Mr. Jovan Milivojević, Director of Marketing and Sales at the Keramika Kanjiža company

speaks for Profit magazine.

Mr. Milivojević, where were you born, where did you grow up and where did you receive your education? What did your career look like before you became the Director of Marketing and Sales at Keramika Kanjiža?

I was born in Novi Sad. That is where I grew up, moved from childhood to adulthood and received my education, fell in love for the first time and got married. I still live in Novi Sad with my family and for me it is the most beautiful city, especially when I come back home after a long trip or absence, due to my work commitments.

My career began, I can freely say, in an unusual way. As a child, I had quite a talent for drawing, esthetics, and beauty. I grew up in a family of designers and architects, and it seemed that it was going to be my path as well. When I was thinking about college, everyone was saying that I should choose interior design, and I was almost sure that it was going to be architecture. However, when it came down to it, I was aware that I did not have the developed work habits in order to study architecture. I thought about it for a very long time, and at that time economists and bankers had become very popular, so I decided that finances would be my path after all. Although I completed my studies in financial management, my love of beauty persisted. I was still very much drawn to it and realized that this would definitely be a significant part of my life, so I decided to merge the two seemingly incompatible things. I stepped into the world of ceramic tiles and completely found myself in it. I started working when I was very young, and my first job, which in my opinion cannot be called a job, was an apprentice assistant in sales, in one of our domestic companies. It was not in the least difficult – I wanted to know everything. I wanted to learn and work, to develop, and improve. Soon I became a salesman, and then a cashier. This was followed by the position of Head of Retail and then wholesale as well. The main guideline for me was that success is built on strong foundations that include knowledge, work, discipline, learning and development.

Success did come, and soon I was confronted with a huge challenge – an invitation to work in the Keramika Kanjiža company. My job was to help the brand regain its former glory, develop decor, introduce new range of products, regain and then maintain the leading position on the domestic market, and to develop exports to the markets in the region. Apart from the challenge, it was also an honor for me – to be part of a long tradition and history of one of the best manufacturers of ceramic tiles in the region. I accepted, and four years later, here we are in the leading position, with impeccable quality and design that suits a wide variety of markets.

Keramika Kanjiža is the leading domestic manufacturer of ceramic tiles. This year your company celebrates 35 years of successful business. Can you tell us more about the history of the factory and the company's development?

The Keramika Kanjiža company and the factory began operations on November 29, 1980. Since its foundation, the guiding idea has been quality without compromise, continuous investment in the production development, technology modernization, as well as employee training. At the very beginning, the factory was producing three dimensions of tiles and only five types of decor. The first tile that came off the production line was beige with polka dots, and was named Maya. Because of significant investments in 1991, Keramika Kanjiža became the first manufacturer of tiles in the region to introduce an Italian machine for fast firing into regular production. This enabled us to increase our annual production capacities, but also to be the first to enter the domestic market, as well as regional markets, with larger tile dimensions. Along with product quality, the company has also developed design, and is determined to always be a trendsetter – to set high business and quality standards, especially on the domestic market. During these three decades, the company has not withdrawn from its initial idea, so in 2013 it was the first to introduce an InkJet digital printer in its regular production. The first one was followed by a second, and a third, and in early 2016, Keramika Kanjiža became the only domestic manufacturer of ceramic tiles that has digitized 100% of its production process. In addition, due to the quality, as well as the design that we have developed, we are now able to offer our customers 5 dimensions of floor and wall tiles and more than 170 different types of decor for different tastes and markets.

During the past 3 years, the company has invested over a million euros in improving energy efficiency and environmental protection, which is why we are the only factory to have been awarded the “Environmentally friendly” ecolabel. Taking all of this into consideration, the competition on the domestic market is far behind us today.

Last year was a year of great positive change for the Keramika Kanjiža company. According to the Chamber of Commerce data, Keramika Kanjiža is the largest exporter of ceramic tiles in Serbia with a 39% share. Tell us the exact number of produced tiles and what percentage is it of your total output?

