UNMIK ON AIR

“Business mindset in Kosovo”

(Valon A. Syla)

SLUG: The lack of marketing from domestic producers gives an advantage to imported goods and handicaps those local businesses attempting to break into the marketplace.

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Of the 5000 to 10,000 products available in most Prishtina supermarkets, only 10 to 15 percent are produced domestically.

These local products are new for Kosovan consumers, but the lack of marketing means that most of them are virtually unknown.

Surveys done on the consumption of domestic products by Riinvest, a local non-governmental organization also showed that consumers have a decided preference for brand names.

Besa Zogaj a Researcher at Riinvest:

“Consumers would rather buy products with a famous mark (logo), than domestic products. Some of our domestic products include oil and water, and from their design quality and packaging quality, are similar to those imported. Nonetheless, clients prefer to buy imported products, even if domestic articles are cheaper.”

One company that has managed to stave off foreign competition is Mish Kosova (Kosova Meat) – their dried sausage and other meat products are extremely popular.

Manager for Mish Kosova, Ilir Kamberaj is one of the rare satisfied producers in Kosovo.

“We kept the tradition and saved the old name. The Bosnian Sausage is very well known to Kosovan consumers. This is a smoked dried sausage that is cooked for 28 days in the oven. So we changed the logo and kept the old name, now all the consumers know that this product is produced in Prizren.”

But when the quality is in question, rarely do consumers ask for the price.

Domestic mineral water is considered a desirable product by Kosovan consumers and is always preferable to the imported variety. Those that come well packaged are also in great demand.

The only chocolate producer in Kosovo, Gëzim Haxhia owner of the Mozart Chocolate Factory, says packaging is very important for marketing:

“The designer in our factory comes up with the concept, but unfortunately the material has to be sent outside Kosova to be finalized, it is much cheaper than doing it here. So we send the slides to Turkey and then we import the packaging material.”

The Mozart chocolate factory produces snazzy packaged boxes but most domestic producers have very simple ones, and this does tend to have an impact on sales says Haxhia.

Another issue that bogs down Kosovo’s economy according to domestic producers is the fiscal policy mandate of UNMIK, which has started to change last three months.

Petraq Milo the acting head of the fiscal affairs office of UNMIK, explains:

“The amendment of the existing regulation for custom tariffs is aimed to reduce the custom tariffs, for capital goods and raw material for industrial producers. The purpose of this change of tariffs is mainly TO advance local production and also to start attracting local and international investors.”

According to Milo, another aim of the regulation for costums tariffs is to make domestic products competitive in the market with the imported goods.

Milo also says when domestic producers become competitive in the Kosovan market, it would give a boost to local economy, and create opportunities for new jobs.

And that’s was all for this edition of UNMIK on Air, Thanks for Listening.