Health and medical tourism Health tourism still lacks the status it deserves with legislation currently being developed
Damir Skender, Saponia Board President The crisis notwithstanding, we are achieving good results thanks to prior planning
90 years of Zvečevo Croatian and export markets are equally important for overall level of sales
TOURISM
INTERVIEW
EXPORTS
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Croatian Business & Finance Weekly Established in 1953 Monday / 14th March / 2011 Year IV / No 0144 www.privredni.hr
S U P P O R T E D
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pvinternational pv international C R O A T I A N
C H A M B E R
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Croatian National Bank
Additional €850 million for credit into the economy The Croatian governor’s decision is pointed towards motivating investment in new projects, which might improve exports and create new jobs ast week, the governor of the Croatian National Bank, Željko Rohatinski, decided to inject additional capital into the Croatian economy. According to his decision, as a result of consulting with representatives of the leading banks and employers, the Croatian banking system will receive around €850 million, for lending to economic projects, on the basis of a reduced rate of mandatory required reserves from the former 20% to 17%. The decision of Rohatinski, which will enter into force immediately after being published
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in the Official Gazette, is directed towards motivating investment into new projects, which might improve exports and the state of the balance sheet as well as the creation of new jobs. It estimated that most investment will go into the processing industry and tourism, according to a statement from the Croatian National Bank, published on its website. More accessible credit and favourable interest rates Selected projects would be financed within the framework of the banking system, but com-
pletely independently of the present “A” and “B” models for economic credit, which did not yield expected results. For example, of €0.27 billion deposited for their realisation in a special account – of a total of €0.40 billion issued by the central bank, with a reduced interest rate (from 14% to 13%) - more than a half these funds remain untouched and unused. Considering that the current level of liquidity within the banking system is already high, this additional amount of available investment should enable simpler realisation of lending and more
favourable interest rates for all projects, with real chances for profitable and competitive busi-
Directed towards motivating investment into new projects ness on both local and foreign markets. Moreover, the Croatian National Bank will monitor how the released funds are used, their dynamics and expediency, and take measures accordingly. (V.A.)
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Privredni vjesnik Year IV No 0144
ARTUR MUZIĆ, CEO, XYZ CONCEPT AND MARKETING DIRECTOR, SPORTINA GROUP
From purchasing brands to status Croatian people are fashionable; they know fashion brands and are one of the most informed people on fashion in the region he urban population in all markets shares similar fashion habits and needs. If we take a look at the younger urban population of Zagreb, Split, Belgrade, Ljubljana, Milan or London, we will not notice many differences in style. Croatian people are fashionable; they know fashion brands and are one of the most informed people on fashion in the region. Therefore, we expect a substantial interest in the XYZ Concept. Almost simultaneously we will open our XYZ Premium Fashion Store in Arena Zagreb and City Centre One in Split. The consequences of the recession are still visible on the market, but in 2010, Sportina Group operated more successfully than in 2009, since we quickly responded to a different situation, adjusting our range and supply to the market and optimising our business costs accordingly. It is evident people spend less on clothes and footwear, but more importantly, they spend in a different way. They simply want more for their money. XYZ Premium Fashion Stores are an integral part of our premium business segment and sales are excellent, since brands such as Burberry and Armani are recognisable. Customers create a new social status when they purchase these brands. Last year, Sportina Group mainly invested in Croatia, which is currently our most important market. Of 243 outlets on seven markets, 92 are in Croatia. Sportina Group is also known for its rapid development
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
( 28 hospitals
for medical rehabilitation and treatment centres
Health and medical tourism
The future i developmen
Health tourism still lacks the status it deserves. The legislativ local and foreign investors easier access to various projects Sanja Plješa ealth is the oldest and strongest type of tourism, and health tourism is a branch characterised by a combination of natural factors and methods of medicine for improving general health. This type of tourism is not linked to summer nor tourist arrivals, and its development could significantly prolong the season. The beginning of health tourism in Europe dates from the 18th century and appears in Croatia in the late 18th / early 19th century. During that period, health centres with thermal and mineral water started to develop in continental Croatia. In the coastal area many spas and treatment centres were built, offering various therapeutic and balneological treatments on the basis of natural factors: sun, sea, a mild climate and Mediterranean plants. In time, these became more important and spas were separated from specialised hospitals. At the beginning of the millennium the notion of health tourism spread, and currently this type of tourism also includes wellness.
