Warsaw Business Journal June/July 2018 Issue #46

WARSAW

BUSINESS JOURNAL E c o n o my | Te c h

JUNE/JULY 2018 ~ No. 06/07 (46)

WEDDING MARKET

Fewer marriages does not have to mean less money

N e ws | Re a l E s t a t e

For daily news visit us at wbj.pl

JANUSZ ANIOŁ

General Director of Raben Logistics Polska sits down with WBJ to talk about the challenges in transport and logistics

APARTMENT PRICES SOAR | ART IN REAL ESTATE | JOB MARKET | EMPLOYEE PENSION SCHEMES

IN REVIEW

JUNE/JULY

News highlights from the previous month from wbj.pl

OPINION Legal: Employee pension plans....................13 HR: Millennials vs. 50+...................................16 Human rights: Adam Bodnar........................18 Marketing: Future-proofing marketing mix..20

IN FOCUS: LOGISTICS

Feature: Logistics challenges ahead...........23 Cover interview: Raben Logistics Polska...28

TECH INSIGHTS

Tech News.........................................................43 Tech view: Reclaiming your own data.........45 Feature: IT trade school.................................48

Art in real estate

Feature: As pretty as a picture 62 Case study: The Art in ‘Apartment’ 60 Case study: State-of-the-art residential space 70

LOKALE IMMOBILIA

Real estate news.............................................51 Interview: Griffin Real Estate........................56 Residential market overheating...................58

EVENTS

ReDI....................................................................74 Polish Luxury Market Summit......................75 Polagra Food International Trade Fair.........75 European Economic Congress in Katowice..76 European Congress of Local Governments..77 Economic Forum in Georgia..........................77 infoShare...........................................................78 Top Woman in Real Estate.............................78 Baltica Spring Tour 2018................................79

LAST WORD

The spam to end all spam............................. 80

Wedding industry

Feature: Jitters, toasts and the whole shebang 35 Weddings by the numbers 38 Gold rush – Interview: Red Rubin 40

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FROM OUR EDITOR Morten Lindholm Editor-in-Chief/Publisher mlindholm@valkea.com

Beata Socha

Managing Editor

bsocha@wbj.pl

As always, I hope you enjoy the read. Have a great summer! MORTEN LINDHOLM

Morten has been equipped by Reykjavik District – Warsaw’s unique menswear design shop on ul. Burakowska 15. Check out Reykjavik’s latest collection at reykjavikdistrict.com

JUNE/JULY 2018 W B J

Adam Zdrodowski

Managing Editor, Lokale Immobillia

azdrodowski@wbj.pl

Kevin Demaria Art Director

Michael Evans Copy Editor

Contributors

Ewa Boniecka Karolina Papros Marcel Płoszczyński Sergiusz Prokurat Alex Webber Sales

Magdalena Klimiuk mklimiuk@valkea.com Katarzyna Pomierna kpomierna@valkea.com PR & Marketing

Agata Wolny awolny@valkea.com Book of Lists

Monika Rozner mrozner@valkea.com Magdalena Czopur Subscriptions

mczopur@valkea.com Krzysztof Wiliński Print & Distribution

dystrybucja@valkea.com Magda Gajewska Event Director, Valkea Events

mgajewska@valkea.com Contact: phone: +48 22 257 75 00 fax: +48 22 257 75 99 e-mail: wbj@wbj.pl

WBJ.pl WarsawBusinessJournal

@wbjpl

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PORTRAIT BY KEVIN DEMARIA

DRIVING CROSSCOUNTRY at the end of May I was once again reminded just how far Poland has come in terms of its infrastructure and urbanization. If once the nation’s roads were the butt of jokes, today their improved quality doesn’t just save time, but also quite probably lives. While both private and EU investment have figured heavily in the overall improvement, so too has increased pressure from Poland’s transport and logistic companies. With consumer shopping habits changing, the onus has fallen on the need to offer shorter delivery times and more effective transport solutions. These are demands that Poland’s booming logistics sector has embraced, and it’s such challenges that form the basis of our conversation with Janusz Anioł, the general director of Raben Logistics Polska, the largest such company in the country. Fortunately, the changing face of Poland’s road network has failed to destroy the nation’s glorious countryside, and it’s in summer that the surrounding fields and forests pack the most punch. But beyond natural beauty, summer in Poland is also inevitably and inexorably associated with marriage: wedding season is upon us! Although, in accordance with demographic trends, the number of marriages is actually in decline, the actual wedding industry is thriving, buoyed by the bold and extravagant tastes that Poles have acquired over the years – fittingly, that’s another subject we explore in this issue. Art, too, factors into this magazine. Twenty years back I remember visiting Wilanów’s poster museum for the first time and being staggered by the creativity of Poland’s artists and designers. Clearly, I’m not the only one, and a growing number of companies are now seeking to create publicly accessible art-driven spaces: wrapping up this issue, we take a deeper look at how art has become more and more prevalent in the country’s offices and homes.

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NEWS HIGHLIGHTS OF THE PAST MONTH FROM WBJ.PL

“I hope the Polish government will see that it has to take a few more steps for us to be able to declare that the systemic threat to the rule of law is no longer there, European Commission Deputy President Frans Timmermans said, expressing hope that Poland and the EU will settle the dispute over the rule of law soon. He mentioned the June 26 meeting of the General Affairs Council as a “make or break” date.

RETAIL

FMCG

SERVICES

Clothing retailer LPP is targeting 2021 revenue of PLN 10.5 billion compared to PLN 7 billion in 2017. The company plans to invest PLN 1.5 billion in the network of shops until 2021, LPP said in a statement. The retailer hopes online sales will reach 20 percent in 2021 versus 8 percent currently. LPP’s ambition is to enter at least one new market each year. In 2019 it plans to open new shops in Finland and Bosnia and Herzegovina. In three years’ time, LPP wants to create 4,000 new jobs in Poland and spend PLN 2.2 billion on investments in the country, CEO Marek Piechocki said.

Retail chain Stokrotka, part of Emperia Holding, reported PLN 219 million in sales revenue in May, an increase of 7.9 percent y/y, according to the company’s preliminary results. In January-May the company saw revenue of PLN 1.098 billion, up by 9.7 percent y/y. In Like-for-Like sales, the chain recorded an increase of 0.9 percent y/y in May, a 5.5 percent increase y/y in April-May and a 2.4 percent growth y/y in the January-May period. In May, seven new stores were launched, bringing the total number to 447, covering 189,400 sqm of retail space. Emperia Holding has been listed on the WSE since 2002.

Consultancy EY is to open EY Global Delivery Services (EY GDS) offices in two new locations – Warsaw and Wrocław, the company said. In both locations, by the end of 2018, EY will employ 300 people. We are witnessing breakthrough changes in many industries and entire economies. The pace of these changes is a big challenge for many companies and employees. Thanks to the new EY GDS competence center offices in Wrocław and Warsaw, we will be able to better respond to our clients’ needs related to the development of new technologies,” said EY Polska managing partner Jacek Kędzior.

SHUTTERSTOCK

LPP sees revenue at PLN 10.5 billion in 2021

STOKROTKA sales at PLN 219 mln in May

EY to employ 300 people in 2 new competence centers

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>>> 5

WBJ

In Review TELECOMS

HUAWEI CBG Polska sees 2018 revenue up 30-40% y/y Huawei CBG Polska is targeting revenue growth of 30-40 percent this year compared to about €400 million in 2017, the managing director in Poland Jefferson Zhang said. The company is changing its marketing strategy in Poland; after a series of flagship products, it wants to provide more models in medium segments. Huawei reported record sales in Poland in April, reaching almost 36 percent of the smartphone market in terms of the number of devices sold and almost 34 percent in terms of value.

TRENDING STATS

ECONOMY

MPiT proposes a new company format The Ministry of Enterprise and Technology has proposed the introduction of a new format of establishing a company – a simple joint-stock company. “A simple joint-stock company should be a modern private company adapted to the contemporary economy. It is intended to combine the limited liability of partners with a large amount of flexibility,” the ministry wrote in a bill. The ministry added that the idea for the introduction of a new company type comes from analysis of the legal environment for start-ups in Poland.

6.6%

Seasonally adjusted retail sales growth in April 2018 (y/y, Eurostat)

1.7%

ECONOMY AUTOMOTIVE

New car registrations up by 7.4% y/y in May In May, 47,729 passenger cars and delivery vehicles were registered in Poland; 7.37 percent more y/y, market researcher Samar reported based on data from the Central Register of Vehicles and Drivers. In comparison to April, the number of new registrations fell by 4.9 percent (2,458 vehicles). During the cumulative January-May period, as many as 253,140 cars were sold (an increase of 10.38 percent y/y). TRANSPORT

Chopin Airport to be closed after Central Airport launch Warsaw Chopin Airport will be closed after the construction of the planned Central Airport, said Jacek Sasin, chairman of the Standing Committee of the Council of Ministers. According to Sasin, the facility needs to be closed as the development of nearby districts will block its development. He stressed how important the new airport is for Poland. “Those who attack this investment attack it on the principle that everything that the Law and Justice (PiS) government does is bad and you have to attack it,” he said in an interview with TOK FM radio. Sasin added later that he doesn’t want Warsaw Chopin Airport to be shut down for good, but to focus on its “local functions” without specifying what he meant by that. President Andrzej Duda recently signed the Central Communications Port Act, which approves the building of the facility. The new airport is to be built between Łódź and Warsaw and will be one of the largest airport transfer hubs in Europe. The port is intended to handle up to 100 million passengers a year and be ready in 2027.

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Vacancies grew in Q1 – GUS

Inflation expected in Q2

There were 152,400 vacancies in Poland at end-Q1, which is growth of 28.3 percent y/y, the Polish Central Statistical Office (GUS) reported. In q/q terms, the figure increased by 29.4 percent. The number of new positions soared by 80.4 percent compared to Q4 and 14.4 percent more than in Q1, 2017.

(Finance Ministry)

9.3%

Polish exports increase

(y/y, Polish Chamber of Commerce)

6.3%

ECONOMY

Fitch upholds Poland’s A- rating with stable outlook

Unemployment rate in April

Fitch Ratings has maintained long-term entity ratings (IDR) for Poland’s debt in foreign and domestic currencies at A- level. At the same time, it upheld the outlook for ratings at a stable level, the agency said. “Polish ratings at A- level reflect strong macroeconomic foundations, supported by a stable monetary policy framework and a robust banking system. The limitations for ratings are low GDP per capita compared to the median of comparable countries and high, though declining, net foreign debt levels,” the report read.

(GUS)

9.3%

Industrial production growth in April (y/y, GUS)

8.4%

Increase in new orders for industrial production in April (y/y, GUS)

ENVIRONMENT

Anti-smog program will cost PLN 130 bln – PM The “Clean Air” program will cost PLN 130 billion and will last for 5-10 years, Prime Minister Mateusz Morawiecki said. The agreement for the implementation of the program, which aims to “stop smog,” was signed on June 7. Under the program, multi-billion funds will be invested in the modernization and increase of energy efficiency, Morawiecki underscored. The investments will be used as subsidies for those who cannot afford thermo-modernization, he added.

5.3%

Drop in retail sales in April (m/m, GUS)

>>>

In Review ECONOMY

President signs single economic zone bill President Andrzej Duda has signed the bill making the entire territory of Poland one large Special Economic Zone, instead of the 14 currently existing zones covering 25,000 hectares (0.08 percent of the country’s area), which offer tax breaks for investors settling there. The new regulation will allow investors to enjoy tax breaks for 10-15 years, for both large and small enterprises, depending on the location of the investment, its nature and the quality of workplaces created. Investments in medium-sized cities will be incentivized more. Thanks to the new law, SMEs will no longer have to relocate to SEZs or invest in locations far away from their current seat. Jadwiga Emilewicz, minister of entrepreneurship and technology stressed that the new law will “eliminate the procedure of changing the boundaries of SEZs, which is long-lasting and a burden on the entrepreneur.” MINING

KGHM signs 5-year contract for PLN 7.5-8.1 bln Copper mining giant KGHM will deliver nearly 300,000 metric tonnes of copper wire rods to cable manufacturer Tele-Fonika Kable over the period of five years for an estimated value of PLN 7.5-8.1 billion, KGHM’s CEO Rafał Pawełczak told the Polish Press Agency (PAP). The mining company will deliver at least 58,000 tonnes of copper wire rods annually. ECONOMY

Economic poverty fell to 4.3% in 2017 – GUS In 2017, the extreme poverty rate was down at 4.3 percent, a decrease of 0.6 percentage points compared to 2016, according to the results from Central Statistical Office (GUS) data. The situation improved in rural areas in particular. It is highly probable that the factors that contributed most to the improvement of the financial situation of households and the fall in poverty in 2017 were: an increase in wages, a decrease in unemployment, and in the case of families with children, the Rodzina 500+ (Family 500+) social benefit scheme. A significant improvement, GUS pointed out, was observed

JUNE/JULY 2018 W B J

AUTOMOTIVE

One in three Poles would consider buying an electric car – survey The majority of Poles would consider buying a regular gas engine car (57 percent), while 45 percent would consider a hybrid, 36 percent a diesel engine car and 32 percent an electric car, according to a survey conducted by ING. The reasons why Poles would think of purchasing an electric car are: lower operation cost (75 percent) and tax incentives (70 percent). Another important factor would be the reasonably large range of electric cars (69 percent of respondents) and the car’s impact on the environment (61 percent). A quarter of those polled said they would be willing to pay 10 percent more for an electric car compared to a vehicle with a combustion engine, while another 25 percent would be willing to pay 10-25 percent extra. “That is too little for now to think of your own Tesla. Electric cars are currently twice as expensive as similar cars with combustion engines,” commented Karol Pogorzelski, an economist at ING Bank Śląski. He added that technological advancements (cheaper batteries with higher capacity) and economies of scale may be able to bring costs down. To accelerate mass production, some governments, including the US and Norway, have decided to subsidize electric car purchases. In the first quarter of this year, 69,998 electric vehicles were registered in the EU, which is over 1.7 percent of all passenger cars registered. The share of electric cars in the Polish automotive market in this period was just over 0.2 percent – eight times less than the EU average, according to “Electromobility Barometer 2018,” published by the Polish Alternative Fuels Association (PSPA).

among single mothers or fathers with dependent children (down by about 3 pp), people living in households with at least one child under 16 years with a disability certificate (approx. 3 pp) and people living on farms with at least 3 children aged 0-17 (about 2 pp). The social map of poverty risk in Poland, however, has not changed significantly for years. ENVIRONMENT

Sejm passes bill on emissions charges The Polish Parliament has adopted a law on

biocomponents and biofuels which introduces a new emissions charge on fuels sold on the Polish market amounting to PLN 80 for every 1,000 liters of fuel. Most of the funds (85 percent) are to be allocated to the National Fund for Environmental Protection and Water Management (NFOŚiGW) and the remaining 15 percent will be allocated to the newly formed Low-emission Transport Fund (FNT).The government expects to collect PLN 1.7 billion in emissions charges in 2019.

SHUTTERSTOCK

WBJ

In Review

JUNE/JULY 2018 W B J

Agricultural drought recorded in Poland Droughts have been reported in 2,285 rural municipalities, i.e. 92.21 percent of all municipalities, in all regions of Poland. The area affected accounts for 48.9 percent of arable land,Â the Institute of Soil Science and Land Care (IUNG) said. According to the Institute, April and May were characterized by a very high air temperature and high insolation.Â At the same time, there was little rainfall during this period. The biggest threat of agricultural drought occurred to spring cereal crops. Nearly 50 percent of spring cereal is vulnerable to drought, the ministry of agriculture informed. Additionally, some 40 percent of strawberry and fruit trees and bushes have also been affected. Farmers can now start to apply for damages.

