7 minute read 29 Nov 2019
Petejan brothers

Afit, d. o. o.

By EY Slovenia

Multidisciplinary professional services organization

7 minute read 29 Nov 2019

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More than 600,000 pairs of children’s shoes per year

The town of Miren in the Goriška region of Slovenia is famous for its over 100-year-old shoemaking tradition. Small shoemaking workshops that have been operating in the town since forever, have slowly developed into a shoemaking industry, which has had a significant influence on the development of Miren. From the very beginning, the family Petejan, who today specialize in the production of children's shoes under the "Ciciban" brand, have been engaged in the shoemaking industry. Today, the third generation of the Petejan family is working in the family business, manufacturing over 600,000 pairs of children's shoes a year. The three Petejan brothers agree that their business is a mission: when you are manufacturing children's shoes or anything else that children will wear or use, you have an enormous amount of responsibility to make the product of very high quality and, in the case of footwear, as comfortable as possible. Small children are often unable to express that something is not quite right or is uncomfortable, and thus the entire process from the selection of best quality materials to the final testing of footwear is all the more demanding and important. 

The family business is everything we do, it is our life, our health, we are an integral part of it, we go to sleep with it and we wake up with it.
Tomaž Petejan
The family bought and revived the "Ciciban" brand
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Chapter 1

The family bought and revived the "Ciciban" brand

The family's shoemaking tradition dates back to 1922, when granpa Ivan began to work as a shoemaker.

"The family's shoemaking tradition dates back to 1922, when "nono" Ivan (the grandfather) began to work as a shoemaker. After the bankruptcy of a large shoemaking cooperative, "nono" and his brother bought the machines and soon became the major craftsmen in the village," explains Tomaž Petejan, today's director of the Company, on how the family business got started. Until 1929, the family had a shop in Gorica and in addition, they sold shoes at trade fairs and markets. The solution was at hand, says Robert: "Nono Ivan decided to purchase a car that had wooden wheels to increase mobility."

The shoemaking tradition was continued by Ivan's son Pavel, who in 1953 laid the foundations of the family Company "Čevljarstvo Petejan". "The Jadran factory, which manufactured women's and men's shoes, was established in the town in 1947. At the same time, Pavel began to manufacture children's shoes in his workshop using old machines which "nono" Ivan had bought," describes Tomaž on how his father seized the opportunity. Eventually, the Jadran factory also began to produce children's shoes under the "Ciciban" brand.

As the needs and demand for children's shoes grew over the years, Pavel's three sons joined the family business, which was continually growing. "The Jadran factory and the Ciciban brand went bankrupt in 1994, and a year later we bought the premises of the former Ciciban Miren company and again launched and patented the Ciciban brand," explain the Petejans. In 1996, the company Afit was established, which is engaged in the manufacture of children's footwear under the "Ciciban" brand. Three years later the "The Next" brand of footwear for young people was launched along with the "Balocchi" brand of children's footwear intended specifically for the Italian market. 

Over 100 experts work on each pair of shoes
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Chapter 2

Over 100 experts work on each pair of shoes

"Our high quality products are the result of the family’s expertise and tradition combined with modern technology. "

Today, the family business is the leading manufacturer of children's footwear in Slovenia, and also in the wider region as in addition to Slovenia, they are present in more than 15 countries around the world, from neighboring Italy, Croatia, Serbia, Bosnia and Herzegovina, all the way to Russia, Cyprus, Canada and Australia.

"Our high quality products are the result of the family’s expertise and tradition combined with modern technology. More than 100 highly experienced specialists are engaged in the manufacture of each pair of shoes," explains Tomaž, pointing out that the public are not sufficiently aware of the importance of the quality of children’s footwear. "We are saddened by the common belief  that high quality children's shoes are too expensive. Considering the care and expertise required during the manufacture process, children's footwear is in fact extremely good value for money. "

Boris agrees, emphasizing that the Company is well aware of this fact. "A child is not able to express that something is wrong, or that the shoes are too tight or uncomfortable. For this reason, we are working hard to make the best quality shoes as comfortable as possible. However, quality does not come cheap, especially when only the best materials are used. The three brothers agree that special care has to be taken in the manufacture of children's footwear. "When we are introducing new designs or new components, we must consider the fact that the shoes are made for children at all times. And thus, special care is taken for all decorations to be safely attached so they don’t fall off and to prevent children detaching them and putting them in their mouth." We are currently facing trends and challenges that are likely to prevail in the future. "Veganism, religion and ethical reasons contribute to the fact that some people no longer wish to wear leather," explain the brothers.

