Trzydzieści lat minęło: rozmowa z Markiem Piechockim, prezesem LPP

Hi, welcome! 30 years — a long time, but it passed like one day. We'll probably find out soon.

Listen, I think with these dreams, it's hardest for young people because at that time we want to enjoy life, we want to have fun. As he said, he wanted to be a skater — he wanted to have fun. In my view, that's a hidden thought. Unfortunately, in my times there were significantly fewer possibilities. We wanted to enjoy life well. If you really think about what Marcin said, he wasn't thinking about his professional future — he was thinking about here and now, about having fun. So I didn't have such dreams about what I wanted to do professionally. I definitely had a problem deciding what I would do in life when the time came to choose studies and what I would do. But I'll tell you honestly, when I look at my children now — I have four — I think each of them has the same problem. It's basically the same issue I had: what will I study and what will I do? And I'll tell you honestly, I see this in the oldest ones, in Piotr and Marcin, and I see it in the youngest one who is now 19 and is facing the decision of what he'll do in the future. So not much has changed because it's a difficult decision. When you're 19, you don't really know what you want to become. Besides, during life it often changes many times. You're an exception — we'll get to that later. But ultimately, you ended up in the Faculty of Civil Engineering at the Gdańsk University of Technology. Why that choice?

Very pragmatic. I come from a very small town, Kościerzyna, and when I didn't know what to study, the first thought was: it seems I have more competence on the technical side, meaning math and physics, so it must be somewhere closer to a polytechnic. And someone told me: 'Listen, in a town like Kościerzyna, buildings are being built and will be built, so construction seems the safest — you'll always find work.' So I went into construction. Contrary to appearances, after the first year I already knew I probably wouldn't work in that profession. The choice was very pragmatic but also made out of ignorance. On the other hand, when I look at many people I meet, few of them work in their chosen profession. School isn't just the place where we immediately have to declare ourselves and commit for life. Looking at me as a civil engineer who de facto deals with beautiful fashion, art, or organizing the sale of beautiful things — it's definitely far from what I learned at the polytechnic. But I think for many it's like that. Look at Marcin himself — he studied electronics and telecommunications, worked for several years in banking, IT systems management around the world, and in the end landed in the family company. So it's true — studies don't determine our future, but they certainly shape us. I think your studies could have helped you with planning and creating new buildings for LPP. You probably had more knowledge than some others.

They were different times. Consider that studying in the early 1980s was a bit different, even in terms of perspectives — not perspectives of what you'll do later, but the perspectives weren't as wide as young people have today. It basically ended with the thought that you'd end up in some company. For example, I thought I'd end up in some construction company in Kościerzyna, that I'd be an engineer, and that would be considered a great success. Because I didn't want to join the party, I didn't have those connections. In those times, anyone who wanted to achieve something had to join. But on the other hand, you have to look at it — 1989 came, everything was thrown off, and it turned out you could do things completely differently. That was the chance I got and I took it. I always had a knack for business. I think so, because as I told you, in the second year of studies I realized I was studying only to not feel worse than others, to get an education, to be able to write that I have higher education, that I'm an engineer, so I wouldn't feel morally or mentally worse than others. And it was probably good that I did it because I learned something else along the way — as we said, a different perspective on problem-solving. But I already knew I wouldn't work as a civil engineer in the second year of studies because I felt that you could earn much more having your own small business. During the summer vacation in the second year, I opened a vegetable stand. Listen, I did various things. Before All Saints' Day and during vacation, I had this vegetable stand because my mother had one before. I saw that it could be a business, that you could live better from it. Young people need to understand that in the 1980s in Poland, people earned about 20 dollars a month. When someone went abroad, they only window-shopped — that's the elegant term. They walked around, looked, dreamed, and that was all they could afford. But if someone had a private business — which you couldn't have too many of — that person could probably earn not 20, maybe 200, maybe 500 dollars a month, depending on how the business was run. It allowed for a much better life. So after the second year, I realized I wouldn't work as a civil engineer but would have some private business — it could be a vegetable stand, a flower shop, or anything else. But it would be something different.

