Serbia, Croatia and Slovakia – not ready for monobrands
Belgrade, Zagreb and Ljubliana are among the most dynamic Central and Eastern European capitals in the past 5 years. Increasing foreign investment has helped boost the local economies and at the same time, regulate the markets. The bureaucracy, ret tape and grey economy image is soon fading away, more and more rating agencies improving the status of these countries.
Undoubtedly, Serbia has the highest number of wealthy people among the 3 countries, with a very brand oriented customer profile. In spite of this, there are several factors which still hinder the development of the luxury industry (valid for all 3 countries)
- real estate issues (ownership, leasing terms and prices etc)
- lack of local experienced retailers or entrepreneurs to invest in luxury retailing
That is why, we believe the three markets are most suitable for multibrand distribution for fashion, accessories and jewelry at least for the next 3 years. From 2012, depening on the current politica and economical situation, the markets might be ready for mono brand frachises of international luxury brands.