Management in Italian. Olga Sas (FILA GROUP): “Our products are instantly addictive Head office and production facilities

On September 26, 2017, F.I.L.A. Group (Italy), Representative Office in Russia and the CIS, invited its partners to a business breakfast at the Ruski restaurant, located in the OKO tower in Moscow City. The choice of the highest restaurant in Europe as the location for the next “breakfast meeting”, which has become F.I.L.A. already a tradition, they explained it this way: over the past three years, the F.I.L.A. Group, demonstrating constant rapid growth, has reached a leading global position in the production of goods for artistic creativity, and I wanted to share this “view of the world from above” with partners.

The event was sold out - about 100 guests, representatives of partner and client companies came. Such interest was aroused, first of all, by the report of the Head of the F.I.L.A. Representative Office. Olga Sas, MBA, who spoke about the company’s plans related to the entry into the group of legendary world brands: Daler-Rowney, St. Cuthberts Mill and Canson. Their competitive advantages, product range nuances and prospects in the Russian market, as well as changes in the distribution format were highlighted. Issues related to product features, segmentation of product lines, and significant investments in modernization of production facilities were also discussed (in 2016-2017 alone, the corporation invested several hundred million euros in production). Special emphasis was placed on growth plans, which are very impressive. Within the next 3 years, F.I.L.A. The Group plans to capture a 45% share of the total global creative products market, including professional art supplies, hobby and children's art supplies, and stationery. In another 3 years, the company's global market share should exceed 50%. This is quite realistic, given that the corporation’s portfolio now includes the world’s leading brands, the range of which covers the needs of all categories of consumers of any age.

The dynamics of the company’s growth in Russia - over 4 years of existence - also speaks in favor of ambitious plans
Representative figures show an annual increase in turnover of at least twice. According to Olga Sas, such a result could not have been achieved without the loyalty and understanding of partners and clients. “We are maximally interested in the success of each of our partners, because we clearly understand that the implementation of our plans directly depends on this. Therefore, we strive to provide an individual approach to clients, promptly answer all questions that arise and take into account all their wishes,” she noted, presenting certificates of the company’s Strategic Partners to those present.

The main line of the company's marketing strategy was also presented at the business meeting. Brands F.I.L.A. traditionally partners with the world's leading cultural institutions (such as the Louvre, La Scala, museums of Milan, Florence, Venice Biennale), the company holds international creative competitions and organizes training programs for artists. The Russian representative office, in turn, shared its plans for work in this same area, in particular, with the Tretyakov Gallery as part of projects for children and with charitable foundations. In the near future - holding exhibitions with the participation of the MAIMERY Foundation and close work with the International Union of Teachers and Artists.

Information about the company FILA Group
Group of companies F.I.L.A. (Fabbrica Italiana Lapis ed Affini) was founded in Florence in 1920 and has been run by the Candela family since 1956. F.I.L.A. is an innovative Italian industrial enterprise whose market share is increasing every year. Since November 2015, F.I.L.A. shares traded on the STAR segment of the Milan Stock Exchange. The company, with revenues of over 275 million euros (as of 2015), has grown significantly over the past 20 years and has made a series of strategic acquisitions. So, F.I.L.A. Italian Adica Pongo, American Dixon Ticonderoga, German LYRA, Mexican Lapiceria Mexicana, Brazilian Lycin, English Daler-Rowney Lukas and St. were acquired. Cuthberts and the French company Canson.

F.I.L.A. - Italian creative icon and global corporation, famous for products for dry and classical drawing, sculpting and modeling, known for brands such as Giotto, Tratto, Das, Didò, Pongo, Lyra, Doms, Maimeri and Daler. Since its founding, F.I.L.A. focuses on continuous growth and does this by constantly introducing innovative developments and ideas. Thus, the company provides an opportunity for every person to express their ideas and talent using the highest quality materials. F.I.L.A. and its member companies work with educational institutions to support learning and cultural projects that promote creativity and self-expression and make culture accessible to all. As of February 2017, F.I.L.A. has 21 production plants, 2 of which are in Italy, and 39 branches worldwide. The company employs more than 6,500 employees.

Fila Stationery Company , official representative office of the Italian corporation FILA Group in Russia, held a business conference in Moscow at the hotel " Savoy " The theme of the conference is “Formula for confident business development in the new reality.” Current priorities and values of the creative goods market.”

During the event, the specifics of the modern stationery, hobby and art markets were examined in detail. Topics such as effective management of business processes in retail trade, personnel training, interaction of art goods manufacturers with educational and specialized art institutions and other issues were brought up for discussion.

The purpose of the meeting was to strengthen partnerships and jointly search for new ways to optimize work in the stationery and art supplies market. Among the conference speakers are Nina Belikova, General Director of the Young Guard House of Books, Oksana Morozova, Commercial Director of the Vinny children's shopping center chain, Alexander Safronov, General Director of SimS LLC and the Stationery Rat chain of stores, and other industry leaders .