Listen, it's actually quite surprising because in the meantime I studied in Germany in 1985-87. I brought back some money — for those times it was a lot, 20,000 marks. And on the market in Kościerzyna, I bought a townhouse for 3,500 German marks. Amazing — that townhouse still exists, and there's a Reserved store in it. The story came full circle. But then I went to the city hall in Kościerzyna and said: 'Ladies and gentlemen, I'd like to open a small shop here, maybe 20 square meters, because the rest was rented by government offices from the owner of the premises — you couldn't evict them, they were state shops. But there was this one space, 20 meters, and I'd like to open a shop.' 'What kind of shop, sir?' Because at that time, selling flowers was very profitable. 'I'd like to open a flower shop.' 'But we already have a flower shop on the market, we need a second one.' 'Then what could I open?' A clothing shop — but only a small one, 20 meters. It was a bit of a coincidence. And the second coincidence was that later I went to Turkey, and in Turkey I saw on vacation that you could — and others did it too — many people in those times bought Turkish sweaters or other Turkish clothing and resold them. I realized that either I had a better eye or it went better for me. When I bought, I think, about 10 Turkish sweaters, I sold them in five minutes. I thought, I'll go again quickly in a week during vacation. And that's how it started — quite seriously. Later, I brought sweaters by car, then in large quantities. Then in the next season, I handed the shop over to one of my friends, and I started with a partner, Jerzy, to continue this international trade, you could say.

I met him even earlier — in 1985, during studies in Germany. He returned a bit earlier than me. I stayed a bit longer. And when he came back to Poland, we somehow reconnected and started thinking we'd travel together. At that time, a private trip abroad could include trading — you'd buy goods somewhere, in Turkey or India, and after selling them in Poland, the profits would cover the cost of the trip. We went on such trips, and later it turned out it could be a business — not just covering the trip cost but bringing in nice income.

You know, at the very beginning, around 1989-90, we were importing what were called ready-made garments. We'd go to suppliers, show them, and say we want this. But in the early 1990s, more and more smuggled goods appeared, and we felt we had to differentiate — we had to have something different from our competitors. Because if you have the same thing, they'll lower the price, and you'll compete on price. So we started — one element was our appearance in China. I first went to China in 1991, and the Chinese didn't have ready-made products. They said: 'Place an order, tell us what you want, what color, how it should be.' And that's how the first designs started. Beata Pieska also participated in the first year, designing the first sweatshirts and jackets. These were the first steps in design — the necessity to place an order, wait, open a letter of credit, and then three months later they'd deliver the patterns you designed. The advantage was that you got something unique — something you'd invented or noticed — and nobody else had the same thing on the market. And we started producing under our own brand. We sold them to various wholesalers in Poland. At that time there were many clothing wholesalers, and they distributed to various small shops. Some bought and sold at markets and bazaars. That's how trade looked in the early 1990s — there weren't many shops yet, not many specialized shops like Reserved. We created Reserved in 1998. In the meantime, we also supplied hypermarkets — we were one of the larger suppliers. We were learning all these things step by step. And in those times, I spent a lot of time in China — practically 200 days, 250 days a year for a few years, sitting in factories at the end of the production line, checking if the quality was good, learning from old technologists. As a civil engineer, I had no idea about clothing or how to make it. But your technical sense helped — it's a different field, but you need some imagination to understand how things are sewn. I think that's also from the polytechnic — at least that's how I see it — a great desire to learn, plus a different approach to solving problems. So when I had a problem, like how to make a good shirt, I knew I had to buy a shirt from the best manufacturers I knew in Poland — Wólczanka. I'd take five Wólczanka shirts, break them down into the smallest details — what kind of interfacing, what's cut in the collar, what thickness, is it one or two layers, where the cut is curved, and so on. Then I'd go to China and say: 'Listen, colleagues, how do you do this? Show me. I'd like it very similar, please. The materials differ — I choose the materials, the pattern, the color, and so on — but when it comes to technology, I want it done as well as possible.' There's a story that apparently you once met someone in Sopot wearing a jacket or sweatshirt from the early days.