W B J JUNE/JULY 2018

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Opinion EXPERT VIEWS ON CURRENT BUSINESS AND SOCIAL TRENDS

SHUTTERSTOCK

Employee pension schemes

The planned implementation of the Ministry of Developmentâ&#x20AC;&#x2122;s Capital Growth Program will trigger the countdown for the Act on Employee Capital Pension Schemes that is set to enter into force in 2019 (although the deadline may be extended further). According to the Bill, employers may be required to set up Employee Capital Pension Schemes (ECPS). Initially, the obligation will apply to companies with more than 250 employees and will gradually be extended to smaller entities. Ultimately, all employers will be under the obligation starting from July 1, 2020.

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WBJ

Opinion LEGAL

Employee capital plans

he Polish government is currently working on a bill on Employee Capital Pensions Schemes (ECPS) (in Polish: Pracownicze Plany Kapitałowe), designed to encourage working Poles to make long-term savings intended to be an additional source of income after reaching retirement age. On May 25, 2018, following initial consultations and arrangements, the Ministry of Finance submitted an updated bill, originally published in February this year, for final public consultation. Although it was expected that ECPS would not be launched on January 1, 2019 (as originally envisaged) and that the first contributions would be paid by only the largest employers on July 1, 2019 at the earliest, the updated bill, however, provides that the Act will already be applicable as early as January 2019. BASIC PRINCIPLES Employee Capital Pension Schemes will cover not only employees, but also contractors. The scheme is to cover all working Poles up to 70 years of age, in principle regardless of the legal basis for their employment, as long as the given individual’s remuneration is subject to social security contributions. According to the Ministry of Finance, the scheme will be aimed at around 11 million Poles – 9 million from the business enterprise sector and 2 million from the public sector. In principle, the ECPS will be volun-

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tary; however, every worker under the age of 55 will be understood to have implicitly consented to enrolment and will participate in the scheme unless they specifically express a wish to opt out. In the case of individuals over 55 years of age, the hiring entity may execute an ECPS agreement for them only upon the given person’s explicit request. AGREEMENTS WITH FINANCIAL INSTITUTIONS The legal structure of the ECPS is to be based on a management agreement entered into between a hiring entity and a financial institution (selected in consultation with the internal trade union organization or with employee representatives) and on agreements to operate an ECPS, to be executed by the hiring entity for and on behalf of each worker. The hiring entity will be obliged to conclude an agreement for the operation of ECPS for each worker following the third month of starting work, no later than by the tenth day of the month following that

Anna Gwiazda Legal Counsel, Head of Labour Law Practice at Kochański Zięba & Partners

in which the three-month period of work will have expired. If this obligation is not fulfilled, a legal fiction will be applied, namely that the ECPS agreement between the worker and the financial institution is executed on the first day following the end of the said time limit, on the terms and conditions as set out in the ECPS agreement between this institution and the hiring entity. WHO AND WHEN According to the bill, the ECPS is to be incrementally phased in, depending on the size (or type) of the hiring entity. The plan is to be initially joined by companies employing at least 250 people – who will have to implement the Act as early as from January 1, 2019. In subsequent six-month intervals, the following entities are to participate in the programme: those with 50 to 249 workers (from 1 July 2019), companies with 20 to 49 workers (from 1 January 2020), and finally (from 1 July 2020) the smallest companies and public sector entities.

Dr. Joanna OstojskaKołodziej Advocate, Senior Associate, Labour Law Practice at Kochański Zięba & Partners

A new way to save for retirement

he goal of Employee Capital Pension Schemes (ECPS) is to improve employees’ financial security, as well as increase public finance stability, and further stimulate economic growth potential. Employers will have to sign an agreement with a chosen financial institution to set up and manage the ECPS. Such an institution must meet certain criteria, such as: at least three years’ experience in managing investment funds, open-end investment funds, pension funds and/or open-end pension funds, and furthermore, it must have its own capital of at least PLN 25 million. Additionally, funds collected by employees must be accordingly allocated in funds based on the employee’s current age. Both employers and employees will make contributions to the ECPS. The employer’s base contribution will be 1.5 percent of the employee’s remuneration, whereas another 2 percent of that remuneration will come from the employee’s salary. The Bill furthermore specifies that the employee’s base contribution may be less than 2 percent of the remuneration (however, no less than 0.5 percent) if that employee’s monthly remuneration from various sources does not exceed PLN 2,100. Employers will be allowed to contribute more if they wish to do so (with additional contributions of up to 2.5 percent of the employee’s remuneration), as will employees (up to 2 percent extra). In addition, there will also be annual co-financing of PLN 240 from the State for each partici-

pant of the ECPS. That will apply only to employees who have gathered in their accounts contributions of at least the amount of base contributions due on the sum equal to six times the minimum remuneration applicable in a given year. Employees whose base contribution is lower than 2 percent of the remuneration will be excluded from this rule, though. OPT-OUT OPTION Moreover, the employee will have the right to opt out by providing the employer with a written declaration to that effect. Consequently, the employer will no longer be under the obligation to pay contributions for that employee. Such an opt-out declaration is time-limited and is made for a period of four years; however, that procedure may be repeated in cycles. Because of the unique nature of the funds gathered in the EPCS, their withdrawal will only be possible at the employee’s request in exceptional cases, such as: • if the employee reaches the age of 60 (as a rule a lump sum of 25 percent may then be withdrawn, while the remaining 75 percent in at least 120 monthly instalments); • if the ECPS’s participant wishes to withdraw the funds to provide a down payment when taking out a home loan to finance an investment such as buying an apartment or building a house (up to 100 percent of the funds, subject to the obligation to return them in their nominal value); • if the employee, his/her spouse or child is diagnosed with a serious illness (with-

drawal of up to 25 percent of savings);

• in the case of death, if the withdrawal is requested by an authorized person.

Up until recently, employers could have (and still can) operate voluntary Employee Pension Schemes (EPS), defined in the Act of April 20, 2004 on Employee Pension Schemes. According to the Bill, employers that run EPS and pay-based contributions amounting to 3.5 percent of the employee’s remuneration will be exempt from the obligation to set up the EPCS, on the condition that at least 50 percent of their employees have joined the EPS. In connection with the planned changes, employers have more and more doubts as to which savings option to choose – EPS or EPCS. Polish employers are familiar with the EPS, which has been in the market for some time now, whereas the EPCS is a novelty which requires further specification and clarification by the legislator. Employers should therefore compare the two existing systems and determine which is more suited to their needs.

Wioleta Polak Counsel Head of the Employment Law Practice WKB Wierciński, Kwieciński, Baehr

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Opinion HUMAN RESOURCES

Millennials vs. 50+

Employee shortage is making companies re-evaluate their HR policies. On the one hand, the Millennial generation is already the most numerous group in the workforce and companies have no choice than to cater to their needs. On the other hand, few firms take advantage of employees aged 50+, who have the most experience and can be an invaluable resource worth tapping into

he generation of people born in the 1980s and 1990s, though for a long time derided as being childish and unstable, have become a lifeline for most companies struggling with employee shortage. Over time, employers have realized that Millennials can in fact bring a lot to the table and many of their seemingly undesirable qualities can be used for the benefit of the company. For instance, their strong need for work-life balance and seeking passion in everything they do makes them derive more satisfaction from their jobs and be more engaged in their work. Having been raised during a technological boom, they are more adaptable and flexible. There is no doubt that they are more comfortable with novelties. Although they will soon have to compete with an even more digital-native Gen Z at their heels. They will have no choice other than to mature into strong and driven leaders. COSTLY RECRUITMENT However, hiring Millennials exclusively comes at a price. According to a LinkedIn study, Millennials change jobs

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even twice as often as their parents’ generation. Antal’s research shows that employees who leave their employer the most frequently have only spent between one and three years in the company. This means higher employee turnover, which is already bringing hefty losses: it lowers morale and takes a toll on the company image. According to Antal, the failed recruitment of an employee making an average PLN 5,000 a month costs the employer on average PLN 40,000. Most employers try to attract and retain younger candidates, forgetting the potential in employees with many years’ experience and knowledge. Of course, there are firms that carry out recruitment campaigns for this group, as well as diversity programs. Still, a large number of employers fail to see the potential, and the neglect of the older generation is forcing its members out of the labor pool. It’s a well-known fact that people over 50 have a hard time finding a job. However, the awareness of the so-called “silver revolution” is still low. UN scenarios suggest that by 2050, every third European will be over 60, and as soon as in 2020 nearly half of Poles will be over 50. Aging society is not the only problem. The percentage of 50+ Poles who are employed is lower than the European average: in Q4 2017 it stood at 32.9 percent, compared to 36.5 in other EU countries, not to mention leaders such as Sweden (44.6 percent) and Estonia (44.1 percent).

SHUTTERSTOCK

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I N D U ST RY S P E C I A L I ST

MILLENNIALS TAKING OVER There is a common stereotype comparing Millennials to children. Meanwhile, the oldest members of the Y generation will soon hit 40. They are increasingly often taking over leadership roles in their businesses. They are also the most numerous group on the job market. Over the next seven years, Millennials could account for as much as 75 percent of those employed. The rapid growth of this group is translating into how companies operate. Employers undertake numerous initiatives to attract them. After all, they are the best educated and the most qualified employees. Employers are looking for candidates that combine

both technical expertise and well developed soft skills. Millennials are a sort of a hybrid that is goal-oriented, with a wide range of talents, ambitious, creative and tech savvy. They also have a darker side, just like any generation. Convinced of their superior skills, they want to see results immediately and they want to have an impact on the reality around them, even if their ambitions are not always rooted in experience. Raised during rapid development of technologies and the internet, they create new trends, setting the course for the job market and the consumer market. Soon, they will be the most numerous employee and consumer group in Poland and worldwide.

UNTAPPED POTENTIAL OF THE 50+ Companies consider Millennials to be a strong brand and they are eager to roll the dice on the Z Generation as well (people born after 1996). But as a result, every third employee over 50 feels excluded from the workforce. Gen Y and Gen Z have higher demands which correspond to the pressure on increasing salaries, with employers finding it increasingly hard to keep up. At the same time, most companies think of the aging society as the distant future, which is evidenced by the fact that 76 percent of employers have no development programs for people over 50. I believe that companies will have to redefine their employment policies over the

next few years and turn to the candidates that are available, if for no other reason than to remedy employee shortage. Claiming that older people don’t know how to use modern technology and communication is a gross oversimplification. The market has been suffering from a vicious cycle of stereotypes that limit the potential of having a diversified staff. The knowledge and experience that people over 50 have is invaluable, and – as Antal’s research ascertains – they are increasingly open to training and gaining new skills. They complete courses, enroll on specialist training programs and learn new technologies. Jobs involving customer contact and service are some areas where this generation

People born in the 1980s and 1990s are very individualistic. They need space to express their interests, including in the professional environment. It’s worth talking to your staff and getting to know their passions, such as sports and art, and enabling them to use these passions at work. A simple and helpful tool for getting to know your employees and measure their engagement is the so-called “stay interview,” which is a conversation with an employee about their needs as well as the advantages and drawbacks of their workplace. Millennials expect such communication more often than any of the previous generations.

Lucyna Pleśniar, CEO of People

could excel. Employees over 50 are also more credible and better at conflict resolution, which can be utilized e.g. in claims collection, complaints and in contract mediations. Also, the market continues to seek high-class specialists with a lot of professional experience, e.g. in engineering. Employers are starting to see the life experience and mature approach to business of their older employees as a competitive advantage and use them in project teams and mentoring programs. Employing people over 50 does not need to be seen as a compromise in a difficult labor market, but as a value for companies who want to tap into generational diversity.

Artur Skiba, CEO of Antal

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WBJ

Opinion HUMAN RIGHTS

Struggle for impartiality

The political turmoil surrounding the judicial system is not just a matter for European debate on principles. How does the issue of judicial independence affect regular people? WBJ asked Poland’s Ombudsman, Adam Bodnar, how his job has changed in the current political climate, what problems regular Poles ask for help with, as well as the greatest challenges for his office

WBJ:

You are serving as the Ombudsman in a difficult time, amidst controversial legislative steps that the government has been taking. Has it affected your job? Adam Bodnar: Indeed, the job of the Ombudsman is not easy when the administration’s actions raise serious doubts as to their constitutional merit and international human rights obligations. You can see a deep imbalance building up recently between the state and its citizens. I address state bodies in these matters and I comment on the drafts of legislative bills. I also always stress that the Ombudsman is not just for major issues that appear in newspaper headlines. We deal with all regular matters that people come across in their dealings with the state and public institu-

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Can a debtor … expect a fair verdict if the judge has to take into account the consequences of ruling against a de facto statecontrolled bank?

tions. These are matters that have been the same for years, regardless of who is in office. I regret that real social injustice is rarely the subject of public debate. Last year, the Office of the Ombudsman investigated 25,711 matters in total. In as much as 54 percent of those cases we explained to the applicants their rights and the measures available to them. The majority of cases dealt with criminal law and labor law, as well as social policy issues. What kind of cases do regular Poles come to you with: personal injustices or professional problems? What do they expect of you as their Ombudsman? The Ombudsman’s job is not to impose something on somebody. It

is to raise issues, recommend solutions, create room for debate and explain. We are not regular counsels, we deal with human rights and freedoms and their infringements. The scope of the cases that citizens come to us with is quite large. In 2017, a lot of cases dealt with the disabled and their carers; state support, judgements, living situation and pension benefits. There were also quite a few complaints from elderly people who fell victim to telemarketers or people impersonating representative of well-known companies. Families and self-governments raised numerous questions about educational reform. We dealt with many disagreements between former spouses and life partners about custody rights, domestic abuse,

INTERVIEW BY EWA BONIECKA

spousal support and adjudications by family courts. The matter of transport exclusion – that is limiting the access to services or education due to insufficient public transport – is becoming an increasingly common problem. Also, inconvenient investments, the lack of odor regulations and environmental issues were also on the agenda. There were also many complaints last year that revolved around court cases, their duration and judge partiality. More grievances involved the police. Citizens complain about the negative consequences they face for participating in public demonstrations, about the way police force acts in such cases, as well as about prosecutors being too repressive. What about the economic sphere? What are the most common problems people face? The number of complaints about public administration hindering economic activity has decreased substantially. Instead, there are now cases where people claim to have restricted access to public offices and institutions. Consumer rights infringements were raised on more than one occasion, too. In a lot of cases, our intervention is what it takes for public bodies to take action and issue decisions, sometimes after years of delaying it. The Ombudsman’s office also frequently joins court proceedings that citizens instigate when they feel victimized by authorities, and courts often side with the citizens in such cases. Do entrepreneurs also apply for your assistance when they feel their rights are violated? The protection of constitutional laws is of great importance to Polish entrepreneurs. The Office of the Ombudsman verifies several thousand complaints in that area each year. They are mainly about tax regulation, administrative decisions and social benefits. It is particularly important for me that the rulings in uncertain situations should always be in favor of the taxpayer. For instance, I join them in proceedings before administrative courts.

Recently, the Supreme Administrative Court (NSA) ruled to uphold the appeal that our Office made in the case of an entrepreneur who had won a public tender for the coastal embankment reconstruction. The condition in the tender process was zero VAT tax for these services; however, after the company finished its work, the tax audit office levied a 23 percent VAT tax on the entrepreneur. Luckily, the NSA reversed the decision. I hope this judgement will be a signal for tax offices that they cannot repress entrepreneurs.

The matter of transport exclusion – that is limiting the access to services or education due to insufficient public transport – is becoming an increasingly common problem

cated that it is necessary to include that right into law to ensure that those detained are not subjected to torture or inhumane treatment from law enforcement officers. That is what happened in Igor Stachowiak’s case – he died due to torture he was subjected to at a Wrocław police station in 2016.

