Lucrative clay: how to make money on Belarusian souvenirs

A little village of Troshytsy presents no visual evidence of hosting an enterprise that is known nationwide. At noon the local streets are empty, but for two shaggy dogs that start making noise having noticed a stranger.

The factory is located close to the road. Mir is 4 km from here. “Mirskie Uzory” occupy the building of an old school – they got it with the help from local authorities. The room where I’m waiting for the interview to start is a part of ceramic paradise: dozens of small vases, bells, statuettes that are standing next to folders with business papers. Journalists are always welcomed here with a great hospitability.

Ivan Ivanovich, the head of the enterprise, introduces himself and walks me into the accounting office, with an unchanging and pleasing smile on his face. Being an experienced economist, he runs all the financial issues by himself. His first question is how we found out about his factory. The fame of “Mirskie Uzory” sometimes has an unexpected response: even foreigners express interest.

And the public is not only curious about the ceramic from Mir. Today the factory’s products are sold in all big Belarusian cities. Ivan Ivanovich shows two thick folders with lists of buyers: from largest trade centers like main department stores in Minsk to shops in almost all cities with population of 100,000+. The assortment is wide – from small souvenirs: bast shoes, bells and statuettes to meter-high ceramic vases with unique painting.

Showcase

Rural theme

“We have lots of pre-orders and can’t satisfy the demand completely”, - Ivan Ivanovich can’t conceal his own amusement. Despite the difficult times in economy, “Mirskie Uzory” still feel safe.



Ceramic factories in Radashkovichy, Ivianets and Vaukavysk are the main competitors. “Mirskie Uzory” managed to preserve lower production costs, while keeping the quality up. “If we raise prices – our goods will stay at our storages. The demand for such things is very elastic”. The market share is won with a clever managerial approach to production.

“Ceramics is more interesting than gas and oil”

Ivan Ivanovich’s economic background is noticeable right away. Having a degree in economics from the Belarusian Economic University, he was the chief accountant at “Beltransgaz” for 5 years. Then he decided to leave and get back home: “It was difficult to go back and forth all the time”. The local employment office had nothing decent to offer for a person with such experience and skills.

Ivan Ivanovich

The local government suggested starting a private enterprise to produce souvenirs. “They promised to help me, saying, tourists visit to see the castle, so we have to offer something to them”. Ivan Ivanovich did a research on types of products. He even went to Ukraine to get familiarized with wood engraving in Ivano-Frankivsk region and with ceramics in Slavyansk. And the ceramics was his choice.



“Mirskie Uzory” started its own production in 2008 in cooperation with ceramic master Viktor Malinovski. At first, they were located in Mir. The major part of products was sold at the Castle. But in less than a year the souvenirs became available all over Belarus. Two years later the enterprise moved to Troshytsy seeking to expand its production capacity.





Ivan Ivanovich can’t even remember the exact time when the enterprise became profitable: it happened very fast, because the popularity of its products exceeded all expectations. During the first two-three years, the profit was high enough to buy by installments the automated lines of the Minsk Phosphorus Works. However, the production on them did not start. According to Ivan Ivanovich, after the 2011’s rouble devaluation the financial situation deteriorated and the company could not afford to expand the production capacities.

They had to renovate the half-deserted buildings of the school. In 2012 the enterprise received $29.500 of financial assistance from the Hrodna region authorities.






Ivan Ivanovich has taken a deep interest in the ceramics business: he knows every inch of the factory’s area and with a warm care he shows how gradually, shop by shop, cylinders of clay turn into adorable goods.

The company’s manager is convinced that the main recipe of being competitive is planning the production in a way that will eliminate unnecessary expenses. Because of the rouble’s downfall, production gets more labor intensive – the major part of revenues cover salaries. “Mirskie Uzory” feel this problem too.

The company is very thorough in hiring people – there should be no unproductive “dead weight”. Ivan Ivanovich proudly tells about the best masters who are, according to him, the linchpins of the factory. Specialists come to work here from Baranavichy and Ivianets. The director knows every employee by name.

