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Let’s Try Grodno Kitchens

Let’s Try Grodno Kitchens

In the 1990s, many Belarusian entrepreneurs went into furniture production due to the increased demand for this merchandise. New production facilities emerged all over the country, even in small towns and villages. Not all of them have survived the tough market competition.

According to Oleg Zukhovitsky, the ZOV-LenEVROMEBEL Director General, the company managed to promptly adapt to new market conditions because it was a resident company of the Grodnoinvest free economic zone. Richard SALATA, Economy of Belarus Magazine ZOV-LenEVROMEBEL, a resident company of the Grodnoinvest free economic zone, is a brand leader in design, manufacture and marketing of fitted kitchens and furniture in Belarus Ingredients of Success Apart from professionalism and enthusiasm of the company’s employees, Oleg Zukhovitsky lists some more factors which help ensure a stable and effective performance.

Firstly, these are tax and customs preferences provided to resident companies of free economic zones (FEZ) due to which all the projects implemented within the zone pay back from one to three years. In particular, taxes on exports and import-substitution products are 40% lower. FEZ residents, including ZOV-LenEVROMEBEL, are exempt from profit taxes within the first five years since their founding and after that period they pay twice as low profit tax as other companies. Besides, FEZ resident companies do not pay real estate taxes on the premises located within the zone and import equipment and materials duty-free. All these factors foster dynamic economic development of ZOV-LenEVROMEBEL.

Here is another ingredient of success, according to the company’s director: “We were not after immediate profits. Within the first five years we invested all the profits we made in the production development. We bought new equipment, implemented new technologies and used new materials. As a result, we grew into a big holding company incorporating several subsidiaries employing 1,300 people. Ten years ago we started with a team of five whereas now ZOVLenEVROMEBEL alone has a 440-member staff, our production facilities operate 24 hours a day and employ cutting-edge equipment of leading Italian and German firms. We implement state-of-the-art technologies at all the stages of the production process. All this allows us boosting furniture production on a year-to-year basis and increasing the number of new jobs.

To Avoid Replication

Today ZOV-LenEVROMEBELis the largest manufacturer in Grodnoinvest. It produces kitchen units and furniture from both chipboard and more expensive materials such as cherry, oak and pine. But still the moderately priced kitchens are made of laminated chipboard, they enjoy the greatest demand. Oleg Zukhovitsky says that series production is not very popular nowadays. People do not want to have the same furniture as their neighbours. That is why the company has introduced kitchen planning and design services to produce customer-made kitchens. It is noteworthy that to order such a kitchen one does not have to go to Grodno. More than 200 furniture specialist outlets all around the country feature ZOVLenEVROMEBEL showrooms.

If necessary, the company’s designers will make a sketch of the future kitchen on the spot and e-mail it to Grodno where it will be processed further. By the way, ZOV-LenEVROMEBEL production facilities are capable of producing tens of units simultaneously. This, to customers’ general satisfaction, makes the end product cheaper. It is noteworthy that the company also manufactures cabinet furniture and dinette sets, though production of kitchen units remains its main specialization. ZOV-LenEVROMEBEL employees have developed an effective scheme of designing moderately priced fitted kitchens. A designer examines a kitchen area and makes an individual design which incorporates standard kitchen units with custom-made elements making each kitchen look different. The results of applying this simple scheme are quite impressive as the production process is fast and cheap but the end products are exclusive all the same and superior in quality.

The company also sells fitted cabinets, worktops, cupboards, carcasses, and other products separately. So, customers have an opportunity to assemble their kitchen furniture on their own. The demand for fitted kitchens has been constantly growing. According to the statistics, every third kitchen sold in Belarus is made by ZOV-LenEVROMEBEL.

Basic Guideline: to Keep Stocks Clear

ZOV-LenEVROMEBEL manufactures custom-made furniture. Cabinet furniture and the Alesya kitchen line are popular not only in Russia, Ukraine, Kazakhstan, Tajikistan but also in the USA, the Dominican Republic, Israel. Not long ago a new showroom was opened in the city of Haifa and the company announced plans to open its outlets in other Israeli towns. They say, commerce has no boundaries. Therefore, ZOVLenEVROMEBEL intends to conquer other markets world-wide. The outlook in this respect is quite bright: the economic performance is stable and the interest in the company’s products is high which has been demonstrated during numerous international furniture fairs in Minsk, Moscow, St. Petersburg and Novorossyisk. New partners note the company’s close attention to the latest trends and ability to adapt to any changes in customer preferences and needs remaining committed to making products of superior quality.

In 2007, ZOV-LenEVROMEBEL manufactured goods to the total amount of Br 53990 million, reporting a 15.1% increase from the previous year. Exports more than doubled to reach Br 43054 million. Imports totalled Br 22397 million. The payroll total grew 1.5 times with the average monthly wage exceeding Br 800,000. This year the company intends to launch the production of new round-shaped kitchen modules. New cupboard doors and wooden tables will be designed for the

Richard SALATA, Economy of Belarus Magazine