Hunting tourism Croatia boasts a century old tradition of hunting tourism which could have a positive impact on GDP
Slobodan Ljubičić, owner, More Trogir and Fumija Construction of fewer but luxuriously equipped houses is a lucrative investment
Sava river basin economic region An area of considerable potential despite the Sava not being navigable between Zagreb and Rugvica
TOURISM
INTERVIEW
TRADE
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Croatian Business & Finance Weekly Established in 1953 Monday / 27th September / 2010 Year III / No 0123 www.privredni.hr
S U P P O R T E D
DELOITTE
Agrokor – the regional leader ccording to the Adria Top 100 research conducted by the international consulting and audit company Deloitte for the second successive year, 35 Croatian companies were evaluated as among the highest ranking in the markets of former Yugoslavia last year. By overall sales revenue they were followed by companies from Slovenia (31), Serbia (23), Bosnia (6), Macedonia (4) and Montenegro (1). The Agrokor Group was placed first of the top 100 companies, with last year sales totalling more than €3.6 million, followed by the Ina group with more than € 2.7 million. Among the top 10 are the Slovenian Mercator, Revoz, Gorenje group and Petrol group; the Serbian companies Delta, NIS and EPS; as well as the Croatian HEP group. Thus, the top ten includes the same number of Croatian and Serbian companies, with Slovenia surpassing both countries. Agrokor and Ina are followed by HEP Group, HT Group and Zagrebački Holding – the only public company among the top 10 Croatian representatives on the list. In addition, Deloitte has created a list of the top 10 companies based on their nett profit. This list is topped by HT group with a last year nett profit of €276 million as well as Serbian Telekom. Four Croatian companies are also among the top ten - HT group, VIPnet, ENI Croatia and Adris Group.
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ECONOMIC FORUM
INVESTORS TO UNBLOCK CURRENT STANDSTILL The only hope, according to Šuker, lies in new government investment which might encourage others to follow Drago Živković he incentive policies and favourable credit notwithstanding, investment in Croatia has profoundly decreased. Hence, the government itself must encourage investment and remove the remaining obstacles. The government does not accept the sweeping evaluations pertaining to the perceived anti-entrepreneurial climate. At the same, it is facing accusations of allegedly favouring individual investors. This is a summary of impressions that senior officials of the relevant ministries presented at the Economic Forum, a traditional assembly held on the first day of the Zagreb International Autumn Fair. Ivan Šuker, Vice-President of the Government and Minister of Finance, complained that ‘Model B’, which had been created by the government in co-operation with the Croatian National Bank, hardly introduces any new investment projects. The only hope, according to Šuker, lies in new government investment which might encourage others to follow.
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Grim Future for Shipping Agents Bosiljka Horvat from Zagrebšped inquired of the fate of shipping agents when Croatia joins the EU, as customs restrictions are
mainly to be abolished, thereby significantly reducing their business activities. Šuker believes that they were given a satisfactorily long transition period to adjust to the new situation. In his opinion, Croatian EU membership should not be seen as a disadvantage, as it would provide a variety of other benefits. Vesna Trnokop-Tanta, Vice President of the Croatian Chamber of Economy, added that the CCE had already advised shipping agents about the future changes and had organised seminars in Hungary and Slovenia, which provided learning opportunities on how to expand business and thus compensate for the loss of a major part of the present income. Josip Švenda, President of TEAM Board of Directors, was interested in the government involvement in the joint entrance of Croatian constructors to foreign markets. Marina Matulović Dropulić, Minister of Environmental Protection,
Physical Planning and Construction, replied that she had for the last three years, encouraged constructers to form clusters to penetrate foreign markets, but that she still had not received any project drafts. She promised that the government would assist them with this particular issue, initially in activities related to economic diplomacy. Goran Baršić, representative of Vargon, remarked that the government favours foreign pipe manufacturers over local producers in the area of infrastructure work. Božidar Kalmeta, Minister of the Sea, Transport and Infrastructure, rejected the claim as inaccurate and claimed that the constructors of Croatian Motorways are strictly instructed to use locally manufactured pipes for any project. However, this does not necessarily mean that the job be assigned to a Croatian company, since suppliers are selected through open bidding.