What do you consider to be your greatest challenge? I happen to serve as Ombudsman at a time when the constitutional order and court independence are being threatened. Some citizens may think How often do administrative bod- that it doesn’t affect them personies respond to your interventions? ally but that’s not true. Can a debtor In 2017, I submitted 273 cases, with a Swiss franc-denominated including 115 that required legislaloan expect a fair verdict if the judge tive initiative to be taken. In most has to take into account the consecases our Office receives a response, quences of ruling against a de facto sometimes we can work together state-controlled bank? How are we to correct the laws. But it is not the to interpret what the justice system job of the Ombudsman to have is doing if judges who implement people agree with us. We indicate the constitution for the benefit of a problem, protect constitutional the citizen could face disciplinary values and human rights. That is the action? There are also other ways of Ombudsman’s statutory role. exerting pressure on judges, like reIt does not, however, mean that assigning them to a different district citizens should remain silent, beor a different city. cause it is in all of our hands to make The job of being a judge requires sure our rights are respected. I think impartiality in their decisions and that now public pressure is particu- independence. If a judge is subject larly important. Let me remind you to political pressures and fears posof last year’s mass demonstrations sible repercussions from the governto protect the independence of the ing bodies if they fail to fall in line, Supreme Court and the National citizens lose their right to impartial Council of the Judiciary, after which judgement. I do, however, hope the president vetoed the bills that that individual judges will be strong had been adopted. Recently, the enough to continue to be impartial government ceased work on the in their judgements despite being public property vetting or the bill deprived of an institutional guarrestricting public gatherings, which antee of independence. Indeed, we many people, including myself, had have a lot of courageous lawyers in widely criticized. our country – not only judges, but Still, it is a fact that I often cannot also attorneys, legal counsels and get certain ministries to respond prosecutors. They know what our to my queries, even though they constitution means and they will are mandated by law to do so. not abandon our citizens in need. Missing these statutory deadlines As for me, I will not stop remindfor no reason should not happen ing the ruling elite about the human in a democratic state of law. For rights standards resulting from the example, I have been unable to Constitution of the Republic of Poreceive a response from the Justice land and from international obligaMinister since April regarding an tions. That is my greatest challenge; important matter of providing a it is a duty that my office mandates detained person with legal counsel and that has been vested in me by the moment they are arrested. I indi- Parliament.

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Opinion MARKETING • Professional content marketing is not a stand-alone activity but part of a whole marketing program and therefore it not only helps you improve your overall marketing efforts, it also functions as the hub of the marketing ecosystem, where your relationship with clients can be nurtured.

Is your marketing mix future-proof?

n a constantly changing world, the riskiest thing to do is to do nothing. You are facing many challenges and you need to evolve and prepare to change. And change needs leadership to happen. A decade ago, in order to be heard or seen, companies/brands/entrepreneurs would hook up with the media to be quoted or be a columnist to be seen as an expert in a field. This form of communication is obviously still valuable, but the truth is that things have changed and we are required to take additional steps to succeed. Traditional media will empower you, but in a world of digital disruption with new and emerging channels and worldwide opportunities at your customers’ fingertips, your audience constantly redefines your brand just as much as you do, so you must have a plan for how you will interact with them. Are you interesting enough to talk to? Do you have a proper website and social media channels? Is your message clear and relevant? That is what your clients

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want to know. If you want your business to develop and strengthen in the coming years, then content marketing is the answer. Content marketing has existed forever (there are examples of highly successful magazines published by companies and brands back in the late 19th century) but it is only during the last decade that it’s gotten its own name and has been developed into a discipline and part of the marketing mix. Why should you make content marketing an important element in your future plans? • It gives you an opportunity to build strong ties with your clients and potential customers by establishing regular contact with them. • You will have an opportunity to differentiate your company by delivering valuable and relevant information. • You can develop a dialogue with your customers, who will give you insight into why they buy from/ work with you.

BUILDING TRUST A good business relationship is built on trust. The more trust there is between you and your clients, the more open they will be to purchasing your products and services. Building trust takes time and effort. How do you create a trustworthy image with your business partners? Your content marketing strategy is an ideal tool that can secure potential customers with valuable content in the form of: • Education • Information • Inspiration • Insights • Tests • Reviews • Opinions Add to that relevant, curated and selected works from other great companies. Inspiring, educating and sharing rather than selling shows your clients that you care about them. That builds trust. I have been involved in a number of very successful implementations of content marketing tools in the strategies of both international and local brands in the Polish market. The appetite is clearly growing, as customers are becoming more aware and have higher expectations in terms of the brands they choose and the added value they create. I look forward to many more exciting and enriching projects over the coming years. - Morten Lindholm

Morten is publisher and editor-in-chief of WBJ. He also advises companies on communication and marketing solutions. He has 25 years’ experience in marketing, sales and business management. He is curious and constantly develops his skills in the fast-changing disruptive digital marketing world in order to deliver the best solutions for his partners.

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IN FOCUS

LOGISTICS Cost Cutting Same-day Delivery

Customer Loyalty

Data Protection

Last-mile Delivery

BY KAROLINA PAPROS

LOGISTICS CHALLENGES AHEAD

All industries have to stay on their toes to keep up with the changing environment, but the transportation industry seems to be in a particularly difficult spot. Confronted with digital transformation, rising customer expectations, new competitors and their innovative business models, not to mention legislative curve balls, logistics providers have their work cut out if they want to stay competitive

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IN FOCUS LOGISTICS

ncreasing the speed of delivery and potentially lowering â&#x20AC;&#x153; Icosts at the same time may be possible

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Meeting customer expectations

A recent study by Capgemini reported that the logistics industry is constantly under pressure to cut transportation costs while investing in innovative technological solutions to catch up with the digital world. The pressure is exerted mostly by increasing customer expectations to receive goods quicker with more flexibility of choice and at low or practically no delivery cost. These expectations put both companiesâ&#x20AC;&#x2122; profits and their existing business models into question. PwC added that there is no brand loyalty in logistics. Custom-

ers are not interested in who is delivering their parcel as long as it is delivered quickly, undamaged and for a low price. Moreover, the majority of e-shoppers expect delivery to be free of charge and traceable at all times.

Increasing digital fitness

How are transportation and logistics companies responding to this challenge? They do it by improving their digital fitness. This means that they take advantage of technological solutions to meet customer expectations, for example, by developing new smartphone applications, utilizing GPS track-

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he transportation and logistics industry has been one of the latecomers to the digital era. PwC stated in its latest industry report that half of transportation and logistics companies lack digital culture and training. Therefore, companies have recently been under attack on all fronts. Their greatest concern is no longer securing goods and orders but adapting to the pressures of the fast-paced world of technological innovations, where everything should be performed more quickly, better and at a lower cost.

more than ever, logistics companies need to team “ Nup,ow,exchange information and share the technology

ing capabilities or improving the flow of information exchanged with suppliers, as well as the process of directing and scheduling transport. Some even go as far as giving their customers the possibility to choose the fastest and cheapest route, as well as control over when, where and how the booking is made and the bill of lading is delivered, as is the case with global giant Maersk Line. Flexibility is what every customer is looking for.

Investing in automation

Increasing the speed of delivery and potentially lowering costs at

the same time may be possible – as suggested by PwC – by utilizing delivery drones, installing automated loading and unloading systems, investing in the development of unmanned vehicles or augmented reality solutions (like Google Glass) that would help the driver oversee their load and manage the route in a more efficient way. Amazon has already put some of these solutions into practice. Apart from piloting “Prime Air,” 30-minute delivery using drones, it has its own Amazon Robotics business unit and at least 20 aircraft to handle shipments. Mix

these technological solutions with the potential of the Internet of Things, which may facilitate the cooperation between the warehousing team and the distribution team and guarantee the desired traceability to the customers, and you have a recipe for success.

Banding together

Another challenge that existing transportation and logistics companies have to face is new entrants. The majority of newcomers are start-up companies. They do not own any real infrastructure, but they claim their share in the market by offering

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IN FOCUS LOGISTICS

ugmented reality solutions would help the driver over“ Asee their load and manage the route more efficiently

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nies need to team up, exchange information and share the technology. Imagine the boost in efficiency if companies had access to real-time data on available capacity across different logistics networks. If a standard 40-foot container can carry over 27,000 kg and has almost 70 cubic meters of capacity, then, thanks to real-time data analysis and smart cooperation between logistics companies and customers, the latter would receive a better rate if they combined orders and the former would have a higher utilization of the container. It is a sort of a win-

win situation. However, it is easier said than done as fragmentation and inconsistency make it almost impossible to achieve – each company has its own systems, rules and procedures, trying to standardize them across the industry seems an impossible endeavor.

Exploring the physical internet

The idea of standardization lies at the heart of the “Physical Internet” – a current buzzword in the transportation and logistics industry. It is an idea that objects can be easily transported from

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new technological solutions. A good example are virtual freight forwarders who have competitive pricing, provide quotes quickly and match shippers with available capacity. Moreover, the biggest hunting ground for start-ups is the so-called last-mile delivery – moving goods from a transportation hub to their final destination. Take UberCargo launched in Hong Kong or Nimber in Norway for example. It is possible to fight off this challenge with extensive collaboration and partnerships. Now, more than ever, logistics compa-

he biggest hunting ground for start-ups is the last-mile “ Tdelivery

point A to B if they become standardized and share common channels, in the same way data packets are sent across the internet. In fact, the European Union has already started exploring the potential of the Physical Internet as part of its Horizon 2020 program that aims to develop a smart, green, integrated transport system.

Protecting data

This year, one more difficulty has emerged to keep transportation and logistics companies occupied – the new data protection

act (GDPR). It regulates how businesses process and store personal data, how clients’ consent for their data to be processed must be obtained, as well as introducing the so-called right to be forgotten. There is no doubt that the act is needed in the current digital world, especially taking into account the fact that almost every week there is news about data theft, cyber-attacks, human errors or negligence that results in the loss of sensitive data. In the case of transportation and logistics companies, data protection is indeed a massive issue

as they gather huge volumes of information about their customers in order to provide a more efficient and effective delivery service. If they wish to increase traceability, they may need to obtain and store even more data. If that data gets stolen, it may cause irreparable damage to the company’s credibility, not to mention the affected customers. These new requirements may force companies to apply time - and money-consuming changes, but firms that want to remain competitive should treat all of these challenges as an opportunity to grow.

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IN FOCUS LOGISTICS

FULL SPEED AHEAD

Transport and logistics are facing a number of challenges: from the increasing pressure on cost optimization, labor market imbalance, legal uncertainties, through to the technological arms race and environmental awareness. WBJ met with Janusz AnioĹ&#x201A;, General Director of Raben Logistics Polska, to talk about the transformation the industry is going through Interview by Beata Socha

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WBJ:

The Logistics market is undergoing a continued boom thanks to the growth of e-commerce in Poland. What should we expect over the next six months, as well as beyond 2018? Janusz Anioł: It would seem that the impact of e-commerce is seen mainly in the courier industry. However, online shopping also fuels the warehouse industry, with an increasing demand for storage, parcel preparation (individual, bundled, palleted, involving re-packaging and other), servicing returns/complaints as well as payment management. The interconnection between e-commerce and logistics is increasingly visible in the B2B market. Until recently, B2B e-commerce practically didn’t exist. The need to optimize distribution costs and eliminate intermediaries, as well as the generational change, are forcing the development of online B2B sales. Today, B2B e-commerce is growing rapidly on a global scale. According to Frost & Sullivan, the value of this segment will grow quickly over the next few years and become similar to the B2C model. One automotive manufacturer has recently been testing distribution channels that circumvent intermediaries, which is a great example of the trend. Experts expect B2B channels to expand and feature a lot of functionalities that have thus far only been used by private consumers. According to Forrester Research, in 2017 companies expected that over half (56 percent) of their B2B purchasing will be done online, a marked growth compared to 2014 (30 percent). There is growing pressure on cost optimization. How competitive is the market now? Our business operates on low margins, and at the same time requires high investment outlays and takes on a lot of liability (particularly for goods storage). High labor costs and the increasing burdens on the transport and logistics companies are driving them, Raben included, to focus on cost optimization. We continue to look for solutions that will allow us to render services better and more efficiently. One of the key values of our company is entrepreneurship. We put a lot of weight on perfecting our processes. We’ve been redeveloping our culture to be more inclusive and we continue the lean “Better every day” project. It encourages every employee to try to make their working space more efficient and manage resources in a sensible way. It is at the “front line” of our warehouses and transport that we get ideas on how to improve service quality, optimize processes and thus lower our and our clients’ costs. We work with clients individually, as far as possible. We organize lean management workshops and we look for savings together. It can produce really unexpected results. How is the regulation on drivers’ minimum wage in the EU affecting the profitability of logistics operators? Will Polish companies continue to be competitive in Europe if it takes effect? In June the Council of the European Union is set to vote on

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IN FOCUS LOGISTICS

the mobility package and excluding transport from posted workers regulation. Thus far, the significant differences between member states have made it impossible to reach a common stance on the matter. But all of us in the industry hope for a positive solution to the problem. For now, each country has submitted their view on the matter asking for further negotiations. There have been many sensible points made and we can see a greater understanding of the transportation matter than in 2017. All the grassroots work is showing the first results, similarly to what we’ve seen in the European Parliament. Polish companies dominate in European international transport, with a market share of 28 percent according to trans.info. However, if transport is not excluded from the restrictive regulations on posted workers, it will affect small transport companies in particular. It is a peculiar situation. On the one hand member states are waiting for the final resolution of the matter, on the other they are implementing their own regulations. This leads companies to have to interpret the law on their own or get their partners to agree to cover all the consequences of the potential problems. I am afraid that it will turn out that these interpretations are not in accordance with the official letter of the law and all the interested parties will jointly pay for their infringements. Creating a barrier for Polish transport companies does not mean that German or French firms will automatically take over the market. They have a severe shortage of drivers and mounting formal barriers on competition will not change that.

olish companies “ Pdominate in European

international transport, with a market share of 28 percent

Is price all that matters in logistics? Some industry analysts go as far as to state that there is no brand loyalty in the industry. Would you agree? Naturally, price is a very important factor and every sensible entrepreneur calculates operational costs carefully. That said, if the partner fails to deliver a quality logistics service or if it falls short of the expectations, it is often not the price, but the stability, quality and experience of the operator that is the deciding factor for future or continued cooperation. In the B2B sector, recommendation and relations matter.

