blu, Glasgow

Emerging Europe 2014

Agenda

09.30 – 09.35 Welcome

09.35 – 09.45 Market Context – Emerging Europe Country Comparison

09.45 – 10.15 An Introduction to Emerging Europe

10.15 – 10.35 Support Services from British Chambers in Emerging Europe

10.35 – 11.10 Panel Session:High Potential Opportunities and Routes to Market

11.10 – 11.25 Coffee break

11.25 – 13.05 Breakout sessions

13.10 – 13.40 Networking lunch

13.40 – 14.20 Roundtable sessions / One to one sessions

Johannes Augustin


Senior Business Development Executive

SDI Düsseldorf

SCOTTISH DEVELOPMENT INTERNATIONAL (SDI) - GLOBAL REACH

PLUS: We work with partners such as Global Scots, UKTI and the Chambers of Commerce !

www.sdi.co.uk/export-from-scotland.aspx

EMERGING EUROPE COUNTRY COMPARISION MAP


Cheese: The UK share is 2%


Paul Taylor


UKTI Regional Director,

Central & Eastern Europe

Emerging Europe Overview – February 2014

8

110 million consumers on the UK’s doorstep

9

Better than Belgium?

10

UK Exports of Goods and Services 2012 (£ billion)

11

Increase in UK exports 2002-2012

12

Disposable income set to increase substantially

13

Growth forecasts roughly on a par with other Emerging economies

Average annual GDP growth forecast (%)

2010-2020 2020-2030 2030-2040

CEE Average 4.7 4.2 3.8

14

CEE Average 4.7 4.2 3.8

Dev. World 1.8 1.8 1.9Asia 5.8 5.1 4.7Lat. Am 4.9 4.5 4.1

Source: HSBC The World in 2050

UK Share of Emerging Europe’s Import Market (2012)

15

An increasingly sophisticated market

16

A creative and experienced regional UKTI team

17

Real opportunity matched to UK strengths

18

One Stop Shop access to the region

19

Strengthened business to business support network

with new services

20

� Outdated perceptions of the region among business in the UK

� Transparency

� Bureaucracy

The main challenges

21

� Bureaucracy

� Strong competition

� Austria 29 China 91� Slovenia 35 Russia 112� Slovakia 46 Brazil 130� Hungary 54 India 132

Ease of Doing Business ranking: 2013

22

� Hungary 54 India 132� Poland 55� Czech Rep 65� Bulgaria 66� Romania 72� Croatia 84

World Bank Ease of Doing Business survey 2013, rankings 1-185

� Austria 25 China 80� Slovenia 37 Brazil 69� Poland 41 India 94� Hungary 46 Mexico 105

Corruption Perceptions Index: 2012

23

� Hungary 46 Mexico 105� Czech Rep 54 Russia 133� Croatia 62� Slovakia 62� Romania 66� Bulgaria 75

Transparency International Corruption Perceptions Index 2012 – rankings from 1-174

Case studies

24

Extreme Light Infrastructure (ELI) project

� EU-funded plan to build new generation of large research facilities in Czech Republic, Hungary and Romania.

� Awareness-raising events delivered to UK supply chain involving key decision makers.

25

� Trade missions to Prague, Budapest and Bucharest to present technology, equipment and services to ELI teams.

� UK architect and UK consultancies awarded design contract in Prague. £10 million win for UK supplier of specialist components and technologies.

South East provider of management & corporate training

� Company participated in CEN regional Education and Corporate Services event in Vienna – meeting buyers and UKTI sector leads.

� Sales of £30,000 recorded at the two-day event.

26

� Sales of £30,000 recorded at the two-day event.

� 4-5 repeat visits made to Austria supported by UKTI Vienna.

� Total sales of £200,000 in 2012.

Scottish producer and exporter of seafood

� Contacted UKTI Sofia one year ago to identify and warm up potential Bulgarian partners.

� Visit made to Sofia to meet suggested partners - resulting in first sale – one container of seafood.

27

sale – one container of seafood.

� Initial cost of UKTI support - £765.

� Follow-up support has been commissioned from UKTI to open up other parts of Bulgaria.

East Midlands manufacturer of heat exchangers and coolers

� Contacted UKTI Vienna to request an introduction to a potential Austrian client they had identified.

� UKTI Vienna suggested alternative clients providing potentially better matches for the UK company’s products.

