Games of chance Economically irrational and ideal for the budget as well as a regressive tax for the poor
Zvonimir Stanić, director of CARNet The market is overly segmented and currently insufficiently developed
Jewellery Industry Wedding rings for the Russian market. Croatian goldsmith signs a contract with two Russian wholesalers
GAMBLING
INTERVIEW
JEWELLERY EXPORTS
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Croatian Business & Finance Weekly Established in 1953 Monday / 11th October / 2010 Year III / No 0125 www.privredni.hr
S U P P O R T E D
B Y
T H E
pvinternational pv international C R O A T I A N
C H A M B E R
O F
E C O N O M Y
BANKING
CROATIAN PUBLIC LESS SATISFIED WITH BANKS COMPARED WITH THE REST OF EUROPE EPSI satisfaction index for all Croatian banks ranges between 60 and 70, leaving room for further improvement
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his year Croatia participated in the research, which is the basis of the Pan European Performance Satisfaction Initiative (EPSI Rating) for the first time but which has been conducted for many years in a series of European countries with the goal of supporting business development directed towards clients and service quality. The research is based on telephone interviews of a representative sample of 1,802 bank clients in Croatia and was conducted by the Zagreb agency Accent. It should be stressed that the same approach and model of research is also used in other European countries, and that acquired results can be compared with the results of other countries on a year-on-year basis. In comparison with other countries, Croatian clients expressed less than average satisfaction with bank products and services during the past year. The study was conducted in Croatia for the first time. Therefore, it is not possible to compare the level of satisfaction with past years. However, in relation to the European average, Croatian public is less satisfied with their banks (rating of 73.3) compared with
71. It also needs to be pointed out that the satisfaction index is measured on a scale of 0 to 100, with the most often average being between 60 and 75. Every company with an index above 75 has a strong position amongst its clients, whereas those below 60 face the danger of losing clients. Satisfaction motivates loyalty A difference of two points creates a recognisable gap. Furthermore, in addition to external standards, banks can also monitor the state and trends in their personal EPSI-Loyalty report. For exam-
ple, the positioning of the main banks operating in Croatia from the points of view of clients simultaneously reflects the level of competition in the country. According to EPSI, PBZ Zagreb is the top in client satisfaction. The satisfaction index for all Croatian banks ranges between 60 and 70, which certainly leaves room for possible improvement. It is no secret that consumer satisfaction is a strong motivator of loyalty towards a bank. Satisfied clients would rather keep with a certain bank and strengthen their mutual relations, as opposed to clients who show a low level of satis-
faction. It should be noted that the EPSI index is a cumulative indicator (client satisfaction with a bank, meeting expectations and comparison with the ideal bank). It also needs to be highlighted that big banks, due to a wide range of products and service as well as a larger number of clients, face bigger challenges in trying to achieve a higher level of client satisfaction. Loyalty, according to the EPSI model, is also a cumulative indicator. The trend represents the connection between loyalty and satisfaction with the leading banks in Croatia. This is also important information for banks in order to better understand the behaviour of their clients. Client satisfaction strongly effects loyalty and gives a general indication of the bank positioning on the market. As a long-term leading indicator encompassing key information on future trends and market development, the EPSI gives a perspective for future business development. Also, there is the strong positive relationship from satisfaction and loyalty to profitability. The EPSI can be used as a verified efficient tool for improving overall success. (V.A.)