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and we are always ready to adjust to new challenges from the market. We represent over 70 fashion brands, in different price categories, and we also have franchises for Coffeshop and BurgerKing. We opened our first XYZ Premium Fashion Store in Belgrade in 2009, and sales increased by 35% last year. Belgrade is clearly a city ready to invest in its image. We opened a store in Ljubljana in March 2010, where customers prefer more of a classic style than in Belgrade. According to previous experience, Croatia might be somewhere between, although customer habits in Zagreb and Split are not the same. The XYZ Concept adjusts to customer and market needs, and therefore our range is slightly different in our outlets. Our advantage is that we represent multiple brands and are able to quickly adjust to market needs.
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 Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr
Priority of dental and orthopaedic medicine There are 2,000 beds in treatment centres, spas and private clinics arranged with the Croatian Institute for Health Insurance (HZZO), and a further 4,000 beds on the free market. The potential of further development of health tourism lies in specialised hospitals which relate to the system
operated by HZZO. However, dental and orthopaedic medicines are a priority in the development of health tourism, pointed out Vibor Delić from the Ministry of Health and Social Welfare. Notwithstanding, health tourism still lacks the status it deserves. Therefore, the Ministry of Health and the Ministry of Tourism agree that a regulation should be drawn up as soon as possible. The Minister of Tourism, Damir Bajs, pointed out that the representatives of health and tourism ministries, in co-operation with clusters and associations of medical and health tourism, are working on the development of the legislative framework, specifically a regulation which should simplify investment into health tourism. It should surpass present administrative obstacles so that more private local and foreign investors
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s registered
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( 200,000 overnight stayys recorded by health tourism in 2009
is in the vision and nt plans
ve framework is currently in the process of development and should solve present administrative obstacles enabling ing factor for the development of health tourism includes treatment hotels, which remain uncategorised. Moreover, the name of the institution must also change from a hospital, used in order to be able to enter the market. “Although our health tourism seems to function well and we enjoy all the benefits needed for its development, results are lacking. Therefore, one must ask, where is the problem”, says Stjepan Turek from the CCE. Adjustment to trends For example, over nine months of 2010, 16,000 Croatian nationals recorded 52,000 overnight stays in Slovenian spas. Considering this number is increasing year by could gain access to projects of this type, since there are interested investors who wish to invest in Croatian treatment centres, wellness centres and the development of specialised hospitals. However, there is still confusion about the notion of health and treatment tourism, even though the two are different. Treatment hotels remain uncategorised Users of health tourism are healthy people who visit spas as a preventative reason, whereas users of treatment tourism are patients who come to specialised hospitals for treatment, therapies and recuperation. Compared with health and treatment tourism, there is also medical tourism. It is a branch of the health sector where both healthy and sick people use medical and dental
services under professional care. In 2009, 11 million tourists were recorded in Croatia, and 56.3 million overnight stays, of which 200,000 related to health tourism. There are 28 treatment centres and specialised hospitals for medical rehabilitation registered in Croatia with 6,000 beds. Spas are the backbone of health tourism, but also total tourism in certain counties. One such example is the spa at Daruvar. It has 288 beds, of which 140 are subsidised by HZZO, said president of the Health Tourism Association at the Croatian Chamber of Economy, Ivan Bačić. He opined that in the future spas will have fewer patients from hospitals and will include wellness in their range. According to him, the limit-
year in Slovenia, whilst decreasing in Croatia, Turek is convinced something must be done immediately. According to him, all institutions related to health tourism must show the precise state of their business and draw up development programmes based on priorities as well as a list of expenses for the necessary investment. “We should adjust to modern trends and offer people a healthier lifestyle. The future of health tourism is in taking care of healthy people in order to preserve their health. We must also have a vision and draw up realistic development plans covering possible investment in new services and facilities”, concludes Turek.