Top design
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Chapter 3

Top design

In the entire history of the "Ciciban" brand, they manufactured as many as 50 million pairs of children's shoes.

The final product, which is characterized by a high-quality manufacturing process and is a product of knowledge of several generations combined with the use of top-notch technology, is always the top priority for the family business. Due to the high quality of materials and the manufacturing process, their products, which are recognizable by their finishing design solutions, are successfully challenging the world's top designs primarily on the Italian market, where they are recording continuous growth. 

If the first commercial goals of the Petejan brothers after the revival of the Ciciban brand were the markets of the former Yugoslavia where the Ciciban brand shoes prevailed before the bankruptcy of the "Ciciban" brand and factory, today the picture is slightly different: "Our major market is Italy with 35% of total sales, Croatia with 25% and Serbia with 20%, followed by Slovenia with about 10% of total sales. The remaining sales are achieved in Bosnia and Herzegovina, Canada, Australia and the EU" explains Tomaž. Every year, 600,000 pairs of shoes are produced at the factory. In the entire history of the "Ciciban" brand, they manufactured as many as 50 million pairs of children's shoes. The family business employs 600 staff across various countries; 168 of those are working in Slovenia. A decade ago, a part of their production was moved to Bosnia and Herzegovina, where they have two factories. 

ey_ciciban_05
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Chapter 4

Before transfer to a new generation, you must ensure the company is in good condition and not a mere skeleton

"We often stand on opposing sides. To find a solution we sit down, discuss the matter and come to a joint decision."

When asked what a family business means to them, the brothers respond unanimously: "It is a way of life and business, where the focus is not only on maximizing capital and profits, but rather where the future, tradition and responsibility merge to ensure that on transfer to the next generation, the Company is in good condition and not a mere skeleton."

The harmony between the brothers is challenged daily: "We often stand on opposing sides. To find a solution we sit down, discuss the matter and come to a joint decision." Adjustment, they say, is all the more important since the "family business is everything we do, it is our life, our health, we are an integral part of it, we go to sleep with it and we wake up with it, whilst carrying major responsibility on our shoulders." The next generation is currently at school and is not yet involved in the family business. Although the brothers wish for their children to continue the family tradition, they are also aware that experiences from other fields and companies are more than welcome: "We entered the family business as a matter of fact, none of us has ever worked anywhere else, and this can sometimes be a disadvantage. Because you have not gained experience elsewhere and you never had to answer to anyone, you lack certain experience and you are forced to learn from your own mistakes. An opportunity to learn while working in other industries and other companies is valuable as it gives you the chance to see how things are done outside the family business and to bring this knowledge to the family business to upgrade and improve it further. We did not have this opportunity and grew up with the family business, which we don't perceive as a job but as a way of life. To be honest, we find it difficult to separate private and business life."

Saying that, the younger family members will always be welcome in the family business, as the brothers consider long-term plans for their Company: "We intend to increase our market share on EU markets and also on the markets of third countries, maintain product quality, further consolidate brand awareness and invest in development of knowledge, technology and modernization of the production process," Tomaž explains for their future aspirations.

Tomaž, Robert and Boštjan Petejan, owners

Company Name: Afit d. o. o.
Number of employees (2017): 169
Net sales revenue (2017): €15 million

 

Interviewees:

Tomaž Petejan, co-owner and director 

Robert and Boris Petejan, co-owners

Summary

Ciciban in five words: tradition, knowledge, professionalism, responsibility, dedication.

About this article

By EY Slovenia

Multidisciplinary professional services organization