2 VIEWPOINT
Privredni vjesnik Year III No 0125
STÉPHANE VANDERVEKEN, DIRECTOR OF EUROPEAN TRAINING INSTITUTE
Life-long learning the best tool for success Preparing projects for EU funding are becoming imminent and good estimating skills are fundamental to success. irtually the entire world but especially EU countries are in a long-term crisis. It is wrong to talk about a single crisis, since there are several linked to each another, impacting society in its entirety and causing high levels of stress. Economy, labour market, energy, environment, finances, demography and health sectors have already felt its consequences and they will continue to feel it over the forthcoming years. We know today that nothing is certain. If this is our situation, then we are required to change our habits and behaviour. If we wish to survive, doing a good job is not enough. We need to anticipate future changes within our surroundings. If we want to become aware of our present surroundings and what will happen in the near future, then the process of life-long learning is one of the most helpful tools. Life-long learning gives answers to the requirements of a changing society. It provides a unique possibility for survival, development and the creation of the necessary bonds in an environment which also has a constant need to adapt. Croatia is about to join the EU, which will create many business opportunity together with the challenge of this accession. Regarding EU funding for example, it is anticipated that Croatia will obtain some €3.5 billion during the first two years after accession. This means that preparations for EU projects should start immedi-
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
( 88.43
%
of betting shops paid out in 2009
GAMES OF CHANCE
ECONOMICA AND IDEAL F
Between 2005 and 2009, the total number of betting shop concessionaires decreased by 35%. In such fierce competiti Drago Živković ames of chance are often called ‘fool’s tax’, or irrational investment in economic theory, considering the unlikely possibility of winning. One could also regard them as a form of regressive tax, voluntary however, since games of chance are mostly the poor mans’ game, thus paying taxes for a considerably larger share of their assets. In many countries games of chance were forbidden until the middle of the last century, and even 50 years ago in Great Britain. Lottery games, and lotto as the most famous, are mainly state monopolies today, whilst other games of chance, such as betting shops, casinos or slot machines are usually granted as a concession to private entrepreneurs. Regarding these activities, burdened with high tax and compensation, this can lead to a crash for the majority of private investors if competition is fierce. A good example of risky gambling is Croatia: five years ago there were 15 betting shops, now there are only nine.
G ately and good anticipatory skills is where success will lie. There is no doubt that the most successful in the EU will be those who will be constantly informed of five fundamental areas: who makes decisions (decision-making processes in the EU), who influences whom (ways and techniques of lobbying), how this influence is communicated to the public (communication), which EU funds will Croatia have at its disposal and how to successfully negotiate in a multicultural environment. In a changing world, these EU areas too are subject to frequent changes, and the best way to prepare for future changes is to constantly learn and anticipate.
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
Everyone falls, the Croatian Lottery is rising The crash of private betting shops was primarily influenced by the appearance of the state-owned Croatian Lottery (CL), a monopolist in lottery games, and then emaciated by the recession. According to recently published data, betting shops registered a 10-20% drop in income in 2009, and almost all operated at a loss. Croatian Lottery is an exception, registering a 20% rise in 2009, to €63.56 million, which exceeded
all expectations. On the other hand, the biggest private betting shop in Croatia, Super Sport, registered a decrease from €37.8 million to €30.27 million, whilst nett profit decreased from €14.5 million to €9.72 million. The second largest, Prva sportska kladionica (The First Betting Shop), registered a loss of €1.1 million, which is mostly down to a fall in income of €1.92 million. Income for the betting shop chain Fortuna, owned by the Czech group of the same name, dropped by some 20% in 2009, losing over €4.52 million. Stanleybet registered a similar income fall in 2009 with
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€34.24 million of halff-year in ncome from compensation and tax on games es of chance
ALLY IRRATIONAL FOR THE BUDGET
ps in Croatia increased by 44%, and the number of on many rely on online playing to increase sales
State the biggest winner The actual version of the Act on Games of Chance came into force on January 1, 2010. According to the law, fortunately the state, based on the Finance Ministry proposal, decides on the number of organisers. This decision was brought by the government on August 4, 2010, according to which 20 companies may acquire rights to organise games of chance, but the competition has already cut this number to nine. On the casino market, there are 15 companies, with a maximum permitted limit of 20. Clubs with slot machines may be opened by a maximum of 70 companies; currently there are 60. According to data provided by the Finance Ministry, the state aggregated €15.06 million in compensation from betting shops, €2.36 million from casinos, and €13.6 million from slot machine clubs during the first six months of 2010. The amount of €0.68 million was settled from tax on winnings from betting and €2.44 million from lottery games. Thus, the state aggregated a total of €34.25 million in the half year, plus €1.44 million from the profit of CL during 2009.