It was more of a passion, I think. I was just collecting a few things from those years — around 1993, 1995. I see a guy walking by, and I think: 'That's impossible, impossible.' Maybe it's a really good product if it lasted so many years. In the meantime, things changed — people expect cheaper things and change them more often. That's the social expectation we simply responded to. But on the other hand, I now see a growing trend toward buying less but better quality. Look at what's happening with quality — in Reserved and in all industries, I see this trend going in the opposite direction. Things are better quality, but unfortunately, they're also more expensive. Something for something, it's natural.

Listen, you know, I look at it this way — at least that's how I see it historically — we had to keep changing. The company grew, and that's probably why. There's a saying at LPP that the only constant thing is change. We all repeat it. But why? Because I had to change with the company. My scope of responsibilities changed. As I told you, at the beginning, I was traveling somewhere, sitting in a factory, negotiating as a buyer with suppliers. But later, when the supplier or company was contracted to make shirts or sweatshirts or something, I'd just go to the factory, sit there like an inspector, and check if the factory was good enough. That's why I spent so many days in China. But later, as the company grew, I had to change my areas of interest or responsibility. And it really changed in a circle. That's also why for many people who have worked at the company longer, their scope of responsibilities also changed. For example, the oldest employees who joined the company in 1991 — there were two people responsible for receiving goods, the sales phase was Beata Filip, and so on. But if you think about the warehouses in Pruszcz, there are about 1,500 people working there, with conveyor belts moving hundreds of millions of items per year — I think 400-500 million this year. So it had to change. It's not just that I changed my own scope, but many people working at LPP also changed their responsibilities. Think about many of them — like Michał Laskowski, who started working as a salesperson to earn money for studies, and today he manages all of Sinsay's sales. But along the way, if you ask what Michał did, he did many things — he was a regional representative, a presenter, really in many places. And I too had to be in many places. At the beginning, I was a fool and a quality inspector. Later, I was responsible for more and more, for larger areas. But probably the most important thing is that we try to delegate responsibilities, and we have a whole bunch of people who willingly take them on and execute them well. And that's probably the strength of the company. When you think about it, even if I had 24 hours a day, I couldn't manage it all. For me, the most important thing is — I've been a bit involved lately in the golden anniversaries. It's always the boss's duty, and it's perhaps an unpleasant duty because where things are already going well and are under control, we really need to leave it and go where there are new areas or problems. And right now, it's clear that a new area — a big, strong new area — is e-commerce. When you think about it having a share of 25% or more, that's a very important area. We see it as a future-oriented area. As the head of this company, I want to be aware of what's happening there. I want to know, because the colleagues are doing very well — whether it's Michał with Sinsay, or Radek Perth, or Krystian Housie, or in the store — they're all doing very well. But I sometimes support them with certain decisions or encourage even more intensive development of this area. That's the direction we're going, and I want to explore that path with them.