2 VIEWPOINT
Privredni vjesnik Year III No 0123
NEVEN KULUŠIĆ, OWNER OF POMAK, SPLIT
Experts the most important asset Pomak is based on knowledge and experience, which enables its management to conduct business activities with ease during the current financial or any other economic crisis Croatian entrepreneurs are in many ways different from the majority of their colleagues worldwide. It is not unusual that individual entrepreneurs both establish and manage a company, whereas partnerships and mergers are rare. Their relationships with employees differ from global practice, as payment deadlines are often disrespected and employees do not receive salaries on time. However, they hardly ever opt for the ‘down-sizing’ solution, a practice quite customary in other countries. In addition, Croatian entrepreneurs invest in real estate rather than in development
The key to business growth is to increase industrial production In order to ensure job security, a concept very much cherished by Croatian workforce, engineers in Pomak are trained over several years. This particular idea ensures high quality experts, as it is almost impossible to find them on the labour market. Power facilities embody the core of Pomak business policy. This includes the construction of plants, obtaining project documentation and working papers as well as providing programme solutions. In the field, Pomak installs plants, equips them and starts operations. Its speciality lies in the area of water management, electric power industry, transport, tele-monitoring and IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
lighthouse management. It currently employs 18 graduated electrical engineers with vast experience in engineering amounting to 120 years altogether. Another advantage of the company lies in the fact that it is based on knowledge and experience, which enables its management to conduct business activities with ease during the current financial or any other economic crisis. In addition, due to competence and knowledge, Pomak fears neither competition nor the breach of current contracts. However, the only way to encourage its business growth is to increase industrial production, including the opening of new facilities. For this reason, the current economic crisis did affect our current state of affairs in the country. Pomak provides services for around 700 facilities, hence enabling the management to deliver basic business activities. Despite the current decrease in the number of new facilities, the company foresees a more rapid expansion in the future, when numbers are expected to grow. Since Pomak management bases its business activities on knowledge and employee experience, it is still able to introduce new people to business.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr
TRANSLATION Tr@duco traduco@zg.t-com.hr
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
(1,060 hunting
estates covering 5,500 square kilometres
HUNTING TOURISM
FOREIGNER TROPHIES, Sanja Plješa unting tourism, despite being an important representative of the industry with its great potential to prolong the tourist season, rarely comes to mind when discussing Croatian attractions. In fact, Croatia can boast a century old tradition of hunting tourism. Wide-ranging habitats and high quality production opportunities within individual hunting estates together provide excellent opportunities for the development of hunting tourism, which could significantly impact upon Croatian GDP. Currently, Croatia manages 1,060 hunting grounds spreading over 5,500 square kilometres. Overall total profit ranges between €3.6 and €3.9 million. The Hunting Department of the Ministry of Regional Development, Forestry and Water Management is responsible for hunting related activities, with hunting permits acquired through open bidding. Croatian legislation also formally recognises private hunting grounds. In addition, there are temporarily unallocated hunting areas as well as those in the process of lease extension or whose leaseholder is to be changed. “A 10-year management plan is drawn up for each hunting area. This includes specific plans for each variety of game as well as the protection of other species with a habitat in the respective area, with special emphasis on both strictly protected and migratory species. In Croatia, hunting and game management has been recognised as a necessary condition for sustainable development of rural areas, but also as a duty
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Croatia boasts a century old tra within individual hunting estate could significantly impact upon to preserve natural habitats and animal species“, says Robert Laginja, Manager of the Hunting Department. Croatian Hunting Law has been harmonised with European Union legislation. Thus, the Croatian project of brown bear management can be taken as an example of good practice since it has been taken over as a role model for brown bear management by some EU members. Comparative Advantage There are 55,707 registered hunters in Croatia. In addition some 7,000 licenses were issued to foreigners last year. Hunting services in Croatia are usually provided by private hunting leaseholders,
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(€3.6 to €3.9 million overall profit
RS ONLY INTEREST IS COST IS IRRELEVANT
to Žic, Croatia has significantly revived its game fund after the war, which provides a reliable basis for the more serious development of hunting tourism. In comparison with average tourists, hunters spend significantly more even during the most simple hunting trip of 3 to 4 days duration. In addition, a package for hunting a trophy mouflon, dear or bear can vary from a few thousands to more than ten thousand Euros. On the other hand, Croatian hunters are especially interested in hunting in Africa, where annual numbers of visitors equal several groups of 20 hunters.
