Trade Ministry official hails "arrival of Ikea"

"The arrival of the Swedish furniture retailer Ikea to Serbia in important for the Serbian market," says State Secretary in the Ministry of Trade Vesna Kovac.

Izvor: B92

Thursday, 11.06.2015.

12:02

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Serbian officials present Ikea representatives with the permit to build a store in Serbia (Beta)

Trade Ministry official hails "arrival of Ikea"

Kovac told B92 that when it appears in the Serbian market, "Ikea will impose certain standards observed elsewhere in the world and local furniture manufacturers will be able to apply and sell their products to Ikea or through Ikea on the global market."

She noted that Serbian furniture manufacturers "already have good quality products since 65 percent of the local furniture production output is used for exports."

"Ikea's arrival and issuance of the construction permit to the companies is a good sign for other foreign investors interested in the country," Kovac said, remaking that the permit was issued "within two days."

Ikea received a building permit on Wednesday to build its first store in Serbia. The company's investment is worth around EUR 70 million, and that the construction works are expected to be completed in the course of 2016.

Foreign investments consultant Milan Parivodic also spoke for B92 to say that "there is no fear" that Ikea's furniture is of low quality.

"For that price," he said, "it has quality, if it did not, Ikea would not be such a furniture retail (industry) monster. Ikea is imposing an additional effort to domestic manufacturers, who must be inventive and imaginative."

Parivodic went on to say that "previously, the state did not look benevolently at the increase of competition in retail," that is, the arrival of retail chains from abroad.

"There were destructions," he said, "that have been backed up with arguments that when the retail space is sold, Serbian manufacturers will have no place to sell their goods. Then those protected sold their spots to foreigners and the outcome is the same."

Asked "who will be the next foreign investor," Kovac said that "only Lidl is certain for now - and there will be no obstructions there."

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