How Silvija Celjak is transforming Croatia’s kids’ textile industry

Silvija Celjak is transforming Croatia’s textile industry for kids (Photo: Ethereal)

Interview by Zoran Rajn

Silvija Celjak, the founder and director of Ethereal Ltd., has been running an innovative brand that stands out on the Croatian and international market of textile products for babies and children for eight years.

Her love for art and textiles, combined with a vision for sustainable business, shaped Ethereal into a brand known for top-quality and environmentally friendly products.

In this interview, she reveals her entrepreneurial journey, the challenges she faces, and her vision for the future of the textile industry in Croatia.

What inspired you to start Ethereal, what has your journey been like and what are the biggest challenges you have had to overcome in these eight years of running the company?

Creative creation, textiles, and innovations have always been subjects of my interest. After graduating from the Faculty of Textile Technology and working in the field for several years, I decided to start my own production. In other companies, my work was often constrained, limited, and appropriated, and I didn’t have the level of freedom I needed to reach my full potential.

Silvija Celjak (Photo: Ethereal)

Additionally, I wanted to produce something that was lacking in the market: quality materials and craftsmanship, an innovative approach, and good design.

I have always been a big dreamer, an idealist, and a creative and enthusiastic person who tries to make the world a slightly better place in everything I do. These are also the main reasons why I decided to embark on entrepreneurship. I am the owner of ETHEREAL d.o.o., which has been operating for eight years, employs 22 people, and produces high-quality textile products for babies and children, develops innovations, and sews products for people who are typically excluded from the world of textiles and fashion, such as people with disabilities and physical deformities.

What bothered me while working in other companies was that I witnessed, and couldn’t influence, situations where quality was sacrificed for profit.

Questionable-quality fabrics were used to sew premium products just to minimize production costs. Every second of employee work was counted; layoffs were given on New Year’s Eve due to reduced production volumes, and the same happened to those who were frequently on sick leave. I’ve heard even worse stories from other companies where I didn’t work personally but heard others’ experiences.

I wanted to create “my little world,” a production where everything would be as I think it should be in an ideal world: products of uncompromising quality, a pleasant working atmosphere, warmth, unity, positive societal impact, and respect for ecology.

On my business journey, there were many obstacles, most of which were financial. In the beginning, when I started from scratch without capital, it was very difficult to get the first machines and fabrics; it was a big struggle. But when we came to the market with our, as I like to call them, “magical products,” the results were immediately visible.

(Photo: Ethereal)

Our colors and cheerful patterns stood out from the sea of monotonous grays and similar neutral products. Apart from the first visual impression, customer enthusiasm followed when they realized the quality, softness, and tenderness, unmatched by anything you could find in shopping centers.

Although sales grew every year, profits were not significant because margins were low, so there wasn’t enough money for further investments and expansion.

Every time we decided to invest in improvements, new machines, and equipment, it was very difficult to find sources of financing. The first major crisis happened during the pandemic, the second during inflation, and the biggest challenge so far, for many unsolvable, but for me just difficult, was financing our big investment in innovations that we believe will transform us into a profitable textile company and open up incredible opportunities. You can read more about the project at: Hocus Pocus, better clothes for a happy planet! – Bona Fides Invest

Can you tell us more about your personal mission as an entrepreneur in the textile industry?

I have already partly answered this question in the previous response. It is impossible for me to separate my personality and worldview from my business. No matter how difficult it sometimes gets or how financially unreasonable it seems, I don’t want to act against my ethical principles.

For instance, there were times when we faced a drop in sales that lasted for months, and during those times, it was suggested to me to send half of the workers “to the unemployment office”, there is no work anyway, and you can bring them back when things improve. Although from a financial perspective that might have made sense, my people matter to me.

They have acquired certain skills, and we are all part of this story together, and we will get through it together.

This is just a small part of the whole story. I have always felt a calling to do something that helps people, to serve, to ensure that what I do is good not just for me but also for society, the environment, and the world. We are only truly happy when we can help someone and do something good; the problem is that people have forgotten that because they try too little.

Everyone seeks happiness in accumulating material things, shopping, and self-indulgence, but each of these feelings lasts so briefly that it is impossible to be happy in that way. If I’m not happy, I don’t feel good seeing other people around me happy, and you can see that from an early age, when children “bully” each other. If they were happy, it would never cross their minds.

