Home / Companies and Markets / Stjepan Šmit (Šmit Electronic): Working with the Chinese is very difficult, the future is in Africa

Stjepan Šmit (Šmit Electronic): Working with the Chinese is very difficult, the future is in Africa

Stjepan Šmit
Stjepan Šmit / Image by: foto Rene Karaman

In the business world, success is often measured by innovations, bold decisions, and a consistent vision. At the heart of the Croatian entrepreneurial scene, the owner of Šmit Electronic Stjepan Šmit has created an impressive journey from a small software company to a leading gaming brand in both the domestic and regional markets, driven by his passion for video games and a visionary approach. While stories of entrepreneurs raising capital through business angels, various platforms, and funds investing in anything that starts with IT or ends with hub are common these days, Šmit’s story resembles the American dream, but in Croatia.

– I have been connected to entrepreneurship in one way or another my whole life, considering that my father was also a private entrepreneur and had his own butcher shop for 25 years. I helped him every day as a kid. My parents were older, and my mother lost a leg, so I had to step in whenever necessary. My father told me from a young age that if I wanted to have something, I had to earn it – said Šmit.

Versatile Expansion Path

As a teenager, he says he never thought about working for someone else because he knew he could be his own boss. He finished electrical engineering school, after which he enrolled in computer science, thinking that one day he would simply open a TV service, but in the end, he chose something completely different. At that time, he lived with his parents in Vojvodina and, alongside his studies, sold amplifiers, CDs, and speakers, which he at one point also produced with a friend who turned it into a business. Towards the end of his studies, he opened a craft business focused on creating applications for commodity-material financial operations and realized that software development was not a difficult task for him. And then the war started.

– We moved to Croatia, and I wanted to open a company right away, but my mother and wife were against it, so I got a job at Intereuropa and gained experience there. After a year, I opened my own business and started developing software again, and by September 1994, I had already sold three commodity accounting systems priced at 1500 marks. For comparison, a primary school teacher’s salary was 200 marks. I have been an entrepreneur my whole life, and I am glad that I managed to pass that passion on to my three sons – added Šmit, whose sons Davorin, Ivan, and Antonio run their own successful companies focused on influencer marketing and video content production.

– When I was at the service with the old Hyundai I was driving at the time, I saw a new van and thought: ‘Maybe one day you will earn enough to buy a new van.’ A few years later, we had three such vans in the company – recalled Šmit, whose company dealt exclusively with software for ten years, and in 2001 and 2002, their software was used in over two hundred Croatian companies.

In addition to developing software, Šmit Electronic has been selling and servicing computers, printers, and consumables from the beginning, and when favorable loans for companies started to be offered, he opened the first store in Kutina. Their products, Šmit says, were purchased by all companies from Gradiška to Virovitica, Bjelovar, Jasenovac to Novska.

– By the late 90s, we had stores in Kutina, Sisak, and Gradiška; that was our path of expansion. We stopped dealing with software because it started to burden me too much. People use it every day, so I often had to answer early morning calls or on Sundays during lunch. New Year’s was the worst because after noon everyone was entering inventory, and I was on the phone all day. As early as 2004, I realized that stores would not be the future for Šmit Electronic because Vemil, HGSpot, and Pevec all started opening stores in every village, so we decided to stop retail. That was when the decision was made to start importing from China – said Šmit.

He and a colleague were at a fair in Berlin when Šmit saw TV stands and immediately realized that this was it. A piece of metal that is easily installed on the wall, onto which you mount the TV, and then ‘you sell it and forget that you sold it.’ The complete strategy of their business with import and distribution from the beginning was to deal with such products, without computers, TVs, and electronics. Stands, cables, and similar products opened the door to their office equipment brand SBOX, which was established in 2007.

– It was great at that time because the market was expanding due to LCD TVs, so everyone needed stands. Laptops came along, and we started distributing various bags, stands, adapters, screen cleaning products, and then from 2011, we began with IT peripherals, such as mice, keyboards, speakers, and headphones. Shortly after that, we also started with gaming, which today accounts for more than 50 percent of our sales. This is how the brand White Shark was created, which focuses precisely on that – said Šmit.

What are their future plans for White Shark and why does Šmit believe that working with the Chinese is difficult? Find out in the new issue of the printed and digital edition of Lider.

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