Producing furniture today near the border with the enemy in Kharkiv is very challenging, not everyone in the local furniture business succeeds. “M-Line” is one of the few that manages to do so. How? This is what its owner Nana Gavtadze shares in her story.

Who would have thought that Kharkiv, arguably the most industrial city in the country, would become one of the most dangerous for living and doing business, especially in the furniture industry? The war initiated by the russians on Ukrainian territory led to this unfortunate realization. Two years ago, the city had at least a dozen furniture factories. The war significantly reduced their number. Some ceased production due to enemy destruction, others due to economic troubles, and some relocated to safer regions. The most resilient and unyielding ones remained in the city, sometimes on the verge of survival, continuing to manufacture furniture. This article focuses on one such company, “M-Line“, and its owner Nana Gavtadze.

– Can we say that the current year has been easier for Kharkiv entrepreneurs than the previous one when the enemy stood at the city walls?

– I can’t speak for all entrepreneurs, but for our company, it hasn’t been easier. Sustaining the viability of the factory is still challenging, and we are far from pre-war production and sales figures. But we don’t give up. We produce furniture gradually, mostly soft furniture, and sell it bit by bit. We are looking for opportunities to grow despite the persistent difficulties.

Staying in the furniture industry amidst economic and financial challenges is possible, in part, because before the war, we successfully optimized production and sales processes to minimize costs. This strategy allows us to offer competitive prices for our products.

In current conditions, it is not only possible but necessary to move towards even wider and deeper optimization of both production processes and marketing. Recognizing this, I didn’t overlook the offer from the Ukrainian Association of Furniture Manufacturers, which recently organized training on this topic. The course has just ended, and I can say that the format, richness of useful information, and the practical aspects of the training deserve the highest praise. For a business owner, especially in today’s uncertain future, being able to see perspectives and understand the ways to move in that direction is crucial. Personally, the opportunity to enrich myself with such a wealth of knowledge in such a convenient way was very timely. (Here, the reference is to the FBA Special Course: Marketing Strategies for Brands.)

– Your production, judging by the product catalog and your offerings on social media, appears to be multifaceted and universal. In the current circumstances, is this an advantage or a disadvantage, considering that personnel challenges have been added to purely economic negative factors?

– Nevertheless, we don’t abandon our multifaceted production. We indeed offer virtually everything needed for furnishing homes. We manufacture almost all types of soft furniture and can also provide complementary items. We have both the personnel and the technical capabilities to produce custom models of soft furniture.

– “M-Line” has always produced serial lines of furniture for wholesale. Has the reduction in such sales hindered your production growth? Which of your wholesale clients has proven to be the most reliable during this time?

– Yes, for two reasons. The trading networks located in the occupied territories (Melitopol, Berdiansk, Kherson region) and in the combat zone have completely fallen out of the Ukrainian market. Those that are still operating sell smaller volumes of goods. From the list of wholesale buyers, “MebelOК” stands out. We had stable business relations with them even before the war, and they continue to this day. We have often produced furniture specifically tailored to their orders.

– The current decline in the domestic market forces Ukrainian furniture manufacturers to actively “seek business happiness” outside the country, not least through participation in international exhibitions.

– It’s tempting for us to join the ranks of such seekers, but we lack the finances. I understand that giving up due to this setback is not an option. We need to find funds. We are actively engaged in a dialogue with the UAFM (Ukrainian  Association of Furniture Manufacturers) leadership in this regard. We hope that a credit opportunity from the state will be available for exhibition needs, and we plan to take advantage of it.

It must be acknowledged that even pre-war credit programs, under which we borrowed funds primarily from “PrivatBank,” have become a significant factor in our development and a guarantee of our current survival in turbulent Kharkiv. Of course, the borrowed funds were used for production needs, including the acquisition of new equipment, which has proven beneficial now for optimizing the cost parameters of production through advanced woodworking technologies.