(Photo: Ethereal)

Let me mention one recent event that filled me with incredible joy. I was in a rush, hurrying to work, when I saw an elderly lady barely walking. I couldn’t help but notice her because she looked weak, helpless, very old, and sick.

I rushed past her, but something wouldn’t let me be at peace, so I turned the car around and stopped, thinking she’s probably going to the doctor; I’ll take her. “Grandma, where are you going? Can I give you a ride?” And so the conversation started. I first took her to the post office, then she mentioned how she wanted to visit her husband’s and son’s graves for a long time but couldn’t. I took her to the cemetery; we bought candles, went to the grave, lit them, and prayed.

The whole time we were talking, I asked if she needed anything else and then took her home. My heart was pounding with joy because I saw how much it meant to her. We are happy only when we share and help; this way, both we and the person we help are happy. By acting in this way, we create a world of happy people.

In business, I follow similar values. For example, if happy people work in my company, they will go home happy and share love with their family and those around them. Resentful and angry people certainly can’t do that as much. Being an entrepreneur in a company that produces textile products for babies also allows me to occasionally donate a part of those products to those in need.

By providing quality products that last a long time, I enable users of our products to pass those items on to others and bring joy to more children. Additionally, durability is essential for preserving the environment because we accumulate too much waste, which burdens the planet’s ecosystem.

By using safe materials and chemicals, I know that our products are safe for health and the environment; perhaps I will motivate someone else to do the same. Step by step, we can change people’s awareness and return to true values.

How does Ethereal differ from other brands on the market for baby and children’s textile products?

ETHEREAL is special in many ways. The word itself is synonymous with “magical.” That’s what our products are: unique in design, soft, gentle, and of high quality, which makes them different from most products on the market. There are appealing imported products of questionable quality, but they can’t compare to ours.

We are not the only ones on the market that do sewing, and I am glad about that. I wish there were more manufacturers of quality products, not fewer. Thus, we can distinguish most of the market’s offerings into imported, cheap or less expensive products and domestic quality products, which we don’t see as competition but as comrades in the fight for the sustainability of the domestic textile industry.

Our uniqueness lies in our production approach and significant innovations, which will differentiate us even more from others in the future. We want to turn the world into a real little fairy tale through textile products and bring that fairy tale closer to as many children as possible. Children deserve only the best.

(Photo: Ethereal)

Constructor is an innovative parametric CAD software that you developed independently. How did you come up with the idea for its creation, and what are its main advantages? How does the combination of CAD software and advanced machines you use help reduce costs, protect the environment, and personalize textiles? What changes in the textile industry do you expect as a result of implementing your innovations?

I came up with the idea for a software solution like Constructor during my studies, when I found the processes of pattern making, design adjustments, modeling, and all subsequent processes too complicated and time-consuming. Fortunately, I knew extremely capable software developers with whom I shared my idea and checked the feasibility of a parametric tool for pattern adjustments. Together, we took this on as a challenge we worked on for many years.

Parametric CAD for design adjustment solves many limitations of existing systems, is financially accessible, and is intended for a wide range of users. Two key features are changing the product dimensions and preparing it for production with new inputs at the click of a mouse, which significantly reduces product development and preparation time.

Advanced nesting allows for maximum material utilization with a feature that, until now, has not been present in any system, positioning alternative smaller products in the empty spaces of cutting layouts of the base product (20-40% of all cutting images in textile production is unusable waste). In this way, we achieve additional material utilization and a cutting process with almost no waste (while the minimal waste is passed on for recycling into nonwoven textile).

This software, by itself, does not have much significance if other aspects of production are not modernized. As part of this project, we are acquiring some of the most modern textile machines available on the market, some of which have not been available in Croatian production facilities until now.

Our goal is to ensure environmental safety, and that is one of the reasons why we acquired the only machine on the market for fabric finishing and digital printing on fabric rolls that has 0% wastewater, no environmental pollution, and uses skin- and environmentally-safe dyes, currently the peak of textile technology available on the market.

