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Serb designer is prêt-à-profiter

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Serbia does not boast a fashion industry tradition and Belgrade is no haute couture match to Paris, London or Milan. This, however, did not discourage Bozidar Antic, founder and general manager of the Serbian clothing company Nicola'S. He realised that innovation, good marketing, insistence on quality and making the best of good advice can reap great rewards. In the last 10 years, his venture has become a catwalk and retail success. With the support of the EBRD Turn Around Management (TAM) programme, he is now aiming even higher.

Nicola'S was launched in 1992 with the national market as its target. Over time, the firm came to produce up-market day and evening lines for men and women, clothes that have become commercial hits and built a solid name for the brand in Serbia. Nicola’S clothes have become so popular that unauthorised copies have been spotted on the market. And since elegance, good craftsmanship and durability are marketable beyond Serbia, the company is planning to enter foreign markets too.

The EBRD’s TurnAround Management (TAM) Programme has been working with Nicola'S since May 2004, part of a €4 million European Agency for Reconstruction programme. The TAM Programme uses donor funds to hire technical experts who advise local companies in the EBRD region about management skills, business planning, restructuring, improving products, reducing operating costs and developing local and export markets.

Achieving targets

TAM advisors have been helping Nicola’S define and achieve its targets. As with most cases taken up by TAM, Nicola’S is expected to work with the advisors for a maximum of 18 months, during which know-how, advice and practical assistance will be passed on to the enterprise. Two senior industrial advisors from Austria have identified areas in which the clothier needs improvement and are discussing necessary changes and business strategies with Nicola’S management.

"Roman Pelka, one of the advisors, has extensive experience in the textile industry and immediately pointed out to Nicola'S the importance of using quality materials," notes Charlotte Salford, Director of TAM/BAS programme team. "The company now imports the finest Italian fabrics and has focused on perfecting the overall quality of its products." TAM/BAS Deputy Director John McPhee adds: "In addition, we have pointed out the need to streamline product lines. It makes no business sense to have a vast number of collections, and Nicola'S has now begun to cut down and market their lines in a clearer and more focused way."

Results are already apparent, giving further impetus to the firm’s re-branding and export strategy. Nicola'S has been consulting with EBRD-appointed experts to better define nearby niche export markets. Trading relations between former Yugoslav republics have improved in recent years and so the Croatian and Slovenian markets have emerged as priority targets for Nicola’S, while the company has set its long-term sights on the Greek, Austrian and German markets.

Visiting fashion capitals

These more ambitious goals mean no detail can be left to chance. Following the example of established designers, TAM has launched an initiative to bring the Serbian design team closer to the cutting edge of European fashion. "The best 're-training' scheme for them is to get a chance to visit the metropoli of their art, walk the streets of London and Paris, see boutiques and markets, feel the vibe and take it back to their design rooms in the form of inspiration," says Mr McPhee. TAM also advises on everyday details that make a big difference: "Pick the out-of-fashion colour when ordering fabric for a line,” says Mr McPhee, “and you can lose a fortune."

Bozidar Antic had a chance to present his impressions of TAM/BAS during the EBRD’s 2005 annual meeting, held in Belgrade. The fashion impresario, whose profits have been rising of late, was enthusiastic: "The experience has been extremely positive. With concrete and practical advice, we have made changes to our internal structure, as well as new international contacts that can help us expand business opportunities."

Defining success

So what is the key to TAM's success?

"It is not our job to change things by dictating, but to communicate why changes must take place,” says Ms Salford. “That is why projects can be terminated if CEOs of the local companies receiving TAM advice don't seem willing to embrace a new spirit. Instead of just offering advice or tips, we try to pass down knowledge and a sense of the business," she adds, reviving the old and well-applied principle that teaching people how to fish is preferable to giving them fish to eat. The net gains Nicola’S has realised in working with TAM prove the point in practice.

Article written by Communications Consultant Constantinos Bogdanos.

4 August 2005