Building a business without role models

Andra Danaila, managing director at Update Advertising, tells Business Review about the challenges of operating on a market with no statistics, why she doesn’t look at the competition and how the crisis years actually helped her develop.

By Anda Sebesi

How did you enter the Romanian business scene and when?
I founded Updated Advertising in 2002 as an importer and distributor of promotional materials. In 2007 it became a member of the Promotional Services Institute (PSI), one of the most prestigious associations in the field in Europe and an associated member of the Association of Producers and Importers of the Romanian Advertising Industry (APIP). Update Advertising has been the official distributor of the American Fruit of the Loom brand (since 2014), and an exclusive distributor of the French caps brand Serie Graffic (since 2007) and Bear Dream towels brand (since 2015). It is also a distributor of other well known promotional brands such as Roly (since 2008), Nath, Russel and Slazenger. On the conventional promotional market we can cover the whole range of corporate, green, electronics and gadgets and confectionery promotional materials with stocks in Bucharest and Europe and we offer customized production.

Why did you decide to launch such a business in Romania?
In my last two years as a student I was working at a market research company and a small advertising firm where I developed my managerial talent a lot. In both jobs I felt the need to restructure the business to grow the companies but I encountered reluctance from the decision makers. This persuaded me to launch my own business about 13 years ago because I saw it as a unique chance to put into practice my vision, and my own system of values in a business world that I perceived as conservative and to which I didn’t want to adapt, at least not in the form I knew.

What was the most difficult moment for your business and how did you manage to surmount it?
The most difficult moment for us was the financial crisis when I almost lost my confidence in changing. I had no motivation to get involved but I found my strength to go on and Update Advertising became stronger after its fight to survive in an environment where there was a lack of support from both the Romanian state and lenders.

If you started another business, what would you change?
Everything and nothing. Looking back, I would be tempted to emphasize more issues that could have been improved but I would risk destroying this beautiful puzzle formed of lights, shadows and colors. I could change some decisions and strategies but I couldn’t change the impetus, passion and perseverance that were actually the engine of this entrepreneurial saga.

What are the main challenges that you face in your business now and how do you manage to solve them?
The major challenges we face are in general those related to the growth of the Romanian economy. It is about hesitation in the business community that still seems to be dealing with the nightmare of the financial crisis. In addition it is about the blockage in the flow of money in the economy that is always present. There is also a crisis of qualified personnel that seems to worsen from one year to another. It is more and more difficult to hire individuals that fit with your needs, including those without professional experience. But the years that followed 2008 were a good entrepreneurial experience.

How fierce is the competition in your field of activity and what do you think differentiates you from the crowd?
There are no statistics on the Romanian promotional materials market even though you need to know exactly where you stand. There is a risk of over-estimating yourself and losing contact with reality. But the good news is that you can dream as much as you want, create new opportunities and be creative. To be honest, we didn’t take a long look around us. We didn’t create role models. Some large players on the Romanian promotional materials market have simply disappeared in the last few years. What would have happened to us if we had tried to copy their business model? It is very hard for me to define what differentiates us from our main competitors because I have never focused my mind on this. All I know is that our business is built on several principles: respect, reliability, quality, keeping deadlines and no less importantly, soul. We always have an open, respectful and deontological relationship with our competitors.

What is your current market share in Romania?
Because of the lack of statistics about the market we are active on we can’t talk about a specific market share. The only trustworthy information comes from our suppliers, which are very active in Europe. On the promotional fabrics market we know for sure that we are a market leader in Romania, while on the other promotional materials market we are ranked among the top ten players, regardless of the supplier.

What are your plans?
If a system functions well then it shouldn’t be changed until you notice that something is going wrong. It just needs to be improved. We will continue to be innovative, creative and invest in our people. This year I had the honor to be chosen as the president of the APPIP, an institution that needs restructuring. We intend in the future to look at personal and professional development on the advertising market. We also want to consolidate our leader position on the fabrics promotional market in the coming years.

Box: Update Advertising

Established: 2002

2014 turnover: EUR 1.5 million

2015 estimated turnover: EUR 2 million

Number of employees: 19

Initial investment: EUR 1,000

Total estimated investment: EUR 300,000

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