American Chamber of Commerce in Poland
and Amway Poland
invite
to the
1st Forum eCommerce
All Wrapped up: the Web and Life
AmCham and Amway Poland hosted the I eCommerce Forum on 16 January. During two thematic panel discussions, scientists, e-commerce sector representatives and businesspeople deliberated on the various legal, entrepreneurial, social and psychological aspects of e-commerce. The Forum was moderated by Tomasz Lis.
Dedicated to e-commerce and e-business, the I eCommerce Forum in Poland touched also upon a wide variety of issues related to IT, legal, economic, social studies, and psychology of consumer behaviors. The Forum was divided into two discussion panels: Panel A turned the spotlight on the role and the impact of e-commerce on economic growth, while Panel B focused on the Polish contribution to the development of technologies that facilitate development of e-commerce.
Panel A
eCommerce: convenience or necessity?
New economy or new marketing?
Panelists: Dominik Batorski, sociologist, Warsaw University; Professor Rafał Ohme, psychologist, Warsaw School of Social Psychology; Krzysztof Pawłowski, PhD, rector of Wyższa Szkoła Biznesu - National-Louis University in Nowy S±cz; Marcin Pery, Vice President of the Board, Gemius SA; Ryszard Petru, Chief Economist, BPH SA; Alina Prawdzik, General Manager, eBay Polska; Michał Siciarek, Partner, Łaszczuk & Wspólnicy Law Firm; Paula W±sowska, Market Development Director, Business Solutions Group Cisco Systems
The Birth of New Economy
Krzysztof Pawłowski noted that eCommerce is more than merely commerce - it is an entire business sector based on the Internet and a foundation of the new economy. Marcin Pery added that eCommerce is better than traditional commerce' because of better communication opportunities. It is simply a way of economic activity.
Limitations
However, there are numerous barriers for eCommerce, especially in CEE. The main obstacle that Marcin Pery can see is the logistics and delivery services. To succeed in the web, companies should prepare their logistics carefully.
Michał Siciarek discussed the unique legal requirements and regulations governing the eCommerce (for example, sellers may gain much more information about buyers than in traditional commercial transactions; the information about the merchandise is much more limited than in traditional shops). In eCommerce the legislation must protect the customers to the same extent as in the traditional commerce, although using different methods, ensuring their privacy, information rights or the possibility to revoke the transaction.
The Smell of Tomatoes
The tomatoes were often recalled while discussing the eCommerce limitations - while buying on the Internet we are not able to touch or smell them, and this may prevent customers from purchase. Marcin Pery believes that in several years the technological development will allow for transfer of not only better quality images, but also the texture or smell. Paula W±sowska commented that skeptics will start buying on the Internet when the quality of goods is high. It is not the technological barrier, but the quality of offered goods, which shapes the customers' choices, believes W±sowska.
The Mariana Trench
Ryszard Petru emphasized that in terms of the internet penetration, Poland is way behind all other CEE countries. Only 6 percent of Poles communicate with public administration through the Internet, compared to 17percent in the Czech Republic, 32 percent in Germany and 60 percent in Norway. Only approximately 30 percent of Poles have Internet access, 1/2 of the Czech population and 3/4 of the Norwegian population. In 2006, total eCommerce turnover increased by 100 percent in Europe, but only by 2 percent in Poland. Polish eCommerce is at a very initial stage, big players like Tesco or Carrefour are not present in the web yet, commented Alina Prawdzik.
The most important barrier to the eCommerce development are the users' skills, believes Dominik Batorski. The gap between the elder and younger generation in Poland in terms of the Internet usage skills is immense. In the US, eCommerce is a good opportunity for elder people to swiftly transfer from professional career to retirement. Yet, Alina Prawdzik believes that soon in Poland both older and younger generations will widely use the Internet in their professional and private life. Marcin Pery added that even now the elder are a significant group among the people using community or dating portals.
Dreaming About Homo Economicus
Professor Rafał Ohme explained that people buy in the internet in a much more rational manner, because they are less influenced by the marketing pressure than in a traditional shop. All researches show that we dream about homo economicus, but it is still impossible. eCommerce will make the customers' choices more rational - the real value of products will prevail, and the best products will win.
eCommerce is like commerce, only cheaper and better, believes Marcin Pery. He emphasized that people who do not buy through the internet pay more. Even a retired person paying his or her bills at the post office is charged a several-zloty provision, while an internet transfer is either free of charge, or the provision is minimal.