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Of course, if we are talking about the simple matter of getting goods from A to B, the best prices, delivery times or any other feature that is important to the client can make them choose one provider today and another tomorrow. There is no loyalty there, clients simply focus on the lowest price. However, when more complex and complicated services are involved, the more clients think of risk assessment and credibility. We can see that in our clients’ portfolios. Some left us but then came back. Others come because they have heard that we can offer them professional and safe cooperation. There are also companies that have been with us for many years. This year we are celebrating 20 years of cooperation with Nivea and we are signing a contract for more. How big a role is technology playing in optimization and raising efficiency? Just as technological development is making our everyday lives easier, it is also impacting efficiency and costs. According to Deloitte’s report (“The connected worker. Clocking in to the digital age”), the vast majority of employees look favorably on applying modern technologies in their companies. Even though you can’t compare logistics to automotive in that regard, it is one of the segments that are most eager to support their employees with technological advancements. After all, the job of drivers and warehouse workers is particularly demanding. That’s why innovation is implemented from the ground up: from individual employee level to the entire company’s management systems. Today, I cannot imagine a warehouse without computers helping people manage logistics processes. Without digital-human cooperation, the sheer volume of orders would make it impossible to meet any reasonable deadline. We use advanced warehouse software, such as WMS Red Prairie, to optimize complex logistics processes. Automated packaging, wrapping and shipping lines make warehouse work much easier at Raben. Modern grid picking lines increase work efficiency, improve the quality of completed pallets and significantly increase the efficiency with which they are used. To successfully implement high-tech solutions, the Raben Group created a dedicated R&D team. It deals with innovation in process optimization, as well as creating entirely new operation models. Transport and logistics are almost entirely “paperless.” Some of the tasks of our Genius Lab include implementing “early warning” mechanisms to foresee where delivery dates might fall through, using advanced algorithms for image recognition to e.g. measure a parcel’s size before it enters the warehouse, and many others. How automated is the logistics industry? What Industry 4.0 solutions are being implemented? Logistics processes are under heavy influence from innovations such as autonomous trucks, interconnected vehicles and delivery drones. You can also expect rapid progress in M2M (Machine-to-Machine) communication, which may simplify the automation of logistics processes in the warehouse and contribute to spreading driving

safety mechanisms. All these novelties are on our radar. We are already testing some of these solutions, e.g. drones. And while we relish automation, we need to keep in mind that these solutions are costly, and implementation often takes years. It makes sense to focus on solutions that will be used by more than just one client in one warehouse. Let’s not forget that each process, particularly in customer service, starts and ends with people. That’s why we continue to develop our employees. How important is employer branding in logistics in this employee’s market that all industries are confronted with? Apart from competing on products and services, there is an increasing rivalry between organizations in the labor market. Building an employer’s brand is increasingly important. A very common mistake firms make is focusing on outside promotion and marketing, while forgetting to ensure the satisfaction of current employees. A company’s image on the outside very much depends on how it is seen on the inside. That’s why monitoring the sentiment and opinions of employees is a key component in building an employer’s brand. Raben routinely carries out engagement and fulfillment surveys, and based on the results we implement activities to increase employee satisfaction. One of Raben Group’s responsible business goals is taking care of the health and safety of our employees. We have a whole range of initiatives aimed at improving safety, including a “Safety Month” that we’ve been organizing for three years now. It involves a series of educational meetings that show our employees potential safety risks and motivate them to create a safe working environment. Environmental awareness is a major trend in all industries. How does the logistics business approach eco-friendliness? As a leader in eco-friendly solutions among logistics operators, we are aware of the impact the industry has on the environment. We try to minimize our footprint and we engage employees, suppliers and clients in our efforts. We set increasingly ambitious fuel consumption and CO2

emissions targets each year. To meet them, we continue to invest in a modern car fleet that is more environmentally friendly. We’ve introduced recycling policies that have allowed Raben Logistics Polska to recycle as much as 93 percent of our waste. The growing demands from our clients, a constantly increasing volume of goods to deliver, labor shortages and the rising expectations of our employees – these are the challenges that the entire transport and logistics industry has to face. We put our money on innovation: both in terms of car fleets, technological solutions and improving our employees’ and drivers’ working conditions. That is our idea, as an industry leader, for our business in the next few years.

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IOT AND GOING MOBILE

Technology is making inroads in the logistics industry along the entire delivery chain. Here are a few examples of the latest apps and gadgets that are either already in use or will be implemented soon.

Real time monitoring he Internet of Things offers new possibilities for T increasing efficiency, e.g. monitoring a parcel in real time from the moment it leaves the warehouse up to when it is delivered to the clientâ&#x20AC;&#x2122;s door. This would give customers exact information on the delivery time and thus increase the percentage of parcels delivered at the first attempt. It also allows the further improvement of goods management: by installing sensors in vehicles you can monitor temperature fluctuations and control cooling systems to adjust for them. In case of a failure, both the driver and the dispatcher will receive an alert, which will allow them to solve the problem more quickly. Additionally, data stored throughout the delivery chain allows the company to monitor how standards and legal requirements are being met: from the number of hours drivers work, through to vehicle speed and fuel consumption to name but a few. The biggest gain is a gradual improvement in delivery times and the efficiency of the delivery chain.

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Pinpointing location Mobile technologies used by drivers and dispatchers to determine location more precisely will allow for failsafe last-mile delivery. That is of particular importance, as independent research shows that as much as 40 percent of new drivers quit their job within the first few months just because they cannot reach their destination despite using the best navigation systems. Globally, an app called What3Words is gaining in popularity. It identifies locations somewhat differently from regular systems, allowing drivers to reach places that do not have an official address. In Poland, a new, free app is being developed under the working name Ariadneâ&#x20AC;&#x2122;s Thread. Initiated by the Polish Trucker Club association, it will not only allow users to pinpoint the exact location of delivery and recipients but also collect data on real road conditions (e.g. road blocks and shortcuts) and parking options (including parking duration and safety issues). Raben is currently working on an ETA (Estimated Time of Arrival) app that will provide its customers with information on the current location of their parcel, as well as the estimated time of delivery. Online communication (GPS/eGPS) between the driver and the system equipped with a tailor-made algorithm and a map will enable the firm to estimate when the driver will reach each of his stops and potential delays due to traffic. It goes without saying that this sort of information will increase transparency, reduce costs and increase customer satisfaction.

In the warehouse T he range of high-tech solutions in warehouses is growing quickly, too. For instance, a device called Cubiscan allows for very precise measurements of goods without having to weigh them. It uses infrared light for small objects and ultrasound for larger ones. Information about the weighed objects is then transmitted to the warehouse management system. W arehouse workers have a lot of useful gadgets at their disposal. For instance, wristband RF scanners keep their hands free while scanning, barcode readers allow them to identify each product quickly and flawlessly, and later also trace its history. Other warehouse â&#x20AC;&#x153;helpersâ&#x20AC;? include mobile printers fitted on forklifts, which puts them as close to warehouse operations as possible.

s much as 40 â&#x20AC;&#x153; Apercent of new

drivers quit their job within the first few months just because they cannot reach their destination despite using the best navigation systems

S ome gizmos are even smaller, but equally useful. Raben is preparing to launch intelligent employee IDs, which will not only monitor entries and exits to fairly assess working time, but also improve safety. Combined with a helmet sensor, the system will remind workers to wear protective gear whenever they are exposed to safety hazards by sending them personalized messages and signals. The company is going to implement the technology within a pilot program for 50 workers (both physical and office employees) in one of its locations. The program will start soon and last until the end of 2018.

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THE WEDDING INDUSTRY

JITTERS, TOASTS AND THE WHOLE SHEBANG There are 190,000 weddings held each year in Poland. At PLN 25,000PLN 100,000 a pop, that rounds up to a hefty sum for the wedding industry. Even though the number of ceremonies is dropping, they are becoming more lavish, spectacular â&#x20AC;&#x201C; and expensive BY SERGIUSZ PROKURAT

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WEDDING INDUSTRY

he no. 1 topic of media speculation before the recent royal wedding was what dresses Meghan Markle would wear during and after the ceremony. Every bride wants to be beautiful on her wedding day, and beauty doesn’t come cheap. There is jewelry, hairstyling, make-up, photo sessions, a band or a DJ, booking a reception hall with catering and alcohol, as well as accommodation for out-of-town guests. All these costs build up just before the wedding. The significance of wedding ceremonies is usually undervalued, though a typical wedding day with a wedding reception costs from PLN 25,000 to PLN 100,000. This allows tens of thousands of people to earn their living from the industry, including those who make and sell wedding outfits or jewelry and those who organize wedding days, arrange catering, music, decorations and photography services. If we add the cost of wedding gifts and travel expenses incurred by guests, it turns out that the turnover of “the wedding industry” amounts to as much as PLN 10 billion a year. What is the outlook for the market in the near future?

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FEWER ‘I DO’S’ The last decade was marked by a considerable change in the number of marriages. Just after the transformation of the political system in 1989, Poland saw 250,000 weddings a year. These days, each year there are approximately 190,000 ceremonies on record. Not all couples organize a wedding reception, as some opt for the thrifty option of just a wedding ceremony. The number of church weddings is also decreasing. Only as recently as in the year 2000, they constituted 72 percent of all marriages concluded in Poland, while today their number has fallen to 60 percent, which indicates a progressive laicization and westernization of Poland. This is confirmed by the number of people who, in general, are not interested in the institution of marriage. In the second decade of the 21st century, fewer than two-thirds of Poles

were interested in getting hitched at any point in their life, and the number is now starting to oscillate around 60 percent. Although this value seems very low – particularly when we compare it to the communist 1980s, when marriage was sort of a social duty for people deciding to share their lives together – compared to other European countries (where approx. 50 percent of people are willing to get married), the population of Poland still has a high tendency to take the walk down the aisle. The decrease in the number of marriages is going be partly offset by the increase in the number of informal relationships or partnerships. OLDER AND WISER The steadily increasing number of divorces also triggers a high and evergrowing proportion of second marriages. Poland is catching up with Europe in this area. Now, almost 20 percent of marriages are relationships where at least one of the newlyweds already has previous experience of marriage. It is likely that within a few years, Poland – just like other countries in Europe – will reach a larger percentage of divorces. The typical age of the people stepping on the wedding carpet for the first time has increased as well – the median age of newlywed men increased from 26.5 in 2005 to 28.6 in 2016, while in the case of women it increased from 24.6 to 26.6. Marriages will be characterized by the increasingly higher age of the newlyweds. All signs point to a trend where within the next decade, the typical age of a newlywed will increase by another two years. GOING ALL OUT For the wedding industry it could mean a difficult period of change and increased competition. Poles are thinking about getting married later in life and less frequently, because generations which value life stabilization are becoming increasingly less numerous. But then again, weddings will be more diverse, multicultural and demanding from an organizational perspective – and thus more expensive. In 2015, Polish law allowed for civil marriages outside Civic Registry Offices. This made it possible to organize weddings that people had previously only seen in Hollywood movies. Although the weather may always throw a wrench in the works, couples are increas-

Weddings will be more diverse, multicultural and demanding from an organizational perspective – and thus more expensive ingly eager to opt for more original scenery. Outdoor weddings are therefore growing in popularity. Also, more and more young Polish couples are entrusting the organization of their wedding to a professional wedding planner or even organizing an American-style wedding, which includes holding a wedding rehearsal and a rehearsal dinner the day before the actual ceremony. The latest trends in Poland also include arranging for wedding photo booths, where every guest can take a snapshot, or an all-night DJ. Despite all the new influences, the age-old tradition of drinking vodka for the couple’s prosperity is still alive and kicking. Some customs are changing, though. Today, in large cities, newlyweds expect the invitees to reimburse the incurred costs. It is appropriate to give an envelope with money, or “pay” for a dance with one of the newlyweds. No wonder many young couples embarking on their journey think of their wedding as an opportunity to make money for a downpayment on a home. But before you tuck a bill in the wedding bouquet, make sure you know what is expected from the wedding party, as some Poles will still be shocked by such an attitude. REAL ESTATE IMPACT Weddings have a significant economic impact, particularly because for a certain group of newlyweds getting married means they will have to find a new home, furnish it and change existing patterns of individual consumption. In Poland there is a popular saying that it is not the child that binds the marriage – it is the mortgage. Thus, the wind of change will reach this market as well. Because, in Poland, the number of people aged 25-29 will decrease from 2.76 million people in 2016 to 2.41 million in 2020 and 1.97 million in 2025 – so, as a result, the demand for apartments may fall as well. Unless we introduce immigrants into the mix. The geographical aspects of Poles getting a spouse from abroad are interesting. The needs of Polish men and women are not always the same. In the case of mixed nationality marriages, women tend to prefer the British, Germans, Italians and Spaniards as their spouses. Men, on the other hand, look for Ukrainian, Russian and Belarussian brides. It is particularly worth drawing attention to the rapid growth of marriages concluded between the citizens of Poland and Ukraine as a result of the increasingly greater influx of Ukrainians in Poland. The trend is very likely to continue in the coming years. The effects of such inflows are usually visible after three to five years – so it is only in the coming years that will we will see the effects of immigration on the marriage market. In the last two years, the number of such marriages increased from 3,367 to 4,662, which translates as growth of almost 40 percent. Poland is, for better or worse, taking big steps towards a multicultural society.

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WEDDINGS BY THE NUMBERS

Median age at first marriage

29 28 27 26 25 24 23

men

06 20

05 20

women

25,000 PLN 100,000 PLN

IS THE COST OF A TYPICAL WEDDING RECEPTION IN POLAND.

of weddings in Poland are church ceremonies. 38

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of marriages are relationships where at least one of the newlyweds already has previous experience of marriage.

The administrative costs of a civil marriage only are below PLN 100. Flowers and music add up to another PLN 100. A wedding ceremony held outdoors â&#x20AC;&#x201C; PLN 1,000. Tying the knot to your significant other in a church wedding makes this account larger even by PLN 500-2,000, depending on the parish. Additional musical settings in a church carry an additional fee for the organist.

The overwhelming majority of Poles organize wedding receptions for no more than 200 guests and book spaces that can meet such requirements. Most of the polled wedding venues are available for approximately PLN 150 per person. Facilities with such an offer can count on the interest of nearly 80 percent of customers, which greatly increases their chance of filling available dates for weddings and other important events.

On average, every third relationship ends in a divorce. As recently as 25 years ago, only one in six marriages ended in this way.

NUMBER OF MARRIAGES 1990 255,300 2000 211,000 2010 228,300 2013 180,400 2015 188,800 2016 195,000

Nearly

PLN 2,500â&#x20AC;&#x201C;4,500

per night is the cost of musical entertainment with a DJ.

of weddings and wedding receptions in Poland take place in June, July, August and September.

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INTERVIEW WEDDING JEWELRY MARKET

What type of jewelry do Poles choose for their weddings? Which stones and metals are the most popular? For wedding bands, yellow gold is still the most obvious choice, although a mixture of white and yellow gold is increasingly popular. For jewelry that adorns the wedding dress, pearls are on top, with white gold for necklaces, tiaras and bracelets. You can also hear more and more about pink gold. What is it? Pink gold has the same fineness as yellow or white gold. The only difference is the mixture. In 14 carat gold (the most popular in Poland), where you have 585 units of pure gold per 1,000 units, there is a mixture of copper, which has a reddish tint, thus resulting in pink or rose gold.

GOLD RUSH

The summer months are when wedding jewelry sales are at their highest. Apart from regular gold, Poles are becoming drawn to white and pink gold as well. Buying diamond jewelry is no longer reserved for gifts. Even companies are increasingly open to rewarding their employees with a beautiful and precious piece. WBJ talked to Jakub Lasocki, CEO of Red Rubin about the trends in the jewelry market Interview by Beata Socha

WBJ:

The June-September months are when the majority of weddings take place in Poland. Can you see it reflected in jewelry sales? Jakub Lasocki: Yes, we see an increased interest in wedding jewelry in these months. The summer months are a perfect time for a wedding because of the weather. Besides, there is a Polish superstition which makes people book wedding dates in months with a letter “R” in their name (in Polish it would be June, August and September). These are warm months with a lot of sunshine, which makes jewelry more visible.

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Do Polish couples choose diamonds for engagement rings very often? Only 10 years ago, a diamond ring was the choice for only one out of every three couples. Today it’s the vast majority – I would say some 90 percent – that opt for this stone for their engagement ring. Cut diamonds have symbolic meaning as well as unquestionable durability. I think they are becoming so popular simply because they are the most beautiful. Diamonds are also more common in bracelets and necklaces. It seems that Polish women have come to realize that diamonds are indeed “their best friend.” Do they really buy more diamonds these days? Definitely yes, and we want them to buy even more. What is also a good sign is that more and more frequently diamond jewelry is not just purchased as a gift. Women are buying these stones for themselves. Which other stones are popular? Poles have always loved sapphires. It is the second most popular gem, followed by rubies and emeralds. You have an offer for the B2B segment. What type of jewelry do companies buy for their employees most often? Usually these are bracelets, mostly because they are the easiest to choose when you don’t know the exact size or the preferred patterns. For men, it is most often cufflinks. How popular is the online sales channel in jewelry sales? Is it growing together with the expanding ecommerce market as a whole? One of our brands (fashion) sells jewelry online very effectively, seeing growth rates similar to that of the entire e-commerce market. But it is difficult to talk about online sales of particularly valuable pieces. Clients usually use the online channel to set up a meeting with our adviser in a regular store. They prefer to see the jewelry before they buy it.

