Market News

How serious is coronavirus risk for Polish enterprises?

In the first quarter of 2020, due to Novel Coronavirus (2019-nCoV), Chinese GDP growth may even fall below 5%, which is more than 1 p.p. lower than in a previous quarter. Although the impact on the Polish economy will not be strong, the effects of the slowdown may be felt by Polish companies present on Chinese market or those importing significant amounts of products or semi-finished products from China.

China Poland’s second largest trade partner

In 2018, the value of imports from China reached PLN 112.7bn , in the same period products worth PLN 9bn  were exported from Poland to China. Although the largest share in the value of imports are industrial products, machinery or chemicals, products strictly related to the retail sector also play a role. In 2018, among others, food and live animals worth PLN 665m, beverages and tobacco worth PLN 73m and inedible raw materials worth PLN 724m were imported to Poland from China.

Serious problems for LPP, CCC and AmRest?

In the face of globalisation and the growing network of connections, the number of Polish enterprises, especially large ones, is growing, importing some products or semi-finished products from countries where their production is cheaper. Although the epidemic does not mean an automatic suspension of supplies, the introduction of security measures and restrictions on transport or the closure of some plants in China may result in delays in supplies, which in turn may translate into production and sales problems in Poland. It is worth noting that, in 2018, 26% of CCC Group purchases came from the Chinese market. In the case of LPP this share reached 43%. In turn, AmRest has several dozen KFC restaurants on the Chinese market. However, at present, the epidemic in China does not significantly affect even the share price of these listed companies.

Leave a Comment

Your email address will not be published.

You may also like

Market News

Belarusian C&F market – enormous potential and little competition

post-image

The Belarusian clothing and footwear market, when compared to its neighbours, is admittedly unsaturated, marked by a significantly low number of international brands, suitable retail spaces, competition level, and is still on its early stage of development. This, in turn, implies the capacity and sufficient potential for further growth.

General outline of the Belarusian clothing and footwear market

According to the official statistics, the retail sales turnover in 2018 amounted to BYN 1,542.6m (€653.13m), an 18.6% increase, year on year, in the clothing segment and BYN 717.1m (€303.6m), a 13.9% increase, year on year, in the footwear segment. The share of domestic products hovers around 50%.

However, these figures present an illustrative but not an exhaustive account, since a significant share of products present at open-air markets, which is still an important shopping destination in the country, marked by the relatively high number of “grey market” goods.

According to the MASMI 2017 survey,…

Read More
Market News Trends

Carrefour withdraws disposable plates and plastic cutlery from sale

post-image

Carrefour decided not to sell disposable plates and plastic cutlery. Additionally, the chain introduced biodegradable private label hygiene products in its stores.

 

Ecological solutions at Carrefour

Carrefour decided to withdraw disposable plates and plastic cutlery from sale. These products are covered by Directive (EU) 2019/904 of the European Parliament and of the Council of 5 June 2019 on the reduction of the impact of certain plastic products on the environment. The Directive provides for a ban on the marketing of disposable plastic products that have environmentally safe substitutes (e.g. plastic sanitary sticks, plastic cutlery). The ban is expected to enter into force in July 2021.

In addition, the chain has introduced Ecocert and GOTS certified cosmetic pads and cosmetic swabs.

Grocery chains reduce plastic use

Carrefour, like other food chains, also carries out a number of other environmental protection measures. Last year, Carrefour stores introduced the possibility of packing fruit, vegetables and other products…

Read More
News Trends

By 2025, internet sales will account for over 15% of the Polish cosmetics market

post-image

For several years now, online has been the fastest growing channel of the cosmetics retail market in Poland, and this will not change in the coming years. Between 2020 and 2025, internet sales will grow by an average of 9.5% a year, i.e. more than three times faster than the market as a whole, according to a new report from PMR, “Cosmetics retail market in Poland 2020. Market analysis and development forecasts for 2020-2025“.

In 2019, online sales of cosmetic products in Poland reached PLN 2.6bn (€611m), and accounted for almost 11% of the entire cosmetics retail market. According to PMR forecasts, this share will increase to almost 16% in 2025.

Several factors explain the fast growth of the internet channel. For one thing, cosmetics chains have been launching their e-shops. All the major ones have now done so. The last of the pack to enable online…

Read More
Market News

Lewiatan launches self-service concept

post-image

The first self-service Lewiatan’s store, or rather a vending machine, launched in the last days of January in Krakow. Since this “shop” is self-service, it will be open 24 hours a day, seven days a week. Including holidays and non-commercial Sundays.

The first self-service Lewiatan’s vending machine was launched in front of the chain’s store, operating in Krakow. The outlet offers nearly 200 SKU, including beverages, snacks, dairy products, pre-packaged meat, bread, ready-to-go meals. The facility also offers hot coffee, tea or chocolate from a machine. However, due to the lack of possibility to verify the age of the customer, there is no alcohol in the assortment.

The vending machine is operated via a multimedia touch panel. In turn, the ordered product is introduced into a special elevator by means of a conveyor belt, and the collected purchased products are delivered to the window where the purchases are issued.

New “store” will…

Read More
Market

Second Primark store in Poland?

post-image

Primark clothing chain plans to open its first store in Poland in spring this year in Galeria and Młociny in Warsaw. In the meantime, information about another planned opening of Primark in Poland – in Poznan – has already appeared.

 

Primark enters Poland

The long-awaited Primark clothing chain in Poland announced the opening of its first shop in the country, at Galeria Młociny in Warsaw in spring 2020. In the meantime, information about another location has also appeared – in Galeria Posnania in Poznan. The store is to open in 2021.

Posnania is a shopping mall opened in Poznan in 2016, visited annually by over 12 million people.

Clothing and footwear market in Poland with growth prospects

According to PMR data, in 2018 the clothing and footwear market in Poland was worth nearly PLN 37bn and grew by 4.5% compared with the previous year. We estimate that in 2019 the market increased at a…

Read More
Consumer Research News

Klub Rossmann leads among drugstore chains mobile apps

post-image

Definitely the most popular mobile app among cosmetic drugstore chains is Klub Rossmann – 94% of respondents have it on their phones. Mobile apps of other chainsare much less popular.

According to a survey conducted by PMR in December 2019 on a targeted group of Poles who had purchased cosmetics within 30 days preceding the survey, Rossmann is the most popular mobile app of cosmetics brands or stores among Poles.

Among the respondents who have cosmetic apps installed on their phones, as much as 94% declare having Rossmann chain app. Klub Rossmann is the is more often used by women and people in the 55 age group and those with higher education.

Other chains’ apps are much less popular

The chain leads in its category in terms of popularity with consumers. The next most popular mobile app is Hebe app, 15% of the respondents has it on their phones. In turn, mobile app…

Read More