FILA specialists spoke about the main stages of the company’s development in the global and Russian markets and the current business strategy, especially emphasizing the corporation’s openness to cooperation.

Olga Sas, General Director of the Representative Office Fila Group (Italy) in Russia and the CIS: “At the end of 2016, FILA approached a turnover of 1 billion euros, we became the largest player in the market. Our company is a long-term player. We were rocking a little slower than usual, but that just means that a good house is not built quickly. We have built a good foundation and are now actively engaged in construction. The company’s key rule: we clearly understand that we earn money only after our partners earn money.”

Currently, FILA occupies 17% of the global market. Indicator EBITDA in 2016 was 30.8%. The company's growth last year was 4.5 times, plans in Russia are to grow at least another 2.5 times. The main principles of FILA remain business transparency and the acquisition of exclusively large, well-known brands that are promising for further development.

“Success is possible only in symmetry. We are focused on individual work with each client. This includes personal planograms, assortment recommendations, work with sellers, and training - everything we can. And if we can’t, we’ll figure out how to do it. Feel creative with FILA!” says Olga Sas.

What is the motto for the FILA Group throughout 2017 in Russia?

2017, both for FILA Russia and for the FILA Group as a whole, is the year of integration of all new brands into the FILA work system. This includes the restructuring of supply chains, the transition to a unified production planning system, and a unified system of work, control of balances and orders: a new global program that will be implemented in all representative offices at once.

In addition, this involves active brand segmentation and a huge amount of marketing work. Our new strategy is “the brand is always there.” We don’t dictate or impose anything, we’re just always there. We are integrating into lifestyle, everyday life. Hence the projects with libraries, the world's leading museums, theaters, educational institutions, and opinion leaders. We create demand and develop together with consumers.

The market is already accustomed to the fact that the concern carries out constant significant mergers, so what was most expected from us was the official announcement of “who we bought again.” At the moment, indeed, another merger deal has taken place, but it was more about the acquisition not of a brand, but of production facilities. Therefore, we will not disclose the name of the company. We are also going to strengthen the position of an already strong brand in the market - Canson and add production capacity specifically for the production of art paper.

The year 2017 will, of course, be especially dedicated to the market of art goods, products for professional artistic creativity. As you know, in 2016, FILA carried out several very significant and striking mergers. Our portfolio of art market brands includes such legendary brands as Canson (France) and the British Daler Rowney and St. Cuthbert's Mill - in addition to the wonderful and equally respectable Italian brand Maimeri. Having more than 20 sought-after brands that cover all the creative needs of consumers of any age and any professional level, we can truly provide our clients with more than attractive terms of cooperation.

In terms of social responsibility of business, we will continue our charitable activities, work with the Ministry of Education to create methodological recommendations for teachers and educators, we want to discover new names and hold creative competitions.

“FILA Sofia” is the rules of life by which our large global FILA family lives.

Does FILAsophy really exist?

Yes, there is - and these are not artificially implanted “corporate values”, but the rules of life by which our large global FILA family lives. First, do what you are not ashamed of, what you like. And we all use our own products, proudly give them to friends and boldly give them to our children almost from birth, because we are confident in them. Further, I would outline the second point this way - first of all, think about your business partners - and we always say that we earn money only after our clients have earned money. Third, invest in what is truly valuable in order to preserve, save and increase these values. Our company selects for mergers only truly significant brands with production facilities, with history, and does this in order to preserve them and improve them by optimizing production and our global resources, which the market leader has. Well, another, perhaps the most significant value of our “FILAsophia” is honesty and openness. Since the company's shares are available on the stock exchange, and, it should be noted, are in great demand, this very fact obliges us to be absolutely transparent in our work and conduct business as ethically and honestly as possible.

What did the global company present at Paperworld 2017? When can we expect all this in Russia?

Paperworld in Frankfurt is one of the world's most exciting forums for our market, and the FILA Group is a constant presence at this exhibition year after year.

There are more than enough new products and ideas - with 20 major brands in the portfolio, this is not at all surprising. However, I will be happy to highlight some of them. We are pleased to note that last year’s new product, DAS IDEA MIX, received the prestigious ISPA Awards 2017 at Paperworld in the “Socially Responsible Office” category. Innovation, quality, affordable price, presentability and environmental responsibility are five mandatory criteria that ISPA award winners must satisfy.

In 2016, Das Smart and Das Junior were presented - these are not just new products, but a globally new project on polymer clay. Das Junior is a clay that hardens in air, but retains all the properties of a “polymer,” and Das Smart is an oven-baked polymer clay that is absolutely safe for the first time. Before this, as is known, the worldwide practice for baking polymer clay was to use a separate oven, which could not be used for cooking. Since the average consumer can very rarely afford to have a separate stove at home, our specialists developed the project taking into account the fact that the clay would be baked in an ordinary oven, where the food would then be cooked. Therefore, only those materials are used that do not cause harmful fumes. For four years, our researchers in the laboratories of three companies of our concern (FILA Italy, DIXON Mexico and MAIMERI Italy) carefully selected pigments, binders and developed a formula taking into account the requirements of EN-71 - games and toys for children.

