We are always interested in potentialSerbia has it

“Business models must adapt to market developments,” argues Ludvík Machala, founder and CEO of ProSpánek. When the golden era of direct sales through call centres was coming to an end, he decided on an ambitious plan to build a retail chain that would offer comprehensive solutions for healthy sleeping. They did it first in the Czech Republic and Slovakia, later in Poland and Hungary, and most recently, Serbia joined the group in 2022. “Serbia was a logical choice for us when looking for further expansion eastward. It is a country with a rapidly developing economy open to the whole world. And we are always interested in potential.”

When the student is ready, a mentor appears

The origins of ProSpánek date back to the 1990s, when the then Czechoslovakia opened up to Western goods and know-how. At that time, Ludvík Machala established a relationship with PerDormire, Italy’s second-largest mattress manufacturer, and began purchasing their products. In 2000, his company launched its own direct sales.

Tempur, now the largest manufacturer of luxury mattresses in the world, also approached them. The brand's mattresses simulate weightlessness and are at the forefront of the industry in terms of products. "Tempur has been one of my lifelong mentors, and through collaboration with them, we learned how to do international business. Gradually, we became a major player in the sale of mattresses, pillows and bedding in Eastern Europe."

Well-trained people are the most valuable asset

By the end of 2013, it was time for change, and Ludvík Machala thought about drastically reducing his direct sales business and cutting the workforce from 320 employees across several European countries to just 15. “But as I was showing a partner around the company and saw dozens of colleagues there, I realized what is most valuable in any company – well-trained people. That made me rethink the whole approach."

So in 2014, ProSpánek was founded, gradually opening its first retail stores in the Czech Republic and Slovakia, while at the same time scaling down its direct sales division as originally planned. “One of my dreams came true – I stopped going to people, and thanks to the first stores, people started coming to me.” ProSpánek started building a retail chain focused on comprehensive healthy sleep solutions, and this major transformation was achieved without having to lay off a single employee.

The successful expansion was halted in 2019 by the covid-19 pandemic, which made brick-and-mortar sales impossible for a long time. ProSpánek lost nearly 60% of its revenue. Nevertheless, thanks to effective crisis management, the company not only survived, but also learned valuable lessons and began to develop e-commerce, while continually streamlining its processes.

Serbia is attractive

ProSpánek entered the Serbian market two years ago. However, the company’s experience with Serbia dates back to 2016 when Mlily became one of its suppliers. "Serbia was a logical choice for us when looking for further expansion eastward. It is a very pleasant country with friendly people. One of the reasons why it attracts me so much is the minimal competition at this time as well as a rapidly developing economy open to the whole world. We are always interested in potential. The appeal of our products in Serbia is growing, and new modern retail parks are being built where we are opening our stores," says Ludvík Machala.

"I am really proud of our managers in Serbia – they form a great team, they work hard and are willing to take on any task. There are also many quality manufacturers of our range in the country, and we cooperate with many of them. Their advantages include low energy costs and affordable labour. I would also like to appreciate the support of our embassy, ​​which can lend us a helping hand when needed. Our main challenge is the fact that Serbia is not yet a member of the European Union, which is something I believe the country would deserve. For example, this increases our transportation costs and extends delivery times, as the goods have to be cleared through customs.”

In Serbia, the company operates under the ZaSpavanje brand

Transformation is necessary

As the number of ProSpánek stores was above 100 and the company expanded its activities across five different markets, it became clear that their structure was no longer suitable, and it was not viable to simply copy the successful business model from the Czech Republic to other markets. Thus, the transformation of the company from medium to large was started.

“Once again, I learned from the experience of others, and decided to stabilize the company and undergo a comprehensive transformation process. We are now working on this with the whole team, where within the new organizational structure, each position is held by an outstanding professional. We are expanding our company premises in Svitavy. We will have over 20,000 square metres of new warehouse space and 6,000 square metres of new office space. Our company is now ready for a large and rapid expansion," notes the founder.

Written by Martina Hošková

Photo credits: ProSpánek