Turkey: Flying To Be Leader Of Furniture IndustryTurkish Furniture Industry soars into prominence and aims a place among t...
Turkish furniture manufacturers have also increased their output capacity during this period inline with the raising requi...
In Turkey, furniture is acquired both in workshops and industrial-scale manufacturing facilities.Small workshops act as a ...
Structure Of Turkish Furniture IndustrySource: TUIK - MOSDERExponential Export IncreaseTurkey presently exports to a total...
Iran              73.5      93.7          +27              6France            63.2      79.3          +25              5Tu...
2009        535.4                              -272010        738.4                              +382011        945.2     ...
This was according to the Executive Board Chairman of Burosan, Murat Dilme. He added thatBurosan, a national furniture com...
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Turkey

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Turkey

  1. 1. Turkey: Flying To Be Leader Of Furniture IndustryTurkish Furniture Industry soars into prominence and aims a place among top 10 exxporters.Turkey’s rapid issue as one of the fastest development marketplaces in the last a couple of yearscould hardly have come as a surprise. Posing on the edge of Asia and Europe, it operates as ageneral store between the east and west. It’s a country with a plentiful history and a reputation forits classic oriental designs - stylish with Turkeys eastern neighbors.Much of the wealth accumulated in the world in the last a couple of years has centralized inneighbouring Middle Eastern and Central Asian markets. Available revenue in these two areashas been raising at a much bigger pace than in the European markets. Turkey’s strategicallocation entails its well located to expand its reach into the world’s extending markets.Rising National DemandNational demand in Turkey has increased sharply over the last decade due to three mainelements: Rapid urbanisation, a significant growth in disposable revenue, and lifestyle changes.
  2. 2. Turkish furniture manufacturers have also increased their output capacity during this period inline with the raising requirement for Turkish furniture. Now, the urbanisation of Turkey’spopulation stands at around 70 percent, with the rate of urbanization predict at 1.7 percentannually until 2015.Despite the worldwide fiscal crisis, the industry kept to stand strong and posted year-on-yeargrowth in production even in 2009. Demand for furniture is awaited to raise at a compoundannual growth rate (CAGR) of around 16 percent from 2011 to 2013.Speaking at the Furniture Summit in Istanbul on January 30, 2012, Chairman of the Associationof Turkish Furniture Manufacturers (MOSDER), Ramazan Davulcuoglu, added certainconsumption patterns in Turkey. He shared that the average furniture renewal period forconsumers is currently eight years - he added that this figure has been going over the years. Healso said that according to consumers, the most important element in choosing furniture is thequality of the product. Around 69 percent of respondents showed this was the most significantelement, over reliability of brand and price of product.Turkey’s substantial growth in recent years has been reflected in both its production andconsumption. From 2008, production of furniture in Turkey had raised 25 percent, accomplishingan output value of US$6 billion in 2011. Consumption had raised by around 28.6 percent, toUS$9 billion in 2011.Year Production (in US$ Consumption (in US$ billion) billion)2008 4.8 72009 5.25 7.52010 5.6 82011 6 9Turkish Production And ConsumptionSource: MOSDERTurkish LandscapeTurkey stands as the 16th biggest manufacturer and 21st largest exporter of furniture in theworld, with a global market share of 1.5 percent, according to the Centre for Industrial Studies(CSIL).