adition of hunting tourism. Multiple habitats and high quality production opportunities es together provide excellent opportunities for the development of hunting tourism, which Croatian GDP hunting associations and tourist agencies, such as Adria Hunt Agency from Punat on the Island of Krk. This agency is highly specialised in hunting tourism, and offers hunting packages both for Croatia and international destinations in Slovenia, Hungary, Russia, Mongolia, Canada, Australia, New Zealand, Namibia, South Africa and Tanzania. Adria Hunt offers a full service, which includes the organisation of the journey, acquisition of visa and hunting documents, insurance, transport as well as trophy shipping (from hunting grounds to hunting rooms), says its owner Gregor Žic. “Our agency has so far hosted hunters from Germany, Austria, Denmark, Belgium,
Italy, Iceland, America and Japan. 2009 showed a decrease in the number of tourist hunters by 30% when compared with 2008. All indicators and the current booking situation confirm the same scenario is also predicted for this hunting year”, Žic points out. The reason for such a decrease is that the European mar-
kets for hunting tourism are still recovering from the economic crisis. By combining hunting and classic sea tourism, Croatia has a comparative advantage over both neighbouring and competitive countries, such as Hungary and Poland, otherwise known as top hunting destinations. According
What is trophy game? Croatian Forests manage 28 state hunting estates, including open, enclosed and breeding types, spreading over 300,000 hectares. The hunting estates are located in Vinkovci, Osijek, Našice, Požega, Nova Gradiška, Bjelovar, Koprivnica, Zagreb, Sisak, Karlovac, Delnice, Senj, Gospić, Buzet and Split. Among the visitors are both local and foreign hunters. It is permitted to hunt almost all game varieties, with a special emphasis on deer hunting, wild boar hunting, and brown bear hunting, says Ivana Milić, PR assistant with Croatian Forests.
Requirements met However, both local and foreign hunting markets as well as hunting as a tourism brand have not yet reached the level Croatia has to offer in this particular area. The Ministry of Regional Development has provided all legal requirements to revitalise hunting business and tourism, says Laginja. “We have met all the requirements for a rightful positioning on the world market. However, preservation and protection of natural habitats, game, flora and fauna should also be taken into account as hunting management is still the primary goal. The implementation of the Hunting Law creates the basis for transparent market competition, in the first place, due to the introduction of hunting cards and licenses“, says Laginja. However, not every hunting itinerary can be perceived as profitable. Tourist hunters mostly want to shoot trophy game, but this comprises only 20% of the total available shooting fund.
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INTERVIEW
Privredni vjesnik Year III No 0123
( €200 million ( €1.5 million tourist project in Čiovo
already invested in More Trogir
SLOBODAN LJUBIČIĆ, OWNER OF MORE TROGIR AND FUMIJA
Less equals more Construction of a reduced number of luxuriously equipped houses is currently the only lucrative investment in contrast to that of copious numbers of self-catering flats Jozo Vrdoljak lobodan Ljubičić is one of three individuals who submitted bids for the privatisation of Croatian shipyards. Whilst this entrepreneur primarily develops large-scale tourist projects and conducts real-estate business, he has become widely recognised as one of the bidders for the Brodotrogir shipyard.