By improving the product and its quality, modernizing production, and improving design we have become competitive in the most diverse markets – from the Czech Republic and Slovakia, across the countries in the region, all the way to Russia and Kyrgyzstan. During 2015, we exported 50% of our annual production, which is around 1,100,000 square meters, thus representing 39% of the total export of ceramic tiles from Serbia. This is a great success for us, but also a proof that the Keramika Kanjiža company offers domestic products of superior quality. In 2016, our goal is the production and sales of a record 2.5 million square meters, with the same product placement ratio – 50% on the domestic and 50% on foreign markets.

Despite unfair competition and uncontrolled import of low quality tiles, Keramika Kanjiža has managed to retain its leading position on the domestic market. In what way and with what strategies are you able to achieve this?

Unfair competition and an uncontrolled import of low quality tiles are a part of our everyday lives and a constant ongoing struggle. It is not easy at all to maintain the leading position in such a business climate. Our initial strategy was to create a solid foundation for the “struggle” with regard to the product itself – in our factory we work with premium quality Italian materials, Italian colors, as well as the most advanced Italian machinery used by eminent ceramic tile manufacturers. Additionally, our design department has given the product a new look. In the past two years, we have decided not to lag behind global trends, but to keep up with them and be the first to introduce them on the domestic market. For all that time, the quality of our products has remained uncompromised, and thus we have offered our customers world-class, domestically manufactured ceramic tiles of the highest quality at affordable prices. The second part of our struggle involves communication and the education of all target groups – from customers, business partners, architects, investors, all the way to consumers. Our goal is to make them aware of the current situation – imported tiles are of poor quality, often lower in class, and must not be imported into other European countries due to strict quality control. This is where our communications department comes into play – over the past year and a half we have developed communication with all target groups: the media, customers, consumers. We have managed to draw public attention to this issue by means of numerous educational texts, interviews and statements. We have also taken a significant step forward in the digital sphere, where we have developed fast two-way communication with our consumers via social media.

What are your long-term, primary, and strategic goals and expectations for the next period?

For 35 years, Keramika Kanjiža company has had one primary goal, and that is to develop all aspects of the business. Therefore, the task our management has today is not an easy one, and great challenges and plans for the next period lay ahead. Our primary, as well as long-term goals include investing in new technologies, introducing larger format tiles into production, and launching our decor in Western Europe. As for our strategic goal – it certainly is to increase the export rate to countries of the region and the European union, as well as to open up new foreign markets, expectations, etc. My own expectations might be the greatest. My biggest expectation at this moment is for the Keramika Kanjiža company to present its products in 2017 at CERSAI, the largest European ceramics exhibition, which is held annually in Bologna, side by side with the largest European manufacturers of ceramic tiles.

Your company was the first on the domestic market to digitalize its manufacturing process. Can you tell us exactly what this means for your company, and thus, for consumers?

The digitalization of the manufacturing process raised our company, and our products, to a higher level. Above all, the digitalization has enabled us to improve the quality of our products and decor. By introducing InkJet digital printers, we have developed a completely new segment of ceramic tiles – floor tiles for indoor and outdoor use and facade tiles that imitate and closely resemble natural construction materials. Digital printing can bridge the gap between texture and glaze and allow for the creation of complex and creative decor. This new technology can be used to apply color to the entire relief of the tile texture, with great precision. The color application is so precise that it can be used to increase the dimensionality effect - coloring and shadowing are used to emphasize depth, and give definition. This enables the reproduction of natural materials, which look so realistic that it can even fool the observer. As a result, for two years in a row, Keramika Kanjiža has been the company with the highest number of tile sales, especially the ones from the Domus and Ambiente series – an almost surreal reproduction of wood available in multiple colors and decors. Aside from developing new decor and increasing the assortment, digitalization has enabled us to expand our production capacity, and also reduce our prices, which has had a direct effect on customers. Digitalization has also enabled us to offer investors and customers the possibility to personalize their tiles upon request – both on existing decor and completely new ones, which will allow customers to express the individuality of their projects and premises, while maintaining the familiar quality of Keramika Kanjiža tiles.

