- Cost Arbitrage: Average hourly labor costs in Germany are nearly 3 times higher than in Poland (Eurostat 2023).
- Regulatory Mirror: Poland and Germany operate under the same EU directives (CE, GDPR). Certification in Warsaw opens doors in Munich.
- The Demanding Customer Test: The Polish consumer is less brand-loyal and highly sensitive to price-quality ratio – a perfect “Stress Test” for a new product.
- Leo Strategy: We use Poland as a “Gateway” to reallocate the saved budget towards scaling in Western Europe later.
Launching a new brand into the European Union market resembles walking onto a minefield. Logistics errors, misunderstanding CE certification, or missed pricing strategies can sink a project within a quarter. Why, then, do most companies from Asia and the USA choose the most expensive market in the Community – Germany – for their debut? Usually, it comes down to prestige and population size. At Leopard Brands Accelerator, however, we consider this a strategic error. We suggest the “Smart Entry” tactic, where Poland serves as a strategic testing ground.
The CAPEX and OPEX Gap
The numbers are ruthless. According to Eurostat data (2023), the average hourly labor cost in Germany was €41.30, while in Poland it was just €14.50. That is nearly a threefold difference.
The commercial real estate market looks similar. Renting “Prime High Street” space in Munich or Berlin costs around €250-300 per m² monthly. In Warsaw, in top-tier locations, these rates hover around €80-100 (data from Cushman & Wakefield).
For a company testing a business model (MVP), choosing Poland means the same startup budget buys a 2-3 times longer “runway” (project lifespan before profitability). This provides a safety margin that allows for mistakes, corrections, and pivots without the risk of immediate bankruptcy.
Regulatory Mirror: Same CE, Different Price
A common myth is that a “test in Poland doesn’t count” because it is a different legal market. This is false. The European Single Market means that requirements regarding product safety (CE marking), consumer rights (2-year warranty), and data protection (GDPR) are identical in Warsaw and Hamburg.
If your product passes customs and legal verification in Poland, it is legal throughout the entire Union. The difference is that legal and logistical support for this process in Poland is about 40-50% cheaper. Poland acts here as an “Entry Gateway” – we introduce goods into the free trade zone through the most cost-effective channel possible.
The “Flight Simulator” Strategy
We treat the Polish market like a flight simulator. It is safer and cheaper, but the conditions are realistic. Poland is a 38-million-strong market with modern payment infrastructure (one of the most advanced banking sectors in the world) and a very demanding consumer. Poles, unlike wealthier Germans, rarely choose a product “out of habit.” They analyze specifications, compare prices, and check reviews.
If your Hardware product or service defends itself in Warsaw – with lower purchasing power and high quality requirements – scaling it to wealthier markets (DE, FR, UK) will be a formality. If it fails in Poland – you lose a fraction of what you would have lost starting directly in Berlin.
“I advise partners: treat Poland as your R&D department for the European market. A failure here results in a bruise. A failure in Germany results in a budget amputation. It is better to spend the funds saved at the start on marketing once the model is proven.”
— Krzysztof Wasielewski