DIGITAL We design a complex brand presence on the internet. We specialize both in creative and technological solutions. We know how to realize web design so that it is impressive and effective. We create and optimize product sites, both for brand image and e-commerce purposes, as well as complex internet services. See our projects at www.valkea.com/projekty/digital

TECH i n s i g h t s

TECH NEWS SHUTTERSTOCK

Gadgets to watch: The Magic Carpet Polish company Funtronic, launched in 2014, is the producer and distributor of The Magic Carpet, an innovative teaching aid in the form of interactive projection system that can be used on the floor and on tables. The Magic Carpet incorporates a set of multimedia exercises, games and physical activities intended for working with school and preschool children, as well as the rehabilitation of adults and seniors. The company already has clients in 18 European markets as well as in the US and the UAE. The Magic Carpet can already be found in over 5,000 institutions and public utilities. The device and the dedicated application package are designed for use in various places, e.g. nurseries, kindergartens, primary schools, therapy and rehabilitation centers, retirement homes, muse-

ums and fairgrounds, as well as playrooms. Funtronic offers three multimedia sets: The Funtronic Edu Magic Carpet, The Funtronic Rew Magic Carpet and The Funtronic Fun Magic Carpet. The Funtronic Edu is primarily a teaching aid that enhances the effects of pre-school and school education. It offers a rich variety of games, scenarios and quizzes, supporting children’s psychophysical development. The Funtronic Rew is dedicated to disabled people (kids and the elderly) as an aid in their rehabilitation, aimed at improving their impaired development and intellectual functions. The Funtronic Fun is aimed at the youngest children – through entertainment it develops children’s motor skills, visual-motor integration, perceptiveness and speed of response and at the same time it trains memory and educates.

>>>

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TECH

tion, there were fewer than 30 companies in the sector. Today, there are over 300 and most of them are a part of the international ecosystem, e.g. they deliver cutting-edge software for satellite operations, as well as rocket fuel and cameras for space observation,” she said.

Ultimate Games debuts on NewConnect

Poland joins international supercomputer program Poland has joined an international initiative which aims to create a European computer system of high computing power. The declaration was signed by the head of the Ministry of Science Jarosław Gowin and announced by the Ministry of Science and Higher Education. The European High-Performance Computing Joint Undertaking (EuroHPC) is to enable European Union countries to build supercomputers and compete in this area with global leaders in the field such as the US, China and Japan. The EuroHPC program will start operating in 2019. The largescale calculations include modeling and simulation, advanced data analysis and visualization, which are used in data processing for many applications – scientific, medical, industrial and business. They are also used in the public sector, for example in research on climate change and natural disasters or cybersecurity.

Ultimate Games, specializing in fishing simulators, debuted on NewConnect on June 15, with the share price increasing 14.29 percent on the opening trading day, reaching PLN 8 per share. The firm’s flagship game, Ultimate Fishing Simulator, came in sixth on games distribution platform STEAM’s bestsellers list on the day of its debut.

Nokia to employ 200 specialists at Kraków technology center The Nokia technology center in Kraków intends to increase this year’s employment by about 200 specialists, who will work on the latest telecommunications solutions related to LTE and 5G wireless networks. In total, Nokia employs nearly 6,000 people in Poland. In addition to Kraków, it also has branches in Wrocław, Warsaw and Bydgoszcz. According to representatives of the company, Poland ranks third in the world after Finland and France in terms of the number of employed specialists.

Emilewicz: space industry among fastest growing sectors “We would like Polish companies to have a 3 percent share in the European space industry revenue by 2030,” said Jadwiga Emilewicz, minister of entrepreneurship and technology, at the Space Industry Forum 2018 in Warsaw. She added that the space industry is one of the fastest growing sectors in the world and that the growth is also observed in Poland. “When two years ago the government decided to support Polish firms in space explora-

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games only for mobile devices, in two segments: its own games distributed in the F2P (free-to-play) model and games ordered by third-party clients for advertising purposes (advergaming).The board also decided to release the game “Frankenstein: Beyond the Time.” Its premiere on the STEAM Early Access platform will take place on June 29 and the final version will be introduced on August 1.

SCNTPL will build satellite and spacecraft components Silesian Science and Technology Centre of Aviation Industry (SCNTPL) and Thales Alenia Space (TAS) have signed a framework agreement on building components for satellites and spacecraft, the company informed at the end of May. The value of the contract was not disclosed.CEO of SCNTPL, Bartłomiej Płonka, stressed that the contract is not only the culmination of the previous cooperation with Thales Alenia Space, but also opens new possibilities on the European arena.Thales Alenia Space general director Jean-Loic Galle said that the first satellite with Polish components will fly into space in late 2019. “It will be a small satellite weighing 3.5 tonnes,” he added.

BSH to build R&D center in Łódź for PLN 80 mln

The Dust wants to introduce games on PC and consoles Game producer The Dust has updated its development strategy. The company wants to introduce games on PC and consoles. Previously, the company produced

German household goods producer BSH Group will invest PLN 80 million in a new R&D center in Łódź comprising 10,000 sqm of lab space. The new center, which is set to be completed in mid-2019, will offer 200 jobs. BSH has six factories in Poland, three of which are located in Łódź (which produce washing machines, dishwashers and clothes dryers), and the

TECH NEWS/VIEW

remaining three in Wrocław (manufacturing fridges and ovens) and near Rzeszów (small appliances). BSH manufactures appliances under Bosch, Siemens, Gaggenau and Zelmer brands.

Ten Square Games to launch two games within a year, eyes Chinese market Games producer and publisher Ten Square Games plans to launch two new games by the end of H1 2019: “Fishing Battle” and “Mini Golf.” “Fishing Battle” should be available by the end of this year, while “Mini Golf” in the first half of the next year. The company is also looking to enter the Chinese market by the end of 2018. “The Chinese market has a lot of potential. We’re not available there right now, but we can see a lot of interest in the free-to-play games segment there,” said CEO of Ten Square Games, Maciej Popowicz. In Q1 2018, Ten Square Games recorded PLN 14.4 million in revenue, up 178 percent y/y, and net profit of PLN 4.99 million (an increase of 218 percent y/y). The company debuted on the WSE on May 11, 2018.

11 bit studios replaces Ursus in mWIG40 Games design studio 11 bit studios has replaced Ursus in the mid-cap mWIG40 index and mWIG40TR after the June 15 session, the Warsaw Stock Exchange informed. The small-cap sWIG80 and sWIG80TR indices now include four new companies: Colian, Ovostar, Ten Square Games and Ursus, which replaced 11 bit studios, Kopex, Mostostal Zabrze and Prairie Mining.

SHUTTERSTOCK

PGZ joins multi-task aircraft construction program Polska Grupa Zbrojeniowa (PGZ) joined the program for the construction of an innovative multi-task turboprop new generation ILX-34, the armaments company said. According to PGZ, this is the first step towards the revitalization of the domestic aviation industry. A letter of intent regarding the new aircraft was signed by the representatives of the Institute of Aviation, PGZ and the Industrial Development Agency. The aircraft are to be adapted for long-term patrol flights and will be able to operate from unpaved runways.

RECLAIMING YOUR OWN DATA

We all understood that companies were feeding on our data. Millennials, who grew up playing Gameboy between classes, surfing for hours on the newborn web, and Generation Z, falling asleep with smartphones shining in their callow eyes. Deep inside we all knew what was going on, yet we failed to act. The cancer has spread but it’s not too late. In this dark hour the light of blockchain has begun to shine, leading a path to an epic disruption By Marcel Płoszczyński

ur privacy wasn’t taken captive overnight. It was gradual. Step by step we gave away our data to enjoy the wonders of the internet. Never reading license agreements, we trusted these “legitimate” brands, offering us so much for so little in return. What seemed to be a good bargain turned out to be a calamity. To understand why, we need to look at the big picture. Our economy, undergoing a digital transformation, is being fueled by data. Generating revenue by financial exploitation is becoming a common practice among corporations. In this data-driven world, where digital information is a currency, we stand exposed and empty-handed, while enterprises harvest, sell and monetize our data. We have a value, and so do our personal files and traces. The sooner we realize this, the better. According to a Global Data Market Size report, spending on digital information about internet users gathered by big data warehouses through cookie files and other tracking software last year reached $8.8 billion in the US alone. The global data market in 2017 exceeded $13.5 billion and is growing at a rate of 34.7 percent year-on-year. As big as this may seem, it’s just the tip of the iceberg. Banks x-ray clients’ personal data with their scoring systems. Major retailers create behavioral profiles of their customers by using their shopping history, online activity and demographics. Our data is constantly being sold, transferred, processed and monetized without us knowing, let alone agreeing to these shady practices. >>>

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TECH No longer a pipe dream

Blockchain’s new incarnation

With the Cambridge Analytica scandal making front pages worldwide, it seems we’ve reached critical mass. The current system is cracking, and a change is about to take place. It’s no surprise that the solution has emerged from the blockchain community, which sees in distributed ledger what every parent sees in a newborn child – limitless potential. The technology famous for its cryptocurrency applicability is believed to be capable of much greater disruption. When it comes to data ownership and management, IOVO, the first decentralized human value network, brings to the table what companies like Facebook, which built their business models around exploiting digital information, may fear the most, yet what ordinary people long for. It promises to restore data ownership back to the people using DAG (directed acyclic graph), which represents the next generation of blockchain. As if that weren’t enough, IOVO paints a picture of a future in which we – not some billion-dollar firms – will use our digital information as we wish. “In the digital economy, data is a new type of currency. Each individual generates a fair share of such records, yet in the system that’s currently in motion, only a handful of companies are leveraging them to make a profit,” says Krzysztof Gagacki, founder of IOVO. “We need to turn this around so that our data monetized via all of the available platforms could ensure a universal basic income, allowing people to at least feed themselves and their families. There is no better solution for tackling poverty and social inequality,” he added.

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The name of Gagacki’s project stands for the Internet of Value Omniledger. It’s an infrastructure capable of running decentralized apps that allow individual users and businesses to store their data in digital wallets. Users are paid when they permit access to their data. Each person decides how much of their information is made accessible to other parties while keeping complete control over it. What sounds even better is that each browsing action and each query requires payment. In other words, the cash will keep flowing. “Valuable stories of our lives become data and its value exceeds the amount of money necessary for UBI implementation. Sadly, it’s now owned by different corporations, taking away what’s rightfully ours,” claims Gagacki, who sees an alternative in a universal, secure and decentralized record exchange system. His vision hasn’t gone unnoticed. It’s spread throughout the blockchain community at several industry events, picking up many followers. Brittany Kaiser, a former Cambridge Analytica business development director, has officially joined IOVO as an executive adviser and recently attended Blockchain Week with Gagacki in New York City. Only a few years ago, IOVO’s mission would’ve been dismissed as a blue-sky utopia. The world wasn’t ready for a shift in data ownership, having little social awareness in this field. Thanks to whistle-blowers like Cambridge Analytica’s Christopher Wylie, we’re now more alert. With blockchain’s ability to take down the middlemen, we might now be heading for a genuine revolution.

VALUABLE STORIES OF OUR LIVES BECOME DATA ... SADLY, IT’S NOW OWNED BY DIFFERENT CORPORATIONS, TAKING AWAY WHAT’S RIGHTFULLY OURS

TECH

TRADING UP THROUGH TRADE SCHOOL

IN POLAND, A JUNIOR PROGRAMMER IN THEIR FIRST JOB CAN COUNT ON A SALARY OF PLN 2,500-PLN 4,000. THAT’S MORE THAN A SPECIALIST WITH UP TO THREE-FIVE YEARS OF EXPERIENCE MAKES IN MOST OTHER INDUSTRIES. A SENIOR CODER WITH 10+ YEARS OF PRACTICE MAKES FIVE OR SIX TIMES THAT. THERE ARE FEW INDUSTRIES WITH EQUALLY PROMISING PROSPECTS. CODERS LAB FOUNDER MARCIN TCHÓRZEWSKI OUTLINES THE GROWING NICHE FOR IT TRADE SCHOOLS BY BEATA SOCHA

he IT market has been attracting a growing number of professionals with little or no experience in programming who are willing to retrain and switch to the lucrative profession. For those who do, the IT market can be very generous. “People who change careers but have had a few years’ experience elsewhere usually get higher salaries than computer science graduates with no work history,” said Marcin Tchórzewski, founder of Coders Lab,

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a school designed to train fully-fledged programmers in a matter of weeks. After all, a certain group of skills are universal, and a somewhat seasoned staff member is simply more valuable than a complete newbie, regardless of their previous occupation. They often also make very rapid career climb. “We’ve had people who graduated four years ago and are already in a senior developer position. Moreover, when you work in IT, you can count on a pay rise even up

JOB MARKET

to every six months!” That’s because it is very easy for software engineers to find alternative jobs, which puts employers in a permanent bidding war.

IT powerhouse for tech giants

Poland has established itself as a European IT hub, where more and more global leaders are looking for talent. International companies are already way ahead of their domestic competitors when it comes to attracting employees. They offer very competitive salaries that many home-grown IT businesses are finding increasingly difficult to match. They also win on prestige and a more inclusive management style, which are the top two qualities Polish professionals are looking for in a potential employer, according to a recent report prepared by HR firm Antal. Unsurprisingly, Google, Apple, Microsoft and Intel were four out of the top five employers in IT in Poland, according to Antal’s latest employer ranking, with only one Polish firm – games studio CD Projekt – making the cut.

Modern trade school

The shortage in the market is indeed vast and only getting bigger. “If 50,000 programmers appeared on the market this year, the market would easily absorb them,” says Tchórzewski. “By 2020 the gap will be even larger.” Meanwhile, universities only produce around 13,000 computer science grads a year. That’s where Coders Lab has found its niche. “It’s a modern trade school and has grown from the demand that universities are not covering.” Tchórzewski is convinced that a course graduate can compete with a university-trained one. What makes a good employee is not only education, but hard work and determination. “Universities are way too theoretical for what the market needs right now. What we offer is somewhere between a regular college and a language school.” The firm, which was launched in 2013, already has some 15 followers that have also decided to cater to this market. Coders Lab started out in Warsaw, where it currently occupies 1,000 sqm of space, and now has several regional offices as well, the latest addition being the Tri-City. The school employs 70 full-time trainers plus 200 visiting teachers, people who are highly experienced practitioners in the industry. Last year, the company started running the first courses co-financed by the state (in the form of vouchers from job centers) as well as courses subsidized by EU grants specifically for people looking to gain programming skills. Employers also see a lot of potential there. “More and more companies are organizing tailor-made courses with Coders Lab, subsidized by the employer,” Tchórzewski said.

Philosophers, lawyers and linguists

The majority (80 percent) of Coders Lab course participants are usually between 24 and 34 years of age. Some come straight after college having realized that they may have missed the mark with their choice of education. Many sign up after having worked for a few years

in a different industry, and not necessarily with a tech or science background. “We have a lot of philosophy majors, as well as lawyers – they make great programmers. Linguists are also quick learning how to code. We have people with a military background, as well as women during their maternity leave,” he added. Some course participants are managers who are already quite successful in their jobs but are looking to expand their competencies. They train programmers, testers, UX experts. The company boasts 1,800 graduates already. The course takes about 30 full days of classes, which can be completed in only six weeks, or as a weekend course over four months. But it’s not an easy-breezy Sunday school. There is an entry selection process, exams are taken every week, and a diploma is awarded at the end. The steep learning curve can sometimes prove too much. “Some 20 percent of people don’t finish the course. Those who do, however, have the skills they came here for and are ready to start working immediately,” Tchórzewski concluded.

THE FEMININE SIDE OF IT

Women have been long on the outskirts of the IT profession, with only a 10-percent share in the total labor pool. But they seem very determined to get into the boys’ club. In the case of Coders Lab, as much as 25-50 percent of participants are female. Reports seem to confirm that education does not preclude women from joining the tech market. According to Geek Girls Carrots, only 48 percent of women employed in the IT industry have science or technology-related university diplomas. Of those who do, 76 percent studied computer science specifically. There are also dark sides to being a woman in the profession. As much as 85 percent of female IT professionals have had to tackle unfavorable stereotypes, while 28 percent claim to have been rejected in the recruitment process due to their gender. The wage gap also remains a major issue, with 61 percent reporting that their salaries are below those of their male peers.

