Businessman Joseph Seroussi, one of the most important producers in the textile industry, will focus more on the domestic market on short term in order to offset the negative effects of the domestic currency''s appreciation on his exports.
Sudanese Joseph Seroussi, 73, came to Romania in the ''60s, entering the market with his own brand, Seroussi, in the ''90s.
"The appreciation of the RON has seriously hurt this country''s exporters. The euro has dropped by up to 19% and we are not working with such a profit margin in the case of exports," states Joseph Seroussi, chairman of J&R Enterprises.
He says he will concentrate more on the Romanian market given current international circumstances.
"We will focus on the domestic market for a while. At least, we can earn something here, while in the case of exports we are only posting losses," explains Seroussi.
He owns a number of clothing factories and a chain of "No 36" stores.
Seroussi''s portfolio includes Ikos Conf (Odorheiul Secuiesc), Norada (Odorheiul Secuiesc), Serca (Calarasi) and Serconf (Botosani), with a total of five plants.
He chose not to disclose the global turnover of his business.
Annual production of the plants included in Seroussi''s portfolio is estimated at around 100 million euros. According to J.A. Seroussi, 96% of his companies'' production is for export, with the rest being sold through the three stores he owns domestically under the No 36 brand, as well as in another 27 locations.
Ikos Conf in 2005 derived turnover estimated to be around 17 million euros, while turnover logged by J&R Enterprises amounted to approximately 6 million euros, according to the latest data available.
Last year, many exporters, in particular those whose business involved outsourced production, were forced to renegotiate their contracts with foreign partners amid the considerable appreciation of the RON against the euro and the dollar. Thus, many firms had to focus on the domestic market instead, with foreign companies not being willing to pay more for labour and products that could be easily acquired from other markets.
"The international market is not ready to pay higher prices than before in Romania as we have competitors from other European markets. All of which would have lower prices than us," says Seroussi. According to him, a 20% increase in prices, needed to close the gap between the RON and the euro, would make customers choose other markets.
"We must try to keep our customers despite losses. We cannot lose the customers we''ve gained over so many years. We will wait for the moment where the RON comes back to the standard level it should stand at, and not the level it''s been artificially adjusted to," considers Seroussi.
Seroussi in Romania
* One of the main producers in the textile industry
* Entered the market with his own brand, Seroussi, in the ''90s.
* Will focus more on the domestic market to offset the negative effects of the RON''s growth against the euro
* Owns several clothing factories and a chain of "No 36" stores
* Will try to retain foreign customers despite losses generated by exports
* Plans to open a store in Bucharest, within America House complex.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