losses of almost €0.75 million. The least drop in income (8%) was registered by Germania Sport, albeit finishing the year with losses of €0.21 million. Pelikan betting shops are the only exception. It is the company that manages Wettpunkt casinos, and despite an income fall of 15%, it generated a profit of over €0.27 million in 2009. Even though it entered the market in 2004, four years after legalisation, the Croatian lottery has already vaulted into second position. With this level of growth and loss of competition, it could soon become the leader. According to data provided by Nora Cecić, advisor to board president of CL, the share of CL in total turnover of betting shops increased by 231% between 2005 and 2009. The betting market in Croatia is turbulent and extremely competitive, she points out. This is also confirmed by data according to which between 2005 and 2009, the total number of betting shops in Croatia increased by 44%, and the number of concessionaires decreased by 35%. Competition is also reflected in the attempt of trying to attract players by increasing the percentage of pay outs, which amounted to 88.43% in 2009. Hope in online betting Good business results by the end of the year are expected by Stanleybet, says Adrian Bobanović, marketing and communications manager. The recession hit not only betting shops in Croatia, but throughout Europe also. According to him, Stanleybet is fighting it by introducing new products and focusing on
client satisfaction. During the past 10 years, Croatia has developed into one of the most competitive sports betting markets in Europe, according to Stanleybet. In such fierce competition many rely on online playing to increase sales. CL introduced online games a few weeks ago and the initial results are promising, even though they started without advertising, says Nora Cecić. According to Stanleybet, online booking is the future of the business, and until it becomes current, every service provider should adapt or disappear. A new threat for private betting shops could be the announced
The crash of private betting shops was primarily influenced by the appearance of the state-owned Croatian Lottery (CL) regional lotto covering almost the entirety of ex-Yugoslavia. According to announcements in July, the joint game might be Lotto 5/50, plus a bonus number from 1 to 12. This is a game with over 25 million combinations. In a market of 20 million people and a price of €1 per combination as well as roll-up of the jackpot, this may put players in an economically more rational situation, where it would pay off to bet on all possible combinations. Of course, if they have €25 million, and if they are irrational enough to play lotto when they already have €25 million.
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Privredni vjesnik Privre III No 0125 Year II
70% of CARNet employees arrived direct from universities
ZVONIMIR STANIĆ, DIRECTOR OF CARNet
The market is overly segmented and insufficiently developed In a long-term sense it would be positive if the state gave investment benefits to companies outside the ICT sector, but who wish to invest in the computerisation of their business computerise them, gaining experience which they could continue to sell. Without this, we will not be competitive outside Croatia.
Boris Odorčić he Croatian Academic and Research Network CARNet was founded in 1991 as a project of the Ministry of Science and Technology. In March 1995, the government issued a mandate on establishing CARNet for the purpose of improving the development of individuals as well society by using new information technologies. Zvonimir Stanić, director of CARNet, points out there are many Croatian companies who have achieved enviable business results on world markets. He thus concludes that capacity exists, yet investment is lacking.