You dedicate your tradition of over 3 decades to hard work, which has brought you much recognition and many accomplishments. One of those is the “Nova vizura za inovacije i kvalitet” (“New Vision for Innovation and Quality”) Award, as well as the “Environmentally Friendly” ecolabel.Can you tell us more about these certificates and what exactly do they mean to you?

Every certificate and award mean a lot to us. They serve as a confirmation of our work over the decades, the experience, knowledge, and dedication that Keramika Kanjiža is characterized by. The “Nova vizura za inovacije i kvalitet” (“New Vision for Innovation and Quality”) Award is the most prestigious and top award presented at the construction fair. We received this award in 2013 when we presented, for the first time, the very first tile in Serbia that had been decorated using an InkJet digital printer. At that moment, the “Nova vizura” (“New Vision”) Award was confirmation that the company is on the right path and that it should continue to develop in the same direction. The “Environmentally Friendly” ecolabel soon followed. This award is especially dear to me because it shows that we are not just a company that works for profit, but rather a company that protects the environment and the community in which it operates.

This year you were presented with the prestigious “Korporativni Superbrend” (“Corporate Superbrand”) Serbia Award for 2015-2016, in the construction material category. This award is yet another confirmation of the fact that by being able to meet a list of high standards, your company is the leader on both domestic and regional markets. What is the basis of your company’s business and how motivating is this award in terms of future business accomplishments?

The “Korporativni Superbrend” (“Corporate Superbrand”) Award came at the perfect moment, a year and a half after the active development of the communications department. It confirms that we reached the goal of building our brand image in the minds of our consumers. We have returned the company its former image, which was well deserved, through hard work and quality – Keramika Kanjiža’s tiles are the best domestic ceramics, both on domestic and regional markets.

The Keramika Kanjiža company can also take pride in being highly socially responsible and caring for environmental protection, as well as organizing charities, giving donations and encouraging the use and development of energy efficiency. Tell us more about it.

For the Keramika Kanjiža company, this represents an important and integral part of business. It is something we will not give up on, and we believe that a company is obliged to commit to the community in which it operates and to do whatever it can to even slightly contribute to the development of society. In our company, we believe that it is the young and talented people that represent our greatest strength and hold the key to enhancing the economy and the industry. At the end of 2015, Keramika Kanjiža began collaborating with two vocational faculties – the Faculty of Media and Communications and the Faculty of Arts and Design – with a professional training program. The students of the Faculty of Media and Communications conduct their training in our marketing sector. On the other hand, with the students of the Faculty of Arts and Design we have organized a project task in which students from all departments can participate – designing a 33x33 ceramic tile. The idea was that young people, unburdened by commercial aspects, would come up with completely new ideas and concepts of furnishing. The result was phenomenal. We chose 6 of the best designs which we manufactured and presented together with our new collections for this year. After that, these student designs were added to the faculty’s gallery, and the exhibition was entitled “From an idea to the finished product”. I am pleased to say that this exhibition was one of the most visited ones during the Night of Museums, a fact we are particularly proud of. We will continue collaborating with these two faculties in the coming period.

During the previous year, we helped renovate the departments of three major hospitals throughout Serbia by donating EUR 10,000. In addition, for a second consecutive year, we have participated in the Kuća od Srca (House from the Heart) show, which restored and renovated houses for 10 of the most disadvantaged families in Serbia, and we furnished several kindergartens in Belgrade and Vojvodina. We will keep this pace up in the coming period.

Educating employees is essential for the business of any company. How do you educate your employees?

If I had to choose one thing that sets us apart from others – I would certainly choose our employees. That is why we invest in their development. We organize training sessions for different sectors, send our employees to seminars, prepare educational material and familiarize them with new technologies and trends. This way of doing business always provides results and we believe that investing in employees is a longterm investment and a road to success.