28

better matches for the UK company’s products.

� Market visit made with calls on purchasing directors of all potential clients.

� Supply contract won for initial £30,000 p.a. and rising.

� Appoint the best agent or distributor – UKTI can help.

� Visit as often as you can – and drop in on the Embassy team.

� Make use of Emerging Europe regional events.

� Tap into overseas business networks including British

Keys to success

29

� Tap into overseas business networks including British chambers of commerce.

� Use local trade specialists to access support and advisory services (SMART Exporter).

� Access market and sector information and alerts about business opportunities and events on UKTI’s website.

Forthcoming events

30

Thank you for listening

31

[email protected]

British Polish Chamber of Commerce

2.3

7 3.0

1 3.6

7

4.6

7

7.4

2

7.2

2

4.3

3

2.7

9

3.7

9

3.5

2

7.1

0

3.6

2

3.7

0 4.3

1

6.0

4

4.0

5.0

6.0

7.0

8.0

bil

lio

ns

Trade between UK and Poland

UK-Polish bilateral trade

1.6

5 2.3

1

2.3

7 3.0

1

1.4

2

2.7

9

2.3

2

1.8

3

0.0

1.0

2.0

3.0

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

(I-

XI)

UK exports to Poland Polish exports to UK

GB

P b

illi

on

s

Source: ONS Monthly Review of External Trade Statistics

100

150

Poland’s imports of agricultural machinery (CN8432, €m)

0

50

100

2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Germany France Italy Sweden UK

4,000

5,000

6,000

7,000

8,000

Poland’s imports of blue cheese (CN040640, € ,000s)

0

1,000

2,000

3,000

4,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Germany France Italy Denmark UK

Why the deficit? Is it the UK business’s perception of Poland as a market?

• 'Poland’s a poor country – its consumers/businesses can’t

afford my products/services... the market isn't sophisticated'

• 'Corruption’s a problem'

• 'The zloty is weak compared to the pound'

• 'All my continental competitors have already sewed up the

market'

• 'There’s little information about the market available'

Sterling vs. the zloty since 2004

5760

57 5453

48 48 4343

41

29 28 26 25

17 17

0

10

20

30

40

50

Post-communist countries and corruption

(inverse scale; 0= total corruption, 100 = total lack of corruption)

Source: Transparency International Global Corruption Perception Index, 2013 r.

57

68

6057

60

70

80

90

100

Estonia

Polan

dSlo

venia

Lithua

nia

Hunga

ryLat

viaCze

ch R

epCro

atia

Slova

kiaRom

ania

Bulga

riaBel

arus

Russia

Kazak

hsta

nUkr

aine

Uzbek

istan

Turkm

enist

an

Poland’s decade of growth

Re

al G

DP

gro

wth

ra

te: 2

00

3 =

10

0

130

140

150

160

Re

al G

DP

gro

wth

ra

te: 2

00

3 =

10

0

Source: Eurostat, forecasts from national ministries of finance, ECB

100

110

120

130

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

*

Poland Eurozone UK

Warsaw and UK regions

GD

P p

er

ca

pita

–€

no

min

al

150002000025000

300003500040000

4500050000

GD

P p

er

ca

pita

Sources: Eurostat, GUS (2010 data)

05000

1000015000

Lond

on

NE S

cotla

nd

Buc

ks, B

erks

, Oxo

nC

hesh

ire

Glo

ucs,

Wilt

s, B

ath/

Bristo

l

Sur

rey,

Sus

sex

War

saw

Bed

s, H

erts

Han

ts, I

oWE

. Mid

sW

. Mid

s

Yor

ks &

Hum

ber

NE E

ngla

ndW

ales

Poland’s cities: UK perspective

GD

P p

er

ca

pita

€n

om

ina

l

1000015000200002500030000

GD

P p

er

ca

pita

Source: Eurostat, GUS; (2010 data)

05000

10000

Wa

rsa

w

UK

Av

era

ge

Po

zn

an

Wro

cla

w

Kra

ko

w

Up

pe

r S

ile

sia

na

gg

lom

era

tio

n

Tri

-Cit

y

2.3

7 3.0

1 3.6

7

4.6

7

7.4

2

7.2

2

4.3

3

2.7

9

3.7

9

3.5

2

7.1

0

3.6

2

3.7

0 4.3

1

6.0

4

4.0

5.0

6.0

7.0

8.0

bil

lio

ns

Trade between UK and Poland

Time to address the imbalance

1.6

5 2.3

1

2.3

7 3.0

1

1.4

2

2.7

9

2.3

2

1.8

3

0.0

1.0

2.0

3.0

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

(I-

XI)

UK exports to Poland Polish exports to UK

GB

P b

illi

on

s

Source: ONS Monthly Review of External Trade Statistics

The British Polish Chamber of Commerce

• Best British chamber in continental Europe four times over the past decade.