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Latest news in the logistics, retail, office and residential sectors

Interview with Nebil Senman of Griffin Real Estate

Rising apartment prices

Art in No.44 rental apartments

Art as branding tool in real estate

Logistics

PANATTONI to invest €1.2 bn in urban logistics across Europe Developer Panattoni Europe has revealed it plans to invest €1.2 billion in urban logistics projects across Europe, dedicated to so-called last-mile delivery, over the next three years. In Poland, the company is currently working on four such schemes that are valued at a total of €65 million. The latest of them – City Logistics Warsaw in the Bielany district of the Polish capital – has recently secured its first tenant. Online supermarket Frisco.pl will take up 11,000 sqm of space at the 26,000-sqm property. By the end of this year, Panattoni Europe will have delivered approximately 150,000 sqm of urban logistics space within the new program, focusing on the Polish market, said Robert Dobrzycki, CEO Europe at Panattoni Europe. He added that the company will also launch similar investments in Germany, the UK and the Czech Republic in the near future. >>>

Art exhibition at Cosmopolitan residential tower

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LOKALE IMMOBILIA | NEWS

Logistics (continued) BRIEFS MLP DEVELOPING URBAN LOGISTICS PROJECT NEAR POZNAŃ Developer MLP Group has launched construction work on the first phase of an urban logistics project that will be built within the company's MLP Poznań West park. The scheme will sit on 18.8 hectares of land located at Dąbrówka west of Poznań and will comprise a total of more than 86,700 sqm of warehouse, office and industrial space when fully developed. By the end of this year, the company wants to deliver 10,000 sqm within the development on a speculative basis. The available modules are sized from 1,600 sqm to 3,200 sqm.

7R to launch Gdańsk warehouse project Developer 7R is preparing to start construction work on its 7R City Flex Gdańsk Airport warehouse project in Gdańsk. The project will be built within the company's newly launched City Flex program envisioning the development of a chain of urban logistics schemes located in some of the biggest cities across Poland. The Gdańsk investment will comprise 9,500 sqm and has already been more than 50 percent leased out. It is scheduled to be completed in the first quarter of 2019. Other City Flex-branded projects will be developed in such cities as Szczecin, Warsaw, Łódź, Katowice, Kraków, Wrocław, Poznań, Rzeszów, Kielce, Częstochowa, Białystok, Bydgoszcz and Gdynia.

CROMWELL, BOUYGUES FORM LOGISTICS PARTNERSHIP IN CEE

Real estate investor and manager Cromwell Property Group has entered into a strategic partnership with Linkcity, part of construction group Bouygues Construction, to invest in the rollout of a portfolio of logistics and light industrial assets in Central and Eastern Europe that will eventually have a gross asset value of approximately €500 million. Bouygues Construction’s affiliate companies will be responsible for the project development, design and construction of the portfolio, while Cromwell Property Group will source the funding and asset-manage the projects upon their completion. Assets representing more than 25 percent of the portfolio have already been identified with the first of them – an 8,000sqm logistics building – being located in the Czech Republic and scheduled for completion in Q3 2018. This is just the beginning, with further schemes located in close proximity to the main cities in the Czech Republic, Slovakia and Poland, said David Labardin, the CEO of Linkcity Czech Republic.

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1,900,000

sqm

the amount of warehouse and industrial space that was under construction in Poland at the end of Q1 Source: Cresa

Retail BRIEFS CORNERSTONE LAID FOR SILESIA OUTLET PROJECT IN GLIWICE

Investor 6B47 Poland has held a cornerstone-laying ceremony at the construction site of its Silesia Outlet retail project in Gliwice. The scheme will be developed in two phases and will comprise a total of almost 20,000 sqm of leasable space. The first phase of the development will deliver 12,000 sqm of GLA in the spring of next year and is currently over 70 percent leased out. Silesia Outlet is being built by Erbud and commercialized by BOIG Property Consulting. The value of the first phase of the investment amounts to more than PLN 57 million.

GREEN LIGHT FOR NEW OUTLET CENTER PROJECT IN KRAKÓW

Retail project MADE OF CONTAINERS to open in Warsaw this year Investor Nowa Epoka Handlu is planning a three-floor modular structure in downtown Warsaw that will comprise almost 5,000 sqm of usable space and will be occupied by restaurants and boutiques. Called Implant and sitting on an over 10,000-sqm site located near ul. Chmielna, the project will be built of 272 containers and will be one of the biggest schemes of this kind in the world. The development will house pop-up stores and will be able to accommodate approximately 80 tenants. It will also offer room for social and cultural events. Implant was designed by architect Jakub Szczęsny and is to be completed by the end of this year. The investor behind the project was inspired by other modular structures found in some of the biggest cities around the world, including London’s BoxPark.

The municipal authorities in Kraków have enacted a zoning plan that allows for the development of KG Group's planned Cracovia Outlet retail scheme. The investment will be built in two phases, with the first of them – comprising almost 12,000 sqm of GLA and housing 80 stores – scheduled to be completed at the beginning of 2020. In the second phase, the project will be extended by an additional 9,000 sqm of GLA that will accommodate around 70 stores.

IKEA to open new Warsaw store in H2 Retailer IKEA will open its store in the Blue City shopping center in Warsaw in the second half of this year. This will be the company’s third store in the Polish capital and the first one in a central location with the other two located on the outskirts of the city. The tenant will occupy a total of approximately 4,800 sqm of space on the ground and first floors of the mall and will represent a new smaller format. IKEA was previously planning to open a store in Warsaw’s Fort Wola shopping center, but due to prolonged administrative procedures the company has decided to put the project on hold, said Katarzyna Balashov, a spokesperson for IKEA in Poland.

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LOKALE IMMOBILIA | NEWS

Office BRIEFS Nearly

330,000

sqm

the amount of office space leased in Poland in Q1 Source: JLL

C&W TO COMMERCIALIZE KRAKÓW’S FABRYCZNA OFFICE PARK

Investor Inter-bud has appointed Cushman & Wakefield as the exclusive leasing agent of its ongoing Fabryczna Office Park project in downtown Kraków. The scheme is part of the Fabryczna City development that involves the revitalization of the Polmos postindustrial site and will also include retail and residential space. Fabryczna Office Park will consist of three office buildings offering a total of more than 42,000 sqm of GLA. Construction work on the first of them launched in June 2017 and is scheduled to finish in the first quarter of next year.

WARSAW’S VARSO TOWER WITH BREEAM CERTIFICATION

More SKANSKA offices under construction in Kraków Developer Skanska Property Poland has launched construction work on the fourth building within its High5ive office project in downtown Kraków. The building will comprise approximately 24,500 sqm of office space and is scheduled to be completed in the first quarter of 2020. The entire High5ive scheme will consist of five buildings offering a total of around 70,000 sqm of office area when fully developed. To date, Skanska has completed two buildings in the complex that have delivered a combined 23,300 sqm of office space. Construction work on the third building, which offers 12,200 sqm of office space, was launched in Q3 2017.

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Developer HB Reavis has secured a BREEAM Interim certificate for energy efficiency and environmental performance at the “Outstanding” level for its ongoing Varso office skyscraper project in downtown Warsaw. The scheme had also earlier been pre-certified in the WELL system. The 310-meter Varso skyscraper, which was designed by the renowned Foster + Partners architectural studio, will be part of a development that will also include two lower buildings and will comprise a total of approximately 144,500 sqm of leasable space. The tower is set to be completed in 2020.

Residential PERECA 11 rental apartments completed in Warsaw Investor Catella Real Estate and developer Matexi have held an official ceremony marking the completion of the Pereca 11 residential project in downtown Warsaw, which is the first housing scheme in Poland to be exclusively earmarked for long-term institutional rentals. The development, which comprises 193 apartments, was in 2016 bought from Matexi by Bouwfonds Investment Management on behalf of the Bouwfonds European Residential Fund (BERF). Since May 1, 2018, BERF – with its entire European portfolio, including Pereca 11 – has been managed by Catella and has now been renamed Catella European Residential Fund (CERF). Catella, which in Poland also owns the No.44 Luxury Rental brand offering apartments in the Złota 44 tower in downtown Warsaw and an under-construction complex of three buildings (including one dormitory) in Kraków, sees much potential in the nascent long-term institutional rental market in the country. The company is now working on the acquisition of further projects in the biggest cities across Poland. For example, the investor is currently in advanced talks regarding an acquisition in Gdańsk, revealed country manager Dariusz Węglicki.

Investment market BRIEFS NEPI ROCKCASTLE BUYS OLSZTYN MALL FOR ALMOST €65 MLN

Johannesburg Stock Exchange- and Euronext Amsterdam-listed commercial property investor and developer NEPI Rockcastle has acquired the Aura shopping center in Olsztyn in north-eastern Poland from Rockspring. The value of the transaction amounts to €64.9 million. Opened for business in 2005, the Aura mall was extended in 2009 and modernized in 2013 and 2016. It comprises more than 25,000 sqm of GLA and is currently 94.2 percent leased out with major tenants including

Carrefour, H&M, Helios, LPP, Martes Sport, New Yorker, RTV Euro AGD and Smyk. NEPI Rockcastle also owns the Galeria Warmińska shopping center in Olsztyn, which is the dominant mall in the city.

ECHO SELLS WROCŁAW OFFICES FOR €35.8 MILLION

Investor Globalworth Poland has finalized its acquisition of the West Link office building in Wrocław from developer Echo Investment for €35.8 million. Completed in March this year, the building comprises more than 14,200 sqm of office space and has already been fully leased out. The property is occupied by Nokia and Hilti.

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LOKALE IMMOBILIA | REAL ESTATE

BUILDING A NEW PLATFORM

Griffin Real Estate, one of the biggest investment managers in Poland, will soon enter the logistics property market. WBJ sat down with managing partner Nebil Senman to talk about this and the company's other plans for the near future INTERVIEW BY ADAM ZDRODOWSKI AND MORTEN LINDHOLM

WBJ:

There were quite a few new appointments and promotions at Griffin Real Estate at the beginning of this year. Is the process of making personnel changes at the company now complete? Nebil Senman: Yes, we integrated the new hires executed earlier this year into the Griffin Real Estate team. We wanted to strengthen not only the investment team but also our financial and legal departments. Our former chief financial officer moved into the investment team

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and has new responsibilities, being directly involved in overseeing two of our newly created investment platforms. We also appointed a new co-general counsel and chief compliance officer, whose extensive experience, among others, will help us with negotiating and setting up our new investment platform, which should come online in the summer. What kind of platform will that be? It will be a logistics platform that

we will set up in a joint venture with one of our leading strategic investors and through a separate framework agreement with one of the leading logistics space developers active in the Polish market, which will help to develop the newly acquired portfolio into a leading Polish logistic platform. We will initially invest around â&#x201A;Ź200 million in the acquisition of a standing portfolio comprising approximately 300,000 sqm located in the main Polish logistics centers. Over the next three years, Griffin Real Estate together

with its strategic partner intend to develop and buy more assets – we are talking about an additional one million sqm of logistics space and a gross asset value of over €1 billion. The logistics property market in Poland has been performing very well in recent years and the new platform will complement our existing platforms nicely. Do you have any priorities when it comes to the development of the existing platforms? No, I would not say that we are paying more attention to some of the eight existing platforms than to the others. They may vary in size in terms of their capitalization – some, like Echo Investment and EPP, are really big, while others, like Student Depot, are much smaller – but they have all been growing dynamically and we try to develop them further to maintain their leadership position in their respective markets. There are also synergies between the particular platforms. For example, the Resi 4 Rent platform may invest along with Echo Investment in acquisitions of larger development schemes, while Echo Investment will benefit from being an investment partner in Resi 4 Rent as well as acting as a developer for the Resi 4 Rent platform. Globalworth last year acquired a controlling stake in the Griffin Premium RE office platform that has now been renamed Globalworth Poland. Are you going to exit that platform altogether? We still have an almost 4 percent stake in the platform and plan to keep it for now. We are proud of the success of Griffin Premium RE, which we brought onto the Warsaw Stock Exchange last April. And we are proud of the fact that the platform attracted the attention of a leading major international investor which is consistently executing the growth path that we originally intended for this yielding office platform.

We will initially invest around €200 million in the acquisition of a standing portfolio comprising approximately 300,000 sqm

There have been several major mergers and acquisitions in the Polish real estate industry over the past year and a half. Are you looking for investment opportunities in the M&A market? We are watching the M&A market. For example, we are considering the potential further growth of Echo Investment through an M&A transaction. Echo Investment is already one of the biggest office developers in Poland, but when it comes to the company’s activity in the residential market, there is certainly room for further growth. Echo Investment could potentially acquire a smaller residential developer if the transaction complemented its existing portfolio of sites and allowed it to enter new locations. You have just finished establishing the Resi 4 Rent platform. How big will it be? Our minimum target is approximately 5,000 apartments. Around 2,500 apartments will have been completed by 2020, and another 1,000 apartments are currently in the pipeline. We see huge potential in the institutional rental apartment market in Poland. That is still a nascent market in the country, but one that has very bright prospects, as Poles – traditionally used to the ownership model – are increasingly discovering the benefits of renting professionally managed housing units as mobility and flexibility play a bigger role, especially amongst the younger generation. What is the target when it comes to the Student Depot dormitory platform?

We now have 1,200 beds and are currently developing a further 500 beds in Wrocław. We have already secured locations for new projects in Kraków, Warsaw and Gdańsk. In two years’ time, we will have approximately 2,800 beds. This market is obviously not as big as the office market or the retail market, but it is certainly a market that is undersupplied in Poland and still has a lot of development potential. We are now looking for a long-term investor who would be interested in acquiring this kind of product in the country and we want to double the size of the portfolio to 5,000-6,000 beds within the next 4-5 years. Are you interested in other alternative real estate asset classes – such as data centers or medical centers – in Poland? Not immediately, as we are currently focused on the creation of the logistics platform. Also, before we look at alternative asset classes such as data centers or medical centers in Poland, we will probably be interested in the acquisition of hotels and food-anchored/smaller retail projects. However, this is unlikely to happen this year. How much equity will you invest in real estate in Poland this year? We plan to invest at least between €200 million and €300 million of equity in real estate projects in Poland in 2018. We expect the value of the assets under our management this year to increase by at least 10 percent to over €5.5 billion.

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LOKALE IMMOBILIA | RESIDENTIAL

RESIDENTIAL MARKET OVERHEATING

Apartment prices are soaring at the highest rate since 2007. How long can the demand continue? Developers seem to be aware that the growth is bound to slow down, as they have already started curbing their construction plans BY BEATA SOCHA

he residential market is in full swing. Apartment prices on the six biggest markets (Warsaw, Kraków, Wrocław, Łódź, the Tri-City and Poznań) increased The residential by as much as 9 percent between April market has 2017 and April 2018, according seen strong to residential advisory firm REAS. growth rates Interestingly, not all locations are seeing the for years and same growth rates. “REAS data shows the weakdevelopers have respondest increase in Kraków by some 5 percent, and ed in kind the highest in the Tri-City – by 16 percent,” said Katarzyna Kuniewicz, partner and head of market research at REAS.

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In Warsaw, prices increased by an average of 6-7 percent, according to Robyg’s analysis. “The main reason for growth is the increasing prices for building materials and labor. Lower availability of land also contributes to it, as well as to the declining number of new apartments on sale,” explained Anna Wojciechowska, sales and marketing director at Robyg’s Gdańsk office. This is the quickest price surge observed over the past decade. “Since the beginning of the current boom for residential properties, prices for new units increased by 17 percent, with the majority of the growth recorded over the past 12 months,” said

Jarosław Jędrzyński, analyst at RynekPierwotny. pl. Jędrzyński also expects the upward pressure to continue until the end of 2018, “although it is difficult to estimate at what prices we will start seeing a sharp decline in demand.” Kuniewicz is more optimistic in her forecasts: “The high construction and land costs as well as the consistently high demand for apartments indicate that in 2018 we will continue to see prices grow. In 2019, a slight tapering off can be expected and prices should stabilize at a relatively high level.” She does not expect the demand to waver at least until 2020. “Barring any cataclysm, apartment prices on the developer market will see some reductions only in 2020, mainly because of the demand wearing off.”