We want to solve some of the problems faced by the textile industry: the negative impact of textile production on the environment and human health, inefficient material utilization due to pattern limitations and the application of conventional methods in the preparation and cutting process, slow product development, pattern making, modeling, and grading, large inventories of raw materials in wide product lines, and the unprofitability of textile production.

(Photo: Ethereal)

What motivated you to start a crowdfunding campaign for the Ethereal project through the international crowdfunding platform Bona Fides Invest? How can citizens get involved and support the campaign? What rewards have you prepared for supporters?

We want to finance the project through crowdfunding because it is an innovative method of alternative financing for projects that usually do not pass through banks. You can support us through the donation model or the reward model, which is a deferred purchase, allowing us to raise funds for the project we believe has great potential. We will reward all supporters by delivering the product after some time, once we successfully realize the investment.

Some of the rewards are shopping vouchers, newborn clothing sets, t-shirts for children and adults, household textiles, and many other options. Besides donations, you can support us by sharing our content on social media, buying our products, and giving recommendations. You can support the campaign at the following link: Hocus Pocus, better clothes for a happy planet! – Bona Fides Invest

The textile industry in Croatia faces numerous challenges, such as high production costs and competition from cheaper imported products. How does Ethereal manage to survive and grow despite these challenges?

For many years, we have witnessed the gradual shutdown of large and small textile companies in Croatia. It is becoming increasingly difficult to do business profitably given the high production costs. The market is flooded with cheap imported products, making it difficult to compete. Although cheap imported products cannot compare to quality domestic products, price is often the deciding factor in purchasing decisions, as is good marketing.

Domestic producers often have to operate with small margins and minimal profits to survive on the market, which prevents them from building financial reserves and generating capital needed for investment, and investment is essential for growth and progress.

Large corporations that import goods or use cheap labor in China, Bangladesh, or another eastern country use cheap materials to keep production costs to a minimum while investing significant amounts in global marketing, and that is their recipe for mass sales and high profits.

Domestic textile firms, especially smaller ones like ours, rarely have the ability to allocate a significant budget for marketing, while television or even radio ads are out of reach due to high costs. Inflation, which is still ongoing, has further increased the cost of everything, including raw materials for production and wages, which are one of the main costs in textile production.

(Photo: Ethereal)

During the pandemic, the post-pandemic period marked by the war between Ukraine and Russia, the transition to the euro, and inflation, it became harder than ever to survive on the market. In the past three years, we have faced truly challenging times, but we never stopped fighting and seeking solutions for the profitability of domestic production.

Since we are still present on the market and currently in a phase of growth, we can conclude that with a clear vision, focus on achieving goals, differentiation, and innovation, we can overcome tough times and grow regardless of circumstances. We have always tried to stand out from the competition in quality, materials, design, and also through our personal approach, love, and warmth.

How do you see the future of the textile industry in Croatia? Is it possible to create a sustainable and competitive business model? What is your “recipe” for success?

I believe that the future of the textile industry is only possible with an innovative approach, digitalization, strong personalization, and creativity. Currently, successful textile companies are those involved in medical textiles, technical textiles, or any other type of textile production with higher added value, production based on special textile applications, highly sophisticated production facilities, research and development, and the application of innovations.

In apparel textiles, it is a big challenge to find a “recipe” for success since this branch faces the greatest import competition. I firmly believe that it is not only possible to operate sustainably despite the circumstances but also necessary.

It is necessary because if we all give up on textiles and surrender to competition with cheap imported goods, nothing else will remain for us. If awareness about ecological and safe products arises, there won’t be anywhere to purchase them; we will lose the knowledge, technology, and everything that has been built for years.

Knowing how to produce a quality product and experience are invaluable assets of a company that do not appear on the list of fixed assets. We have found our “recipe,” for which we have already acquired some ingredients, prepared others, and are still searching for more.

(Photo: Ethereal)

With our persistence, we believe we will successfully complete this project, as we have done with all the previous ones. As mentioned before, our future plans are based on applying innovations, digitalization, utilizing the most advanced machinery, production with a significantly reduced negative environmental impact, software solutions, and a creative approach that will allow us to produce everything we or our clients can imagine in a simple and efficient way.

How could Croatia stimulate the development of the textile industry? Are there any changes in legislation or support from public institutions that could help companies like Ethereal?