A very striking new product is the line of monopigment oil paints Puro from Maimeri. The “crown” advantage of this brand is the highest quality of pigments and their finest grinding, which allows you to achieve amazing results in artistic works. The new line does not contain 150+ colors, as is traditionally the case with paint manufacturers, but only 76, but these are the purest mono-pigment colors, with which the artist himself can mix any shades and achieve the desired effect. This is also a much more economical solution to use, which is so important for professionals.

As for your question about when new products will appear in Russia - in our case, there are no special delays due to “geographical principles”. Moreover, there are some products that, of all the countries in which the FILA Group is represented, are only available in Italy and Russia.

And yet, how to send the final impulse to the consumer to make a purchase of FILA children's art products when everything is there (quality, safety, brand), but the price is stopping them? And who should do it?

Our price is quite reasonable both in comparison with competitors close to our positioning and in the market as a whole. After all, since the change in exchange rates, for more than 2 years, we have raised prices by only 30%, while on average other importers' prices have increased by 80%. In addition, in 2017, the RRP (Recommended Retail Price) system is being introduced for all FILA Group representative offices and branches around the world.

So the consumer only needs to clearly understand the values of our brands and the benefits of our products in order to choose FILA. When a consumer sees that with a price difference of 10% he will purchase a product that is an order of magnitude higher in quality (and this, as a rule, is more economical), questions usually no longer arise.

We systematically work to convey the values and benefits of our products. We use advertising, training of our clients’ sales staff, an abundance of information on social networks, work with opinion leaders (teachers, educators, artists, etc.), and holding special informative events, participation in forums and exhibitions, testing, master classes and much more.

In general, very often the last impulse that leads to a purchase is the consumer’s contact with our products. We have long known that our products speak for themselves and are instantly addictive.

The result that forms the basis of a long-term game is the strategy for success.

How do you manage to combine a democratic leadership style and a team-based nature of work in your company?

It seems to me that these things are interconnected. It is impossible to lead a team without being part of it; it is impossible to inspire people without speaking their language and understanding their motivation.

So for me, a democratic leadership style is most comfortable. It is based on transparency and fairness; everyone in the company understands the principles of reward, the principles of performance evaluation, and most importantly, our common goals.

What projects or even dreams have not yet come true? What would you wish for yourself?

What didn’t come true... The peculiarity of my personal thinking is that I don’t concentrate on failures, for me it’s just experience. Moreover, it is very useful, from which I immediately draw conclusions in order to implement what I have in mind. The plans are grandiose, and thanks to my wonderful boss Massimo Candela, CEO of FILA Group, who taught me (and not only me, I’m sure) to think not “here and now”, but in the long term. I have always been results-oriented. But the result that forms the basis of a long-term game is the strategy for success. I would like to wish myself to grow further in every sense, increase the coverage of brands, expand geography and continue to burn and support my business. I'm still doing my dream and I love it!

- What are the cornerstones of Italian business culture?

The special Italian lifestyle is evident in everything, including business. Here, measured life is combined with outstanding perfectionism, guided by the motto: “We do our job very well or not at all.” I believe that love for one’s own business is manifested precisely in attention to detail and the constant desire to jump above one’s head. Thus, the Italians put a deep and thorough approach to any task first. Another distinctive feature of this business is tight management. In Italy, where the culture of continuity and family values is deeply developed, the top management of the company can be compared to wise parents. These are the kind of Italian dad and/or mom - kind and hospitable, to whom it is good to come for the weekend, but if anything happens, they punish very strictly.

- How is it different from German?

Italian business culture, in my opinion, is fundamentally different from German. We react faster to changes and market sentiment, absorb from the outside and develop innovations ourselves. The first place for the company is the loyalty and honesty of its employees, who are offered complete protection in return. Business in Italy is crystal transparent and honest. Here, as noted above, family values dominate.

- Why is business culture considered central to the success of large companies?- Corporate culture completely determines all company activities: business transparency, certification, cleanliness of production, etc. A competent manager builds the business culture of his enterprise first and foremost. Without this, it is impossible to successfully develop production; this is the backbone of the company, consisting of a clear strategy and strict principles, such as loyalty to quality, 100% production safety and many others.

- What should you not learn from Italian managers?

Any business has a strong connection to location. So, we can say that Italians are most effective in Italy. We can try to learn from their strongest management, adopt managerial and strategic steps, but then we need to learn to live according to the Italian philosophy. One doesn't work without the other, that's a fact.

- They say multinational teams are more successful. Is this so and why??

Olga Ivanovna Sas, General Director of the FILA Group representative office in Russia.

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