The rise and rise of Jernej Hren

Jernej, tell us a little about yourself...
I was born in Slovenia but moved with my parents to Austria, where I studied for a masters degree in Finance. I started work for a bank and then took a position in Group Controlling at Gorenje’s holding company in Vienna. I was overseeing some of its subsidiaries which included Austria, Germany, Scandinavia and the UK. I then relocated to Gorenje in Germany, where I held the Chief Financial Officer position for two years. Prior to joining Gorenje UK, I worked for the Gorenje subsidiary in Barcelona, where I held a financial and executive position.

What attracted you to the position of MD in the UK?
The UK is probably one of the most challenging and interesting markets in Europe. It is challenging because of high competitiveness, high brand awareness in the market, and of course, its tradition of sourcing from all over the world.

What do you think you bring to the party?
Champagne! Seriously, though... it is my experience from other countries, and from seeing what Gorenje is doing in other markets and what can be achieved. I can give an additional view on products and be both consumer and financially-focused. I can give my team a goal. This is very important. It brings added value to a young company and gets it to achieve even better targets and growth in the future.

This year has been challenging, yet Gorenje has increased its dealer base and sales. What is your secret?
There are no secrets. It is hard work and an on-going strategy to target the independent retailer. We don’t change our strategy every year. It should be evolution not revolution. But it is important that Gorenje is displayed in more and more outlets, as both retailers and consumers are beginning to appreciate the value for money, high design and range of features offered by our products.

How are you attracting independent retailers?
We are not heavily exposed on the internet. We sell designer products at a price that’s slightly lower than our main competitors but offer similar or higher quality. Combining that with the USP of having extended guarantees gives retailers a valuable sales tool to offer to their customers. Especially in this depressed market, people are looking to make more considered purchases and a Gorenje appliance gives a five year peace of mind. We also take retailers over to Slovenia and show them the story of Gorenje.

What do you expect from them?
I expect them to know how to sell products. It is important, from my point of view, that the retailer is convinced about the product. Would you sell a product you didn’t like? The retailers have to know about the quality, like and trust our products. Translated, Gorenje means burning’ like passion. We support the independent retailer and hope the retailers support us as well, It is about creating a partnership. One-way support doesn’t work anymore.

What are your future plans for the Gorenje brand?
We are satisfied with this year but have to have an outlook for next year. Again, it will be about increasing our retail base in order to spread the brand wider. It will also to continue being considered as a design leader and a quality manufacturer. This year was exceptional and of course the target is as high for the next few years. I would like to see steady growth but it depends on the market. Next year, we will have a 60- year celebration of Gorenje and we will be launching the Karim Rashid and Simplicity ranges, shown at IFA in Berlin, earlier this year.

Without saying the economy, what will be your biggest challenge?
Of course, I’m going to mention the economy. What else? In general, the biggest challenge is how the consumer perceives white goods. Everybody wants high quality for the lowest possible price and it’s challenging not to focus only on price but to sell features, product quality and of course our guarantee. To get this message over to the UK consumer is very challenging. And your biggest achievement? In 2009, it has been our growth in a difficult market which clearly proves our strategy right. But we do not intend to stand still.