First of all, it is worth mentioning that there are fewer and fewer high schools where textile education is possible. What is available focuses on design and less on production and technology. However, if no way is found for the textile industry to operate successfully, an educated workforce will not even be needed. There are many forms of support that could help textile companies, I know from firsthand experience because we have asked for help many times but didn’t receive it.

Starting with advice and guidance on major projects, for example, when you carry out large investments like ours, financing needs to be resolved.

To get a loan through HBOR, HAMAG-BICRO, or a commercial bank, investment studies and applications are needed, which are best handled by experts, and the same goes for EU projects. In our county, we have institutions such as the Krapina-Zagorje County Entrepreneurial Center.

The problem is the extremely high cost of consulting services and application writing, with uncertain results. Unlike other sectors that are profitable and for which this cost is not a significant problem, in textiles, it is very difficult to find the money for consulting services and investments that would help grow the business.

My suggestion is that for sectors in crisis, like textiles, such services should be co-financed or even fully financed. This would open doors to opportunities for investments in equipment, research, development, digitalization, and everything needed to be competitive in the market.

Support for exhibiting at international fairs for international business expansion and support in launching exports would also mean a lot to us. If you find yourself in a situation like we did, ending a financial year with a loss, all doors to EU projects, loans, and other types of support will be closed to you, regardless of whether you have ideas, ongoing investments, or promising projects; no one cares at that point.

(Photo: Ethereal)

We need a loan to complete our project, and unfortunately, there is no way to get it once business results are no longer stellar. The Croatian Bank for Reconstruction and Development really serves those who are doing very well, but not us who got stuck at some point. In my opinion, it should be a bank for the reconstruction and development of all promising companies whose existence is in the community’s interest.

The same goes for working capital loans with low interest rates at HAMAG-BICRO—they are not available to us, and they would mean everything.

There are many ways to help textile manufacturers if the will is there. It would be possible to write a lot about this, but I will mention just one more measure that would help us personally, and I believe others too. In public procurement of textile products, like the ones we had for t-shirts for first graders in Krapina-Zagorje County, it could have been limited to quality, safe fabrics, and domestic production instead of exclusively focusing on the lowest price, which always results in the cheapest option—Chinese t-shirts.

Does no one care if those shirts are safe for children? Will they fall apart after the first wash? Not only will that be of little use to the child, but it also contributes to textile waste. It would have been better not to buy anything than a heap of “junk.” There are many such one-time purchases, like t-shirts for events—e.g., 100% Zagorsko are also 100% Chinese. If we destroy ourselves instead of supporting each other, what can we expect in the future? Public institutions also follow the same procurement principles. If small domestic manufacturers could carry out such procurements, it would help us immensely.

I believe that legislation, public institutions, and local governments should all set an example in respecting ecology, quality, domestic values, ethics, and workers’ dignity. Cheap imported products do not embody ethical or ecological values, and everyone should become aware of that.

What initiatives or collaborations between Croatian textile companies could help improve competitiveness in the European and global markets?

Until now, I haven’t thought much about initiatives, networking, and collaboration between textile companies. I believe it would be good to share knowledge, network, and work together on sustainability, competitiveness, joint exhibition at fairs, and tender applications. If we worked together, a lot more options would open up for us.

What advice would you give to young entrepreneurs who want to enter an industry facing so many challenges?

What I would say to current and future entrepreneurs is to be persistent and not give up, no matter how difficult it sometimes seems. I believe that success often lies just a few steps beyond the point where it seems impossible to go on, where it seems too hard. When you come to a hurdle, fight; if you fall, try again and again—don’t give up. Even when it seems impossible and the solution unattainable, give it your all and believe in yourself, even if no one else does. Sometimes obstacles, difficulties, and tough times are needed to strengthen us, teach us something, and test our strength and resilience. For me, nothing is impossible, and no matter what happens, giving up is not an option.

(Photo: Ethereal)

What are the three key lessons you have learned during your entrepreneurial journey that you would share with others?

The entire entrepreneurial journey has been full of lessons. The most important lesson, one I had to learn multiple times, is that in entrepreneurship, every step needs to be well planned. For example, you have a great product and are so excited about it that you’re sure it will sell well, so you immediately go into action, that is, into the “expense” of production.