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Which business activities are of particular importance for your companies? Every project is carried out by an individual company, primarily owned either by my-self or my wife. As the companies primarily develop projects related to considerable investment into tourism, our main goal is to find a strategic partner who would be willing to purchase the projects or join as a joint venture investor. Which company would you describe as the most successful? The Fumija company has bought 30 hectares of land on the Dalmatian island of Čiovo with the plan to construct an hotel and 70 luxury Mediterranean villas. The project is estimated to be worth €200 million, with €30 million already invested into land purchase. Does this signify that the construction of self-catering flats is not planned? After reviewing the problems related to tourism and the real estate sector, the management concluded that the construction of self-catering flats in smaller tourist resorts would be an inadequate solution, as the high season in Croatia lasts for only two months. Our conclusion is that less equals more. There-
fore, we have opted for the construction of a smaller number of luxuriously equipped houses. This is the only lucrative solution, whereas the construction of a large number of self-catering flats may now be described as investment failure. In your opinion why should Brodosplit manufacture megayachts? Merchant ship-building currently shows a significant decrease in business activities whilst the manufacture of mega-yachts indicates stability. This was the estimation of two leading and internationally acknowledged shipyard experts - Alfred Kahl, Blohm&Voss shipyard manager, and Klaus Peter Reis, a former Blohm&Voss shipyard manager and an external consultant of the highly regarded Reis Industrie Consulting which provides consulting services for shipyard restructuring. They both provided their professional opinions on the current situation of the Croatian shipyard industry and the restructuring possibilities for
local shipyards. In their opinion, the manufacture of mega-yachts would be the best possible solution for Brodosplit. How can Brodosplit be re-organised for the production of mega-yachts? The shipyard could be divided into two units, with a smaller one oriented towards slipways. Such an organisation would increase productivity and facilitate work supervision. The second unit would be offered to private companies for lease or sub-lease and turned into workshops, which would provide their services both to the shipyard and the open market. It should be emphasised that slipways would start with repair and renovation of mega-yachts. Individual manufacture would start when the employees complete their personal development. You have purportedly suggested that the survival of shipyards is impossible. This statement distinguishes shipbuilding oriented towards slipways and shipbuilding in gen-
eral. In my opinion, the current situation of Brodosplit slipway is not sustainable. For that reason, €1.5 million has been invested in an alternative project in Mali Trogir. Although this idea has not been widely accepted, our management believes in it. How can Split shipyard recover from the current situation? Privatisation of the Split shipyard is currently impossible as there is no-one who would invest funds in Brodosplit under the current conditions as it is not sustainable. Restructuring would be the only possible solution. The real problem lies in its management and Union representatives as they are only interested in securing another six months in which they would maintain the current state of affairs. Hence, a prerequisite is to find a new investor who would organise business activities efficiently. The restructuring process should be based on the principle of a safe niche over the next decade. Otherwise, Croatian shipyards will most certainly fail.
www.privredni.hr Business & Finance Weekly
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EOS Matrix
Debt Collection via Telephone Connection is established only with debtors. If telephone pressure has no effect enforcement procedures and lawsuits are initiated order to repay an old debt”, says Barbara Cerinski, general manager of EOS Matrix.
Igor Vukić he employees of EOS Matrix, a Zagreb based company which deals in legal debt collection via telephone and the purchase of receivables, have so far heard all types of differing excuses. On a daily basis employees in the call centre remind Telecom-, bank-, credit card and insurance company debtors that their debts are long overdue. The recession has certainly contributed to an increase in the number of debtors in general. However, EOS experience, accumulated in some 20 European, American and Asian countries, shows that there are many troublesome and oblivious debtors everywhere.
