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 COMPANY PROFILE |
 …It was only eight years ago when we made our first steps…
« The company INTERSERVICE UZUNOV was founded in January 1990 . At the beginning we were just three people and our office was a former garage. Our activity was limited to copying services only and we had two copying machines only. However, the market started developing gradually and we had to adopt a more flexible approach and be able to come up with fresh ideas. Eventually we managed to become the official distributers of SHARP for Bulgaria, having already set up the necessary service outlets.
Satisfaction was to come later on, when we had already succeeded to provide to our clients AN ORIGINAL QUALITY PRODUCT, GUARANTEE AND SERVICE. It was very hard for us find the market for the original products of SHARP in Bulgaria although we gave a three-year guarantee, which was something most of the companies could not afford. Nowadays, almost everybody here associates the name of INTERSERVICE UZUNOV with SHARP as an official distributer of this brand for Bulgaria. The flexible marketing policy of our company accounted for the introduction of a 10%-discount coupon on a second purchase. It would allow any customer who had bought a product from us to enjoy a number of preferential terms on a second purchase.
In order to respond to the market demand, we started offering household electrical goods and services as well. So that is how we introduced the products of the Spanish concern EDESA on the Bulgarian market.
It was again our customers’ demand, which gave us the idea of a full house furniture. We presented to them the high quality furniture of the world famous British company BERNSTEIN GROUP. They made a good move deciding to offer prices 40% lower than those of their competitors. Everybody can make their choice in the chain of stores for furniture RALITSA selecting from 65 kitchen models, 11 kinds of bedrooms, more than
100 kinds of beds, five different living-room-furniture sets, junior sets, 3000 models of Spanish lamps, 60 models of sinks, 28 models of baths, as well as audio and visual equipment, household electrical goods, floor
The designer consultants of the furniture stores RALITSA are the people who make a computer plan of your kitchen, give ideas about the colour and the design, help you choose the most appropriate furniture for your house both in classical and in modern style.
It takes no more than thirty-seven minutes for you to be able to make the best selection for the furniture of your house in the stores RALITSA.
We refurnished the ad made a complete interior design of the hotels in the Golden Sands and the Sunny Beach sea resorts in 1996. It was our idea to develop and launch a cabel TV system for the hotels in some of the most famous resorts in Bulgaria and more and more people take interest in this new kind of product.
At the moment we have more than 8000 sq. m. of stores, services and store-houses. Two-hundred and eighty people work in our company. We have representational offices in the 11 biggest cities in Bulgaria and we cooperate with forty dealers throughout the country.
And it was only eight years ago when we made our first steps… »
OUR PARTNERSHIP WITH THE CUSTOMERS IS THE CONDITION WHICH ALLOWS US TO BE IN A CONSTANT COMPETITION EVEN WITH OUR OWN CAPACITY AND EXPECTATIONS.
Krassimir Uzunov
President of INTERSERVICE UZUNOV
Top of page.
| STRATEGY |
Interview with Mr.Krassimir Uzunov
the President of Interservice Uzunov:
Q: Could you give to our readers a brief historical background as well as your own personal experience?
A: I was born on the 10-th of September,1953. I
have graduated as a captain from a technical college;
then I have graduated the Military Navigation University,
political major. I have been employed in the Military
Navigation for 7 years, working in a submarine.
I am an officer from the Submarine Division. After
10 year long loyal service to the state, I said
some uncomfortable unpleasant words to a officer
from the Intelligence Service and I was rejected
from the party within three days and I was fired
from the Military Navigation. So I started from
a scratch. This was a very weird situation. This
happened in 1988. Then I established a company which
included my mother’s car and me - I was a taxi-driver.
I earned and saved a little money and I bought 2
old copy machines, so I opened the first private
owned workshop for copy services in town, 1989.
My prices were 5 times higher than the prices of
the state owned offices and there was always a queue
in front of my workshop because of the quality.
At that time I earned a day as much money as I used
to earn for a month as a officer. I had to decide
what to do with the money I saved - I decided to
import office suppliencies. The following year I
imported 10 copy and fax machines, so I took part
in the Plovdiv Fair. Sharp was also a participant
there, so they came to me and asked me if I was
willing to be their representative for Bulgaria
for a very simple reason - there were only office
electrical suppliencies in my 60 square metres stand
but nothing else. The other stands were showing
also shoes, clothes and etc. But they required 300
000 DEM. I did not have that amount so I went to
First Private Bank-the Varna branch. I told the
director that I needed the money to be transferred
to the headquarters of Sharp in Hamburg. But I did
not have anything to guarantee that amount of money
with. So he looked at the offer and two days later
the money got transferred and business started.
I was given a deferment of payment - 60 days. I
returned the money over a period of one year. And
we continued with increased turnovers which are
several millions DEM per year - 12-15 million DEM.
Not too much but I am not related to any banks and
crime groups, I don’t have any commitments
to anybody. There is something very interesting:
along with that business with Sharp, I wanted to
start importing other products. Their name opened
all the other doors. So we became official distributors
of Edesa, from the Frogo Holding, which is one of
the biggest in Spain, Baska Region. This company
is producing cement for Bosch, IAG, White Westing
House. These companies order their product lines
of white suppliencies in this Spanish company. I
have seen their factories- they are N:1. After that
we started importing furniture. We chose a large
English concern - Burnstein Group which is producing
for one of the largest English chains "B&Q".