• Networking businesses in Poland since 1992.

• 418 member firms, 70% of whom offer B2B services to support exporters.• 418 member firms, 70% of whom offer B2B services to support exporters.

• We work with UK investors in Poland, UK exporters to Poland, Polish

exporters to UK, Polish entrepreneurs in the UK.

• Offices in Warsaw, Wroclaw, Krakow, London; four teams based in Warsaw HQ.

• Among the leaders of the Wave One countries, signed contract with UKTI in May 2013

• For more information on the chamber please contact [email protected]

Warsaw Headquarters – home to Trade,

Policy, Media and Membership teams.

BPCC Structure

• London Office.

• Wrocław Office.

• Kraków Office.

Working closely with the UKTI team at

the British Embassy in Warsaw

Our Business Centre is your ideal landing zone in market.

BPCC Trade Team

• Seven Business Consultants with extensive experience working in UK and in Poland.

• Specialised experience in business sectors spanning manufacturing, consultancy,

advisory, legal, food and drink and ICT.

• Funded by Government/UKTI to support more UK companies to export to market.

• Based in the British-Polish Business Centre in Warsaw.

• Range of products delivered in-house or outsourced to accredited chamber members.

• Our mission is to support hundreds more UK exporters of goods and services to enter

or expand in the Polish market and the surrounding region.

BPCC Trade: Our Products in brief

We offer the following services for UK exporters:

1: Discounted Market Research. Three hours of researcher support free of charge.

2: Company Debt Check. Polish company records on KRD national debt register.

3: Instant Demand Analysis from our special trade data engine.

4: Content Translation into technically perfect Polish (combine with 1 and 3 for low cost

market entry).

5: British Polish Business Centre – hot-desking, meeting place, wi-fi, coffee.

6: Complex market entry projects delivered through chamber members.

Our chamber members offer a wider range of services for UK exporters – find out more by

getting in touch: [email protected] or contacting @BPCC_Trade.

The BPCC trade data tool...

How much Poland imports of a given product...

… and where it imports it from.

Who are our

customers?

The Government has set the BPCC a simple

target: to radically increase the number of

UK companies trading with Poland. To doUK companies trading with Poland. To do

that we want to help:

• UK SMEs across all sectors.

• Innovative UK exporters who understand

that entering Poland, the biggest untapped

market for the UK in the EU, requires

dedication and persistence.

• Companies who can succeed in the market,

helping us to champion the potential further.

The BPCC is the premier networking chamber in Poland

What our customers say about us...

“Given Poland’s growth in recent years, we’ve made market entry here, along with Turkey, a top priority.

The BPCC Trade Team have been very useful in helping us understand the market and support us as

we build a successful distributor relationship here” – Aoife Clarke, Export Manager. Zenith Hygiene Ltd.

“The BPCC Trade Team went out of their way to give me an outstanding level of service and support when

I recently made an export enquiry. Their fast responses, knowledgeable staff and extensive links with

business have proven invaluable in helping my company exploit the potential of the Polish market” –business have proven invaluable in helping my company exploit the potential of the Polish market” –

David Gray, Roman Showers Ltd

“The BPCC Trade has been extremely helpful in examining and advising upon different options for our

business as we look to enter the Polish market. Having made contact with the BPCC Trade Team and

receiving our first diagnosis session, they've been in contact on a weekly basis, introducing us to some

great contacts that we'd never have found on our own, and have shown they've sincerely care about our

business. It's refreshing to know that you have them supporting you as you try to make a success of

your business. I'd absolutely recommend them to any UK exporter looking at the Polish market” –

Andrew Dobson, Export Manager, UBER

Thank you!

British Polish Chamber of Commerce

Emerging Europe 2014 presentation

Education

Transcript of Emerging Europe 2014 presentation