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How do you evaluate the Croatian ICT market? Above all, I believe the market is overly segmented and insufficiently developed. There are not enough companies carrying out complex projects. Furthermore, the demands of the economy are not in tune with the times in which we are living. We lag behind those countries with who we like to compare ourselves (Ireland, Great Britain, Finland, Estonia), but at a regional level we are still better positioned. Therefore, the state could do a lot to motivate the ICT sector. For example, it could increase the demand for ICT projects. ICT companies would thus develop, becoming more capable of handling bigger projects, not only in Europe but in the wider world. At what level is the economy directed towards the internet? Too little in comparison with the level I would like to see. Offers
Regarding the market, Croatian companies will be able to compete in Europe. This is something which pleases me more than the fact that someone else will enter Croatia and trade on the internet are at a significantly lower level compared with western countries. Growth potential is enormous in retail services and business relations with economic players. Moreover, users are still insufficiently familiar with internet advantages. They are, for example, still afraid to leave personal information on the internet. There is also a need to computerise an entire series of public services we wish to use from the state. I believe that in 10 to 15 years we
will be able to do 90% of things at home that now make us stand in queues. For example, obtain various certificates and prove what has already been proven. What can the state do to simplify the development of this sector? Computerisation always means modernisation and development of business processes. It is definitely in the interest of the state for companies to become computerised as business becomes modernised and the pace of process of making decisions on real information increases. In a long-term sense it would be positive if the state gave investment benefits to companies outside the ICT sector, but who wish to invest in the computerisation of their business. Everyone would benefit from this; those companies which undergo computerisation and those companies which
Is ICT expert training at a satisfactory level? I am satisfied with Croatian colleges who train resources for the ICT sector. They are creating good resources, people with an excellent foundation who develop into quality experts, in my experience. It is necessary to continue education after university and train for practice. Almost 70% of CARNet employees arrived direct from universities and specialised thereafter. Specialist training is well organised in Croatia, as well as courses in network, system and safety technologies. What we in CARNet have recognised and what we have been working on for the past seven or eight years is development in the area of using ICT in training. This is something which is not currently available on the market. What are your expectations for when Croatia joins the EU? A positive boost could well be felt in the telecommunications market. Croatia may become of interest to the big players, which could lower the price of internet access and increase the offered speed. Regarding the market, Croatian companies will be able to compete in Europe. This is something which pleases me more than the fact that someone else will enter Croatia and take over big projects. I believe that ICT companies could take over big projects by consolidating, both regionally as well as within the European market.
www.privredni.hr Business & Finance Weekly
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9 auctions
::: news Geofoto signs two new contracts in Romania
should prove successful
BANKRUPTCIES WITH HIGH VALUE PROPERTY
Market determines, buyer decides For certain real-estate undergoing bankruptcy, 14 auctions were held until a price buyers were prepared to pay was reached Igor Vukić he price rose €13,700, then €95,900 and finally to €0.14 million. Company representatives from Dubrovnik ceste and Obšivač from Metković made bids in a tense atmosphere at the Commercial Court. Opening at €2.44 million, €3.42 million was reached by the end, when Dubrovnik ceste asked for a 10 minute break, only to withdraw from the bidding. Obšivač obtained the Mironja quarry, plant for carpentry and reinforcement in Komolac and land in the business zone of Ston. This was the first in a serious of auctions for the estate of the Dubrovnik construction company which went into bankruptcy last summer. Judging by this event, the entire series of nine auctions will
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A patient buyer can acquire bankrupt property at a big discount be successful, where real-estates of Dubrovnik will be sold. This is one of the biggest bankruptcies according to the value of property, which experts estimated at over €19.18 million. In the case of the Mironja quarry, a buyer was soon identified and offered a higher price than the opening bid. However, in many other cases, 13 or 14 auctions are held without success. According to legal limits, the price falls in subsequent auctions. Therefore, a patient buyer can acquire bankrupt property at a large discount. There were cases of bankruptcy
Geofoto company has signed two new deals with a value of €0.55 million with Romania for realestate cadastre and registration. The contracts cover the creation of consulting services for projects under the joint title Establishment of modern geoinformation system for managing geographic information, according to a statement from the company. €5.5 million deals for Ericsson Ericsson Nikola Tesla has contracted new export deals with a value of €5.5 million. The majority of the contracts are with the Commonwealth of Independent States and cover the modernisation and expansion of mobile land lines, as well as IP orientated solutions for business users. The contracts were signed with mobile and land line operators as well as business users, long-term buyers and business partners of Ericsson Nikola Tesla.
