Dipping a Toe in the Water Without Jumping in at the Deep End

Dipping a Toe in the Water Without Jumping in at the Deep End

Hungary is famed for its spas and thermal pools. Nearly every town and village has one. However, when the country joined the EU, overnight it became subject to EU regulations which state that all public pools have to be chlorinated. There was a great deal of resistance to the idea of putting chemicals into the thermal waters but, at the same time, Hungary needed to comply with EU rules for the sake of its growing tourist industry.

For UK company, Pooltronix, which has pioneered a system for disinfecting public swimming pools without the use of chemicals, this presented an ideal business opportunity. The company turned to the Export Marketing Research Scheme for support in carrying out a field research trip to Hungary to find out more about the market. They were keen to establish the size of the potential market, where the public pools are and who is currently supplying chlorine and chlorine gas.

The Scheme was recommended by International Trade Adviser Pauline Rippon; it was the first time that Pooltronix had used the Export Marketing Research Scheme, which provides advice and support to UK companies wishing to research a potential export market. Pooltronix Managing Director, Richard Morrison described it as “absolutely brilliant.” He comments:

“Without the support of the Export Marketing Research Scheme, there is no way I could have afforded to take three weeks out to research the Hungarian market thoroughly. Pauline put me in touch with the British Embassy staff in Hungary who were invaluable in providing contacts and identifying interpreters should I have needed them. Going through the application process for the Scheme set out the parameters I needed to follow, even though I didn’t realise it at the time. I was very well-prepared by the time I travelled to Hungary to do my research.”

Richard met trade associations, hotels and pool operators. He discovered that many pool operators are using out of date equipment and chlorine gas, which is banned in other parts of the world. “Our system uses no chemicals at all. It relies on salt, which is converted to chlorine for just long enough to kill off any bacteria present in the water, before turning back into harmless salt again.”

Although Richard had carried out detailed desk research before his research trip, there were still some surprises in store. “I hadn’t expected to see quite so many spa pools. They are everywhere. It became apparent from talking to people that most pool operators couldn’t afford to buy our system but renting it would actually work out cheaper than the cost of buying chlorine. I found, too, that people felt more comfortable paying rental to a company based in Hungary than an overseas organisation.”

Armed with this information, Pooltronix is planning to set up a Hungarian operation. The company has already employed a local person to provide aftersales care and is in discussion with companies who can install and maintain the product. No adaptations are necessary to comply with Hungarian legislation and the product is currently undergoing trial to obtain government approval before going on release in the marketplace.

Richard concludes:

“There is a market opportunity in Hungary right here and now and we have had to act fast to capitalise on it. Without the support of the Export Marketing Research Scheme, it wouldn’t have been possible to carry out field research in that country and this opportunity probably would have passed us by. If you plan carefully and use the support that is offered to you, the scheme is fantastic. I plan to use it again to research the French market once Hungary is up and running.”