Web Political Parties
Information is power - why not establish a political party in the web? Such party would not need a complex organizational structure or leaders - proposed Marcin Pery. Tomasz Lis thought this idea to be revolutionary. This could completely revamp Poland's political picture.
Panel B
Will Poland become another Silicon Valley?
Polish contribution to e-commerce solutions
Panelists: Edwin Bendyk, journalist, Polityka weekly; Krzysztof Gulda, Director, Economic Development Department, Ministry of the Economy; Wojciech Kazana, Vice President of Warsaw University IT Club; Konrad Korobowicz, President of the Board, e-Card; Maciej Kozłowski, Board Member of the Polish Chamber of Information Technology and Communication, Director of NASK; Marek Sodolski, General Manager, Amway Polska; Marcin Żuchowicz, President of the Board, e-Point SA.
The Dream About Silicon Valley
Silicon Valley is the American new technologies hub in northern California, where all major IT companies are headquartered. A similar hub providing IT solutions for Europe and the entire world has been also created in India. The panelists discussed if Poland can become an IT and technological support center for the world's eCommerce.
Marek Sodolski and Marcin Żuchowicz believe that the Polish ant' may win with the Indian elephant'. They emphasized that projects, which are already implemented, prove this be possible. Epoint together with Amway built a giant eCommerce platform Amway Online, which compiles sales, management and communication functionalities. Epoint offer outdistanced an Indian company and won in the project. The platform created in Poland has been very successful also in other CEE countries and will soon be implemented in 26 European countries. This success clearly shows that Polish IT and eCommerce solutions may compete and win even with giant companies, believe Sodolski and Żuchowicz.
Top Quality Heads
Edwin Bendyk wonders why young Polish IT specialists win Google IT contests, yet there are no companies as innovative as Google in Poland? How to build new quality from those top quality heads?
There are many talented programmers, high qualified and enterprising young people seeking for ways to implement their ideas. Unfortunately, there is a gap between Polish Universities and the financial sector, which could provide financial resources, commented Krzysztof Kowalczyk from Internet Society Poland in a film presented during the Forum.
Wojciech Kazana discussed the issue of investing in the most talented students -Polish companies are not eager to identify the brightest students at universities and technical universities and offer scholarships or internships, while such programs are very popular in other countries.
Social Capital - the Key to Success?
According to Edwin Bendyk, low level of trust - the lowest in the entire EU - is a characteristic feature of the Polish society. Social researches on the eCommerce development, launched in the late 1990s show direct correlation between social trust and eCommerce utilization. In such case, how the dynamic eCommerce growth in Poland can be explained, wonders Bendyk. Apparently, companies active in the sector managed to build trust and safety relations with their customers, which made eCommerce a safe shopping area. This is a great success - not only Poland ranks 5th eCommerce market in Europe, but also it proves rebuilding of the country's social capital.
As Bad as it Gets, or the Role of the State
Trust is only one of the preconditions that need to be fulfilled to build Polish Silicon Valley. The Silicon Valley has been created by creativity and implementation of daring ideas, but also thanks to simple legislation regarding business. It is the role of the state to create conditions facilitating the creation and development of the Polish Silicon Valley: easy Internet access or eGovernment.
The government has had a zero input into the creation of eCommerce in Poland, commented Krzysztof Korobowicz of eCard. As an entrepreneur, he receives no support from the government, which creates numerous obstacles in companies' day to day activity. He would rather discuss what the business can do to support eCommerce.
Krzysztof Gulda from the Ministry of the Economy replied that there are many barriers to the economic development, especially for new entrants to the market. He emphasized that the current government discusses it openly, and both the government and the Parliament are willing to change the situation and remove the barriers, like introducing the one-stop company registration procedure. It is too early now to judge the new government after less than 3 months of its work, but Krzysztof Gulda reassured that in a year's time, during II eCommerce Forum the results of the legislative work should be already visible.
Polish society has hardly any middle class or capital, and this is a large space for the government activity. There are instruments and large public money available for pre-financing of projects, which will lay grounds for creation of innovative companies, said Maciej Kozłowski from the Polish the Polish Chamber of Information Technology and Telecommunication and NASK.
