INTERVIEW Mircea Turdean, Farmec: “Entrepreneurs should rethink their business strategies and focus on market needs”

Entrepreneurs should rethink their business strategies and focus on market needs. Being successful these days means adapting quickly to the demands of the market, according to Mircea Turdean, general manager Farmec.

“COVID-19 pandemic caused a major shift towards the growth of consumer goods, such as personal care products, cleaning supplies and antibacterial products. Many companies adapted their production lines in order to meet the higher demand, but now there is another issue: the lack or low stocks of certain raw materials and the increase of their price,” he told The Diplomat-Bucharest. “Once we overcome the pandemic period, Farmec plans will continue to focus on expanding the network of own brand and franchise stores and innovating the product portfolio.”

Farmec business plans are focused on biocides, sanitizers and antibacterial soaps production. The company registers good results for sales of personal care products and a significant evolution in the sale of household products.

What is your company’s business approach in the current economic context? 

In this context, we had to adjust production to the current market requirements by prioritising the cleaning supplies and antibacterial soaps. Moreover, we launched two new 70 percent alcohol-based hand sanitizer products, respectively a hand sanitizing lotion and a hand sanitizing gel. At the same time, we’re maintaining an ongoing communication with the authorities in order to obtain all the necessary approvals for the emergency biocides production and, also, with the suppliers in order to deliver and support us with the materials required. We support and admire the ones who are fighting against the spread of the new virus and thus we prioritisied the deliveries of our sanitizing products: the products will be delivered first to the administration (which includes police departments, city halls, post offices, etc.) and then to the final consumers through pharmacies, convenience stores, brand stores and so on. Furthermore, we will adapt our business approach depending on how things will evolve.

What are the market tendencies in 2020?

If at the beginning of the year we were predicting certain market trends, the COVID-19 pandemic caused a major shift towards the growth of consumer goods, such as personal care products, cleaning supplies and antibacterial products. Many companies adapted their production lines in order to meet the higher demand, but now there is another issue: the lack or low stocks of certain raw materials and the increase of their price. Also, due to the social distance and protection measures taken, more consumers opt for online shopping. We believe that we will see an even bigger increase on this channel.

What does a company need to do to be successful in doing business in Romania?

The most important thing at the moment is to overcome the economic crisis caused by the pandemic. The creative entrepreneurs, the ones with a long-term vision who come up with great ideas and out of the box solutions are those who will succeed.

In my opinion, entrepreneurs should rethink their business strategies and focus on market needs. Being successful these days means adapting quickly to the demands of the market.

How would you describe your business development on the local market?

We observe in the market a tendency of local companies and entrepreneurs to support the national economy and we believe that in the next period the consumption of Romanian products will increase more compared to the last years, which will reflect also on our business.

Once we overcome the pandemic period, Farmec plans will continue to focus on expanding the network of own brand and franchise stores and innovating the product portfolio.

Our main objectives are to maintain the leadership position among local cosmetics producers trough releases of new products and rebranding of existing lines and to develop the local entrepreneurial culture through the company’s franchise system.

Being a company with 100 percent Romanian capital and one of the main players who set the trends in this field, Farmec will continue to raise the standards in the cosmetics and care industry, to offer business opportunities & share its know-how among potential entrepreneurs who want to build a 100 percent Romanian start-up, and to educate consumers.

With this strategy, Farmec wants to lay the foundations of a strong entrepreneurial culture together with the franchisees, defined by values such as innovation, efficiency, and tradition.

What are your short and medium-term plans in Romania?

Currently, our business plans are focused on biocides, sanitizers and antibacterial soaps production. We continue to record good results for sales of personal care products (we have seen studies showing growth in this category) and a significant evolution in the sale of household products. Thus, we will concentrate our resources on those products for which the highest demand is on the market. We maintain the production of cosmetics products, continuing to offer consumers a large and diverse portfolio of products.