10 years of Neakaisa.ro: Interview with Laura Sardescu, Co-Founder & General Manager

As Neakaisa.ro celebrates its 10th anniversary, Business Review sat down for an exclusive interview with Laura Sardescu, Co-Founder & General Manager, as she shares her insights into the company’s remarkable achievements, strategic decisions, and future prospects.

Business Review: Your business at Neakaisa.ro saw a significant increase in revenue in 2023, reaching 6.2 million euros, a 10% growth compared to 2022. What were the primary drivers behind this growth and can you discuss any strategic investments or initiatives that contributed to this growth?

Laura Sardescu: First, we must be honest. Last year wasn’t an easy one. It was at least – to put it mildly – a challenging one, marked by general uncertainty, since inflation directly affected the consumers’ purchasing power. Besides that, we are all aware of the downturn in real estate and construction, markets naturally linked to the home deco one. Taking all these factors into consideration, yes, our 2023 growth is significant. As for the sources of growth, the main one was the step we took offline, by opening our own showroom. Neakaisa.ro is still, by excellence, an online business, but it is also a business that strongly differentiates itself by the expertise offered to the clients. We don’t just sell sanitary, we sell top of the art customer support that we consider mandatory for our line of products. And the showroom – which in just six months since the opening has generated a 10% increase in total sales – gave us the chance to be closer to our customers and gave the customers the opportunity to see and experience at first hand the products, before purchasing. Furthermore, the showroom has strengthened our connection with the local community of architects and designers.

Of course, besides that, we managed to diversify the product range, and this also had a direct impact on sales, along with a higher demand from the architects and designers’ area.

BR: In the context of the home and decor market, what were the key dynamics that influenced your business’s performance in 2023, particularly in the ecommerce sector? And what were some of the challenges you faced?

Laura Sardescu: We rely on quality, simplicity, design and top of the art customer support, that helped us achieve our goals in 2023, and for sure will continue to do as well this year. As I said, last year was indeed a challenging one in e-commerce, but also in the construction and real estate industry. And that’s because after the years of pandemics, followed by the war in Ukraine and the conflict in Israel, consumer behavior has changed quite a bit. That’s why it remains necessary to constantly adapt to the needs of the market, which has added to our efforts to continue scaling the business. Also in this context, a challenge for Neakaisa.ro has been to educate consumers and provide them with detailed and relevant product information in the most efficient and accessible way. The need for communication has increased, and consumer expectations for comprehensive information and competent support from us have risen.

As for e-commerce, the market is still adapting, being at a crossroads nowadays. The rampant growth of the pandemic years has been tempered, so the best option is to maintain a sustainable growth in business models.

BR: Looking ahead to the current year, what are your resolutions and expectations for Neakaisa.ro at a business level? Are there any specific expansion plans or new ventures you’re considering?

Laura Sardescu: Looking ahead, we focus on three key elements that we believe are fundamental to Neakaisa.ro’s evolution and flexibility in such a dynamic economic landscape. This strategy also reflects the beliefs and values behind the business. Our aim is to constantly evolve and adapt to remain relevant and competitive. Thus, we will continue to invest in digitization and automatization of internal processes to increase efficiency and help the team be more productive. This includes implementing new technologies and systems to streamline operations, from customer relationship management to logistics and inventory management. Digitization will allow us to be more agile and respond faster to changes in the market. Also, the team is our most valuable asset and as such we will continue to focus on improving the competencies and skills of our colleagues, facilitating innovation and creativity.

We will further integrate our online and offline channels to provide a more seamless shopping experience for our customers. The showroom will play a key role in this strategy, acting as a central point where customers can interact directly with products, while at the same time enjoying the benefits and convenience of online shopping. This omnichannel approach will help us deliver a personalized and memorable shopping experience.

Also, as of last year, we are considering expanding our horizons, developing a cross-border initiative. It is still a work in progress and we aim to intersect the market needs with the products we are selling, but it is the next big step ahead. Most probably, in the first half of 2025 we will be able to provide more input.

BR: How does Neakaisa.ro differentiate itself from competitors, and what investments are you planning to maintain this differentiation?

Laura Sardescu: Indeed, we have a number of distinct elements that set us apart in the bathroom and sanitary market. One of them is our brand. I think it’s important to differentiate yourself by the name you choose for your business, to avoid confusion with other players. At Neakaisa.ro, this was of significant importance. We have customers who purchased products from us in 2015 and who came back because they remember the name of the shop, but also the quality of our products. Another differentiator is that we retail medium-high products. We offer a wide range of toilet bowls, washbasins, bathtubs and other fixtures of the highest quality. We focus on quality and durability and are aware that these products are long-term investments for our customers.

And let’s not forget our approach to product categories. We are completely dedicated to this niche, and in time, we have become experts in the field, having the right people to offer expert advice. We care deeply about careful product presentation, effective communication with customers and, most importantly, understanding their needs. We offer tailor-made solutions and guide the client in choosing what is best for him. This is the main reason why we launched our showroom last year, adding a new dimension to the business and starting to operate in an efficient omnichannel system, getting closer to our customers’ needs and preferences and improving their shopping experience. Our showroom team is available for expert advice on product selection, we offer discounts based on order value and provide free delivery. We are also one of the first online retailers in Romania to implement open parcel delivery. We are one of the first retailers to militate for the customers’ right to check the parcel, make sure everything is OK and if he’s not satisfied, to return the product.

As for investments, as I previously said, we focus on digitization, expanding the team’s expertise, refine our omnichannel approach and continue the expansion and curation of our product categories.

BR: The showroom opened in the summer of 2023. How has it impacted your business thus far, and what transformations have you observed? What are your targets for the current, considering the presence of the showroom?