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“Our employees should primarily acquire a considerable knowledge of psychology. They need to be both persistent and communicative, and know how to listen to people, as debtors often unknowingly offer solutions during the conversation. They may decide to stop smoking or give up something they do not need in
Illiquidity causes difficulties EOS does not currently provide field work services. On the contrary, employees contact debtors via telephone, text-message or letter. Connection is established only with debtors. If this has no effect, enforcement procedures and lawsuits are initiated. In the past year, EOS Matrix has collected receivables from Croatian creditors to a value of €10 million. EOS Matrix and creditor companies conclude agreements on taking over receivables and the company pays money according to the analysis which shows debt collection is
certain. EOS earns its profit when it manages to charge more than it has paid to initial creditors. “Due to general illiquidity, the situation in this area is extremely difficult”, considers EOS Matrix manager. However, debtor consulting services are more than welcome. “For example, we advise them to apply for credit at an interest rate less than the interest accumulated on their debts. Many companies, especially small and mid-sized, are not well informed about their options”, says Barbara Cerinski, pointing out that a substantial number of debts are settled abroad, with the help of EOS branch offices in Bosnia and Herzegovina, Slovenia, Hungary and Serbia, or additionally, in Germany.
PORT AND HARBOUR ADMINISTRATION OF PRIMORSKO-GORANSKA COUNTY
HEALTH RESORT IN VELI LOŠINJ
Projects valued at €18.22 million
Project valued at €15 million
Eight port and harbour administrations in Primorskogoranska county, created in 1999, have, over the last decade, produced income to the value of almost €30.14 million. Government and local support as well as individual income of port and harbour administrations in Bakar-Kraljevica, Cres, Crikvenica, Krk, Mali Lošinj, Novi Vinodolski, OpatijaLovran-Mošćenička Draga and Rab have all contributed to the final amount. Concerning 2009 results, Nikola Mendrila, the Head of Administrative Department for Sea, Transport and Infrastructure, points out that support becomes more substantial after the implementation of specific projects. Hence, documentation for several valuable proposals has been completed and will be submitted for EU funding. These projects include Klenovice harbour, (€2.05 million), the fishing port Cres (€3.42 million), a second round of construction work in
Mišnjak harbour (€2.05 million), Mrtvaška (€3.42 million), Unije (€1.37 million), Ilovik (€0.82 million), Njivice (€0.96 million) and Valbiska (€4.11 million) with the required documentation for Susak harbour currently being prepared. Eight ports and harbours in Primorsko-goranska county achieved €5.21 million profit in 2009, with individual income and support of €2.16 and €2.88 million respectively. Hence, Zlatko Komadina, the Head of Primorsko-goranska county, states that current funds would suffice for only one of the projects. Further investment into Valbiska harbour, being of extreme importance for other islands in the region, is also a priority as is the investment into fishing harbours. “Other projects will be implemented in co-operation with the relevant Ministry and local government, as the Ministry of Sea, Transport and Infrastructure will invest more than 50%” concludes Komadina. (B.M.)
Primorsko-goranska county has announced a public tender for an investment project “Health resort Veli Lošinj”, estimated to be worth around €15 million. In addition, an English version of the tender has for the first time been sent to Croatian embassies in Germany, Austria, Italy, Sweden, the United Kingdom, Russia and Slovenia as well as to the Croatian Regional Office in Brus sels. Ivo Afrić, the Head of Administrative Department for Healthcare and Social Welfare, points out that the county-owned health resort stretches over an area of 12,500 square meters and can currently accommodate 180 guests. After the revitalisation and modernisation process, the resort should almost double its capacity to 300 individual beds. Proposals are to be submitted within 60 days. After signing the contract on public-private partnership, the project should be completed within three years.
Zlatko Komadina, Head of Primorsko-goranska county, states that the county leadership opted for contacting foreign governments as the ambassadors, who visit Rijeka on a regular basis, and have shown interest in further development and economic co-operation. Hence, this would provide an excellent opportunity to turn this idea into reality. The county, as the owner, would issue a concession for 30 to 35 years with a new partner providing operating services, such as managing the health resort. “Primorskogoranska county aims at becoming the Croatian centre for health tourism, especially relating to the areas of health care as well as specialist counselling and medical rehabilitation”, stresses Komadina. (B.M.)