What might happen is that the costs turn out to be higher than expected, that there isn’t enough budget, and you have to sacrifice something—packaging, marketing, or something else—because it’s impossible to cover all the costs.

Moreover, the market may not react as well as expected because the price isn’t appealing or there are many cheaper alternatives, which, from your idealistic perspective, wasn’t an option. Unforeseen circumstances, such as a pandemic, can completely change people’s buying habits. Naivety is never a good trait in entrepreneurship.

When you face a problem, the solution won’t always be as easy as you’d like, and contrary to the assurances of your naive side, you can experience a lot of stressful situations if you haven’t planned for multiple outcomes and multiple potential solutions. Always have a plan B, even C, D… That’s also a lesson we learned the hard way.

The issue of trust is also something to keep with caution because you will agree on a lot of things, promises will be made that won’t be fulfilled, and you counted on them. It isn’t their fault, but yours, because in every deal and at every step that could have consequences if it doesn’t go as planned, you need to secure yourself. Too much uncompromising trust is a lesson I learned after several disappointments.

It’s hard to separate your personality, your spiritual side, and your idealistic view of the world from the ruthless business world, where everyone looks out for their own interests.

(Photo: Ethereal)

These things need to be clear with yourself. In business, moves are sometimes made that are not entirely ethical, but the point of entrepreneurship is not to be a social institution but to create profit; no one cares about “your good heart.” Keep it away from such situations.

You don’t have to be like everyone else, and I will never be a “typical entrepreneur,” but it’s important to be aware and cautious of all circumstances and threats and act accordingly.

Finally, how do you plan to expand your mission of socially responsible entrepreneurship in the future? Where do you see Ethereal in five years, and what impact do you want to make on the domestic and international markets?

Since the very beginning, socially responsible business has been one of the key motives of our existence, and it will continue to be in the future. We are one of the first textile companies in Croatia focused on ecological awareness and the use of safe fabrics and chemicals for both skin and the environment.

Our mission is not only to use safe materials but also to educate users and spread awareness about the importance of preserving the environment and how everything we do, the things we buy, especially all the textiles we use in everyday life, not just clothing, has a significant impact on our health and on environmental pollution.

We plan to publish educational content on our website, on social media, through newsletters, and in shipments with our products. In today’s time, when we are overwhelmed by screens from all sides, what is shown has a significant influence on our consciousness, way of thinking, and purchasing decisions, even if we are not aware of it. Marketing has great power over us.

(Photo: Ethereal)

This is evidenced by the big “boom” of online stores selling harmful and poor-quality products, where the marketing is so good that it’s hard to resist buying; big discounts, promotions, low prices, and gifts are all over, shouting “buy me.”

By buying such products, not only do we expose ourselves and our children to harmful chemicals, but we also support a system that, in its production processes, does not care about the environment, pollutes water, air, and ecosystems, and does not care about the dignity of the people who work there.

By supporting such a system, we automatically destroy domestic production and reduce the presence of quality and safe products on the market. Our goal is for as many people as possible to become aware of this, if not for altruistic reasons, for concern for other people and the environment, then at least for their own well-being.

Apart from ecology, our usefulness to society is also very important to us. From the beginning of our business, we have participated in humanitarian actions, donating products to homes for abandoned children, hospitals, and those in need.

In the coming period, in cooperation with local authorities and the parish office, we want to research and create a database of people with low incomes who need help, especially those with small children, and prepare product packages according to their needs to distribute.

We also plan to sponsor children from disadvantaged backgrounds in their education, competitions, sports, and other activities to enable them to develop their full potential.

Ethereal team (Photo: Ethereal)

Children are our future, and we want only the best for them, which is why we focused production on children’s products that are gentle and safe, which, through their softness, cuddle and protect them, and with their design and appearance, positively affect the development of a child’s imagination, with positive colors, characters, and emotions.

We put love into everything we do, and we are grateful for the opportunity to do this wonderful job. We give this love, along with everything that stems from it, to others, changing for the better the small part of the world entrusted to us. To help us achieve our goals, we invite you to support us through our crowdfunding campaign on the Bona Fides Invest: Hocus Pocus, better clothes for a happy planet! – Bona Fides Invest

Thank you very much!