A formula for success: prudent investments and new product development
HGSPOT, Croatian IT equipment retail chain, has concluded 2015 with 95 million kuna in revenues – which is a 50 percent year-on-year revenue increase in comparison with 2014. Its profit for the last year was three million kuna, reports poslovni.hr on March 3, 2016.
This positive trend has started in 2011, after the new owner, Saša Lončar, took over the company. In 2015, HGSPOT had made some big investments, including two new shops, one in Split and one in Zagreb. With this addition, the number of its retail stores with IT equipment has risen to six. In addition to stores in Split and Zagreb, HGSPOT is also present in Rijeka and Vinkovci.
Meanwhile, HGSPOT had also implemented its targets for the past year related to broadening the company’s product range, introducing some new initiatives to the market and investing in development and manufacturing of their own products. One such new initiative is Virginia White, a domestic e-cigarette brand, which became the best-selling domestic brand in its first year. Another one of company’s many activities was its continuous cooperation with Apple, which resulted in the establishment of a unique retail venue for Apple products.
“Based on the reported data, the estimated value of the computer equipment retail market in Croatia in 2015 amounted to about 5 billion kuna, which represents a slight year-on-year decrease in comparison with 2014. HGSPOT has based its significant growth (when compared to the market average) on the business strategy that involves moderate investment in accordance with our existing capacities and capabilities while focusing on new products that are our priority. All our investments are covered from our own resources and, as of now, we have not taken any loans”, Lončar said.
HGSPOT now has 50 employees, and it expects this number to increase in 2016, especially in the area of retail, wholesale, and e-cigarettes development. HGSPOT also counts on further revenue increase, even larger investments in existing projects and they are ready to explore new markets.