where the property, initially estimated at €0.18 million, was finally sold for €13,700. “The buyer makes the final decision. You can estimate the amount which roughly corresponds to claims, but the market will decide the true value of the property,” notes bankruptcy estate manager, Mate Balenović. Auctions without buyers Not far away from the property of the bankrupt Dubrovnik there are properties belonging to Naronaplast in Metković, estimated at €4.52 million. Bankruptcy was declared in March 2009, and auctions were scheduled and held without interested buyers. Even before the last auction nobody expressed any interest in buying, says bankruptcy estate manager Pero Vićan. He ven-
tures that the state, as preferential creditor, will probably settle part of its claims, whilst other creditors will find this difficult. As opposed to Naronaplast, the brickyard IGM Cerje Tužno d.o.o from Maruševac continued working under bankruptcy by finding a contractor for the transitional period. The brickyard has an estimated value of €9.37 million, and a further auction will be scheduled soon. Bankruptcy estate manager Želimir Uršulin says the brickyard is sustaining production despite their problems. Some creditors have already been paid from the lease. There are two or three potential buyers, strong companies from the brick sector which have expressed their interest in taking over IGM. Perhaps, even this story might have a happy bankruptcy end.
Atlantic announces bid for Kalničke vode After buying 96.73% of the shares of Kalničke vode Bio Natura d.d. from Badel 1862, the Atlantic Group advised shareholders through the Zagreb Stock Exchange that they are obliged to announce a public tender for purchasing the remaining shares. Considering Kalničke vode has no desire to trade on the Zagreb Stock Exchange, the referential price for the takeover will be the same price that Atlantic paid Badel 1862 for the majority of the shares, €3.9.
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Privredni vjesnik Year III No 0125
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.31
5,163909 5,169761 6,381523 5,426904 8,416958 5,311589 7,299186
Housing loans increased in August At the end of August, housing loans registered their largest monthly rise, followed by mortgage and general purpose loans but with a significantly smaller increase. Loans for cars and card credits decreased according to data provided by the Croatian National Bank. At the end of August, housing loans totalled €7.59 billion, increasing by some €0.14 billion compared with the end of July.
5.50
28.9.
29.9.
30.9.
1.10
CHF
5.55
7.30
5.45
5.52
7.29
5.40
5.49
7.28
5.35
5.46
7.27
5.30
5.43
7.26 27.9.
WEEK OCTOBER 2, 2010
::: news
USD
5.25 27.9.
28.9.
29.9.
30.9.
1.10
5.40 27.9.
28.9.
29.9.
30.9.
1.10
GfK Research
New debt not welcome
Numbers using any type of credit falls by 2% and authorised current account overdraft use by 1.5%
RBA: syndicated loan of €161 million At the beginning of October, a syndicated loan of €161 million was signed in favour of Raiffeisenbank Austria, which has strong relations with partner banks. This amortisation loan with repayment in instalments and a settlement date of three years will be used for general business needs, including transactions for trade operations. It is structured as a syndicated loan co-ordinated by the agent Intesa Sanpaolo. Zagreb July nett salary €857 The average nett salary in Zagreb stood at €857 in July, down 1.9%. In relation to July 2009, this figure is 1.3% higher, according to the Statistics Department of the City Office for Strategic Planning and Development. Average nett salaries were cut by the crisis tax by about 2.5%. Thus, average nett salary, minus the crisis tax, amounted to €836.
