Mark Oliver, building a premium Romanian brand and imposing it on the international market

Ever since 2017 when we met them at BIFE SIM, the Giurgiu brothers have brought a breath of fresh air to the Romanian furniture industry, so traditionalist. The tables on display, the stand design were different from what we were used to seeing at the fair. There was a new, fresh vision, the products were different and they were targeting a market that Romanian producers didn't dare to think about. Their presence at the 2017 fair was a success and after the fair we went to Reghin to get to know them better. I met then only the older brother, Vali Giurgiu, the one in charge of production. Adrian, the younger brother who had recently graduated from university, was in Africa. At that time, the project Mark Oliver was just starting out, although they had been in the furniture business for some time, producing wooden tables and small furniture for other companies.

Mark Oliver was their brand, not long registered, with which they had big plans for the future. It was still an undefined beginning, so it was left to talk more after things started to settle down. We then met up at trade fairs, but never really got to chat at length. Ahead of BIFE-SIM 2019, two years after our first meeting, we finally found time to get together. Building a premium Romanian brand and imposing it on the international market must be an interesting topic for many of you. So I went to Reghin where Adrian and I talked about research, fine-tuning, choices, in short, the birth of a brand.

Who is Mark Oliver

It all started with a family firm in Reghin, which produced mainly kitchen tables and coffee tables for sofa and coffee table manufacturers. chairs. In a business like this the profit is very small and they were continually under pressure, in a fragile equilibrium. Continuing the business in the same way was not for the future and they came up with a solution that would stabilize their business and give them satisfaction. "You know how it is, creative ideas come when you're under negative pressure." says Adrian.

After researching the market they decided to enter the premium furniture area and address the end customer directly. Before the brand Mark Oliver to be launched in September 2017, they have had a year of hard work in which the project has been continuously reconfigured on the fly. Initially they thought they could use a logistical advantage. They had friends with a transportation and warehousing firm in London. It seemed like a suitable market for the products they were thinking about and they thought they would find a suitable brand name to target that market. They also hired a branding agency, but couldn't find what they wanted. Preparations were going ahead and they had no name. That's when they decided to go on websites where moms were looking for suitable names for their babies. They chose several combinations from there, and after a drastic selection they were left with only 5 names, which they sent to friends to put in order. Mark Oliver was born.

"When I look back now I realize that we were very naïve and ignorant, in a constant search. After all the work to find a name suitable for the English market we never even got there. At that time I was always going to fairs. We went to Milan. There we changed our approach to what products should be. We saw that the heavy, industrial style was no longer being worn. We focused on this minimalist, light style with very thin table tops."

The fact that in Milan they met many Romanians going there to buy furniture made them believe that there is a market for premium products in Romania as well. They thought that if they started in the country, they would get feedback that could help them make improvements in packaging, logistics, communication. If it worked well in Romania they could then take the model to England. They designed the products, made them and came to the fair in Bucharest.

From Bucharest to Milan and from the US to Asia

After 2017's success in Bucharest, things have started to move. Another country fair followed in the fall and two more in the spring of 2018. From that point everything started to unfold very quickly. In 2018 they went to 4 international fairs: Milan, New York, Paris, Belgium. It was a fast forward period. Strategies were made on airplanes, everything was on the run. Despite all the tumult, they weren't where they wanted to be. At the New York fair, they couldn't get the discussions to materialize orders or contracts. They tried to understand what they were doing wrong, but they didn't realize it. The Americans were very polite, they admired the products, but it stopped there.

"In New York, after much discussion, we finally understood what was wrong. An elderly architect enlightened us. She asked if we had stock in the US and we said no. She then explained that her project depended on each product. If one is missing, everything grinds to a halt and there are projects worth hundreds of millions of dollars. She can't take that risk for a meal, even if the price is very good. We realized that logistics are very important and started looking for solutions."

It would have been difficult to build their own structure there so they looked for a collaborator. Discussions started in 2018 and were finalized in 2019. This year they attended the New York fair again, already having a collaborator with stock and sales agents there. Orders have started coming in, which is a good sign.

"Stock is very important to Americans. It's a very big money market, but very convenient. And we have to adapt to what the customer wants."

They also had participations that were not what they had imagined, like Singapore. It was still an interesting experience. They had very promising dates from the ministry. When they arrived, they saw that it was indeed a design fair, but smaller than they had expected and, as they were to learn from other participants, in constant decline compared to previous editions. It was a good fair for that area, but difficult for those who didn't have a structure there.

"We realized that in order to sell, we needed logistics here as well. It was very difficult to expand in America and Asia at the same time, so we put the Asia project on hold. We didn't stop it altogether, we just postponed it for when we're 100% ready for that step, not to start with half-measures."

