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The Phenomenon of Craft Production – Crafters Understand Not Only the ‘Spiku’ but Also the Business

It may sound a bit pretentious, but if the Croatian economy and entrepreneurship were guided by the business philosophy on which craft or artisanal production rests, we would be the most developed country in the European Union.

Crafters are entrepreneurs who understand the ‘spiku’, but also the business. They are completely dedicated to their product, from the initial selection of suppliers and raw materials, traditional production technologies, skill development, presentation, packaging, marketing, communication, and sales. Production ‘alternatives’ create added value for the product from the very beginning, expand the network of suppliers in the domestic market, place products in distant export markets, and understand modern marketing tools and communication channels. The factors of their success largely depend on whether they have initial capital or need to seek it from financial institutions, whether they have succeeded in the quality they envisioned and sold it with a good story to their B2B and B2C customers.

Craft products are also 50 to 100 percent more expensive than industrial ones, but because of all the aforementioned, they do not carry the label of unprofitability. They are not for the masses but for an audience that appreciates an authentic, handmade product with which they can identify their own image and in some way feel important. Craft products are those we will not be ashamed to serve to guests, at home or in some hotel. 

Everything started about ten years ago with beer and the pioneers of craft, Zmajska pivovara, Varionica, and Nova runda, and in the meantime, craft producers of strong alcoholic beverages, juices, coffee, and recently bakery products have emerged. Artisan bakeries have found their customers and are expanding their locations. The newest and third bakery Korica was opened two weeks ago in Zagreb’s Dežmanova Street. Last year, Bread Club, a craft bakery from Trešnjevka, also opened BC2 in Vlaška Street. 

What can be noticed in the philosophy of crafters is that they dedicate a lot of time and attention to the appearance of the product, and therefore it is not uncommon for interesting names from the Croatian design scene to participate in the packaging design, winning awards in the global market. Crafters are, however, targeted, creative producers, aware that they are small ‘Davids against Goliaths’, entering a highly saturated market with thousands of types of other craft and industrial brands.

The revenues of ‘crafter’ companies range on average from two and a half to five million kuna, except for Zmajska pivovara, which exceeds seven million kuna. These are not bad revenues for startups and small businesses; however, what if someone wants more, has greater ambitions, has market potential, customers, and capacities? At what point do you stop being craft and become industry?

What is the business philosophy of the leaders of the craft scene in Croatia and why is it so effective? Read in the new edition of the printed and digital edition of Lider.

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