ccording to the latest GfK research the majority of the Croatian general public does not change their business style with banks. Three quarters of clients operate with only one bank, a fifth with two, and only 6% with three or more banks. On average, the public uses three to four bank products or services. This mainly refers to current accounts and related products. However, when comparing the results from the 2009 research, a significant drop is visible in the use of cheques (-8.1%) and banker’s orders (-2.4%). There is also a drop in public debt. The number of individuals using any type of credit has reduced by 2% to 25.7%, and those who use an author-
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ised current account overdraft by 1.5% Crisis, crisis The crisis has obviously affected public behaviour. The GfK research observing the effect of the crisis on the public and their perception of the banking system shows extensive changes in relation to previous research. Consequently, 80% of the public claim that the crisis has affected them or their household members in some way. Less and less money is spent on entertainment and pleasure. Notwithstanding that, the share of those who save on food and personal hygiene products is decreasing. On the other hand, one third of the public state their salaries are
paid late or have been reduced, and the percentage of people losing their jobs is increasing. This certainly influences personal financial behaviour. Furthermore, the share of people who are unable to repay their credit instalments is rising. There are fewer people who are relatively satisfied with their financial situation. Concerning indebtedness, caution is still visible. Most of the public (70%) is planning to reduce debt. Bank credit is still regarded as difficult to obtain, even though the number of people who subscribe to this view is slightly down from 2009. The percentage of people who believe that the interest rate will be stable is still a relatively low 20%. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT
INTERIOR DESIGN AND FURNISHING DUT, ZAGREB
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MALI STUDIO, SLAVONSKI BROD
If the suit makes the man, the logo makes the product A well-designed brand reaches customers easily, whilst the brand manual brings each product and the company value, which creates customer trust
New ways of attracting customers DUT employs five fabric workers and despite the recent crisis and a drop in sales of 20%-30%, staff numbers and benefits remain unchanged he condition of the realestate market is often linked to the crisis in construction and furniture production, but rarely with interior design. However, the crisis has severely affected this area, even though the more experienced have managed to survive. One is the interior design and furnishing company, DUT. This family owned company was founded in 1996, and their main activity is interior design and the wholesale and retail of decorative fabrics. Over the years they have
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Over the years they have developed recognised personalised production designs developed personalised and recognisable products. They manufacture sitting bags stuffed with Styrofoam and furniture made of polyurethane foam. They import materials mainly from Turkey. Their workshop employs five fabric workers and despite the recent crisis and a drop in sales of 20%-30%, staff numbers and benefits remain unchanged. During the past months the situation has stagnated with no positive prospects in sight, but DUT is hoping for better times to arrive. They are trying to compensate for a decrease in production with
new ways of attracting customers, providing advice in their showroom and organising photo exhibitions. Advice attracts new customers The idea is to somehow attract customers who would normally come for furniture, but also to the accompanying events. When they arrive, DUT is there to increase their interest in its services and products. Their clients are primarily private individuals and entrepreneurs. Even though they mainly design complete apartments, it is possible to arrange the design of a single room, for example a child’s room. They are currently working on the interior design of a suite in Gorski kotar, and they have also designed restaurants and hotels. As one of their most important references, they mention the design of the Vatroslav Lisinski concert hall, many hotels (Palace in Dubrovnik, Garnija in Velika Gorica, Bonavija in Rijeka, Adrović in Sveti Stefan), restaurants (Trnjanka and Kaptolska klet) and many bars in Zagreb. Their partners include leading Croatian producers of furniture and ships, as well as sellers of decorative products (Oriolik, Hespo, Meblo trade, Lesnina, Tupperware and Međimurjeplet) (D.Ž.)
f the suit makes the man, then design represents products and services, and the impression made by a well-designed brand often decides what we buy, suggests designer Vedran Jukić, owner of Mali studio covering web and graphic design, design
I
The company advantage is that it is wholly dedicated to small and medium-sized clients of multimedia and interactive presentations and 3D visualisations as well as brand creation logos to complete advertising campaigns. A well-designed logo, with subtly designed colours, creates the appropriate basis for the expansion of a brand, whilst the design of official, advertising and promotion campaign material and brand manual bring value to the company and product, creating a sense of trust for customers, adds Jukić. After studying design at the Faculty of Graphics in Zagreb, Jukić gained experience working in graphic and web companies. In 2005, he founded his own design agency called Kriminal design. The provocative name and identity proved to be too ‘avant garde’ for clients in regional towns, such as Slavonski Brod. “Thus why I decided to change the visual identity in
2006 to Mali studio (small studio), which attracted new business partners,” says Jukić. Advantages and disadvantages Mali studio is a small company with the usual advantages and disadvantages. It is completely dedicated to small and medium sized entrepreneurs. Its other advantage is the rapid process from start to completion of the work. “The wide diversity of work enables us to adopt a more positive approach. These are often smaller jobs, but smaller amounts are easier to pay. Our direct contact
with the end-user is also an advantage,” points out Jukić. “Disadvantages, on the other hand, include reduced resources which often cause a temporary backlog of low-profit jobs, which decreases the accumulation of capital, whilst every larger project needs to be handled with external partners. When a certain type of work is your profession from which you live, then being good at it is only 25% of the entire story. There are many examples of people who start with good intentions, but in general are left with nothing. Therefore, if designing is the only work that interests you, it is better to do it as a hobby,” suggests Jukić. (K.S.)
