Nenad Bozovic, head at Lindstrom - We will keep our eyes wide open

Nenad Božović

We are not planning short-term success at new markets such as Serbia but first of all growth on long-term basis. Serbia is 23rd country where Lindstrom runs its business. In the process of signing big contracts with very important clients both at local and international level, which will enable us stabile growth of business and good references at the market, Nenad Bozovic, head at Lindstrom, says in his interview for eKapija.

This Finish company operates in production and maintenance of workwear and in December last year it officially took over business of local service company, HWS Hygiene Solutions. Thus Lindstrom continued growing and investing in Serbia.

eKapija: How developed is the clothing rental service in Serbia?

- Workwear rental service is relatively new in Serbia. At the moment we are pretty much competing against the traditional way, meaning that companies own the textiles and the garments are washed at home. So there is a huge growth potential for us in Serbia.

We are witnessing a change in how companies see the benefits of rental workwear service in saved time and money. The companies will save the time consumed in workwear purchasing and maintaining and can focus on their core business.

eKapija: When you have already mentioned, how much attention does your company pay to hygiene of workwear?

-At Lindström, hygiene is taken into consideration from the design stage. The designs and materials are selected with attention to ensuring that no foreign particles can reach the foods and beverages. For example, the clothes often have no pockets above the waistline.

Our operations are based on a business model of rental workwear service, including everything from renting the workwear for its maintenance and sustainable disposal of the garments. Lindström’s laundry operations are built on a unique modular laundry concept, which comprises not just the laundry service, but also business models, work methods and operating systems.

The service centers are always close to the customer so Lindström’s way of working is not justbeneficial to the company itself, but alsoto customers and the environment.

eKapija: Who are Your clients, and from which industries do they come?

- Workwear services are used in all kinds of companies. The healthcare and food industries are the most obvious, but also the service sector has found the benefits of easy, cost efficient and reliable service and the significance of coherent, stylish workwear. The size of companies varies from companies with few employees to multinational corporations with thousands of employees. Lindström workwear service fits all.

eKapija: What is the lease period for one working ouftit e.g, on the average?

- Our service is always tailored to fit the customers' needs so the lease periods vary. Our goal is to build long-term customer relationships. For us genuine partnership requires continuous development of operations and mutual benefit in business.

eKapija: Are You planning any new acquisitions in the market after emerging the „HWS Hygiene Solutions“ company?

- Acquiring HWS Hygiene Solutions' assets, including business operations, employees and a strong client base with respected companies in the market,was part of our growth strategy in the market. It enables us to serve our Serbian customers with a wider service portfolio, including workwear and mats.

Our rental mat service is a care-free and cost-efficient solution for maintaining company’s image in top condition. Our range includes standard and logo mats. In addition weprovide our customers ergonomic mats for welfare and safety needs.

We aim to provide the previous HWS Solution's customers even better service through our reliable and cost-efficient service portfolio and processes, helping them to concentrate on their core business.

Regarding the future investments, we will keep our eyes open and will follow the market and its development.

eKapija: What are the first results of opening a new service center in Belgrade? How are you satisfied with your business?

- Opening of new service centre was key milestone for us in starting our operations in Serbia. We believe that we can bring added value to Serbian customers with our conceptualized service model of renting workwear that is clean, well-maintained and always available on time for the right person at the right place.

As mentioned earlier, the workwear service is relatively new in Serbia. However, we are satisfied with the results so far - and we see the real market potential.

Regarding new markets, as Serbia, we are not looking for quick wins, but above all growth on a long term basis. Serbia is Lindström's 23rd country.

We are in the process of signing some mega deals with very important clients,both local and international players, that will give us stable business growth and great references in the market.

eKapija: You are serving companies throughout Serbia from your service center in Belgrade. Which cities and inland companies are most interested in this type of procurement of workwear?

- Basically Lindström service fits all, so we see many cities as potential ones for us. The industry sectors that are most potential for us include e.g. retail, heavy industry, healtcare, service, automotive and food sectors.

For instance, companies in the food and beverage sector are increasingly paying attention to workplace and workwear hygiene – and hygiene requirements can not be met with home washing.

According to a survey commissioned by the European Textile Association (ETSA)* workwear should not be washed at home. Lindström is one of the ETSA member companies.

Home washing habits may partially or completely reduce the effectiveness of the workwear's protective qualities, hence jeopardizing the wearer's safety. In addition home washing does not track the number of washes or the wear and tear of the garment, which provides vital information as to when workwear must be replaced.

According to EU legislation employers are legally responsible for the health and safety of their employees. Lindström workwear are washed according to highest hygiene regulations. All of Lindström Group’s operations are certified in accordance with ISO 9001 (Quality Management Systems), ISO 14001 (Environmental Management Systems) and SFS EN 14065 (Laundry Processed Textiles – Bio-Contamination Control System), guaranteeing microbiological cleanness for workwear textiles.

This kind of quality service cannot be offered by local laundries present in the market at the moment - which might jeopardize the safety of employees or customer products, if a company operates e.g. in food industry. Ability to work according to highest hygiene regulations is definitively a competitive advantage for us in the market.

*European Textile Association, survey results published by ETSA on November 12, 2014 (survey done in 2012)

eKapija: Speaking of sewing, where are you acquiring materials and how do You see the textile market in Serbia?

- Products and services are purchased both globally and locally. When developing logistics, both the environmental impacts of transportation routes and Lindström's global growth are considered.

Volume products are manufactured in Asia and Africa, while Lindström also has local suppliers in Europe and Asia to cater for faster, smaller-scale changing needs. The Group chooses its sources from countries and companies that pass the risk analysis in line with Lindström's purchasing policy.

We see Serbia as a very interesting market for us with huge potential of workwear users. In general textile rental business is following the common trend in society where availability is appreciated over ownership.Companies are moving from owning textiles to renting them.

Customers also benefit from variable costs over fixed costs as they do not need to purchase the textilesand keep a big warehouse. Outsourcing makes it possible for companies to concentrate on their core business.

Overall, the outlook for the textile services industry is bright.According to a market sizing study carried out by Deloitte for the EuropeanTextile Services Association (ETSA), the potential size of the industry inEurope is €46 billion. That is four times the current annual turnover inEurope, €11 billion (2012).

eKapija: Are you planning new vacancies in the next period?

- Yes, as we continue to grow, we are looking into hiring new people on board. At the moment we are 16 people in Serbia.

eKapija: What are your business plans for the future?

- Growing our service network in the market is key focus at the moment but also assuring that our quality of service is at desirable level assuring maximum customer satisfaction.

On a group level Lindström offers textile services for companies already in 23 countries and clothes approximately million people worldwide on a daily basis. Our vision is to operate in 25 countries by the end of 2016.

J.DJ.