Hello, Eduard. Before our meeting, I checked EDKA's statistical data. To my surprise, though you founded the company in 2005, it is only in the last two years that you have recorded notable turnover figures. Were the beginnings in furniture production so difficult?

I only started producing furniture in 2018, whereas in 2005, when I founded the company, it never occurred to me that I would ever produce furniture. Back then, business was kind of a hobby for me. It often happened that the place where I earned money was at work, while the business was where I invested resources. In fact, I am among those businessmen who, in their youth, borrowed a hundred dollars before payday or for whom putting away a hundred dollars meant serious savings.

Who are you by profession?

A computer programmer. However, I've worked in many fields, except the one in which I specialized. This has also brought me a rich experience. I have worked both for a company that sold computer equipment as well as in the alcohol industry, ending my career as the manager of the "Chisty Dom" chain of stores. When I joined the company, there were 30 stores, and four years later, when I left, the chain counted 63 stores and was generating a steady income.

And during all this time you have been doing business as a hobby?

The only reason I left Chisty Dom was that I had a feeling that I had reached a point where I would either start doing my job badly - which I didn't want to do, because I had a respectful relationship with the owners of the company - or I would lose my business. At that time, I already started working in the furniture business, though not in production, but sales on the Romanian market.

As far as I can see, your business history is full of twists and turns.

Indeed, we've been through quite a few twists and turns and ups and downs. At one time, I was dealing solely with marketing. Then followed an unfortunate experiment in the production of cash register tapes. After that, I vowed never to go into production again. Obviously, I also tried to trade with China. Few aspiring businessmen could resist this temptation. In Chisinau, I owned two grocery stores. And, since 2015, I have opened a shop in Romania selling furniture from Moldovan manufacturers. 

Well, you may be writing books about serial entrepreneurship...

It's too early. When I decided to devote myself to business 100%, I understood that I couldn't work in furniture sales stably unless I had my production. 

So you gave up the idea of never going into production, didn't you?

I did. Sometimes in business, it pays to revisit rash decisions. Then, in February 2017, my daughter Emma was born. In August of the same year, we opened a second store in Romania, named in honor of our daughter - Casa Emma. And all the experience in selling furniture in Romania encouraged me to open my production and not depend on anyone from outside. Although I was taking a big risk, as I had no financial backing in the business at that time…

What kind of furniture does your brand EDKA produce?

We produce upholstered furniture made of foam rubber. It has no wooden or metal parts. The furniture consists of a special hard mattress. Let me tell you a funny story: we had a man come into our shop in Romania. Later we found out that he was originally from Jordan, married to a Romanian woman, and an osteopathic doctor by profession. This man of considerable size, 190 centimeters tall and weighing about 120 kg, was choosing a mattress. When he tested our furniture, he said a phrase we could use for advertising: "You don't make furniture, you create medicine for my patients!". It is not the first time we have received such warm feedback from our customers. In fact, we have never advertised in Romania before. Buyer recommendations are the most effective. For example, in April we sold a pink sofa in Cluj. Almost immediately, a friend of the client ordered exactly the same model, and by the end of April, we had already shipped three pink sofas to Cluj. 

How do you rate the specifics of doing business in Romania? You also own shops in Moldova. Thus, you could compare them. 

Strange as it may seem, I find it even easier to work in Romania than in Moldova. Although in the mall where we opened our first shop there are a few other furniture dealers, our relations are open and quite friendly. Once, the owner of another shop bought our furniture just to test how it would sell in his shop, without asking for any discount. Even though it didn't work out as well for him as it did for us, perhaps because our furniture got lost in his diverse assortment, we continued to stay on good terms. What I think is important to note is that our sales on the Romanian market already exceed those in Moldova.

Who are your furniture buyers?

They fall into two categories. On the one hand, older people for whom the amount of factors associated with our furniture is important. Our furniture is affordable, compact, easy to unfold, and easy to fold. It is comfortable for sleeping. We've even added a special strap, with the help of which the elderly can unfold the sofas without bending over. On the other side are young families living in small apartments. For them, our furniture is simply a lifesaver. What they appreciate is that our furniture has no hard parts, it's practically a mattress, which children could not bump into. 

What other specifics of doing business in Romania would you mention? 

The size of the retail profit margin. In the case of furniture, it is much higher than in Moldova, and customer demand is not affected at all. Of course, this is also due to the higher expenses of the business, as the rent of commercial spaces is much more expensive.

We have received your contact details from Invest Moldova Agency. Have you participated in any programs run by the agency?

Of course, and I was very pleased with the results. I really didn't expect that online participation could yield such results. We were one of the ten participants in the program launched in April and already in June, we started delivering furniture to a new client in Vatra Dornei. And we are currently negotiating with the online homeware retail platform - Vivre.eu. Incidentally, the co-owner of the platform is Monica Cadogan, who has also become a shareholder in Vinaria Purcari.

What other steps are you taking to expand your business?

We are still renting production space, around 1,500 sqm, but we are already negotiating with the European Bank for Reconstruction and Development. We plan to build our production unit, with an area of 6,000 sqm. 

With Europe as an export destination?

So far, we are focusing primarily on Romania. We will use the experience gained on the Romanian market to move gradually and surely towards Europe. We are also making progress in the Scandinavian countries, but for this market, we still need to gain experience in production, adjust all production and accounting systems and adapt them to European standards. Only after that, we will also be able to establish ourselves in other markets.