Alpod Group

From a rented space to four subsidiaries

After completing his studies in chemical sciences, Matjaž found his first job at “Brest”, a furniture manufacturer from Cerknica. Despite the company failing to survive tumultuous times, he found an opportunity in the new laminate material, which he first saw at their German manufacturing partners. “I found the material very interesting, offering a wealth of opportunities for its use, although at the time it was not popular in either Slovenia or Europe. Nevertheless, I saw scope for further development,” remembers Matjaž of the beginning, when he chose laminate as a cheaper alternative to ceramics and parquet.

To strike while the iron was hot, in 1998 he started his own independent business in rented premises and with borrowed money. “Twelve months later I was joined by a few of my colleagues, while my brother entered the family business four years later, after he finished his studies. The business developed rapidly and we had to expand production to our own premises. Only five years after establishment we had our own warehouses,” continues Matjaž.

The company’s core business has always been floor covering. The opportunity Matjaž seized eventually proved fruitful, although things were rather difficult at the very beginning. “There are probably only a handful of business stories without some hiccups at the start. Over the years, we have invested significant hard work and effort, sometimes putting our family and friends second. However, seeing the business evolving in front of your eyes, gives you added impetus,” explains Matjaž. They established their first subsidiary in 2005 in Croatia, followed by branches in Serbia and Slovakia and two years ago also in the Czech Republic. They employ 92 staff: 51 in Slovenia and 42 abroad.

Attracting the interest of customers from around the world

All materials used in floor coverings are imported, as currently there is no equivalent production in Slovenia. Three years ago, they established a separate department for the finishing of imported semi-finished products, which they process and paint according to the wishes of architects or end customers. Their aim is to expand the supply of finished or semi-finished products to other European markets. “We intend to gradually penetrate the markets of neighboring countries, such as Italy and Germany. In addition, we have established a joint venture in China, which will drive our future growth. Last year we recorded 15% growth, while this year it is estimated to reach 10%. In the future, annual growth is expected to range between 5% and 10%. If we continue to set up new businesses, this will automatically be reflected in these figures,” believes Matjaž.Five years ago, they joined the INTECH-LES consortium to develop new types of floor coverings. “A number of our employees are working on new products, especially on the finished look and we pay great attention to development,” adds the Director.

Their competitive advantage is mainly due to their wide product range, as they are the providers of all types of flooring. In Europe, they also sell products imported from Asia or South America, while European products are sold in Asia and the Americas. “This meets our customer demand as they either do not have access to factories or are too small to engage in major business transactions. Some also lack an appropriate organization or else they just need an intermediary. Our advantage is that we offer a whole range of floor coverings. If we were only selling a single segment, the attraction for customers would be considerably lower. We are a supplier that can meet all the needs of small and medium-sized customers,” states Matjaž confidently.

Honesty as the key value of the company and the family

Honesty as the key value of the company and the familySamo, Matjaž’s younger brother, is the Commercial Director of the family business. The brothers cooperate well and complement each other. While Matjaž primarily manages relations with banks, investments, liquidity and finance, Samo is responsible for optimum sales performance. “Matjaž putsforward a completely different impression of a family business than I do. In addition, he is a much harder negotiator, which is important in procurement and relations with suppliers. He commands respect from everyone he meets,” explains Samo. The basic value of the company is honesty, both in business and interpersonal terms. “Honesty is one key factor of success and the other is having our feet firmly on the ground. We are not on cloud nine, we are not presumptuous; we respect employees, customers and suppliers alike and have a respectful attitude towards everyone around us. Long term, this is the key to success,” says Samo confidently.

Despite the excellent cooperation between the brothers, Matjaž does not intend to force his children to join the family business if they do not want to. He believes that none of his four children will start their career in the family business as he is confident that they need first to gain experience elsewhere: “In any case, they need to spend a few years away from the family business to create their own social and professional network, as this is essential for any business. My two sons and daughters are interested in very different areas. The eldest daughter is about to complete her pharmacy studies, the eldest son is studying financial mathematics, the younger one is about to start studying economics, while the youngest daughter is still in senior school,” says Matjaž, proudly describing the next generation of the Štefan family.

Trust as the advantage

Matjaž and Samo are both convinced that the greatest advantages of their business are fast and efficient communication and mutual trust. In most cases, they reach an agreement without a great many words. “Sometimes we only need two or three words to come to an agreement. I rarely learn about issues that Matjaž is in charge of because I am confident that he will make the best decision on his own. Vice versa, issues that I am in charge of (unless they are key business issues) rarely have to be shared with my brother. Usually we agree a solution within half an hour of discussing a problem and implement it the next day,” explains Samo of their brotherly trust.