Medical tourism multiplies GDP Medicinal tourism can prolong the tourist season to 365 days, said the president of the Association for Medicinal Tourism, Miljenko Bura, at a convention organised for highlighting all the problems due to which Croatia still fails to exploit this fast growing branch. Bura pointed out that those countries which had developed this type of service and infrastructure for medical tourism, record annual growth of between 15% and 25%. Croatian laws allow performing medical services in tourist facilities and they allow tourist activities in medicinal institutions. However, subordinated regulations and incentives for investing in health institutions are missing. Despite these problems, Bura feels Croatia can become a top destination for medical tourism in two to five years, with appropriate planning and organisation. Analyst Damir Novotny believes that tourism share of GDP would thus multiply by two to three times. (J.F.)
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INTERVIEW
Privredni vjesnik Year IV No 0144
( 70,000 tonnes ( €73.97 million production last year
Saponia revenue last year
DAMIR SKENDER, SAPONIA BOARD PRESIDENT
People + product range + marketing = success The crisis notwithstanding, we are achieving good results, which we have to admit are the result of previous hard work and minute strategic planning and anticipation over the last few years Svetozar Sarkanjac hen in 1998 the Osijek company Saponia was taken over by Mepas, numerous changes took place and new opportunities opened up for young professionals from Saponia. Damir Skender was one. He has been employed with Saponia since 1985 and has been its Board President since 2000. In addition, the company has been expanding constantly ever since. Figures are significantly indicative: Saponia produced and
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Nevertheless, in my opinion, the key of our success last year was product innovation and aggressive marketing sold 23,000 tonnes of products in 1998 and sales reached 70,000 tonnes last year. Revenue stood at €32.88 million in 1998 and in 2010 reached some €73.97 million. You have recorded growth even in the last few crisis years. What is the secret of your business success? We make a good team and it is well known that business is made through people. In 1998 we were lucky to get an owner who had long term plans. He believed in the Saponia team from the very start and such company loyalty can be considered as a sort of added value. In addition, in my opinion, 1998 was the last year in which something could have
been achieved as a result of foreign competitive raiding. We managed to catch the last train and, along with considerable investment, we worked on product range alterations and significant steps were taken with the considerable commitment of all employees. Therefore, even now when, the crisis notwithstanding, we are achieving good results, which we have to admit is all the result of previous hard work and minute strategic planning and anticipation over the last years. You have invested over €32.45 million in the last decade. It should be pointed out that we suffered significant material damage in 1991. We had to transfer our overall production to the
current location in the centre of Osijek. As it happened, several years before the war we started transferring production to a new location east of Osijek. However, as a result of war, we had to return to the previous location in the town. That is why the investment cycle had to start with machine reconstruction and, consequently, we constantly invested into plant, equipment and production throughout the first years after the privatisation. Our ultimate target was technology and machine reconstruction for the production of powder detergents which bring us the highest revenue. After that we focused on the liquid detergent production plant and the production of toiletries and cosmetics. Subsequently, investment into
environmental protection became the major area of our concern. Positive results were recorded in the preliminary report for 2010. It did not take much wit to conclude that 2010 would bring a further downturn of the retail market both in Croatia and the whole region. We realised the importance of constant efficiency improvements and in 2010 we found a way of becoming even more efficient. Nevertheless, in my opinion, the key of our success last year was product innovation and aggressive marketing. A new and much broader product range in combination with good marketing is the recipe for good results.