It's really joy, and on the other hand, I think it's a nice thing that somewhere, at some point — I looked at it and really, it's not that I discovered it. We had consultants in the 1990s who came from the United States as part of aid to developing countries. And once I saw one of these consultants on the market with a watch, and I said: 'You have a beautiful watch.' And he said: 'Listen, this isn't an ordinary watch. It's a gift from my boss for 10 years, and so on.' And then I thought: 'Damn, maybe I should do something for those who did something for me.' In 2003, I think, or maybe then for the first time, we did it — we gave watches to the first six people. I'm proud of it because that photo shows new employees alongside photos where they already have not 10 but 25 years, and the same people are there. I'm proud of this in some way, even though it costs the company quite a bit. There were years when we spent half a million zlotys on watches because about 120-130 people meet each year. But I think it's worth it because these people will be with us for 10 years, they've put in a lot of energy, heart, and thought. I assume they've also dedicated a lot of their personal, not just professional, time. It's a nice moment when you can say: 'Hey, listen, thank you for these 10 years.' It's a kind of symbol — I hand you this watch with these thanks. We have a nice evening, everyone comes, we rent a nice hotel, they have fun, a nice evening. I leave so they can have more fun. There were moments in history when it was really hard and bad — like in 2009, when there was a terrible crisis. We still had the celebration. I'm proud that we didn't stop ordering anything then — newspapers or anything. But there are traditions. I think it's worth it because these people invest a lot of their personal commitment, and thanks to that commitment, we are where we are. The company — I think that's what I wish for you and the company — that there are as many such people as possible. But I'm wondering what dreams or plans you have for the future. Is there something like that?

You know what, I'd like us to keep maintaining this growth phase. And for now, it seems to be continuing. Notice that this year we estimate revenues will be 14 billion, and next year significantly more, because this wave of growth gives many people a chance to develop. This wave causes everyone — today they're assistants, tomorrow they'll be buyers, later product managers, and in a moment they might be directors. The company's growth creates something where people who work less can also develop professionally. I think that's what I want most — for this to last as long as possible. For now, for the next few years, it seems we have so many challenges and so many growth opportunities that we're discovering together that this company will develop even more intensively than in the last few years. So that's my dream — for this to last forever. But looking at the next few years, it seems that's being fulfilled, so I think it's good. The challenges facing the company in the coming years are exactly these challenges. We estimate that the growth will be very large. So one of the challenges is the growth on the e-commerce side. We see very big development, and on one hand, we must meet the expectations of the customer who is changing their shopping location from physical stores to the internet — or mixing the two. We must constantly follow them and keep up. That's certainly a big challenge. And on the other hand, the climate changes that are happening — monitoring all those factories, making sure the carbon footprint is as small as possible — that's completely new for us. As a developing country, Poland didn't think about catching up with Europe for a long time. Today we must think about catching up with Europe in terms of social responsibility standards, for the environment, for what's happening around us. And I think it's happening. I have no complexes or shame about this because when I think about it — one of our biggest competitors, the Swedish one, still sends their competition packages in plastic, and we've been doing it in cardboard for two years. That means we can do it more efficiently, faster, and more effectively, caring for the environment. We can be pioneers, and I also feel we can implement these projects quickly.

I think everyone must have a moment to disconnect from work, just to think about something else, because it even develops you. If someone worked only 16 hours and focused only on work, I think that would be bad. I wouldn't want that to happen because I feel that someone who doesn't develop, who doesn't have other interests or something that at least lets their mind rest from thinking about sales growth or whatever — I actually like classical music. I also like traveling. I also like hard rock. As a young person, I listened to Cepelin, Guns N' Roses, Aerosmith — very hard stuff. Later I came to jazz. For about ten years now, I've been listening to classical music. That's how it is — Beethoven, Bach, more serious pieces. But not only that — I also try to take care of physical fitness. In winter, I always go skiing at least once, sometimes during the holiday break, a second time. In summer, cycling is great — I like cycling. I told you that unfortunately this year it was weak with cycling because my wife bought a bike and it turned out someone had broken it, so it had to be repaired. But I also run, even now 40 minutes. So there's some explanation that I also take care of physical fitness. It's about balance between body and head — so the body still serves the head for some time. I also like photography. I like taking photos. The best time for photography — sometimes I come back to it, sometimes I leave it for half a year or a year. But when I go on vacation, I like to take two cameras with me and go somewhere — in city streets, photographing people, how they behave, what they do. It's a kind of relaxation for me because then I don't think at all about whether we're selling more or less, what business to develop next. I just look at what beautiful compositions there are, and it detaches my thoughts from business.