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Privredni vjesnik Year III No 0123
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.31
5,241947 5,422206 6,464975 5,459592 8,705466 5,544782 7,284734
5.70
15.9.
16.9.
17.9.
18.9.
CHF
5.66
7.30
5.66
5.62
7.29
5.62
5.58
7.28
5.58
5.54
7.27
5.54
5.50
7.26 14.9.
WEEK SEPTEMBER 18, 2010
::: news
USD
4.50 14.9.
15.9.
16.9.
17.9.
18.9.
5.46 14.9.
15.9.
16.9.
17.9.
18.9.
CONSTRUCTION INDUSTRY
Agram companies issue commercial bills Auto-Dubrovnik, Euroduhan, Euro Daus, Euro Daus 1963, Euroagram Nekretnine and Euroagram Tis have issued commercial bills totalling €5.23 million. Their majority owner is the Agram group, whose companies – Euroherc, Agram life, Jadransko and Sunce osiguranje own majority holdings in the above companies which respectively manage technical inspection stations as well as maintenance and sales facilities. Their total revenue in 2009 amounted to nearly €54.79 million. HPB and HBOR develop Microcrediting package Croatian Postal Bank (HPB) and Croatian Bank for Reconstruction and Development (HBOR) have signed a business co-operation agreement for the “Microcrediting” project, which will release €3.3 million, intended for micro, small and mid-sized entrepreneurs. The funds are issued as part of the agreement by which the German state bank KfW, with EU support, finances HBOR with €20 million within the programme for financing small and medium entrepreneurs via local banks. Profits Decrease In the first half of 2010, Croatian entrepreneurs achieved total profits of €36.85 billion, a decrease of 7.3% over the same period last year. Their total expenditure decreased by 5.2%, to €36.05 billion, according to data from the Financial Agency. Gross profits for the first half of the year totalled €0.79 billion, a 54% decrease compared with the same period last year. Investment also decreased by 34.3%. Thus for the period January to June, overall investment totalled €2.5 billion.
Negative trends to continue
RBA analysts do not expect any significant recovery in the construction industry through 2010 as it primarily relates to positive trends on the labour market
ccording to the Central Bureau of Statistics, numbers for June 2010 indicate that negative trends in the construction industry will continue. Although convenient weather forecasts over the recent period should have positively influenced the construction industry, negative trends in the real sector of the economy - a decrease in disposable personal income - which consequently led to a reduced demand in realestate, as well as a comparatively significant number of available apartments on the open market, have resulted in a decrease in the volume of construction work. Hence, the industry shows a 17.2% decrease in June yearon-year. The first half of 2010
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showed a decrease of 17.7% in comparison with the same period for the previous year, indicating a lack of investment as well as a decrease in activity in the construction industry. Consequently, RBA analysts estimate that unfavourable trends for the industry have negatively influenced overall GDP development. A declining number of issued building permits for 2010 adds weight for further negative trends in the sector. Namely, 744 building permits were issued in July, a decrease of 20.1% when compared with the same period of 2009. Annual growth rates have been permanently negative since June 2009, with the exception of February, 2010, which showed minimal growth of 0.1%. Such
trends are not surprising as the global financial crisis has significantly influenced the construction industry. A decline in total economic activity and an especially high unemployment rate, which reduces local demand for commodities and delays in purchases, have both negatively influenced the construction sector, according to RBA analysts. “A significant recovery of the construction industry is not anticipated by the end of 2010 as it primarily relates to positive trends on the labour market. Consequently, as a significant amount of investment relates to the industry, such trends are expected to negatively influence overall GDP” estimate RBA analysts. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT
MODUS CERAMICS, VOJNIĆ, CROATIA
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TRENDME.NET, ZAGREB
Internet portal as a personal wardrobe In addition to other services, portal users can create personal wardrobes and try on clothes and footwear virtually
