Home / Business and Politics / Denis Nemčević (Spider Grupa): A Decline in Purchasing Power is Evident in the European Union

Denis Nemčević (Spider Grupa): A Decline in Purchasing Power is Evident in the European Union

In a sea of contradictory macroeconomic information and forecasts from economic analysts for this year, we aimed to clarify the actual business situation ‘on the ground’ and what signals are present for the remainder of the year. We asked the leaders of companies that are members of Lider’s Exporters Club whether this year is as stressful as the last or if they notice that the market situation is calming down, what recent trends are in their industry and how they are adapting, what their key business challenges are, and what signals they are receiving from their export markets.

Today, Denis Nemčević, CEO of Spider Grupa, answers our questions.

It seems to me that the market situation is calming down, meaning that some parameters are returning to levels they were at before the crisis. However, there have also been some parameters that have worsened compared to that period, but we can say that managing negative processes is much easier because we have been able to predict them and prepare in a timely manner, guided by experience and trend monitoring. We are no longer surrounded by uncertainty – now we can work with arranged pieces, some of which are good, and some are not.

In the production of medicinal herbs and teas, we do not see significant fluctuations and can confirm that trends are almost unchanged, meaning that changes are negligible. As a positive change, we can highlight the stabilization of energy prices, which is very significant for our industry. On the other hand, we are faced with a major disruption in capital prices, which have significantly increased, making it difficult to manage companies like ours that are preparing for large investments. We are preparing for the largest investment to date, which is expected to amount to approximately five million euros, and in this process, the key challenge will be the increasingly high capital prices.

Regarding institutional support for companies, energy vouchers are the most significant form of assistance. Here we can also mention what many entrepreneurs have been talking about for years, which is the tax relief that is often announced but never seems to materialize. Additionally, we need to note that the allocation of funds directed through calls for grants from European funds is much lower than announced, and for medium and large companies, it would be important, for the purpose of achieving growth and development, to have precise forecasts and as many opportunities as possible for realizing this type of investment.

The consumption of more expensive products, including high-end and organic products, in our segment of the food industry in Europe is declining. At the same time, the assortment in the private label category, i.e., PL assortment, is experiencing growth. This is a concrete example that supports the thesis of declining purchasing power and increasing caution among citizens throughout the European Union. We observe these fluctuations in all markets where we are present.

Denis Nemčević will also participate in the panel ‘How to do business in accordance with the EU’s green, sustainable, and socially responsible directives?’ as part of Lider’s conference ‘SMART KNOW WHAT EXPORT IS FOR’ which will be held on July 4th at the Kraš Auditorium. More about the program and speakers is available on the website. The number of places is limited, so secure your spot in time!

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