OVER THE HUMP

The residential market has seen strong growth rates for years and developers have responded in kind. The supply continues to be high, though it seems to have reached its peak. “Currently there are nearly 47,000 units available in the markets analyzed and it is 6 percent lower compared to a year ago,” Jędrzyński stated. According to the National Statistics Office (GUS), 44,908 apartments were delivered in Q1 2018, which is 10.6 percent more than in the first quarter of 2017. Developers accounted for 24,898 apartments over that period, which signifies a 12.1 percent increase. Though still impressive, growth rates seem to be weakening. Last year, the number of new units delivered increased by 13.4 percent in Q1 2017 compared to Q1 2016. Similarly, the number of permits issued is increasing, although not as quickly as in 2017. In Q1 2018, authorities issued permits for the construction of 66,766 apartments (including tacit permits, where the investor simply files the architectural design and is allowed to launch construction unless the relevant authority interjects). This is 10.8 percent more than a year earlier. Meanwhile, the number of permits issued in Q1 2017 was as much as 42.8 percent higher y/y.

CASH OR LOAN?

The continually low interest rates and the relative volatility on the stock market have been fueling the residential market, with more people buying apartments as an investment. According to the National Bank of Poland (NBP), there was a slight decline in demand for mortgages in Q4 2017. Analysts explain that it corresponds to a growing number of cash purchases in the residential market. “You can see this very clearly in the first quarter of 2018. If the trend continues, over a half of the apartments that are expected to be sold in 2018 will have been bought with cash,” confirmed Wojciechowska. As much as 60 percent of apartments acquired with cash are intended to be rented out, rather than to be lived in.

WARSAW – SUBWAY HYPE The completion of the central stretch of the second subway line in Warsaw in 2015 has had a major impact on the average price of apartments located within one kilometer of each of the stretch’s seven stops, according to a recent analysis by urban.one. Over the last five years, the average price of units located near the Świętokrzyska stop have gone up by as much as 63 percent. Admittedly, the impressive increase was also driven by the completion of two luxury residential towers – Cosmopolitan and Złota 44 – in the area. In the case of the Rondo ONZ, Stadion Narodowy, Rondo Daszyńskiego and Dworzec Wileński stops, the average prices rose by 24 percent, 19 percent, 15 percent and 15 percent respectively. “Time is one of the most valuable assets in Warsaw, so good transport links with other districts come at a price,” commented Barbara Bugaj, a senior analyst at urban.one.

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LOKALE IMMOBILIA | ART IN REAL ESTATE

THE ART IN ‘APARTMENT’

Suburbia is losing its attraction to the tantalizing appeal of living in the very heart of the bustling city center, and living outside the city is giving way to the idea of living above it BY KAROLINA PAPROS

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he majority of city dwellers may well associate living in the city center with post-war tenement houses overlooking the noisiest and busiest streets of Warsaw, which is as far from peace and quiet as it gets. Even a decade ago, owning a house or a mansion in the suburbs used to be the goal for many up-and-coming entrepreneurs and cultural icons. However, people are beginning to realize that you could easily achieve the same level of peacefulness when living 30 or even 50 floors above street level. Living in the heart of the city has undeniable upsides. It saves an enormous amount of time, the most precious commodity today, as well as stress and the inconvenience of muddling through rush hour jams. Not to mention the obvious environmental considerations. A night out with friends will never again turn into a logistical conundrum. And on top of it all there are breathtaking panoramic views of the city, something you cannot experience anywhere else, combined with the luxury of tranquility. “Living in the clouds is everyone’s dream. Once you look at Warsaw from above, you do not want to stop. It’s addictive. That’s why Poles stopped moving outside the city. Today, they move above the city,” summarized Michał Lech, a real estate agent. Living in a residential tower in the very center of Warsaw, you get to have your cake and eat it too: you are away from all the noise and smog, but at the same time at the very center of things. People who are interested in a long-term apartment rental such as No.44 Luxury Rental at Złota 44 are mainly Poles and expats with successful careers or global businesses. One of them is model and actress Joanna Krupa, who appreciated the high-quality service, comfort and luxury offered by the tower and rented one of the tower’s luxurious apartments last year. All of the tenants enjoy unlimited access to the building’s recreational zone with a spa, sauna, jacuzzi, a spacious viewing terrace. Lech explains why nowadays the idea of shared space is so important: “More and more often we stop building walls, but we start appreciating life in urban communities.” Tenants can have a friendly and stimulating chat with their neighbors over a cup of coffee in the morning or meet influential movers and shakers and discuss business. “The best deals in Warsaw are made over coffee while wearing slippers,” noticed Lech. Some of the tenants even admit to looking for the possibility of a romance with likeminded people. And what better way to strike up a conversation, be it of a professional or personal nature, than to discuss art? Especially when you have a private mini gallery to enjoy in the intimate space of the apartment. “Introducing art into the apartments for rent in No. 44 Luxury Rental is the first undertaking of this type on the Polish market,” explained Anna Theiss, partner at Aurabilia, and added that “Art in rental proper-

WAYS OF LIVING ARE EVOLVING AND WITH THEM THE ATTITUDE TOWARDS OWNERSHIP. POSSESSING THINGS IS NO LONGER AS IMPORTANT AS IT WAS YEARS AGO

Artists whose works are shown on opposite page, top: Dorota Buczkowska, bottom right: Mikołaj Moskal, bottom left: Jakub Woynarowski

ties has been located so far only in common spaces – lobbies, lounges or bars.” That is not the case in No.44 Luxury Rental. There is a unique art collection created especially for the tower and available exclusively there. The authors are well-established Polish artists – Dorota Buczkowska, Mikołaj Moskal and Jakub Woynarowski. The art pieces depict the theme of sky, the city skyline and brave abstract forms. Each piece contributes to the unique style and atmosphere of individual apartments. The interiors have been designed to create harmony with the paintings, drawings and collages and an apartment itself is a combination of design, art and architecture. Anna Theiss added: “Ways of living are evolving and with them the attitude towards ownership. Possessing things is no longer as important as it was years ago.” As James Wallman, author of a highly influential book “Stuffocation: Living More With Less” put it, “It has been proven that spending money on experiences rather than on things simply makes people happier.” People are looking for thought-provoking stimuli and indelible impressions rather than tangible goods, and they are willing to pay for these experiences. “You can see it by looking at the clients of No. 44 Luxury Rental – they are connoisseurs of beauty and unconventional luxuries which they want to enjoy wherever they are,” said Theiss. Even though art branding, i.e. linking the brand with art, is still a new concept on the Polish market, it has been popular around the world for a while, especially in hotels. One example is Damien Hirst’s artwork in the reception of Soho House Berlin. Anna Theiss explained: “We understand art branding as, first of all, the communication with the market based on the language that art offers (i.e. the art of history, culture and design) in order to build a longterm relationship with an esthetically sensitive client who makes purchases based on very high criteria.” There is no denying the fact that a peaceful existence outside the city, which in the past seemed to compensate for a considerable distance from entertainment and culture, as well as time-consuming commutes, is losing its luster. After all, what could possibly compete with living among the clouds, surrounded by lavish interiors and art on every wall?

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LOKALE IMMOBILIA | ART IN REAL ESTATE

An exhibition in Warsaw's Wola Center office building featuring pieces of art made by students and graduates of the Academy of Fine Arts in Warsaw

AS PRETTY AS A PICTURE

Developers and investors are increasingly using art to add value to their properties BY ADAM ZDRODOWSKI

s the real estate market becomes more and more competitive and the expectations rise for those living, working and shopping in modern residential, office and retail buildings, owners are coming up with new ways of making their properties attractive parts of the urban landscape. Todayâ&#x20AC;&#x2122;s upscale residential and prime commercial buildings are meant to reflect quality and prestige, but also to have a positive influence on the well-being of those using them. The promotion of art in real estate turns out to be a solution that helps address both of those needs.

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A 24-meter sculpture inside the Galeria Północna shopping mall in Warsaw

ARTISTIC DISPLAYS

The trend is visible in both the luxury residential sector and the commercial property market. The No.44-branded rental apartments in Warsaw’s iconic Złota 44 tower feature paintings, prints and collages made by established contemporary Polish artists (see previous story). Another luxury residential skyscraper located in the downtown of the Polish capital – Cosmopolitan Twarda 4 – is now hosting an exhibition of paintings by renowned Polish painter Wojciech Fangor on one of its top floors (see next story). GTC, the developer of the Galeria Północna shopping center in Warsaw that opened for business last year, installed a 24-meter sculpture made of stainless steel inside the mall. The piece of art was conceived by acclaimed Polish designer Oskar Zięta. An artistic installation was also placed on the façade of the newly opened Forum Gdańsk complex. Meanwhile, the patio of Warsaw’s Wola Center office building recently housed an exhibition of the works of students and graduates from the Academy of Fine Arts in Warsaw. Pieces of art are also displayed in new public areas surrounding real estate projects. Plac Europejski in Warsaw, for one – part of the Warsaw Spire office complex that was developed by Ghelamco – accommodates an outdoor art gallery called Art Walk. A square lying adjacent to Skanska Property Poland’s ongoing Spark office development in the Polish capital last year housed an exhibition of paintings by Polish watercolorist Tytus Brzozowski. The artist will paint a 35-meter tall mural on one of the buildings in the complex. >>>

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LOKALE IMMOBILIA | ART IN REAL ESTATE

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Art Walk - an outdoor art gallery on Plac Europejski in the Warsaw Spire complex in the Polish capital. In the background: murals by Good Looking Studio

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LOKALE IMMOBILIA | ART IN REAL ESTATE A sculpture in the Rondo Wiatraczna shopping center in Warsaw

BRANDING TOOL

Art is being more and more often used as a tool for building the image of commercial property and has almost become a standard when it comes to new prime real estate projects, said Bartłomiej Łepkowski, head of property and asset management at Savills. Despite its ubiquity, the diversity of art allows each property to have its own unique identity. “A distinctive sculpture or other piece of art is engraved in one’s memory and makes a project stand out from other properties, a very desirable thing in a competitive market,” he argued. Of a similar opinion was Łukasz Mazurczak, director of office operations – property management, at JLL, who said that art is used to achieve business goals, enhance prestige

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and build the image of a brand that values aesthetics, quality and creativity. He pointed out that in the case of office properties, apart from positively influencing the perception of a company, art is also an important employer branding tool meant to evoke positive emotions among current and potential future employees. Art is used by both developers of new schemes (where it is often taken into account at the design stage) and owners of existing properties that need to be modernized and repositioned. Sometimes it is tenants who decide that a given piece of art will be featured in their building. Łepkowski noted that companies leasing office space in the Q22 tower in Warsaw (Savills is among them) had been asked to vote for one of

three sculptures and select the one that is now installed in the main lobby of the skyscraper (a balancing sculpture by Jerzy Kędziora).

VARYING BUDGETS

How much money are real estate developers and investors ready to spend on art? According to Łepkowski, the budgets vary and depend on many factors, including the size of a particular property and the phase of the life cycle that the property is in. Expenditure tends to be higher when art is meant to help build the identity of a new building or help change the image of an existing building and support its re-commercialization. Some of the costs are included in maintenance fees and as such are covered by tenants.

"You and Me" - a sculpture installed on the patio of the Cosmopolitan Twarda 4 residential tower in Warsaw

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LOKALE IMMOBILIA | ART IN REAL ESTATE

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A mural by Good Looking Studio painted on a tenement house neighboring new offices developed by Skanska Property Poland in downtown Warsaw

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LOKALE IMMOBILIA | ART IN REAL ESTATE

STATE-OF-THE-ART RESIDENTIAL SPACE 70

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rt exhibitions are these days no longer confined to museums and art galleries, with shows of paintings and sculptures now being increasingly often organized in modern residential, office and retail buildings, as well as in the public areas around them (see previous story). One such event is currently on at the Cosmopolitan Twarda 4 luxury residential tower in downtown Warsaw. The 42nd story of the skyscraper is housing an exhibition of the works of the acclaimed 20th century Polish artist Wojciech Fangor.

The event is being held to commemorate the 60th anniversary of the creation of Fangor’s seminal installation “Studium przestrzeni” (“A study in space”). On display are mainly paintings from the 1960s and the 1970s, the most important period in the artist’s career. At that time, Fangor produced multi-colored abstract compositions made of circular, wave-like and amorphous shapes. The paintings enter into a dialogue with the surrounding space, including that outside the building, seen through the windows on one of the top floors.

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MARCIN ŁOBACZEWSKI

LOKALE IMMOBILIA | ART IN REAL ESTATE

International reputation Along with Magdalena Abakanowicz, Roman Opałka and Tadeusz Kantor, Wojciech Fangor (1922-2015) is one the most recognizable Polish artists abroad. One of the founders of the so-called Polish School of Posters and the author of one of the first spatial installations in the world, his work was presented at New York’s Museum of Modern Art and the Solomon R. Guggenheim Museum. Fangor’s work remains popular with collectors both in Poland and around the world. Last year, four of his pieces were sold for more than PLN 1 million each.

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WBJ

: How was the idea of organizing an exhibition of paintings at the Cosmopolitan Twarda 4 building born?

Art and urban context

Katarzyna Wąs, the curator of the exhibition, speaks about the reasons for presenting Fangor’s art in an apartment building

Katarzyna Wąs: We have been cooperating with the Cosmopolitan Twarda 4 apartment building for many years now. The 42nd story offers unique space for presenting art where paintings enter into a dialogue with the modern city and the dialogue is given additional context. The 42nd story of the building regularly houses exhibitions, concerts and vernissages. Why Fangor? Wojciech Fangor is the core of the Jankilevitsch Collection. This year marks the 60th anniversary of the “A study in space” installation that was a breakthrough in his career and in the history of art in general. The exhibition makes direct reference to that installation when it comes to the number of paintings and the way in which they are presented. Are you planning other exhibitions at Cosmopolitan Twarda 4? This is the fourth exhibition of works from the Jankilevitsch Collection to have been organized on the 42nd story of the apartment building. The previous one – which took place last September and October – featured unique paintings by one of the most outstanding female painters of Polish descent, Mela Muter. Art is a fixture at Cosmopolitan Twarda 4. We are presenting it in both the apartment lobby and the office lobby. Pieces of art from the collection also adorn the show apartment of Park Lane, another of Tacit Investment's premium residential projects.

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EVENTS

Warsaw Business Journal relives the most important recent business and industry events

REDI CEE TRADE FAIR FOR RETAIL The fifth ReDI CEE Trade Fair for Retail took place on June 6-7 at the Centrum Praskie Koneser in Warsaw. The event, held by the Polish Council of Shopping Centers (PRCH), is the largest organization of retail brands and chains, retail property owners and companies involved in the shopping center market. The event gathered over 400 CEOs and professionals from the retail market. The theme of this year’s ReDI fair was efficiency. The event space was divided into thematic areas: ReDI City Zone, ReDI Prop Tech, ReDI Center Management Summit, ReDI F&B Zone, and ReDI to Talk, where panel discussions with industry experts were held. The 2018 ReDI fair also featured a congress of shopping center directors. During the ReDI Center Management Summit, fair participants exchanged views and experiences on the changing role of the shopping center director, learnt about the technological novelties and services dedicated to shopping centers, as well as about the role market information and industry indexes play in shopping center management. They also learnt about the latest trends in safety management. The event also featured a report presentation of the impact of retail on the economy over the past 15 years, which coincided with the 15 years of PRCH’s activity. “We wanted to emphasize how much the sector has developed since then and how big a role it plays in our country's development,” said Radosław Knap, General Director of PRCH. “The ReDI fair is a permanent fixture in retail centers’ and chains’ calendar. It is not only about prestige, but also about knowledge exchange, a place where we discuss about the trends in the industry, as well as create a venue for business meetings,” Knap added.