Moulding

Ivan Ivanovich does not hire higher school graduates. “It doesn’t mean I’m against the higher education. But university courses lack practice. Students should spend 3 of 5 years in real production, like they do in Europe”. The entrepreneur complains that the youth go to universities for the sake of diplomas only. He also mentions the Belarusian mentality.


Today the enterprise has 52 employees. The average salary is 3,5-4 mln.




Ivan Ivanovich runs the business with his son, Igor. He is always busy and finds only a minute to enter the office. I ask what advantages family businesses have. Ivan Ivanovich confesses that without son he would hardly manage to run this enterprise. While the father is in charge of finances, the son is the head of production.



Ivan Ivanovich’s daughter also made a try in the family business, but it didn’t last. “In fact, it is very difficult. And the youth want to move to Minsk”.




All the goods are still molded manually at the factory. In the workshop pottery wheels are spinning to the sounds of music from an old player. “This is Viktor Malinovskiy that I told you about”, - Ivan Ivanovich is proudly saying that other media already told stories about this craftsman. Masters themselves are concentrated and unwilling to talk much.

Each article goes through several stages after the preparation of the clay: molding, burning, polishing, glazing, painting. In each workshop there is a variety of molds and paint. “This is one of the best employees”, - Ivan Ivanovich says about a woman that glazes a flower pot with a brick-colored glaze.

The models are made by the masters’ themselves. You just keep admiring the variety of ideas, realized with clay: the world of the ceramic factory is richer than you may think looking from outside. The guests are always delighted.



Ivan Ivanovich admits that many people offer him to make production cheaper this way, but the thought of tricking buyers is unacceptable. Besides, retailers appreciate a high quality of ceramics from Mir – and this helps to win the competition. In Belarus glazed ceramics is now produced only in Troshitsy and Vaukavysk.





Painting of glazed goods is a real art. Each article becomes unique. Not many employees are ready to do this job. “Not all of them have art education, but they are gifted!” Looking at lively pictures you understand once again that the main asset of “Mirskie Uzory” is its masters that invest their extraordinary skills into Belarusian ceramics.




Not only above mentioned French tourists take interest in the Belarusian ceramics. There are cooperation proposals from the Netherlands and Canada, but the existing capacities do not allow to produce sufficient amounts of products.



However, today even the domestic demand surpasses the supply.

Souvenirs

The enterprise is not isolated from fluctuations of the world around. During the last year, due to the events in Ukraine, the number of Russian tourists decreased dramatically. Demand in tourist sites in Mir and Polotsk went down as well. Individual craftsmen, who enjoy tax benefits, are becoming serious competitors. But this was not a shock for the enterprise, thanks to a developed distribution network. In February the profit was Br 190mln.



Ivan Ivanovich promotes authentic Belarusian themes into production. They have Belarusian dolls, angels in vyshyvankas, funny mills and cups with coats of Belarusian cities and castles.

Куклы-белоруски

Angel in vyshyvanka

Cups with Kosava castle

Prospects

The family of Kovalev are the type of entrepreneurs that are inclined to making the life around better. Ivan Ivanovich speaks a lot about the agriculture and how farmers can make money if they have their own equipment.
The territory of the factory is full with flower beds; the paths are looked after and paved with tiles. “Everything was deserted here. We refined the area by ourselves. On flower beds we’ve grown cannas. Many people are astonished to see them here”.

Ivan Ivanovich demonstrates the area between the factory and roadway: “This is the perfect place for a café and countryside hotel – next to the roadway”.
Talking about future, the head of “Mirskie Uzory” expresses a little worry – the situation in the country is complicated, but there’s always a desire to act. “I would really like to start the lines from Minsk. This would increase our production of crockery and household goods. We really want to expand”.



We wish the factory in Troshytsy the best of luck and success. So that the Belarusian ceramics occupied the stores in many countries, on this and other continents.