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( 15%
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income from alcoholic drinks
( 10,000 tonnes production capacity
90 YEARS OF ZVEČEVO
Sweet and demanding Croatian and export markets are equally important for overall level of sales Boris Odorčić večevo, a Croatian producer of confectionery products celebrates its 90th anniversary this year, by starting a new production line in which they will invest €3.42 million. Krunoslav Alvir, CEO of Zvečevo, says their production will be focused this year on new confectionery and alcoholic products, since it is a segment with the highest growth potential. It is a rarely known fact that Zvečevo originally started as a distillery 90 years ago. “Today, the production of alcoholic drinks comprises 15% of total annual income and we are one of the three biggest producers in the region. Confectionary products have already been recognised globally, and halal and kosher certificates will help us expand into Arabic countries. We currently export our choco-
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late to North America, New Zealand, Austria, Germany, Canada, Australia, Hungary, Switzerland, Jordan and ex-Yugoslavia countries”, notes Alvir. The Croatian and export markets are equally important to this company since they market evenly matched quantities to both. However, the local market is more cost-effective since it earns 60% of total income. Problems, problems According to Alvir, the confectionery industry is sweet, but demanding work. One of the most common problems is the high price of cocoa beans, which rocketed 100% on the global exchanges, but also other raw materials such as sugar, cocoa butter and milk. Since they supply all raw materials from Croatian producers, (except for cocoa beans), the price of the end prod-
First chocolate with rice in the world Zvečevo started its work in 1921 as Stock and Cognac. In 1934, Nestle offered the factory Stock and Cognac a lease contract on the production plant of chocolate and sweets, for a period of 10 years. The production of confectionery products officially started in 1936 and continues to date. In 1951, the factory Stock and Cognac changed its name to Zvečevo. The factory produced the first chocolate with rice in the world ‘Mikado’ in 1964. In addition to Mikado, Zvečevo is also known for its chocolate Braco (eng. brother) and Seka (eng. sister), the oldest chocolate brand in the region. uct exceeds the price of imported competitive products, often of dubious quality, explains Alvir. “One of the obstacles, which aggravates our work, is that consumers are more reserved when it comes to local products. Moreover, local producers are weak, since they are not united. A joint approach abroad would significantly reduce expenses of penetrating new markets, logistics and distribution. Furthermore, a
joint supply of strategic raw material, such as cocoa beans, cocoa butter, milk, sugar and flour would reduce production costs and increase competitiveness”, promotes Alvir. When Croatia joins the EU, new doors and markets will open, and due to a production capacity of 10,000 tonnes of chocolate per year, he believes Zvečevo can become a tough competitor to all European chocolate producers.
DUN&BRADSTREET
RETAIL RETA
Further increase in unemployment
Marginal growth rate
un&Bradstreet ranks Croatia amongst countries with a mild investment risk in the latest issue of International Risk&Payment Review covering business risks in 132 countries. According to the latest Croatian Bureau of Statistics data, Croatia recorded a slight growth in GDP during the last quarter of 2010. Investment and public expenditure are still low, whilst private outgoings and exports are the constituent elements of growth. D&B mentioned the difficulty of anticipating industrial production for this year, as the development of the main
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Croatian export markets and price increase of goods on international markets which lead to an increase in production costs have to be taken into consideration. D&B anticipates no new taxes this year due to forthcoming elections, whilst unemployment will remain an obstacle to economic recovery. D&B forecasts a further increase in unemployment for the first part of 2011, whilst the second half will see a minimal decrease. The anticipated unemployment rate in 2011 is 12.7%, whilst in 2012 it will stand at 11.9% as a result of economic recovery. (V.A.)