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MINDFUL LUXURY – 3RD POLISH LUXURY MARKET SUMMIT

The third edition of the Polish Luxury Market Summit was held at Villa Foksal on May 23. The theme of the conference was Mindful Luxury, meaning luxury from the point of view of customer expectations, the way it is communicated as well as the emotions and values it carries. The meeting included Polish and international experts in the luxury market, as well as representatives of premium brands and companies, who discussed changes and trends in the industry. The conference started with the presentation by Beata Orkwiszewska and Anna Kuropatwa of a survey carried out by LuxHub Havas Media on the content attractiveness in the luxury market and on how it impacts the Polish premium goods consumers. John Peeters from London agency Holition talked about the use of technology such as magic mirrors and augmented reality by iconic luxury brands. The conference featured two panel discussions. The first one focused on such issues as brand history and philosophy. Panelists included Ewa Bałdyga, CEO of HEFRA, Rajmund Nowak, owner of Novvak Jewellery, Karol Tomaszewski, creative director at Grupa Vidoq and Paweł Woroniecki, Senior Brand Manager at GPoland. Paweł Drabarczyk from Villa la Fleur, a private museum founded by Mark Roefler, explained the social, cultural and business aspects of socially responsible art collecting, followed by Christophe Balaresque of Arjowigins Creative Papers, who talked about the “no bullshit generation” of consumers, and the need to adjust communication to its needs. The second panel discussion revolved around luxury from the client’s perspective, which goes beyond the product itself, and encompasses unique knowledge and experience. Marlena Wróbel, business development manager at WhyNot PRIVATE JET, Aneta Juśkiewicz, PR and marketing director at Just Cars Club, Anna Theiss, partner at Aurabillia and Agnieszka Smektała, founder of Inspirenza, took part in the discussion. The final case study concerned the commercialization of the Raffles Europejski Warsaw hotel, and featured Katarzyna Lemańska of H.E.S.A. and Grzegorz Włodarczyk, sales and marketing director at Raffles Europejski Warsaw as speakers. Luxury goods agency ESSE Media, publisher of the Book Of Luxury, organized the event. Partners included: LuxHub Havas Media, Villa la Fleur, Just Cars Club, Stara Wędzarnia, GPoland Group, Villa Foksal, Visau Multimedia, Good Taste Agency and Grupa Vidoq.

POLAGRA FOOD FOR THE FIRST TIME IN MAY! The Polagra Food International Trade Fair for Food in Poznań has for years been associated with the end of summer. This year, the event was held in mid-spring, on May 8-10. The Polagra Food fair in Poznań is an opportunity for the food and catering industry to get acquainted with the latest trends in the sector, as well as to promote the Polish economy in foreign markets. It is an event designed to stimulate Polish food exports. This year’s exhibition was created by nearly 170 exhibitors from 18 countries and was complemented by an extensive portfolio of training sessions and lectures. Polish entrepreneurs, owners of wholesale companies and grocery stores, traders representing chain stores, representatives of the management boards of large groups of wholesalers and supermarkets, and importers and distributors of food products from abroad were all

invited to participate in the fair. Every year, Polagra Food allows visitors to discover new flavors. This year’s exhibition featured, among other things, products from Polish dairy and meat producers, fruit and vegetable processing companies and manufacturers of confectionery products. Special attention should be paid to products awarded the MTP Gold Medal – an award that confirms product quality and innovation and which this year was presented to 11 products. A new feature at this year’s fair was an open training area located in Hall 7. Experts addressed a number of topics related to food manufacturing and distribution, including the optimization of production, requirements related to product labelling, the purchasing habits of contemporary buyers and the creation of strong private label brands.

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EVENTS

Warsaw Business Journal relives the most important recent business and industry events

RECORD-BREAKING ANNIVERSARY AT THE EUROPEAN ECONOMIC CONGRESS Over 150 themed sessions, 900 speakers and record attendance – 11.500 participants, including over 700 media representatives – the tenth edition of the European Economic Congress (EEC) took place in Katowice on May 14-16. The Congress was attended by EU dignitaries, key representatives of Poland’s government, the Polish and EU Parliament, ministers and deputy ministers from Europe and around the world, as well as by business representatives, experts and opinion leaders. European Start-up Days, the event accompanying the Congress, was visited by more than 2,500 people. Experts shared their views on the future of the continent. The first day of the debate was devoted to the issue of European solidarity vis-a-vis such phenomena as migration, trade wars, Brexit and climate change. Among other headline topics covered at the 10th European Economic Congress were political transformations in the EU, the economy after Brexit, the hierarchy of values in the economy in the age of new generations of employees, the future of cities and metropolises, investments, the fourth industrial revolution, digitization, electromobility, artificial intelligence, virtual, expanded and mixed reality,

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the Internet of Things (IoT), blockchain, robotization and automation, and the benefits and hazards related to the expansion of the world of new technologies. The Congress agenda also included sessions on such areas of the economy and public life as finance, innovation, technologies and man, power and resources, mining and metallurgy, management, self-governance and regional politics, infrastructure, the healthcare market, transport and logistics, construction and real estate, and global economic cooperation. During the third edition of the European Start-up Days, an event combining young and mature businesses, the winners of the Start-up Challenge were announced. The best start-ups are: Abyss Glass, Genomtec, Handerek Technologies, NanoPure Technologies, Sense Monitoring and ShelfWise. Foreign investors in Poland and Polish businesses conquering foreign markets were honored in the Investors without Borders competition. This year’s winners include ABB, Asseco, Famur, LPP, Mondelez, MSD, Polpharma and Tatry Mountain Resort.

KRAKÓW – THE LOCAL GOVERNMENT CAPITAL OF EUROPE Once a year, all local government routes on the Old Continent lead to Kraków. The European Congress of Local Governments is an extraordinary platform for the exchange of ideas and a meeting place for local leaders, regional elites and the representatives of state administration, non-governmental organizations and business. The fourth edition of the event was held under the theme “Local government – a strategy for the future.” A new chapter in the history of local governments is coming. On the one hand, local politicians will have to face new solutions that have been introduced into electoral law. On the other hand, it is still unclear how widely the stream of money from the European Union will flow in the coming years, especially after the UK has left the EU. “It is a good moment to return to the debate on how local government in Poland should work,” argued Zygmunt Berdychowski, chairman of the program board of the Economic Forum in Krynica.

“Such debates had already started in 2012, but I have the impression that we haven’t moved forward. Local governments have to perform more and more tasks, but the funds do not follow. Relations at government-local administration level need to be redefined, because at the moment they limit the inventiveness and ambition of local authorities. Local governments must be treated as real partners, not as executors of the will of politicians. We have not had such a good economic situation and such low unemployment since 1989. It’s time to move this machine,” Berdychowski added. Local government can be managed efficiently and effectively. Representatives of the best local administrations received special prizes in Kraków. Nearly 2,000 people took part in the Congress – 30 percent of them were guests from abroad who came to Kraków not only to present their vision of the local government, but also to find out about the solutions used in Poland.

ECONOMIC FORUM IN THE SHADOW OF THE CAUCASUS MOUNTAINS This is not the first foreign event to have been organized by the Foundation Institute for Eastern Studies and not the first in this part of the world. Still, a new chapter has been opened in the history of the Economic Forum. The most important economic and political event in Central and Eastern Europe traveled to the capital of Georgia – Tbilisi. The first edition of the Economic Forum to be held in Georgia gathered over 400 guests from the Southern Caucasus, the European Union and Asia. The event was opened by a plenary session featuring the presidents of Georgia (Giorgi Margvelashvili) Poland (Andrzej Duda) and Slovakia (Andrej Kiska), as well as Georgia’s Deputy Prime Minister Giorgi Kvirikashvili. The presidents of Georgia and Poland primarily pointed to the good relations between both countries with Andrzej Duda having emphasized the importance of the Economic Forum in Krynica in building those relations. “I am proud that the patterns that have been developed in Poland over the last 20 years are now being used in Georgia and that this forum is being held in cooperation with the foundation organizing the Economic Forum in Krynica,” he said. In addition to the presidential plenary session, six discussion panels took place during the Forum. The guests talked about the prospects of Georgia entering NATO and the European Union, and about the economic opportunities offered by the country’s location. The Forum had a beautiful and very symbolic ending. At 5.10 pm on May 25, 2018, exactly 100 years after Georgians declared their independence, another important document was signed. The president of the Georgian Chamber of Commerce and Industry, Nino Chikovani, and the president of the board of the Foundation Institute for Eastern Studies, Jerzy Bochynski, signed a memorandum on the further cooperation between both institutions for at least the next three years.

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EVENTS

Warsaw Business Journal relives the most important recent business and industry events

TOP WOMAN IN REAL ESTATE The evening of May 11 saw the celebration of ladies that drive the development of the real estate sector. During a gala ceremony held at the InterContinental Warsaw Hotel, the statuettes for the first edition of Top Woman in Real Estate were awarded. The honorary award of the Jury for the most influential woman of the real estate industry, Special Award – Influencer of the Year, went to Monika Dębska-Pastakia, CEO and Partner at Knight Frank, while the most online votes in the Personality of the Year category were given to Agnieszka Kalinowska-Sołtys of APA Wojciechowski Architekci, who also won in two other categories. “This is a great honour for me, to be among women distinguished in such a prestigious contest as the Top Woman in Real Estate. That contest is part of a unique initiative embracing a cycle of numerous events that promote businesswomen and their achievements as well as companies that support ladies,” she said. “In my opinion, the category that deserves special attention is the one that distinguishes a real estate company promoting women within its structures, as it shows how much can be

achieved by giving women a chance to develop using a specific example,” Dębska-Pastakia said. The award in that category – Pro-Woman Company of the Year – went to Skanska Property Poland. “Skanska is a woman!” said the company's managing director Arkadiusz Rudzki. The following ladies were awarded in the essential categories: • A ctivities for green building - Agnieszka Kalinowska-Sołtys, APA Wojciechowski Architekci, • A rchitecture and design - Agnieszka Kalinowska-Sołtys, APA Wojciechowski Architekci, • Business management - Kinga Nowakowska, Capital Park S.A., • Commercial sales - Danuta Dzierżak, AXI IMMO Group, • Innovation - Katarzyna Wojnar, Adgar Poland, • Journalism - Anna Pakulniewicz, Eurobuild CEE, • Residential sales - Małgorzata Nowosielska, Angel Poland Group.

ANOTHER RECORD BEATEN. THIS YEAR’S INFOSHARE VISITED BY OVER 6,000 PARTICIPANTS More than 6,000 participants from 55 countries, over 250 startups and 202 experts from around the world shared their knowledge on seven stages during the two days of the event; the 12th edition of infoShare, the largest technology conference in CEE. infoShare is a celebration of new technologies, which has found a permanent place in the calendars of participants from around the world. The variety of topics and the number of invited guests ensured access to knowledge for everyone – from specialists and startups, through owners of medium-sized and large enterprises, to investors looking for solutions with the potential to generate high profits. The subjects under discussion ranged from programming, website and application design, big data, cloud solutions and the most popular technologies such as blockchain, AI and IoT through startups and innovation to marketing. The Startup Stage saw two days of presentations on the best ideas that were selected from 493 applications for the Startup Contest. Some 92 startups had booths in the exhibition space, and almost 1,300 dedicated meetings with investors took place as part of the Speed Dating concept. The next edition of infoShare is planned for May 22-23, 2019.

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BALTICA SPRING TOUR 2018 Baltica Spring Tour 2018 – the eighth edition of the International Equestrian Show in the discipline of horse jumping – was held at the Ciekocinko Stables, some of the most beautiful historic stables in Poland, from May 15 to June 3. This sporting event, which grows and develops with each edition, has reached the status of a three-week tour and is unrivaled in Poland. The innovative concept grows year by year to sizes that have not been achieved by any equestrian event in Poland before. This year’s attendance exceeded all expectations: over 1,000 horses and 300 riders from 30 countries around the world took part. However, the success of the Baltica Spring Tour is not only about the impressive number of international equestrian stars, the number of competitions and qualifications; it is also the huge organizational effort, professional team and uncompromising attitude to quality that make Baltica a recognized brand not only in Europe, but around the world. Riders of the caliber of Emanuele Gaudiano, Abdullah Alsharbatly, Jaroslaw Skrzyczyński, and many others waste no time participating in sporting events that do not meet the highest expectations. Baltica has everything they are looking for in an equestrian event – excellent technical conditions, riding infrastructure at the highest level, an amazing food and beverage offer and a unique, boutique hotel located in the very center of the event.

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LAST WORD that it is always their preferred way to “communicate” anything and everything to the end-user. Remember when they told everyone they had to inform you about cookies files being stored? The problem with this approach is that it puts the burden on the end-user. You could say that the EU believes all its citizens to be capable of making an informed decision and I would be inclined to agree, for the most part. But we are also vulnerable to being manipulated by crafty and shady corporate lawyers, who trick you to clicking OK to almost anything that pops up. How many of you actually read all the pop-ups regarding GDPR? Perhaps you read the first one or two, but you probably gave up after the third one. One shifty website went as far as to write at the end of a page-long snooze-fest of an explanation that if you agree to everything stated above, just click the “X” button in the top right corner. Who, on god’s green earth, has the time for a 10-minute debate with your browser every time they visit a website? But if you unwittingly MAY 25, 2018 will forever be the day that people got consent to something, it’s on you, the legislators the most spam, ever. It all started a few days earlier but did their job: after all they made the service procame to a head on the last Friday of May, when we started vider ask you all kinds of convoluted questions. receiving dozens upon dozens of emails informing us in a The volume and scope of all the unsolicited variety of shapes and forms about the new data protection GDPR consent requests has in fact led to some laws, known by the English abbreviation GDPR, which weird sort of panic. It may have, in fact, contribcame into force on May 25. uted to a variety of ludicrous, and sometimes They came from online services we may have unwiteven dramatic incidents that have happened in tingly subscribed to years ago, some from trusted sources, Poland over the past few weeks, such as: and in more than a few cases we got emails from orga• A cemetery was closed for several days nizations we’d never heard of before. It may have been because there were headstones of people somewhat disconcerting to find out how many databases who are still alive (yes, it’s creepy, but let’s not actually feature our names and email addresses and to judge how people choose to prepare for the wonder how they got there in the first place. We also probafterlife). ably wondered how many more are out there that deemed • A university blurred the names of their emit unnecessary or too risky to send us unwanted reminders ployees on the “Office hours” list, so that now of how careless we’d been with sharing our information. you can only find out that John XXX works in Consider all the thought you’d put into deciding room 501 between 2 and 4 pm, while Linda whether or not to give your phone number to a guy or a XXX is on maternity leave (beware the sensitive information). girl you’d met at a bar. You weigh the benefits of a potential date against the risks of having to reject the unwanted • A clinic obscured the specialties of the doctors on their office doors, so that e.g. patients seeor unsavory advances and again the uncertainty and ing a proctologist wouldn’t feel embarrassed. possible embarrassment you’d feel if they never actually • After a recent major accident in southern used your number at all. Now think of how many dozens Poland where a student-filled coach collided of anonymous people have your data without you ever with a truck resulting in many injured kids, thinking whether or not you should give it to them in the parents had trouble locating their children first place. because hospitals would not release patients’ Some emails came with neatly clickable “Unsubscribe” data over the phone. options, some asked us politely to opt in to stay on their Hopefully, now that we’ve either ignored the mailing list. Some just sent pages-worth of disclaimers in legalese in the hope that no sane recipient would actually GDPR emails and pop-ups or unsubscribed wherever we could, the world should go back to read it to find out how to delete their name from their normal. Our data should be safer. For better or database. worse, we now live in a world under the protecIf you thought that any EU-mandated data protection legislation would be any different, you may have forgotten tion of the almighty GDPR. - Beata Socha

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