As a leading logistics distribution company, what key challenges need to be overcome in the region?
Serbia is definitely a growing market and it is going to continue to be. I strongly believe that we are going to be a part of the European Union eventually. Especially for IT companies, Serbia is the best place to invest because the labour force is highly educated and we are still much cheaper than most of Europe. So now is the right time to invest in Serbia.
Speaking about international transport, it is still very difficult for Serbian companies to enter the European market. We have borders, so our trucks can be waiting for over half a day, 16-20 hours, on the Croatian borders. A special agreement needs to be reached until we become a part of the EU. It would save a lot of working hours for us, a lot of energy and fuel.
The second thing is licenses to drive through European countries. If you are part of the EU, your truck can drive wherever it wants because the European Union is one economical market. For us it is not possible. We must have special permits, licenses, which are not easy to get anytime we want so we are not at the same level compared to the EU companies, which provide the same products as we do. That is the thing that should and could improve in the coming years to make our way of working easier.
What key facts best represent the competitive advantages of Delta DMD?
We have a very strong portfolio. We are working with the biggest companies in the world in each segment. Diageo is the biggest producer of spirits in the world and we have been their partners for more than 10 years; Beiersdorf is one of the biggest producers of cosmetic products for home care and we have been partners for 20 years; Ferrero is a confectionary producer, and we have been their partners for 15 years. So, long-term corporation, a good portfolio for Serbian market, that is the difference between our company and many other distribution companies. We are among the three or four best distribution companies in Serbia. In Montenegro I may say that by the end of this year we are going to be number one.
What should international companies looking to penetrate Serbia know?
They should look at Nielsen reports because they measure what we really do and our competitors. If you look at the Nielsen reports in each segment, for example, confectionary with Ferrero, we are the fastest growing business, and when I say we I mean Delta DMD and Ferrero. When I am speaking about Nivea, we are the market leader. When we are speaking about Diageo spirits, we are the market leader. We started cooperation with a regional leader in a wine producer company from Macedonia; we increased our market share in the first year so we provided success to our partners. We cannot do it on our own; we need cooperation with them, we need a right strategy for each product that we represent, we need solid marketing support because all of them are supporting their products. We are only implementing their strategies and we can provide the best implementation.
What is Delta DMD growth strategy?
When Serbia enters the EU our business model will drastically change. We are not going to be importers anymore, we are not going to be sellers anymore, we are going to be logistics support. Every company will need logistics support. That is why we separated our logistic business believing that in the coming years this is going to be the business with perspective. We were the distributer for Beiersdorf for Nivea for 18 years. We are today providing full logistics support for them. Logistics is the business in which we are going to invest and support in the coming period.
What will be your key milestones for the company in 2019?
We are shrinking our portfolio but expanding our business. About logistic companies, we are expanding our business every day. We have more than 2000 clients. We have a five-year strategy for Delta DMD. Each year we want to get at least one new partner.
How does CSR fit within Delta DMD?
In our company, Delta Holding Company, we have what we call third parent; we are supporting the children in Serbia whose parents do not have a solid income or who have a low income. I have two daughters of my own and I have a third daughter who is not biologically mine but I am supporting the child regarding school expenses, clothing, food, etc. Personally that is the best thing that I can do. In Delta Holding, we are supporting more than 100 children in Serbia.