The Only Ceramic Tile Factory in Croatia The company exports 80% of its total production to Eastern European countries and EU members. The major goal is to improve their competitive strength and tile production through the “Made in Croatia” symbol odus Ceramics from Vojnić is the only ceramic tile manufacturer in Croatia. The management has recently presented its development vision, as well as plans for overcoming the current financial crisis. In order to improve ceramic manufacture, the company has leased the production facilities of a bankrupt company,
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By the end of 2010, investment into production and brand image will amount to approximately €6.85 million KIO Ceramics. Katica Petkov, Modus Marketing Manager explained the lease is a temporary solution as these facilities are to be purchased as soon as the bankruptcy procedure ends. No difficulties with the lease are expected since Modus has already invested a substantial sum in the restart of production and brand image. Moreover, by the end of 2010, these investments will have reached approximately €6.85 million. “The major goal was to close our production cycle and leave the company in Croatian ownership. I am delighted that this procedure has been successfully concluded. In addition, the closure of the factory has been avoided as
it proceeded with production. We have managed to restart production within 100 days as all Modus employees have devoted considerable effort to achieve this goal. In addition, we plan to improve both our competitive strength and the production of tiles through the label “Made in Croatia”, says Željko Radek, President of the Board of Directors. Brand image and production to be improved Gordana Jurkin, commercial manager, points out that local customers should be encouraged to purchase Croatian tiles as their faith in locally produced goods would be restored. Modus Ceramics exports 80% of total production to Eastern European and EU countries. Katica Petkov also points out that the company’s primary goal is to strengthen its market position and to stand out from the competition with high quality and unique products. With this aim, they will appear at one of the most prominent trade fairs – Cersai, which is to be held between September 28 and October 2 in Bologna. Modus Ceramics’ monthly production amounts to 400,000 square metres of ceramic tiles and it currently employs 220 staff. The company is the only Croatian brand in the business. “As we improve the image of our brand and increase production, the number of employees is expected to grow “, pronounces Katica Petkov. (J.F.)
rendMe is a fashion portal which provides a detailed selection of the most popular local and international brands, their characteristics, location of individual stores as well as prices. In addition to other services, portal users can create personal wardrobes, try on clothes and footwear virtually as well as socially contact other ‘fashionistas’ worldwide. Admir Đozović, TrendMe business manager, says the basic idea for a portal which would combine creativity in fashion with consulting and instruction was first developed in 2007. “I realised that women spend much more time surfing the Internet than men. As Croatian web space showed great potential, I was easily persuaded to start a fashion portal. Naturally, providing the services of an info-fashion portal was not a revolutionary idea, especially when considering the current level of competition. Hence, after market research and numerous interviews with ladies, I decided to develop a portal which will make lives of young ladies and women easier. The basic idea was to quickly find an ideal dress or a pair of shoes and therefore reduce the time spent in
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mirror”, says Đozović, front of a mirror” so describing the start-up of this fashion portal which is maintained by him and other four employees. Social networking tools Croatian fashion designers have yet to recognise the Internet as a promotion channel, says Đozović. TrendMe has around 9,300 registered users and provides an insight into more than 50,000 articles. It is currently available in Croatian, English and German, with on-going transla-
Croatian fashion designers have yet to recognise Internet as a promotion channel tions into four further languages. “We are extremely proud of the fact that 30% of the visitors are foreign. This confirms that our customers do not use TrendMe only to receive information on local brands, their prices and stores, but use the portal as a networking tool for ‘fashionistas’ worldwide” points out Đozović. Future plans include the development of similar fashion projects which will combine fashion and costume design with styling and make-up. (B.O.)
