Although they are known for their premium damask bedding, tablecloths, and napkins that adorn luxury hotels and renowned restaurants around the world in countries such as the United Kingdom, the United States, Canada, Switzerland, Germany, Austria, and Scandinavia, Textile Factory Trgovišće (TTT) immediately shifted to the production of cotton masks in the circumstances of the COVID crisis.
As the consequences of the impact of COVID-19 were certainly negative for their business, as customers around the world were physically closed for months and without guests, and tourism, to which they are closely linked, suffered the most of all sectors, their mask production was the only source of income in April and May.
TTT Director Mario Popić emphasizes that they will not suspend the production of cotton masks, which they also export, as long as there is demand in the market and that in the short term they want to retain customers and markets until the COVID-19 issue is resolved. However, if the expected reshuffling of global supply chains occurs and the processing industry begins to return from Asia to the West, Popić is confident that they will be ready to seize such an opportunity.
Strength is in premium products
– Our advantage lies in our own high-quality product that we control at every stage of production and export. Thanks to this, we are not dependent on a single market, a single customer, or external processes. Therefore, we base our long-term goals on premium product quality, quick response to customer demands, and the security and level of service we provide before, during, and after they choose our products. However, waiting for everything to return to normal is not an option, and we are already developing new collections of table and bedding linen that we plan to significantly enhance retail channels. Although we produce household textiles, 90 percent of our sales are achieved in HoReCa distribution to professional customers. Our desire is to provide everyone with the opportunity to enjoy bedding at home as in a luxury hotel. Online sales and retail will certainly have a larger share in the future, which will strengthen our market position, “said Popić.
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By utilizing state incentives for job preservation and a moratorium on loans, as well as the placement of cotton masks, they retained about seventy jobs in a short period, but Popić is already writing off the results for 2020 completely, which means that 2018 will remain a record year for some time.
It is difficult for him to predict what will happen while the epidemic is still ongoing, as there can always be a renewed closure of any entity in any market in the world. The conjuncture of the last few years at TTT has been used to increase efficiency and savings in all segments of business, and the good results from those years now facilitate their survival. Although recovery will be long and slow, Popić believes that they will successfully resolve this difficult situation as they have many times before.
In the US via Las Vegas
Since joining the European Union, their export share has continuously grown, with the largest market being the United Kingdom, followed by the German-speaking market. Due to their focus on the UK, their biggest challenge in recent years has been Brexit, as the pound significantly weakened after the 2016 referendum, leading to unprecedented uncertainty in the British market, which brings them a third of their revenue, explains Popić.
– Delays in leaving the EU during 2019 further disrupted the results and prospects of the British market. During that period, we paid more attention to new markets such as the US, where the five-star hotel segment is larger than anywhere else, and we established cooperation with several partners. So far, we have achieved our best results in Las Vegas, where we equipped several restaurants within large hotel casinos. Overseas business is logistically extremely demanding, so we have a local representative for the North American market, while we manage all other markets from Veliko Trgovišće. In the domestic market, we cooperate with the largest hotel groups and caterers from Ilok to Dubrovnik and almost all industrial laundries. Laundries, alongside hotels and textile traders, make up the third important group of customers for our products, “claims Popić.
