The Balkan market is a fascinating blend of tradition, evolving design preferences, and a business environment that is rich with opportunity. To succeed in the Balkan market, businesses need to navigate a landscape where tradition meets modernity. Offering products that respect local customs while embracing innovative design and sustainable practices can help businesses build strong relationships and establish a lasting presence, for Diplomacy&Commerce says Peter Ferluga, Commercial Director Balkans at De’Longhi Group. He also talked about the expectations of Italian investors to Croatia, the business environment, but also presented the products from the De’Longhi Group portfolio in more details.
- As an Italian company that sells, among other things, coffee machines, and we know that in Italy drinking coffee is a special tradition, how difficult was it for you to bring the story of coffee and flavors closer to people in this region and what was your biggest challenge?
As an Italian company that sells coffee machines, we are deeply aware of the cultural significance of coffee in Italy, where it’s not just a beverage but a cherished tradition. Italians have a deep connection with coffee, from their morning espresso ritual to social moments at the local bar. This strong tradition can present both an opportunity and a challenge. On the one hand, Italians have high expectations for the quality of coffee and the experience surrounding it, which has pushed us to constantly innovate and offer machines that replicate the rich, authentic flavors they expect. On the other hand, bringing something new to such a well-established culture comes with challenges. Our biggest challenge has been to balance tradition with innovation—introducing new technologies and products while respecting the heritage and rituals of Italian coffee culture.
- What would you single out as the special features of this market when we talk about tradition, design and business?
There are several key features that make this region stand out and one of it is tradition: Much like in Italy, coffee holds a special place in the daily lives of people in the Balkans. However, in the Balkans, coffee culture is deeply rooted in social gatherings, family rituals, and community interactions. The preparation of traditional “Turkish” or “domestic” coffee, for example, is a cherished ritual, passed down through generations. This makes consumers in the region highly attached to the authentic and communal aspects of coffee drinking, valuing rich flavors and shared experiences. When introducing products here, it’s important to respect these traditions and offer solutions that fit seamlessly into the way people have been enjoying coffee for centuries.
- How do you assess the 2024 when we talk about the business at your company? Are the differences between the markets ( region) you are responsible for decreasing or deepening?
For 2024, we see a year of both opportunity and complexity for our business in the Balkans. The region is evolving rapidly, with economic growth and consumer expectations shifting, which opens up new avenues for expansion and innovation. However, when it comes to market differences, we notice both convergence and divergence, depending on specific factors. 2024 will be a year where we’ll need to continue balancing these dynamics. While some markets are aligning with global trends, others retain their unique local flavors and needs. By staying flexible, respecting these differences, and adapting our approach to each market, we’re confident we can continue to grow and meet the diverse demands of the region.
- The De’ Longhi Group is one of the world’s leading players in small domestic appliances associated with the world of coffee, the kitchen, air conditioning and home care. How challenging is it to combine quality, design, tradition in one?
Combining quality, design, and tradition is a core challenge but also a strength for the De’ Longhi Group. Quality is non-negotiable; our products must perform flawlessly and last. Design, rooted in our Italian heritage, blends style with functionality, creating appliances that enhance any home. Tradition, especially in coffee, is key—our products respect cultural rituals while embracing modern innovation. The challenge lies in balancing these elements, but it’s what sets us apart. By staying true to our values and continuously innovating, we create products that are functional, stylish, and deeply meaningful to our customers.
- You are also a member of the Management Council of the Italian-Croatian Chamber of Commerce. How do you assess the business climate in Croatia for investors and what do they expect from the state to increase the level of investment?
Investors still expect reduced bureaucracy, improved infrastructure, and better workforce development to fully realize the country’s potential. Expanding incentives for innovation and sustainability, along with more flexible labor regulations, would also encourage higher levels of investment.
- Italy is the most important foreign trade partner of Croatia and many Italian companies do business in our country. Which areas of business are the most interesting to investors and what do you see as your contribution to that within THGK?
Italy is indeed Croatia’s most important foreign trade partner, and Italian companies are active in several key sectors. The most interesting areas for Italian investors include tourism, manufacturing, energy, and infrastructure, as well as the food and beverage industry. These sectors offer strong potential due to Croatia’s strategic location, EU membership, and growing economy. Within THGK, our contribution lies in fostering these business connections by supporting Italian companies in navigating the Croatian market. We focus on building partnerships, providing insights into local regulations, and facilitating investment in sectors where Italian expertise aligns with Croatian growth opportunities. By bridging the two markets, we help Italian investors succeed and contribute to the ongoing economic collaboration between Italy and Croatia.