Lazar Babović for BizLife: On vision, emotion and the future of the fashion retail scene
Photo: Stefan Jovanović / BIZLife
Economic charts and tables are the foundation of every successful system, but true leaders in the fashion industry know that the most important decisions are rarely made solely on the basis of dry numbers. Today, when consumer habits are changing faster than runway trends, only those who are ready for constant evolution can survive — but not at the cost of losing their own identity.
On how Fashion Company evolved from being recognized for denim and high-street fashion to luxury retail and the beauty segment, why female sensibility and the Kaizen philosophy are key to the company’s internal structure, as well as what its future plans are, Lazar Babović, Business Development Manager at Fashion Company, speaks for BIZLife magazine.
How do you see your company’s position on the domestic fashion market today, as well as in the broader regional context? Where do you make the biggest difference compared to the competition?
Our greatest strength lies precisely in the fact that we have never allowed ourselves to remain the same. The fashion market today is changing incredibly fast — consumer habits, trends, expectations, and even the very role of retail are evolving. If you want to be a leader, it is not enough to react once changes have already happened; you have to recognize them in advance and grow together with the market, while still preserving your identity.
A few years ago, for example, we were not present in the premium segment in the way we are today. By launching XYZ, we wanted to make a step forward and set a new standard on the domestic market, because we saw that global retail was moving in that direction as well. The same applies to the beauty segment — in the past, the market primarily recognized us through denim and fashion, while today we are building a much broader lifestyle story through brands, cosmetics, and entirely new shopping experiences.
What sets us apart from the competition is the combination of many years of experience and the willingness to constantly learn and change. We have people who have been in the industry for decades, yet they continue to work on themselves every day, follow global movements, macroeconomic changes, and the specific characteristics of each market. I believe that precisely this ability to adapt to external factors, combined with the strong expertise we have built over the years, is the reason why we are regionally relevant today and why the market still sees us as a company that moves things forward.
Your company is recognized as the first to bring iconic brands such as Diesel, Replay, and Levi’s to this region. From today’s perspective, how do you assess the evolution of the market, and what were the key moments when you felt it was time for a “rebirth” and for expanding the portfolio into concepts such as XYZ, Mango, and KIKO MILANO?
When I look at the development of the market today, I would say that fashion is no longer viewed only through the product, but through the complete experience and the emotion a brand evokes in people. In the past, it was enough to bring in a good brand and offer a quality product. Today, customers expect much more — they expect you to understand them, inspire them, surprise them, and offer them something they can identify with.
I believe that is exactly why, over the years, we have managed to make the right moves. Of course, we carefully monitor the market, trends, and global changes in retail, but we also observe our customers just as carefully — their needs, wishes, and habits. We often ask ourselves: what would truly brighten their day, make their life easier, or bring them new excitement? What is missing for them today, and what would they naturally expect from us?
That is how some of our biggest decisions were made. With brands such as Replay, Diesel, and Levi’s, we laid the foundations, but over time we felt that the market was looking for new energy and different concepts. For years, we listened to the market and the needs of our customers, expanding our portfolio with brands that, at every moment, brought new energy and relevance to the domestic fashion scene. XYZ was our answer to the need for a premium experience and a carefully curated selection of brands, while entering the beauty and personal care segment with KIKO MILANO was the moment when we instinctively knew that the market was missing an accessible, trend-driven beauty concept that brings emotion and everyday satisfaction. It turned out to be absolutely the right move.
What matters to us is that we never adapt at any cost. We want to evolve, but at the same time preserve our identity and the company’s clear aesthetic. We do not choose brands that are bland or generic, but those that carry authenticity, character, and emotion. I believe that what sets us apart is precisely that sense of the market — a combination of serious analysis, many years of experience, and intuition that we have built over decades and that, honestly, has rarely led us in the wrong direction.
In the end, everything we do, we actually do for our customers. Their trust is the reason why we constantly try to be better, braver, and more relevant than we were yesterday.
From a company recognized for its denim and fashion segments, you have grown into a system that today includes high-street fashion, luxury retail, and cosmetics. How challenging was it to change the internal structure of the company so that it could develop different market segments at the same time?
Honestly, from the outside it may have looked like a major transformation, but within the company, this development came quite naturally. First of all, because we have always had people who think broadly and are not limited by the framework of a single category or one way of doing business. Our teams — from commercial and development to marketing and retail — have been building strong experience for years, while at the same time maintaining the openness to learn, explore, and adapt to new trends.
In our company, there has never been a philosophy of entering something simply because it is currently popular. On the contrary, it is very important to us that every step is backed by serious expertise, analysis, and a clear long-term vision. Only when we feel that we understand the market and that we can truly bring quality and new value do we make the next move.
KIKO MILANO is perhaps the best example. We opened it during the Covid period, when people were wearing masks and when the global beauty and personal care industry was going through a very challenging time. Many believed then that it was not the right moment to enter the makeup segment, but we believed in the long-term need of the market and felt that this region was missing a beauty concept that combines accessibility, trend, and emotion. Such a decision required courage, but also faith in what you are building. Today, we can see that it was the right move.
