Our goal is to become a regional omnichannel retailer for various product categories that provide customers with a unique experience and allow them to make all the decisions
Tehnomanija opened its first store 23 years ago in Belgrade. A lot has changed since the opening of their first facility, but what has remained the same are the company’s desire to provide an outstanding shopping experience with a variety of products and to meet all the customers’ needs. Matija Protić, CEO of Tehnomanija, within which WinWin operates as well, said in an interview for D&C that digitalization and improvement of IT and logistics infrastructure will mark this business year.
Our industry is going through major changes worldwide. We are currently in the process of digital transformation of the company. We were approved a 10 million euro loan by the German investment bank for investing in IT infrastructure and redefining and modernizing logistics and distribution processes. These are the two main pillars of our company’s transformation. Our goal is to advance from the leading domestic retailer of electronic and electrical devices to a regional omnichannel retailer for various product categories that provide customers with a unique experience and allow them to make all the decisions.
The crisis that the entire world found itself in during the past two years has forced companies to evolve and adapt to changes. How did all this affect Tehnomanija?
During the past years, we have simultaneously gone through the integration of two companies (Tehnomanija and WinWin), a pandemic, a technological revolution, and a complete transformation of the business model. Some companies don’t go through one of these big changes for their entire lifetime, let alone all at the same time. All of this brings changes every day and we are aware that phases in growth and development such as these also carry a lot of challenges and stress with them. These circumstances motivated us to make bold moves and initiate inevitable business transformations. In such a transformational year, we won the Consumer Tech Online Store of the Year award for the best e-commerce website and received the Family Friendly Company Certificate. This means that, regardless of all the challenges we face, we keep our focus on the customers, high quality offers, following trends and taking care of our employees.
Do you agree with the saying: “What Amazon had started, COVID has finished”?
All predictions say that online commerce is becoming one of the main drivers of growth in the retail industry. With greater use of online services, consumer expectations and habits are evolving, so companies must evolve accordingly. Those who don’t change will disappear. With 5 million visits per month, Tehnomanija and WinWin websites are the market leaders. While online shopping in Serbia is growing by approximately 18% per year, shopping on our sites is growing by 30%.
“It all starts and ends with people. People’s needs and habits are behind the transformation of every company”
To maintain the leading position and customers’ trust, it is necessary to have superior IT and logistics infrastructure. We are in the final phase of implementing 13 SAP modules which will be the foundation of our future IT infrastructure, combined with our sales force.
And how much have the consumers changed?
It all starts and ends with people. As I always say, people, their needs, and habits are behind the transformation of every company. Today, people buy according to their plan, they try to save time, to complete several tasks in one place, while at the same time they want to feel good and appreciated. In addition, people today want more free time and enjoyment, which modern retail must satisfy. Perhaps 20 years ago, the customers were content if they, for example, received the TV they had bought without any damage. Today, the expectations are a lot higher.
What consumers seek today is an outstanding shopping experience, regardless of whether the purchase is done in a store, online or through an application. It’s important to recognize that the entire time, it’s the same buyer who is browsing products or buying them, but on different selling channels and their experience must always be outstanding. That’s why we firmly believe that omnichannel retail is the future, where the know-how in category management is added value.
What do you mean exactly by “outstanding shopping experience”?
An outstanding shopping experience means that the customer needs to be able to manage the entire shopping process. This means that they can choose where to shop — online, in store, or using the application. Moreover, they can choose what to buy from a wide range of various product categories. For example, we offer a few hundred different models of TVs, and the modern customer doesn’t have time to analyze and research, therefore, a customer needs to have access to shopping assistance, regardless of whether they are shopping in a store or online. The job of a 21st-century-vendor is not only to sell but to help the buyer make the best decision for themselves at the given moment.
Once they have chosen the product, they should be able to choose the method of payment — by cash, card, credit, in instalments, via Paypal, Google Pay, or contactless by phone. Then they can choose delivery date and time. Alternatively, if it’s more convenient for them, using the Click & Collect option, they can choose when and in which store to pick up the purchased product. All sales channels and logistics need to be updated and interconnected so that the customer has an outstanding shopping experience regardless of the sales channel they choose.
All communication channels should also be interconnected so that the customer can quickly receive accurate information, regardless of whether they communicate by email, on social networks or with the call centre operator. Interconnected, data-driven services like these provide a superior omnichannel experience. Some of these services already exist and some are still in the development or improvement phase.
You have also mentioned the transformation of the logistics and distribution centre. Could you elaborate?
Digitization in the logistics and transport sector is no longer a choice but a necessity. Customer expectations in this segment have been raised to a higher level. Speed, accuracy, the option of tracking a shipment in real-time from the sender to the recipient and knowing where the shipment is at any given time have become the new standard of delivery. Flexible delivery options have changed the industry and tailored it to the expectations of end-users. To have a sustainable and successful business, it is important to align with customers’ needs and expectations. This is what we strive for.
Out of 13 SAP modules I mentioned earlier, 5 refer only to the supply chain. In addition to improving the IT logistics infrastructure, we are also expanding. Currently, we’re using a 19.000m2 large warehouse, but we plan to expand and move to a new CTPark modern facility of 50.000m2. This centralized distribution and warehouse with several cross docks in the country will allow us to have faster service and higher control over the entire process.
What is necessary for success besides technology?
Without people, technology means nothing. People are the driving force and the heart of the company. People are the ones who recognize and decide what needs to be changed and improved, while technology is only a tool that will turn people’s ideas into reality. A digital transformation can’t be successful without the transformation of people and teams.
In 2021, we launched the first talent development program called Super Star. We have selected 15 employees, between 25 and 35 years old, who will receive our greater attention and resources for development, training and education. In addition to the opportunity to learn new things, through active participation in projects and important strategic decisions, this program will give these young employees the chance to choose their mentors, but also to independently manage the budget allocated to them. We have given them both responsibility and opportunity.
“The job of a 21st-century-vendor is not only to sell but to help the buyer to make the best decision for themselves at the given moment”
Our current transformation process presents a fertile ground for the development of talents because it turned out that they love challenges. I was a part of one such program myself when I started my career and I understand the importance of programs like these. One of the most dangerous myths about talent is that talent alone is enough for success. Belief in one’s own strengths and abilities and dedicated work, but also people who will recognize, guide, and support that talent, are of incredible importance when it comes to turning talent into exceptionality.
Not only that you take care of your talents, but you also take care of your employees in general, as a recent survey has proven. You are among the 100 most desirable employers in Serbia.
It’s not easy to achieve or maintain the status of a desirable employer. That’s why working conditions, culture, working environment and benefits for employees are important. It is not enough just to attract quality candidates; it is also important to keep them.
The Family Friendly Certificate is an indicator that Tehnomanija is an employer that takes care of its employees. We have flexible working hours, gift packages for first-grade kids and a day off for their parents, numerous training sessions for colleagues in various positions, and we have introduced a more informal dress code and socializing on Fridays. We envision Tehnomanija in 2025 not only as a regional omnichannel retail leader, equally strong in retail and online commerce but also as a company whose employees are satisfied and motivated.