Dinu Chirica - Accesoria Group: "We build partnerships through responsible advice"

When we parted I told Dinu that the title of this article would be "We must roll up our sleeves"a line often heard during the conversation. He even seemed quite pleased with my little find. But I had to work on the title a bit. I was afraid that the title wouldn't make it clear what the article was about. Dinu Chirica is Managing Partner at Accessory Group and we met to find out more about the businesses he runs, his future plans and the Wood Industry.

It all started as a game

„It all started as a game, in 2005, in an attempt to balance an export surplus. We had a large export business at the time. Because foreign exchange was eating up a good part of our profit, we decided to import to maximize our profit. And that's where we started. It was a very good collaboration with a partner in Austria, with whom we started." Dinu tells the beginning of the business Accessory.

A period of accumulation followed. "From a play we went into something serious, a national accessories distribution company. We broadened the portfolio, created a sales team that stabilized in about 2010. So by then we had invested substantially in product portfolio development and team development to cover the whole country.”

The other divisions joined the Accesoria Group later

Accesoria Group now consists of 3 divisions: Home & Business, Accessory Equipment if Pharma Accessories. „The other divisions came under Accesoria Group later. The equipment business in 2009-2010, when the company was going through a difficult period. The equipment market closed completely in 2009 and that's when we decided to integrate the two companies because they were accessing the same market. We felt at the time that the synergy between the two approaches could benefit both divisions. The Pharma division started because one of our suppliers was and still is producing specialized drawers for pharmacies. We tried to promote them through the same channel as furniture manufacturer customers and had several barriers. The end customer, the pharmacist, was interested in the product and that's when we came up with a concept where we would do pharmacy fittings together with our furniture manufacturer partners. We are currently working with our furniture partners to offer them quality accessories, high-performance equipment and business.”

The crisis has been a lesson for me

But don't imagine that development has been smooth and without unforeseen situations. "I've been through several negative business experiences over the years. That helped me a lot to understand what not to do. The crisis was a lesson for me. The period 2009-2012 was very difficult for us because the investments for development continued, and at the same time the market shrank a lot, at least in the equipment area. Margins fell fantastically and it was a very big effort to hold on. There were several reasons that kept us going. First of all it was the team, the suppliers and of course the customers who kept trusting us. Since 2013 the market has recovered and the business is doing much better.”

This was the lesson I learned about working capital

„My first business lesson was when I was a student. I had made some profit. I was to learn later that that was working capital. With the money I earned I bought a car. After that I couldn't even afford gas. I went to college by bus and the car was in front of the house. That was the lesson I learned about working capital and why you should leave it there.”

2018 is off to a great start

„2018 is a continuation of 2017, of the projects we have underway across all divisions. It started very well, sales results are very good. We are planning further on developing the team from a qualitative point of view first of all. We are in a continuous process, we have no syncopation. We continue what we started in previous years without forgetting for a moment what our mission is in the industry. There is a continuous process of change and our market, furniture and furniture manufacturers, is no stranger to these changes. At the moment we believe that the biggest problem that our industry has is low productivity and this is where I think we all need to contribute more from each and every one of us to increase the productivity level in the industry. We can contribute by what we offer to our customers.”

I can't cede online the primacy on selling at the moment

The main sales channel in Accesoria seems to be sales agents. "I am convinced that an online presence is useful. I owe a lot to my sales colleagues who are consultants. If a car can be configured online, for equipment or accessories it is a bit more difficult. The technical information is very relevant and that customer might need more advice in that area. An online presence is useful, but I don't think it is sufficient to make a well-informed decision. We will certainly develop our online presence. Our sales colleagues have information that is based on education and experience. This information and experience I believe is very necessary for customers to make the right decision. On a theoretical level, I may want a certain piece of equipment, but I don't know if I need it. We don't want to make a sale because it helps our target. What I'm interested in is that the offer made to the customer is the right one, that the benefits of our products can be directly translated into the results obtained in production. These two activities of online, offline, contacting, visiting the customer all go together. I can't cede the primacy of selling to online at the moment. It is a combination of several ways of interacting with the customer.”

New products? "Our portfolio is dynamic. We are constantly trying to expand it with products that meet our quality standards. As I told you, we want to contribute to the development of the furniture industry by offering products and services that help to produce quality furniture. We broaden our portfolio based on criteria, not for the sake of broadening the catalog. We are always looking for new solutions that enable furniture manufacturers to be more efficient and add value to the furniture they make.”

It's time to roll up our sleeves and move from words, opinions and deeds

We asked Dinu to give some advice to those involved in the Wood Industry. "I am not the person to give advice. I can say what I think in the relationship with each client and together we can find solutions for him and his client so that he can grow. I can contribute what I know and what my colleagues know so that the business can be more efficient. I don't like that position - giving advice. It's time to roll up our sleeves and move from words, from opinions to action. The current situation has great potential - for improvement, for growth, for development, for consolidation. We all need to roll up our sleeves, not just to give opinions, not just to give advice. We need to put ourselves in the customer's shoes and together understand the way forward for the industry.”

There are players entering the market and there are players exiting the market

Revista din Lemn: How do you see the evolution of the market in the light of the increases in raw material and labor costs in the coming years?

„As I told you there is a dynamic. There are players entering the market and there are players exiting the market. It happens everywhere. How can we help the market develop and have a positive trend in volume, in value, in productivity? These are things we need to discuss with the decision-makers. Together we can do strategic things that need to be discussed at industry level. The industry organizations, together with the Ministry, together with the big players who are involved in Romania and who have an interest in the industry developing. On the other hand, standards are being raised in Romania - furniture quality standards - by foreign players entering the market, and the industry is then obliged to raise standards. There are external stimuli which help us more than internal ones.”

„I believe that the Wood Industry needs to think about a strategy for both primary and secondary processing. These two stages in wood processing must work together. There are synergies which are currently not being utilized and, on the contrary, the two activities are sometimes in conflict with each other.”

When a customer calls and tells me "CWorking with you has helped me" is all that matters

For Dinu Chirica, customer proximity and fairness in his relationship with the customer seems the most effective sales strategy. "For me it is very important when a customer calls and tells me: working with you has helped me or working with Accesoria has helped me. The fact that you directed me to a different supplier, who was more suitable at the time, helped. There are customers who come in and say they want a particular machine. My colleagues, after discussions, advise him on a machine that suits his needs. That's why when the customer calls me and tells me that, that's all that matters because I know that the moment he needs a piece of equipment he will come to us.”

Dinu Chirica is a man of action, with an obvious entrepreneurial spirit. He seems the type of man who never gives in, always looking for solutions.