Mr. Milivojević, how do you assess the position of domestic products compared to imported ones, what are the problems with imported tiles, and what is the current position of domestic manufacturers?

Unfortunately, the belief that anything domestic must be bad and anything imported must be good is still predominant here. This belief has begun to change over the last few years, but not at the rate that it should be changing. In terms of ceramic tiles, the situation remains unchanged. There is still no control of imported tiles; they enter into retail sales without the necessary quality certificates, they are not declared in terms of class that they actually belong to, etc. Even though they are declared and sold here as high-quality imported ceramics – this is not the case. These are small quantities, low class and poor quality remnants from ruined and abandoned factories, unable to meet all of the standards prescribed for a ceramic tile, even in the slightest. You can also see all of that by looking at their price – which is often lower than the base price of a tile in production. Unfortunately, it is often the price that attracts people – the economic crisis and the low purchasing power of citizens have taken their toll. The average customer is thinking – “I have an imported (Italian, Spanish...) tile that costs less than the domestic one. Since it is imported, it must be better, and it’s cheaper, so this must be the right choice.” What the customers do not know is that, during the laying of the tiles, they will have to buy a significantly larger quantity due to breaking and fracturing caused by poor quality, and they do not know that the tile will soon change color, crack, develop spots and stains, and fall off.

Domestic products are not in a good place. The state does nothing to protect them, while at the same time providing numerous subventions and benefits for foreign companies and investors. Keramika Kanjiža has been in business for 35 years, it has almost 250 permanent employees, it produces 2.5 million square meters of tiles and is the biggest exporter from Serbia into countries of the region and the European Union, while having to deal with serious issues on the market that directly affect business on a daily basis. What we want is for the law to be applied equally to everyone, not selectively. Keramika Kanjiža is not the only company facing this problem; this is a universal problem for domestic manufacturers.

What are the trends in the ceramic industry in the world and on the domestic market, and what are the business plans of your company in the coming period?

With the development of technology, ceramic tiles have been taking up a significant part of interior furnishing during the past couple of years. For a while now, imitations of natural construction materials have been trending in the decor segment – wood, stone, gravel, concrete and bricks. Ceramic tiles are no longer installed only in kitchens and bathrooms, they can be found in living rooms, bedrooms, on facades and partitions. In addition, 3D tiles have also been trending, and it is my great pleasure to be able to say that Keramika Kanjiža was the first in Serbia to produce a 3D tile, that was given the name Onda, which achieved great success. This spring, the Maiolica motif was a great inspiration for all the designers in different industries, and by producing a colorful Maiolica series in April, which became a favorite among customers, we have once again proven that we are keeping pace with world trends.

In terms of technology and technical characteristics, the demand for tiles of ever increasing dimensions and formats is on the rise, especially when it comes to large-scale projects. This is precisely the direction of our plans for the following period – implementing new technologies into production and increasing the tile format. Furthermore, we plan to continue working on social responsibility projects and environmental protection.

If you could, would you have changed anything in your career, up until now?

This is probably the shortest answer I have ever given – no! My career path has been exactly the one that I wanted. No matter how difficult it has sometimes got, each day has been a new and priceless experience for me.

How do you manage to overcome everyday stress? What is your life motto?

The people close to me and my associates know that I never say “I can’t” or “impossible”, and that I never ever give up. That is the idea that leads me through life – there is a solution to everything, and everything can be achieved through dedication, hard work, improvement and tenacity. My team knows this best – over time, I have taught them to aim higher and higher, and that the greatest challenge is to outdo yourself every time. Today, they make their own monthly plans and they achieve impeccable results, which makes me very proud.

Regarding stress, recreation is the best “medicine” for me. Playing basketball or football with friends, taking a walk with my family, or fishing – that is what I do to unwind and recharge my batteries.