Milan fair

Last year in Milan they were lucky. They had some problems at home and almost didn't participate. But everything was organized and they had to go. There they had a very pleasant surprise.

"An old-fashioned, Swiss gentleman came in who had a chain of stores, a family business for 160 years. We really thought then that our country is only 100 years old. He ordered two tables for each store. Now he's one of our serious customers. He doesn't order much, but he does it constantly. But then it was a big order that got us through a difficult time."

This year in Milan, they participated with other companies at the Romanian stand organized by APMR. Even if they would like to have their own stand, in Milan it is impossible unless you are a very big company. Unlike other fairs, in Milan clients are selected. There are strong brands that rent 5000 m² on their own.

"In this situation, small firms are eliminated from the start. It is also a policy of big firms to keep their market share. Romania wanted a bigger surface area, but failed. The embassy also insisted, but we were told to make do with what we have, because we won't get more than last year. Some companies were even eliminated. Only 10 firms were accepted.

Very good quality products at the right price

The Giurgiu brothers continue to do business as in the past for partners, but that area of the business is slowly but surely going downhill. But Mark Oliver has been growing steadily since 2017. In the meantime they have also changed their pricing policy, they no longer go for the idea of selling a lot, but very good quality products at the right price.

They continue to go to international fairs and learn. They already understand what the markets there are like and feel a growth. They didn't go to BIFE this year. They say the fair has changed a lot and not many potential partners come. They prefer to attend fairs in other countries. For example, for similar costs they went to a fair in Belgium.

"It's the same square footage, but different customers, a different world, different buying power and a lot of interested professionals present at the fair."

They have also developed new collections. For the Tribute they went for a different kind of shapes - lines, concentric circles - they created big volumes out of thin lines so it wasn't tiring. They took the collection to Milan and New York and we had very good feedback. They sell their products in Switzerland, France, Holland, Holland, Belgium, Germany, through stores or agents.

"They have the logistics. With this kind of product there's a huge need for service. It's not the kind of product you buy off the net and assemble yourself, even if it's very easy to assemble. In Romania it's accepted. Transportation and assembly can be done for a fee. But abroad, the customer pays as much as you ask, but at the end he wants the table assembled at home and dusted."

They have an agent in Belgium and have developed a model that they would like to see in other countries in Europe, but they need to find the right person. The agent in Belgium is a Romanian based there and they have known each other in the past. They are now working together again because he also has the possibility to keep a stock. It's difficult for them to work with very large agents who run hundreds of shops. They would have to hold a very large stock. With smaller ones it's easier to get in, but with a different kind of long-term results.

Despite the difficulties, we know we are on the right track

"Now 2 years on from Mark Oliver, we know it was the right move, that we are on the right track. Looking back I see how much we have grown. But we regret that we have not accelerated our learning. We realize that we still have to learn, we feel that, but the direction is good. We've had difficult situations and we probably will. In this area of business, I don't think you ever have a super security. But it's like the story of the bird: the bird doesn't stay on the branch because it has calculated its breaking strength but because it trusts its wings. So are we. From what we have learned and seen, we have confidence. We still have work to do, but we're in a good place. We're trying to get to an even better one."

I wanted to know if they have labor problems, as I hear in many places in the country. He told me that they have had people leave, like everywhere else, but they have also hired people who have returned from abroad. These people are the best because they have got used to the pace of work abroad and they find the pace at home easier. What's more, they are no longer away from their families, they can support themselves, they can lead a quiet life here doing what they like. They say they are model employees, with some even in management positions in the factory.

Respecting people and nature

"We have always tried not to take the easy option, even if it is often within reach. We've tried to respect certain principles and values, especially in working with people. We realized how much we need the team, the specialists, in the factory, in the carpentry. When we come back from a trade fair, even if things didn't go very well there, we come back home and see a united team and that keeps us going forward. We don't want to boom in a second. We are building step by step, both on the team side, the brand side, the sales side. Respect for people is something you can't give up. The moment you give that up, whatever business you do, that's not okay, that's not an okay business.

So is respect for the environment. We have a partnership with an association with which we plant trees. For every product we produce, we plant a tree. We feel that we need to give back what we take from nature and at the same time positively influence the carbon footprint that we leave as citizens of the earth anyway. At least plant more than we consume. We're in this industry, somebody's going to make furniture anyway, us or somebody else, but if it's us, we want to do it in as positive a way as possible."

Even if they are still learning and there are still situations to be clarified, the Giurgiu brothers have found their way and it seems to be the right way.