ccording to the Croatian Bureau of Statistics data, retail turnover was 0.2% up in real terms in January 2011 year-on-year, compared with a similar annual rate of decrease in December 2010, or equal to a nominal 2.6%. Low growth rates indicate consumer caution, particularly as a result of the negative labour market movements. The number of unemployed in January exceeded 334,000 and consumer behaviour is significantly affected by uncertainty of regular monthly income and the fear of losing jobs. In addition, RBA analysts pointed out that retail sector data are most likely to reveal consumers rational way of thinking and spending on ba-
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sic goods and services, ervices whilst purchase of less needed goods is postponed for some better time. Retail has been recording annual rates of growth since the annual rate of decrease in negative trends was halted in July 2010. However, the rate of decrease was considerably lower (except in August and November 2010 when it was less than 1%) which is extremely worrying with respect to the base effect. Similarly, this years’ slight growth really indicates a 21.5% slump over January 2008 and therefore it will most probably not be able to speak of retail recovery in the first half of 2011. Moreover, the expected growth of about 3% in 2011 is merely an indicator of future recovery. (V.A.)
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Privredni vjesnik Year IV No 0144
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.410
5,36461 5,507784 6,523169 5,739699 8,583875 5,365779 7,388141
USD
5.38
9.3.
10.3.
11.3.
5.75
7.405
5.36
5.74
7.400
5.34
5.73
7.395
5.32
5.72
7.390
5.30
5.71
7.385 8.3.
WEEK MARCH 12, 2011
CHF
12.3.
5.28 8.3.
9.3.
10.3.
11.3.
12.3.
5.70 8.3.
9.3.
10.3.
11.3.
12.3.
::: news
CROATIAN NATIONAL BANK
Erste credit for students Erste Bank signed a contract for business co-operation with the Student Centre of Zagreb University for payments to students in co-operation with the Student Centre. Students who open giroaccounts in Erste Bank will receive Maestro cards and become members of the Erste Club. They will be able to use numerous discounts. Last year Erste Bank issued almost €1.03 million Erste Club credits, to be used for scholarships and educational expenses, which is a 33% increase. The amount most often issued for scholarships is around €4,100, and credits for expenses around €2,050.
€43.8 billion foreign debt
Raiffeisen Prestige: return above 10% Raiffeisen Prestige, an open investment fund with public offer managed by Raiffeisen Invest, marked its first business year. On March 4, 2011 the Fund operated with €30.68 million of assets, and the Fund yield amounted to 10.09%. Entry fee to Raiffeisen Prestige will not be charged until June 30, 2011. The minimum initial deposit is €9,600, and each next one-time investment is €275 minimum. Imex Bank: personal savings exceed €0.14 billion At the beginning of February 2011, personal savings in Imex Bank exceeded €0.14 billion, which is 75% of total deposits of the Bank and a 40% increase over 2010. According to financial reports from February 28, 2011, the profit of Imex Bank amounted to €0.64 million and is the same as in February 2010. Total assets stand at €0.23 billion, which is a 21% increase. Total income increased by 10% in relation to February 2010.
According to RBA analysts, the increase foreign debt between January and November was caused exclusively by the public sector with private sector borrowing stagnating ccording to the latest Croatian National Bank data, November saw a slight increase (€538 million or 5.2%) in foreign debt, circular direct investment excluded, and stood at €43.8 billion. Foreign debt almost stagnated over the first 11 months of 2010 and recorded slight growth of 1.4% over the end of 2009, which, as estimated by RBA analysts, was the result of an increasing need for refinancing in the public sector as well as of weak economic activity in the private sector. Private company debt, accounting for 24.6% of the total, saw a meagre increase of 2.7% in the first 11 months of 2010, whilst financial sector debt, accounting for 30.3% of the total, was down 8%. The financial sector is
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dominated by banks whose foreign debt at the end of November stood at €1.38 billion, some 5.3% down over the end of 2009. Public sector debt, accounting for 31.2% of the total, was up 11.8%, which was mainly caused by the state sector whose debt at the end of November stood at €5.9 billion, up 14.8% over the end of 2009. Slight growth in 2011 It is obvious that the increase in foreign debt was exclusively the result of public sector borrowing, whilst private sector borrowing was stagnant, mainly as a result of weak local demand and uncertainty about the start of any economic recovery. Private companies and companies in majority state ownership ac-
count for slightly less than a half the total public debt of about €21 billion. Analysts anticipate private companies borrowing mainly for refinancing arrears, whilst nonbank financial institutions could continue recording higher repayment than new borrowing, faced with lower demand for their services. In addition, an increase in public company borrowing is anticipated, albeit at a slower pace, as a result of the need for refinancing of arrears. Nevertheless, there is a possibility for the country to enter the foreign market this year (at the right moment) considering investor inclination for risk. Total foreign debt will see a minor increase and its share in GDP should only grow slightly. (V.A.)
