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Turkish Ambition:
From Ottoman Empire To Furniture Empire

In all candidness, authors of the Turkish Furniture Market Report 2008 reveal that its US$1 billion export market is nowhere in comparison with Italy or China. But with as much candour, and possibly even more gusto, its industry leaders aim to be ranked among the world’s top five exporters within the next decade. Extracts:

In Turkey although things are getting better and better everyday the furniture sector is not in a very bright position yet, when compared with export giants China and Italy, and main importers, the US and Germany.

An export rate of US$1 billion was recorded against a consumption of US$7.5 million in retail and US$5 million in wholesale. These numbers are obtained (we acknowledge beforehand that the numbers are just estimations and there may be deviations) via 62,000 workplaces and 260,000 people employed in the industry.

Import figures are satisfying, fortunately. The furniture sector is one of those which we do not have any foreign deficit.

On the other hand, export rate increased only 2.5 times to reach US$1 billion (it was US$430 million in 2002). Fortunately, by 2008 this figure grew by 30 percent to US$1.33 billion.

Germany has been the most important export market for Turkey for years as there are a lot of Turkish people living there. Iraq, France, Iran and Greece (in descending order) account for 25 percent of Turkey’s total exports.

The furniture production sector still bears traces of Italian style, which is in demand in markets such as Germany and neighbouring countries, filling the gaps that Italy does not export to. Although the export process to these countries did not grow fast enough formerly, this improved as more furniture producers entered the market.

In addition, some MOBSAD (Turkish Furniture Industrialists and Businessmen Association) member companies, which make small but well-designed products, have started to employ many architects and designers, to bring new concepts to the business. Projects such as these are really invaluable, and brought positive effects to the image of our country, which had been a very problematic issue for years.

Although Turkey is not yet among the top 20 exporting countries, we hope to achieve a position between the 16th and 20th in one to two years, and surpass exporting countries such as Thailand, Taiwan, the Netherlands, Romania, Slovenia and even the UK and Mexico. Within the next five years, Turkey may also outdo Spain, Belgium, Austria, Sweden, Indonesia, and the Czech Republic to be ranked among the top 10. We could even be among the top five and be placed before Malaysia, Vietnam, Denmark, France, the US and even Canada with US$5 million worth of export. The other five countries among the top 10 by then could be China, Italy, Germany and maybe Poland.

Investments in Furniture Sector

In Turkey, significant investments in technology were realised very recently. Some companies have even been successful in setting an example for others in the industry.

When we consider the local market, it is clear that we face a very dynamic and young population who keep abreast of all the innovative trends. We have to acknowledge the fact that urbanisation has widely swept in the country. Crowded big families are a thing of the past. Consumers here need more of furniture for a nuclear family. Although the developments in construction sector (the long term loans against mortgage) have not benefitted the furniture sector yet, it will soon.

In summary, the short-, medium- and long-term objectives of the Turkish furniture sector are as follow:

• Register all companies
  Steps should be taken to make it compulsory for companies to be registered and to develop new regulations to alleviate the difficulties arising from the registration. Through this process a sound and clear estimation of the sector can be obtained.
• Foster industry camaraderie.
  All companies should work together with their peers to form institutions or join existing ones such as the MOSBAD, which can represent their interests, build relationships, and together develop new solutions to tackle technical problems.
• Build foreign trade contacts.
  This step is very important for export in long-term. Meanwhile, every company should develop its corporate culture, both for individuals and throughout the organisation. This is help the company in being export ready with competitive quality and price when the opportunity strikes. Then Turkey can mark its place in the global marketplace and play the role of a trendsetter.
• Pay attention to design.
  Indeed, we have to reinstate the importance of design. The Turkish customer has started to make demands on design and quality, according to the furniture they see in Europe.
  Our suggestion to develop the Turkish furniture sector is to start by using the Anatolian motifs in designs without neglecting or ignoring the trends set by the leading European producers.

Investments In Supporting Industries

The supply of raw material and accessories is the determining factor for the industry. We need to have a cooperative approach at this point and place consolidated orders. We do not depend heavily on imports in terms of raw material supply. But Turkey is really weak in some areas in terms of production and profit margins are small. In terms of accessories on the other hand, most of the product groups are imported.

As the furniture sector is one of the sectors with almost no foreign trade deficit, our country should by all means keep the production as competitive as it can. To achieve this aim, local production of raw material, supporting sectors and accessories should be developed, within the framework of the conditions provided by a free competitive market.

Trends & Changes

Ottomans, having been originated from migrating societies, and under the influence of Islam, preferred to sit on cushions on or low sofas close to the ground.

In 19th century with the start of baroque style, and the effects of neo classicism and classicism the furniture habits started to change first in the palace. Turkey met the modern furniture culture first in Dolmabahçe with the introduction of tables, chairs and even special tables for dining. However apart from these imported products, Ottomans had never produced any furniture.

The recent fast growth in the sector may be explained by the rise of manufacturers of more trendy furniture. Now, we are in an era when the supply of handmade, high quality, long lasting furniture is dwindling.

Artisans who make handmade products will come to a juncture where they have either to sell their products to the bulk producing factories and so sell their workmanship or to stop production to work as an office to them. Or, by that time, as machine production advances, they will have to offer higher quality and relatively cheap products.

The positive result of this process for the Turkish furniture market and consumers is that through the artisan originated companies supported by MOBSAD and the bulk production companies there is a great range of alternatives and prices in the market. The fact that the importance given to design has been increasing everyday has brought the sector to the desired level of being able to compete in the world markets. Although the US$1 billion export figure does not reflect the real numbers in the Turkish furniture industry, the latest developments in the sector are encouraging. Turkish furniture who got in touch with several foreign visitors in international trade fairs claim that the Turkish furniture industry has reached not only the products have reached the quality matching those sold in foreign markets but also the organisational structure, design, research and development, and competitive level.
 Materials in this article are extracted from the “Turkish Furniture Market Report 2008”, presented in March 2009. The report is written by Ekin Publishing Group (which publishes the Furniturk magazine), and the Turkish Furniture Industrialists and Businessmen Association.