Laura Sardescu: The showroom’s launch in 2023 was a strategic move that completes our story and writes a new chapter for the Neakaisa.ro business. It’s practically the piece we were missing to operate in an efficient omnichannel system that allows us to be closer to our customers’ needs and improve their shopping experience. The showroom in Bucharest, on Atelierului 20, is a concept one, with 11 rooms designed by 11 different designers. It’s a place for inspiration, with several design styles, different types of bathroom fittings and a variety of products, from sanitary ware, flooring, wallpaper, trim to design objects. It’s a great starting point for those who want to explore the many possibilities of a bathroom design in different sizes and discover the visions of some very talented architects. Our colleagues in the showroom are available for expert advice on the choice of products, we offer discounts depending on the value threshold of your order and provide free delivery. The results, business wise, were reflected in our sales, 10% of the overall sales in the second half of 2023 being generated by the showroom.

In terms of expansion, we are happy with the showroom in Bucharest and we have no plans to open traditional physical stores. We are, by excellence, an online retailer. We’re trying to expand offline, but traditional retail is a whole other business.

As of the overall business growth objective we have for 2024, we rely on an organic 10% increase, focusing on three key elements, mentioned before: digitization and automation of internal processes to increase efficiency and help the team to be more productive, and the continuous training and development of our team.

BR: Neakaisa celebrates its 10th anniversary this year. Could you elaborate on how the business has transformed over the years and what have learned from your journey as entrepreneur during this decade of operating Neakaisa?

Laura Sardescu: Looking back, it is hard to recognize myself 10 years ago. First and foremost I learned that being an entrepreneur needs a wider view and a smaller window for mistakes. Not that we haven’t made mistakes, it is just that you do not have the time to ponder on them. You need to get up and keep going, head held high. Something that this past year has taught me is that partnership is more than a business conversation. But trust is fragile and changes over time. As does everyone involved in the conversation. What worked a year ago may be obsolete by now and you need to keep on working alongside a creative team centered on solutions and authentic ways to tackle an issue.

The business changed a few times. First of all, the products, from DIY tools to bathroom renovation products, have been quite a challenge. Then, in 2023, from an 100% online retailer to an offline showroom. I used to get scared by change and being fearful that at one point I will not recognize myself, or the business. But this is one of the toughest lessons I learned – evolution, change, deconstruction and reconstruction are just normal steps for any business. I am proud of my amazing team that we are doing this incredible hard work together no matter the challenges we are facing.

BR: Could you shed light on the challenges of running a niche business, especially in the volatile ecommerce landscape and how did you manage to sustain growth, especially given the dominance of major players in the home and decor niche market?

Laura Sardescu: I honestly cannot shed light, since every day comes with new challenges. What I can do is pinpoint the repetitive ones. First on the niche. Never easy, but I think it is easier than trying to market everything. We saw an opportunity and we did our best to pursue it. The bathroom renovation products did not have that much attention in 2016 and they were mainly products you would find in offline stores since the online was not yet quite developed in this area. So, we started building, but not around sheer marketing, but around information and transparency on advantages and disadvantages of the products and on online shopping for them. And that was the starting point on which we continued to build.

As for the major players, we tried to come towards our clients with a different range of products and a different approach. I would say that we did not intersect up until recently.

The growth came as a result, not as an objective, and I think this was part of the beauty of the process. We had the highest demands from ourselves and the company as a whole and did everything so we could consolidate every opportunity.

BR: Can you provide any estimates regarding the size and growth of the home and decor retail market, both offline and online? Have you observed consumer behavior evolving in online home and deco retail?

Laura Sardescu: As far as the evolution of home & deco e-commerce is concerned, even if there isn’t an exact evaluation of its impact within the overall e-tail market, it certainly grew and will continue to grow, helped by both the rate of technology adoption and the consumer habits already formed. But what I strongly believe is that online and offline will end up complementing each other very well and we will no longer talk so segregated about the two channels, but about omnichannel, an optimal approach for consumers.

Regarding the consumer migration towards online, yes, it obviously happened, starting with the Covid 19. The pandemic has been an endurance lesson for the e-tail sector as a whole, and Neakaisa.ro was no exception. It generated fantastic pressure, with rapid adaptations, provision of detailed product descriptions, all to cater for customers, and these practices have continued post-COVID. The expectation of consumers is that all information is very accessible, with support from a knowledgeable interlocutor, even from behind the screen, who listens and answers questions quickly.

The pandemic has also changed things in terms of the evolution of the shopping cart, giving us an impetus to get used to buying more online. Especially for those who, before the pandemic, rejected the idea of shopping online and who, during the restrictions, had no other option. As a result, e-commerce has strengthened and established itself as an important part of retail in general, and has helped us grow too.

BR: Are there any noticeable trends in consumer migration from physical to online stores? And how do you profile your typical online customer?

Laura Sardescu: When it comes to consumer behavior in online retail, we’ve noticed, in our case, an increase of appetite for quality, especially since the bathroom is a room you rarely furnish. The trend is to invest more and to benefit from quality in the long run.

We always try to educate the consumer, not just sell products. We explain the medium and long-term benefits, and online helps us enormously in this respect. In the digital environment, it is vital to present the product very well, to use pictures, detailed descriptions of the product, the benefits, the manufacturer and the technology used. All these aspects are essential in the economics of an online shop. People gain confidence and begin to really understand the product when we are willing to give them proper explanations and details.

I also believe that people choose to shop online for two reasons: convenience – they no longer have to wander around shops to find a suitable product, they can go directly to dedicated websites from the comfort of their own home. And the second reason is transport, especially for heavy items. These are delivered directly to your home, which is extremely useful.

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