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WE PRESENT 7
IDI VIDI, VELIKA GORICA
TRADE AIR, VELIKA GORICA
Completely different Obstacles present challenges Crew experience and local contacts enabled them to carefully organise flights for the recent evacuation of Croatian nationals from Libya
An agency gathering professionals in various fields such as marketing, PR, information technology, graphic and web design, foreign languages and audiovisual communication fter years of work in various companies doing different jobs in trade, finance, media, telecommunications, marketing and PR where he acquired specialist knowledge, experience and work habits, the professional Ivan Matić decided to set up his own company, Idi Vidi with his colleague in August 2005. This marketing communications agency currently gathers, on a part time, basis some 200 professionals covering marketing, PR, information technology, graphic and web design, foreign languages, photography and audiovisual communications providing a wide range of services. Notwithstanding the current economic recession, the company has been moving forward at a steady pace and has been expanding its business activities throughout Croatia. “We are turning to foreign markets, primarily towards the countries in the region, but also towards EU member countries. We constantly keep up to date and follow current trends, learning and applying new cutting-edge business tools especial-
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ly in the field of marketing, PR, graphic and web design, translations and proofreading, which are our main business activities. We claim to be completely different from our competitors,” pointed out Ivan Matić, Idi Vidi Director. Vision against recession “From the current point of view, I can almost state to be sorry for not having been completely committed to my company in the summer of 2005 when we founded it. We were all working both in our company, Idi Vidi and were employed in other companies concurrently. A business lift-off of any private company implies a 100% commitment from its owners and we have been constantly aware of this fact,” stated Matić. However, they would not have all the current expertise, had they not also worked in other companies. “People with entrepreneurial spirit, knowledge, ideas and business vision should set up their own business and not fear the recession as, sooner or later, they will succeed,” concluded Matić. (S.P.)
rade Air was founded in April, 1994. Its owner, Mihajlo Cvijin, is extremely proud of the company on a mission to provide fast, reliable and commercially optimal transport of passengers and goods worldwide. During the past several years Trade Air has specialised in organising travel charter flights and ad-hoc charters (on a single basis) as well as charter franchises and the so-called wet lease flights or ACMI lease flights, maintaining the status of authorised air transporter of hazardous substances. With flights to 300 worldwide destinations during two decades of its existence, Trade Air performed a series of extremely interesting operations for local and foreign cus-
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tomers, said Cvijin. Recent flights to Libya for Croatian nationals were quite demanding in terms of organisation and obtaining permits, and thus represented quite a challenge. Since safe and on schedule arrival at a given airport is of extreme importance to each client, overcoming logistical obstacles is a daily task of the company staff. Passenger safety of utmost importance “In 2009 and 2010 we worked for a Libyan company and transported their employees on a daily basis to airports near camps deep in the desert. During that time, the staff of Trade Air lived in the desert camp OXY 103A, from where we recently evacuated the first group of Croatian nationals to Zagreb. The second group was evacuated from the airport Zella 74, where we also flew during our former stays in Libya”, pointed out Cvijin. He added that crew experience and local contacts enabled them to carefully organise flights in these extreme circumstances. Cvijin pointed out that the staff of Trade Air performed these evacuation flights extremely professionally, having in mind passenger and their own personal safety. (S.P.)
