POSLOVNI DIR Damir Pezelj

Guest Damir PezeljHosted by Ojdana KoharevićMay 3, 2026

Damir Pezelj

About this episode

What you'll hear in this conversation

In a world increasingly dominated by digital services and fast-moving trends, some traditional businesses are quietly fading, their decline a stark indicator of deeper economic and social shifts. Damir Pezelj, the third-generation owner of Erna dry cleaning in Split, offers a rare look into this phenomenon. He notes that what was once a thriving craft with over twenty establishments in his city has dwindled to just five, saying, "The mere fact that there are only five of us today speaks to the decline." Pezelj's family business, dating back to his grandfather's start in the 1940s, has navigated decades of change, from evolving textile technologies to shifting consumer habits. His perspective reveals not just the challenges of maintaining a legacy business, but the often-overlooked complexities of a service industry fighting for relevance in a disposable economy.

Insights from the conversation

What to take from this episode

Damir Pezelj notes that Split, a city of 180,000, once had over twenty dry cleaners, now reduced to just five. The disappearance of traditional services isn't a slow fade; it's a structural collapse that reshapes the entire urban economy, leaving gaps that are rarely filled.

Conventional economic wisdom suggests one dry cleaner for every 5,000 residents, meaning Split should have 36, not five. When a market's actual supply falls far short of its theoretical need, it signals a fundamental shift in demand, not just a lack of providers.

Today's "fast fashion" means clothing is often designed for a single season, with materials and dyes unsuitable for dry cleaning. When the core product changes to become disposable, it undermines an entire service industry, shifting the consumer's value perception from care to replacement.

Starting a dry cleaning business requires a substantial investment in specialized machines and equipment, far beyond what's needed for many other crafts. The high capital cost to enter traditional service industries becomes a barrier that prevents new businesses from emerging, even when a public need remains.

Pezelj represents the third generation of dry cleaners in his family, a business started by his grandfather Marko in the 1940s. A multi-generational legacy in a declining industry is less about preserving tradition and more about a continuous, quiet adaptation to market shifts, often against steep odds.

While "eco-friendly" dry cleaning is marketed, Pezelj notes that 95% of the industry still uses perchlorethylene, a technology largely unchanged for decades, with new machines primarily updating electronics. The real environmental impact comes from engineering closed systems, a proactive measure his father took decades ago, long before "green" became a trend.

The prevalence of "ecological dyes" in modern clothing often compromises material quality, leading to colors bleeding or garments shrinking during cleaning. When the inputs a service relies on become unreliable, the service provider's challenge shifts from execution to managing customer expectations and mitigating defects.

Pezelj often compares neglected clothing to a tooth with cavities, explaining that years of wear without proper care lead to irreparable damage. Managing customer expectations in a service business means educating them on the limitations imposed by the item's condition, rather than simply promising a fix.

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