I like Sopot — it's a bit destroyed, but it can be very original and intriguing. Sopot was lucky. Gdańsk, next to Warsaw, was one of the more destroyed places. If you go on YouTube or anywhere and look at Gdańsk after World War II, most of those townhouses were completely destroyed. You can see the few that survived — you can tell by the facades, the various external forms. After the war, they didn't want to rebuild them properly, just quickly so they'd be rebuilt. After World War II, it looked terrible, really. But Sopot was practically not destroyed at all — maybe 10% of Sopot was destroyed. And it really looks nice when you walk through some of those streets and see how things used to function. In Gdańsk, there's the old town, which is nice in that regard. It's starting to come back more. It wasn't as badly destroyed. In the old part of Wrzeszcz, there are a few townhouses that were nice and still function. There's also beautiful nature, more from the houses or townhouses functioning near Jaśkowa Dolina. There are many such places. I prefer the city more than pure nature in the sense of going outside. When I traveled, I liked to go to markets — vegetable markets or places where people trade and shop on Saturday or Sunday. It's interesting because then you observe normal people, how they behave, what they do. When you go to countries that are less organized — like Georgia — I was at some vegetable markets there, and they're beautiful. When we talk about healthy food, organic food, when you're in Georgia, I feel like everything there is healthy, organic food. Try those tomatoes and cucumbers — the smell is completely different from what we have here. I really like southern cultures — Italy, Spain — and I like the morning coffee and how they set the mood for the start of the day. I try to incorporate that into my private life and get inspired by it.

Those are two different things you're asking about. Those who have their own business and those who manage teams. For those who have or are planning their own business, they must be prepared that they'll work significantly longer at the beginning than they imagined, and it will cost them significantly more in terms of time, energy, and thoughts than they imagine. Because as I tell you, today you can't afford to open your mind and say you won't deal with this or that. Believe me, at the beginning of businesses, it was 24 hours a day, just to survive, so others wouldn't eat you up, wouldn't finish you off. Because you have to carve out your piece from others. When you're new in business on the market, you have to be prepared for a harder beginning than you thought. Not to discourage you, because many new businesses are constantly being created, many businesses find their path and develop. But you have to be prepared for great sacrifice and give your whole self. It's super motivation — otherwise, you have to open your veins, so to speak, and to the point of pain. As I said, at the beginning, I spent 250 days in China — that's a lot. Not only that — when I returned, I spent time in villages, and when I looked at European food at McDonald's, I'd be happy to eat a hamburger. Sacrifice. But returning to the topic — sacrifice and commitment is one thing. When thinking about managing a team, I think it's important to listen to people and give people the opportunity to develop within their team. Because each of us, regardless of where we are, at what position, is some kind of leader. Whether you're the leader of the entire company, a brand, a department, or a six-person team — you're a leader. And it's important that this leader gives the opportunity and chance for development to their partners who create this small enterprise. Whether it's a product team or some other team, that's one of the most important things — to give others the chance for self-realization. Because only through that can you create great things. I believe that by giving many people who work directly with me the chance for self-realization, I consider it the source of the company's strength. In relationships, I say we must give as leaders or heads the chance to these people, because sometimes these people need a chance and encouragement to develop. Sometimes, you know, I've met with this — a few times recently — that not everyone believes in themselves. You need to push them a bit from behind: 'Don't be afraid, you can do it. I believe in you.' I've been working at the company for four years. If someone had told me at the beginning of my journey that I'd be doing the kind of project I'm doing now, I wouldn't have believed it. But I'm doing it, including this interview with the president. So listen, believe in yourself. It's really worth it. You have to try.

Listen, I believe there will be more and more of these 10-year celebrations. It's a tradition, for sure. We'll continue it. Thanks to you, this company exists. I didn't develop it — it's all those who work with me who move it forward. Thank you very much. Thank you. Bye, bye, bye.