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Privredni vjesnik Year II No 0125
JEWELLERY INDUSTRY
Wedding rings for the Russian market Croatian goldsmith signs a contract with two Russian wholesalers of gold jewellery
e should have entered Russia five years ago. But even now is not too late. This is a big market with room for everyone, said Vlado Križek, co-owner of Križek Jewellery, after returning from the international fair of gold jewellery Restec Junwex, recently held in Moscow. The latest Russian, German, Spanish, Turkish and Indian trends in gold jewellery were represented at the fair as well as those of other countries with a strong goldsmith tradition. The Križek
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family exhibited its collection of wedding rings and diamond jewellery, signing contracts with two Russian wholesalers. The first shipments of golden
wedding rings should soon be sent to Russia, valued at €15,000. Representatives of Križek Jewellery were visited at the fair by Ivica Budanec, chief representative of the Croatian Chamber of Economy in Moscow and Jadranka Japunčić, economic advisor with the Croatian Embassy. V l a d o Križek says they discussed a permanent exhibition of Croatian products in the CCE office in order to attract Russian partners, and that this idea has been welcomed. 30% of products are exported Križek jewellery shops are winners of four Croatian
Creation awards for their jewellery collections. For some considerable time now they have also participated in the exhibition BeCroative, which tours foreign markets under the auspices of the CCE. The signing of the contract with two Russian traders is the result of hard work took almost a year and a half. This step forward resulted from the intermediation of the Zagreb company San-Sat, which represents the Moscow International Marketing Centre (IMC) in Croatia. IMC is part of the city administration of Moscow, and its mission is to connect foreign and Russian companies on a commercial basis. IMC arranged the Križek Jewellery meetings with several interested buyers, which resulted with the first two wholesale contracts. Despite the general difficulties of producers, Križek Jewellery is managing to expand its business and currently exports 30% of production. Their products, such as gold morčić jewellery or traditional Dubrovnik jewellery, indirectly promote Croatian tourism. (I.V.)
::: news Three Millionth Visitor to Croatian Pavilion at EXPO The three millionth visitor to the Croatian pavilion at EXPO 2010 in Shanghai was rewarded with a one week tour through Croatia, according to a statement from the Foreign Ministry. EXPO 2010 is the biggest world exhibition in history with a record number of exhibitors and visitors. It is also an opportunity which Croatia has used to build on the positive effect of tourism achieved after EXPO 2005 in Aichi, Japan. Over 100,000 pirated discs destroyed Over 100,000 pirated DVDs, CDs, VHS and audio tapes with films, computer pro-
grammes and music, as well as 50,000 jewel cases were destroyed in public at the premises of Jadran film in Zagreb. They also used this opportunity to promote the Stop pirates programme, with the aim of informing people of the damaging effects of piracy to creative and economic development. The destruction of illegal copies was ordered by courts after 300 sentences were pronounced from 2003 to date. Airports beat records in August In August the majority of Croatian airports beat records for the number of passengers, with the exception of Rijeka Airport, which yet again registered a dramatic decline.
According to the portal EX-YU aviation, Zadar and Dubrovnik airports registered the biggest increase in the number of passenger over 2009. Zadar Airport handled a total of 56,624 passengers, which is the largest monthly growth (34.9%). Some 259,638 passengers passed through the Ćilipi Airport, beating its August 1987 record with an increase of 21.7%, when Croatian tourism was at its peak.