A similar story happened with Mango. The brand had been absent from the Serbian market for years, but we believed that there was still strong emotional capital among customers and that the market had room for a modern high-street concept of that kind. Of course, it took a great deal of analysis and courage to take such a step in a competitive environment, but we believed in the potential.
The same applies to Sandro and Maje. Most of the brands we had previously developed came from an Italian or American fashion sensibility, and we felt that the domestic market was missing that sophisticated French spirit — fashion with character, lightness, and a different kind of elegance. We saw that women here wanted exactly that kind of novelty and inspiration, while the global momentum of these brands further confirmed that the timing was right. Customer reactions today show that we understood the needs of the market well.
I think the key to everything is that we are not afraid of change, but we never make changes impulsively. We combine experience, analysis, and intuition, and when we believe in something, we are ready to be brave and stand behind that vision in the long term.
You mentioned that your goal is constant renovation and the introduction of novelties. How do you manage to maintain that pace of innovation in an industry that is changing faster than ever, and what do you currently see as the next major step forward in fashion retail in Serbia?
I believe that we maintain the pace of innovation primarily through the mindset that exists within the company. Of course, results are important, but we have never been driven solely by the idea of being the “biggest” or the “most successful.” It is much more important to us to constantly perfect our craft and enjoy the process of creating something new.
I often like to mention the philosophy of Kaizen, which Toyota once established — the idea that perfection may never be fully attainable, but that the essence lies in constantly striving toward it through small improvements and daily development. I think this is very close to our way of working. We are constantly thinking about what we can do better, what the next step is, and how we can push our own boundaries. Not out of pressure, but out of a genuine desire to be better than we were yesterday.
A large part of this also comes from the relationship we have with our customers. We constantly ask ourselves what would genuinely delight them, surprise them, or brighten their day; what would make someone enter our space and feel emotion, inspiration, or excitement. That emotional connection is exactly what we try to build through every concept we develop. When brands such as Sandro, Maje, Mango, and Boggi Milano arrived, customer reactions showed us just how much people want novelty, experience, and the feeling of being part of something contemporary and relevant.
When we talk about the future of fashion retail, I believe that multibrand concepts will become increasingly powerful compared to traditional monobrand stores. In a monobrand store, the customer comes because of one name, while in a multibrand store, they come with the desire to complete their style and find everything in one place — from jeans and a great jacket to footwear and accessories. For today’s consumer, time, comfort, and the shopping experience have become just as important as the product itself.
That is why we invest so much in the development of our multibrand concepts and spaces. We want shopping to be intuitive, pleasant, and inspiring — for people to be able to find everything they need in large, clear, and carefully designed stores, without stress or compromise. I think that is where the next major evolution of retail lies: it is not only about what you sell, but about the feeling people take with them from your space.
The opening of new stores by global brands, such as Mango, always attracts a great deal of attention. How have the results so far justified your strategy, and what role do such global giants play in your long-term vision for the development of the fashion scene in the Balkans?
The results have honestly justified the strategy, perhaps even more than we expected. From day one, we believed in Mango and in the fact that the Serbian and regional markets still had a strong emotional connection with the brand. Although its previous exit from the market could have seemed like a challenge, we actually saw it as an opportunity. That “bad exit” eventually turned into an excellent new beginning.
Of course, decisions like these are not driven by emotion alone, but by serious market analysis, brand positioning, and customer needs. However, what further confirmed that we had made the right move was people’s reaction. When you see how much excitement, interest, and positive energy one brand can awaken among customers, then you know that you have not simply brought another store to the market, but an experience that people had been missing.
For us, such global brands have a much broader role than the purely commercial one. They raise the standards of the entire fashion scene, change customer expectations, and push the market forward. Every new concept we bring in gives us new insights — into how people shop, what the retail experience means to them today, what kind of emotions they seek from a brand, and in which direction the market is developing. This gives us the space to think even more boldly and long-term.
We are already working on new projects and ideas that truly excite us. It is still too early to reveal details, but I can say that we are already “hands-on” and that we want to surprise the market once again. I think people today already expect big names and serious moves from us, but that is exactly why we keep setting ourselves a new challenge — how to exceed those expectations and bring something that will once again push the boundaries of the fashion scene in the region.
You said that you do not simply want to try something new, but to find meaning that will make people happy. What does the process of selecting new brands look like in practice? Are you guided exclusively by numbers, or are you looking for that “X factor” that resonates with the needs of the modern consumer?
Numbers and analyses are an important part of every serious business, but I honestly believe that the best brands cannot be recognized through Excel spreadsheets alone. That final moment of decision almost always has to do with emotion and the feeling a brand awakens in people.