They have about 260 large stores around the UK.
We import all the kitchen and bedroom furniture
from there. After that we got into connection with
another large English company - "Silent Night",
which is well known in the USA as "Silly";
they produce 3500 beds per day. We were appointed
their official distributor as well. Then we became
a representative of another large English company
producing leather furniture. So bit by bit the idea
of opening large stores shaped. In these store,
client with money would be able to furnish their
house without going from store to store and being
cheated on prices. |
Q: You were one of the first Bulgarian pioneers that carried an aggressive and persistent marketing campaign. Did it work out in an economy transition?
A: Yes, it had a great success. I want to tell you that Bulgarian clients have been cheated constantly. There were cases when Italian and Bulgarian companies took the money from their clients in advance and would disappear. My company is successful because it gives a feeling of security to the client. We do not take any money in advance and provide maintenance, guarantee and after guarantee - maintenance which gives you the opportunity to do it all at one and the same spot.
Q: How does Bulgaria look like from the point of view of your foreign partners?
A: Very weird. I am one of the favourites of the English Ambassador in Bulgaria. In cases when English Business delegations come to visit Bulgaria he calls me so that I can tell them what is going on in the country. I have never been invited by the American Embassy. I had that one meeting there when I had to go on holiday to Florida. There were 50 people queuing outside for visas and everybody was denied because they were suspected to be potential emigrants. I felt funny. My wife said that they will not give us visas either. But the lady giving the visas looked at my business card and stamped the visa right away. For me this particular moment was interesting because you can go to the States if you are fair and ethical. The problem is for those who want to stay there. I am very serious in my intentions to be involved in some of the initiatives carried out by the American Embassy because the Americans are more open to do business than the English are.
Q: I am sure you want to extend your activities. Do you plan to attract American partners?
A: Yes, I do. It is very important for foreign investors to find a company in Bulgaria, which is doing a serious business and is engaged in fair play, which they can rely on. My friendly advice to all my foreign partners, and I have a lot, is to find people who are serious and who have money and knowledge. I would like to point out that our country is very corrupted and a foreigner can never find his way by himself. First he does know whom to bribe and how much to give and how it would be.
Q: What is your relation with the Government. Do you receive any kind of help? For example, are you invited if there is a business delegation?
A: Yes, they always invite me and I always refuse for a very simple reason: businessmen are treated like suitcases. The President sits in the front of the plane with his people, and the businessmen are shown things, which are neither straight to the point nor are they given detailed information. They are invited to go on an excursion and I do not like going on excursions. Let us take our President’s visit to the USA. I refused for I was supposed to pay 6000 $ and go to USA and go sightseeing in Washington. Of course, I can go there but to meet somebody, so that we can sign a contract or do some work at least.
Q: As we say in the USA contacts often mean contracts. What are you doing to encourage your contacts in this direction?
A: I have bought the Catalogue: 50 000 Largest Companies in UK. So when I need a product I fax them a presentation of the company . Then I receive a package of brochures and leaflets, and catalogues. I do not have a problem with this because everybody wants to sell their products. Besides, if the company is present in this catalogue it is not a fiction company. There are no mistakes. I have the same catalogue for other countries in Europe. But I do not have anything about America and I do not know anything. I have the idea of getting into contact with General Electric or White Westing House but not in the sphere of their industrial activities. I am interested in the sphere of the household production. The reason is very simple: These brands are very well known. I needed a lot of money to invest in Edesa and I still cannot achieve a brand recognition. But there are a lot of other investment projects, which can be financed over a period for 3-5 years. I know how to do this but the problem with our banks is that they have a limit and very high interest - 11%. They would lend you the money for 1-2 years at the most with a limit of 2 million $. I have thought of working with an investor; there are the rules drawn and you have to comply with them.
Q: As a more personal issue, what have been your most satisfying achievement since the company started?
A: For example, I have not graduated from any economics and business major and this whole company that I am managing at the moment is going like that - forward. I guess that it is by intuition and because of my former military education and I can take decisions - I can say clearly yes or no. People who can do it they can do business.
Q: As a more global issue, what do you thing about the future of Bulgaria?
A: I think that the course of action this Government has taken, with these "fat" commissions that they require, they will not bring the country to a good end. There is no transparency in commerce and relations. Big investors are being pushed away from the country. Maybe they have already got rich and they will let things go finally. For now, according to me, the President is the real, genuine person. There is another politician that is also a good one - the Mayor of Sofia: Mr.Stefan Sofianski. All the rest are trash. I will tell you another thing. There is a very unpleasant policy implemented at the present time: All the companies that are not related in any way to the current Government are not convenient and they have to be brought down in one way or another. This is the truth and I can say it openly because I am not dependent on anybody. Few people can afford that.
Q: How would you conclude this interview?
A: You can do a clean and fair business in Bulgaria
but you need to find the right people, you need
to go to the private companies. In terms of mentality
Bulgarians and Americans are very close. Both people
are earning their money through hard labour. In
the UK is different - half of the population is
earning their money by rents. For instance I bought
an apartment in England but you cannot have it for
ever because they sell it to you for, let’s
say, 100 years. You can never sell anything like
that there. |
© World INvestment NEws, 1998.
This is the electronic edition of the special country report on Bulgaria
published in FORBES Magazine's
November 30th issue.
Developed by AgenciaE.Tv
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BULGARIA, 
