Aleksandar Pavicevic, operating officer at Emmezeta Srbija - We are going to keep all current workers and hire new ones

(Aleksandar Pavicevic)

Big sale and queues in front of Kika department store indicate that the Serbian furniture market is about to change. And while we're awaiting the arrival of IKEA, it is certain that one more big player is coming to Serbia this June. Namely, Kika in Belgrade will be replaced by Emmezeta which sells household appliances, multimedia equipment and home decoration items in addition to furniture.

Both Kika and Emmezeta are part of the Steinhoff International company, but the latter is a cheaper brand. Emmezeta has recently moved into Kika facilities in neighboring Croatia as well.

In an interview with eKapija, Emmezeta Srbija Operating Officer Aleksandar Pavicevic speaks about their plans in Serbia, investments in the renovation of Kika department store in New Belgrade and possible cooperation with local companies.

eKapija: Kika brand has been replaced with Emmezeta which is actually your discount brand. Will the focus remain on furniture? How much will the sales portfolio change?

- Emmezeta is primarily a brand that makes it possible for a larger number of people to buy what they want at affordable prices. I believe that's exactly what the market lacked - attractive products at acceptable prices, that is, a perfect price-quality ratio.

Focus will remain the same, while the sales portfolio will be expanded to include the widest range of household appliances that will be exhibited in the most beautiful space for this type of goods in Serbia.

eKapija: Can you tell me what percentage of products will remain the same? Namely, if we're getting a cheaper brand, will you keep the products from the previous sales portfolio to which customers with a higher purchasing power got used to?

- It is very difficult to talk in percentages at this moment. What is for sure is that certain products that proved to be popular will remain in the portfolio. Our sales portfolio is created to make it possible for all kinds of customers to find products that fit their needs and purchasing power.

eKapija: What is the primary reason for changing the brand in Serbia?

- There are several reasons for this, the most important of which is adaptation to the market needs, that is, adaptation of the sales portfolio to fit a larger number of customers.

eKapija: When can we expect the new, that is, renovated department store to open?

- The plan is to open Emmezeta Beograd in June.

eKapija: When Kika started operations in Serbia, cooperation with about 15 local furniture makers was announced. What is the situation now, with how many of them you will continue to work, and what are the plans for the future?

- We will resume and expand cooperation with all local suppliers and manufacturers. However, this is mainly up to them. Their quotations must be competitive, which has rarely been the case so far.

By the way, the arrival of Emmezeta in Serbia will result in us establishing cooperation with over 50 new local suppliers.

eKapija: Does any local furniture maker export goods for Kika or Emmezeta stores abroad?

(Photo: emmezeta.hr)

- Yes, several local manufacturers successfully operate and market their products through Emmezeta and Kika stores abroad.

eKapija: Emmezeta is already operating in Croatia. What is your experience of that market? The media in Croatia say your stores are closing because IKEA is coming. Do you fear competition and possible arrival of IKEA in Serbia?

- Emmezeta is part of the French group Conforama that operates in Croatia for more than 10 years. The management of Conforama has made a decision on rebranding in order to adapt to the local market.

We know and follow the work of all our competitors very closely, considering that we are part of the Steinhoff International group which is one of the two largest players in the world of furniture. I believe that the mix of our local knowledge-experience and corporate logistics will make us ready for all challenges at all times. Our first challenge will be as early as in June.

eKapija: What happens with the staff? Are you keeping all Kika workers and do you plan new hires?

- The Emmezeta concept operates with a larger number of employees than Kika, which is why we plan to hire new workers and keep all current ones.