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Privredni vjesnik Year IV No 0144
Fashion.hr industry fashion fair
High quality fashion design becomes standard A special place for creations born out of co-operation between six reputable designers and five textile factories he first appealing results appeared before the public and buyers two years after the conception of the idea of cooperation between Croatian fashion designers and the local textile industry. A three day fashion fair Fashion.hr has been recently held at the Zagreb fair, presenting the creative pinnacle of some sixty Croatian fashion houses. A special place was taken by creations born out of co-operation between six reputable designers (Ivica Klarić, Zoran Mrvoš, Igor Galaš, Robert Sever, Ana Marija Ricov and Juraj Zigman) and five textile factories (Arena from Pula, Rio Rijeka, Marli, Bambi and San Peter). The showcase of clothing items, footwear, jewellery, handbags and other leather goods was accompanied by round table discussions on different segments of fashion and textile industry. Fashion shows were organised in the evening. A stronger connection between the creative personalities and the local textile industry was supported by the Croatian Chamber of Economy, the Croatian Chamber of Trades and Crafts and the City of Zagreb. The first success in this welldesigned series, which should become an industrial standard and export trump card, encouraged Vinko Filipić, the Direc-
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tor of the whole project, to announce the creation of a label for Croatian fashion houses which would lay the foundation for a “Let’s Wear Croatian” campaign. Nadan Vidošević, The Croatian Chamber of Economy President, estimated the task would not be easy. Nevertheless, a niche for Croatian fashion brands, which would be distinguished primarily by the quality of their creation, could be found by common effort. “We cannot count on cheap labour. Textile workers salaries are much lower than the meagre manufacturing industry average. They cannot be compared with even cheaper workers in Indonesia. Nevertheless, quality and good design always attract buyers. This year could be appropriate for movement in this direction”, stated Vidošević.
Design to price ratio In addition to marketing and creative obstacles in order to reach selective buyers, local designers have to bear the burden of the economic crisis. According to Silvija Tržec from the Croatian Chamber of Trades and Crafts, of 1,200 craftsmen registered for textile and clothing production, a pitiful one third are still active. They are burdened with high taxes, for example VAT which should be paid for production materials before the final product has been sold. Vesna Trnokop Tanta, Croatian Chamber of Economy Vice President, believes producers should be assisted by lowering taxes and contributions which burden the price of work. Committed work on the promotion of a local fashion industry as well as connect-
ing design and marketing are essential. On the other hand, the crisis was the spur for the development of Amadeus, a company that has managed to expand to 800 employees in difficult times. According to Jagoda Divić, the Design Director, the key to its success has been the continuous adaptation to changing clothing needs of an average Croatian. Brand creation commenced as well as design and promotion through carefully chosen marketing campaigns, although only after the initial production of jeans, which secured the starting position on the market. An appropriate ratio of design to price is the successful model for a faster way out of the crisis for anyone, as was concluded at the fashion fair.
Spačva running out of raw materials, since Croatian Forests delivery is not in accordance with their production capacity.
Mladina and Solana Pag boxes. An eco-friendly sign is granted for a period of three years and can be used exclusively for the promotion of the specific product. Seven products available on the Croatian market have so far had the right to use such labelling, which is an element of international policy of sustainable production and consumption.
::: news Spačva in need of raw materials Spačva is doing everything it can to avoid the worst scenario, stated Dario Puljiz, Board President, reacting to articles in the media on ceasing work. In the last three months, Spačva has employed some 100 workers, has paid regular salaries and turnover in export markets has been increasing
for all Croatian wood products, claims Puljiz. He added that he understands the workers’ fear for
Istragrafika with three eco-friendly signs Branko Bačić, Minister of Environmental Protection, has granted Istragrafika from Rovinj the use of eco-friendly labels for VIP,