When we think about a new brand, we do not ask ourselves only whether it will sell, but also what kind of emotion it brings to our customer. Can people connect with it? Will they feel comfortable, inspired, and excited in that space? What we are actually looking for is that “X factor” — an identity and a sense of belonging. We want the customer, when they enter the store, to feel as though they are entering a space that naturally belongs to them, almost like their own home.
That is why everything matters to us — the atmosphere, the scent, the music, the energy of the space, and the way people feel while they are there. Retail today is no longer just about purchasing products; it is about the complete experience. If someone enters a store only with the intention of buying something, but leaves with the feeling that they have experienced something beautiful and inspiring, then we know we have done the right thing.
That is precisely why we choose brands that have character and an authentic identity. There are many large and successful brands on the market that have, nevertheless, become somewhat bland and generic. That has never been our direction. We want our portfolio to be recognizable, with each brand having its own authentic identity, while also naturally fitting into the values and aesthetic we have been building for years.
I like to point out that, for every brand we bring in, it should feel completely natural when someone says: “Yes, of course this is part of the Fashion Company story.” That is, in fact, the DNA we are trying to preserve — a combination of emotion, aesthetics, quality, and an experience that people remember.
Are there any socially responsible projects you have carried out that you are particularly proud of?
We are particularly proud of projects that connect fashion with a real contribution to the community, because we believe that responsibility today should not be only part of a brand’s communication, but something a company truly lives. It is important to us that, through the brands we develop, we inspire people not only through aesthetics, but also through values that have longer-term significance.
One of the projects I would highlight is Timberland’s “Nature Needs Heroes” initiative, through which we carried out activities focused on cleaning and greening public spaces. It was a meaningful way to show how small changes and everyday decisions can have a major impact when it comes to our relationship with nature and the community.
Through Levi’s, we addressed the topic of sustainable fashion in a way that is close to younger generations — through podcasts about more responsible shopping, as well as through Levi’s 501 Day workshops, where we showed how old denim pieces can be given a new life through upcycling and redesign.
What matters most to us is that such initiatives do not remain just campaigns, but that people recognize a sincere idea in them and want to become part of them. I believe authenticity is very easy to recognize today, and the reactions of people have shown that projects like these have real meaning and value.
With the impressive fact that women make up around 80 percent of your company, how do that female sensibility and professionalism shape the culture of your fashion empire?
I believe women have brought a very special energy and sensibility to our company, and I honestly believe that this has greatly shaped the culture we have today. What I particularly value in women is dedication — when they believe in a project, they give themselves to it completely, with emotion, care, and an incredible amount of energy.
In addition, women very often bring a combination of organization, aesthetics, creativity, and an intuitive understanding of people, which is extremely important in the fashion industry. They are quick in solving problems, thoughtful in making decisions, and have a natural sense for detail, atmosphere, and the emotion that a brand should convey. I think that is precisely why retail and fashion, as industries, function very naturally with strong female leadership.
Personally, I truly enjoy working with women because they often bring positive energy, warmth, and team spirit into the workplace. Of course, there are excellent men in this business as well, but women much more often approach work emotionally — they do not look at it only through career or results, but through their relationship with people, the team, and the very process of creation.
I believe that this exact combination of professionalism, loyalty, creativity, and emotion is one of the reasons why our company today has a culture we are especially proud of.
When you look back at the decades behind you and all the transformations your company has gone through, what do you want your lasting legacy on the Serbian fashion market to be? Where do you see the company in the next ten years?
I think the greatest challenge over the years has actually been to remain true to who you are. Trends change, the market changes, generations change, as does the way people experience fashion and retail today. But what I would like is for our company never to lose its identity, its values, and the ideals on which it was founded. Regardless of growth and evolution, I want us to preserve the very things that made people trust us from the beginning.
It is especially important to me that the founder’s vision is remembered, along with everything he built into this company — the years of work, sacrifice, energy, and love woven into every part of it. Today, with Fashion Company existing for more than 40 years and operating across seven markets, with more than 80 brands in its portfolio, a strong e-commerce segment, and a developed loyalty program, we are becoming increasingly aware of how strong and far-reaching the foundations on which the company was built truly were. This is not a company that was created overnight, but a story built through decades of immense work and sacrifice. I would like that tradition and legacy to remain recognized in the years to come, while we continue to develop them in a contemporary way — through new markets, new ideas, and brands that people will genuinely love.
When I think about the next ten years, I see a company that continues to grow, but without losing emotion or closeness to people. We have a clear vision, serious plans, and the feeling that we are only at the beginning of many great things. I believe we will continue to surprise the market.
Still, honestly, no success has meaning without people. The greatest value of this company is the people who make it what it is — all those who have taught me, guided me, criticized me when needed, and helped me grow. I am endlessly grateful to be surrounded by people with whom I can share the same values, energy, and ambition. At the end of the day, without people, you cannot make a meaningful step forward; and with the right people, you feel that together you can push boundaries much further than you ever thought possible.