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Privredni vjesnik Year II No 0123
SAVA RIVER BASIN ECONOMIC REGION
RIVER CAN JOIN PLACES, NOT JUST DIVIDE Despite the Sava not being navigable between Zagreb and Rugvica, large cruise ships can use the SisakBelgrade route Sanja Plješa ll large international cities lying on rivers, use their geographical position as a comparative asvantage for both economic and tourism purposes. However, for more than 50 years, the city of Zagreb has considered the Sava River only as a ‘piece of water’ dividing the old part of the city from the modern one. A new project called the ‘Atlas of the Sava River for Nautical Tourism’ has been launched in order to make the Sava River and surrounding destinations widely recognised by the tourism market. The Atlas is a part of the regional initiative ‘The Economic Region of the Sava River Basin’, which began a few years ago as a joint project by the Chambers of Economy from the territories encompassed by the River Sava basin including Croatia, Bosnia and Herzegovina, Slovenia and Serbia. The emphasis is on the promotion of investment, business associations, tourism and transport development, as well as to provide environmental protection. This is to be achieved by the joint exploitation of the potential of the
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Sava, as well as by providing adequate environmental protection. It should be stressed that the whole Sava region encompasses 940 kilometres of the river and its banks, with around 6.8 million inhabitants and around 140,000 companies operating in the area. The average number of vessels navigating the river amounts to 1 million each year. 15 days in a boat An integral part of the project encompasses research covering nautical and tourism infrastruc-
ture, hotel and catering facilities, towns on the River Sava and an analysis of their economic conditions. In order to obtain the most reliable data, this August some of the Serbian researchers travelled for 15 days in boats from Zagreb to Belgrade, visiting all the places to be included in the promotional-informative publication of the Sava Atlas. During the journey, it was established that the Sava is not navigable between Zagreb and Rugvica, although even large cruise ships can sail along the Sisak-Belgrade
route. The waterway heading for Brežice in Slovenia could become navigable for smaller yachts, for which a feasibility study has already been conducted. President of the Zagreb CCE Chamber, Zlatan Frölich, pointed out that it is not defined wether the waterway between Zagreb and Rugvica is to be renovated. Although the river still joins places more than it divides them, it should be made recognisable on the tourism market, considers Frölich.
juices will find their way to a further 9,000 retail shops, ensuring Rauch will become the fifth largest international partner for Atlantic Group in terms of turnover.
additional 2,000 units is planned for 2011. This is the first Gredelj co-operation with goods train manufacturer Legios.
::: news Craftsmen Demand Law against Grey Labour The Croatian Chamber of Trades and Crafts (HOK) plans to submit an initiative to the government, urgently proposing a bill on the prevention of grey labour. “The law would define the term of such labour for each and every business activity as well as establish appropriate penalties. Thus, any argument about classifying such provisions as a separate set of rules would be rejected, and the inspectors would obtain material regulation for imposing sanctions in the area of illegal
work”, explained Mato Topić, HOK President. Atlantic distributes Rauch Atlantic Group and the well-established Austrian fruit juice and tea manufacturer, Rauch, signed an agreement valued at €4.93 million, regulating the distribution of the entire Rauch portfolio via all distribution channels in Croatia. Thus, Atlantic and Rauch have expanded their current level of co-operation which, thus far, included the distribution of Rauch products in the HoReCa (hotels, restaurants and coffee shops) range. Hence, Rauch
Gredelj signed a deal with Czech Legios TZV Gredelj, the Croatian manufacturer of railway vehicles, has signed a €10 million deal with the Czech company Legios, thus regulating the production of base frames for Legios cargo trains. Gredelj management announced that 500 frames worth €2 million will be delivered by the end of the year, with the delivery of an
Unemployment Rate Up Again The registered unemployment rate in Croatia for August 2010 totalled 16.4%, according to the Central Bureau of Statistics. In August the Croatian Employment Service recorded a modest monthly increase in the number of unemployed (0.2%) when compared with July. Initial data show that the registered unemployment rate remained at the same level as July.