  3. 3. In Turkey, furniture is acquired both in workshops and industrial-scale manufacturing facilities.Small workshops act as a important role in producing hand-crafted furniture. Such workshops areflexible establishments in nature and generally have the capacity to enlarge their production lineto fulfil large orders. Larger furniture companies mass-produce standard patterns by usingautomated techniques; the majority of their production is exported.Furniture production in Turkey is centralized mainly in Istanbul, Ankara, Bursa, Kayseri, Izmirand Adana. The famous furniture manufacturing zone in Turkey is known as Siteler, placedwithin Ankara. The number of recorded small and medium enterprises in Siteler alone is over10,000.Mr Davulcuoglu announced at the Furniture Summit 2012 that in Turkey, many big companies’production now adopts European Union regulatings while smaller companies are already workingon following EU regulations.Official figures from MOSDER expose that the Turkish furniture industry is composed of 29,346manufacturers and 32,382 retailers, giving a total figure of 61,728 active companies. Its anindustry which supplies employment to some 500,000 workers, including employees in thediverse subsidiary industries.Bursa and Ankara are the two most active cities in the Turkish industry. Around 40.3 percent ofTurkish manufacturers are based in either of the two cities, which also collectively account for41.5 percent of workers in the industry.City Number of companies Number of workersIstanbul 6,458 35,633Ankara 5,361 30,062Izmir 2,379 14,142Bursa 2,130 16,096Kayseri 740 20,280Other 12,278 42,000Total in Production 29,346 158,213Total in Retail 32,382 100,000Total Active 61,728 258,213
  4. 4. Structure Of Turkish Furniture IndustrySource: TUIK - MOSDERExponential Export IncreaseTurkey presently exports to a total of 173 countries across 5 continents. From 2003 to 2011,Turkey received growth in exports of over 292 percent, with a CAGR of 18.6 percent for thisperiod. Growth during this period was substantial and stable except in 2009, when the globalfinancial crisis caused exports to contract by 13 percent.Year Export Value (US$ Million) Percentage Change2003 434.6 -2004 587 +352005 684.6 +172006 764.7 +122007 1,026.9 +342008 1,332.9 +302009 1,153.3 -132010 1,414.6 +232011 1,703.9 +20Exports from 2003-2011Source: TUIKIraq continued unchanged from 2010 as Turkey’s top destination for exports. In 2011,exportations to Iraq amounted to US$250.7 million, up 38 percent from 2010’s export value ofUS$181.4 million. In total, Iraq reported for 17 percent of all furniture exports from Turkey in2011.Exports to neighbor Turkmenistan saw the largest growth, with exports in 2011 showing a 63percent increase from 2010, to reach US$68.5 million. The United Kingdom was the only top 11export address to experience a fall in Turkish imports, recording a drop of 0.4 percent.Country 2010 2011 Percentage Percentage of Change Total ExportsIraq 181.4 250.7 +38 17Germany 115.1 147.5 +28 10Azerbaijan 73.1 97.4 +33 7
  5. 5. Iran 73.5 93.7 +27 6France 63.2 79.3 +25 5Turkmenistan 42.1 68.5 +63 5Holland 40.6 49.6 +22 3Russia 31.2 43.9 +41 3Saudi Arabia 25.7 37.9 +48 3United kingdom 35.4 35.3 -0.4 2Italy 27 30 +11 2Furniture Exports By Country ( In US$ Million)Source:TUIKInformation from the International Trade Centre (ITC) and the United Nation Statistics Division(UNSD) points that in 2011, the biggest furniture export segment was panel furniture - whichmade up 29 percent of total exports. Sofas and Sitting Sets were the 2nd biggest export segment -making up 26 percent of exports.Imports Still Lower Than ExportsThe Turkish furniture industry had a commercial surplus in 2011, with export volume nearlydouble of import volume - net trade last year totaled to a surplus of around US$758.7 million.Since 2009, Turkish exports have raised by around 20 percent annually, and this trend is waitedto continue this year. The strong export growth is waited to see Turkey positioned among the 10biggest furniture exporters in the world in the near future.The value of Turkey’s furniture imports has been rising at a falling rate since 2003. In 2011,Turkish imports totaled to US$945.2 million - approximately 55 percent of total exports. Thisvalue represented a 28 percent increase from 2010. However this figure is still lower than theincrease in imports received in 2010 from the year before, which was 38 percent.Year Import Value (US$ Million Percentage Change2003 177.3 -2004 285.3 +612005 370.9 +302006 511.8 +382007 680.1 +332008 738.2 +8
  6. 6. 2009 535.4 -272010 738.4 +382011 945.2 +28Imports from 2003-2011Source: TUIKChina strengthened its position as Turkey’s top supplier of furniture imports. In 2011, China’sexports to Turkey accomplished US$277.6 million, which reported for 35 percent of all ofTurkey’s furniture imports that year. Of the top 11 sources of Turkey’s furniture imports,Romania and the United Kingdom recorded the biggest percentage growths. Romanian exports toTurkey raised by 100 percent to reach US$24.6 million, while United Kingdom exports to Turkeyraised by 230 percent to accomplish US$19.7 million.Country 2010 2011 Percentage Percentage of Change Total ImportsChina 222.3 277.6 +25 35Italy 62 83.9 +38 10Germany 68.3 81.1 +19 10Poland 34.1 46.4 +36 6France 32.6 39.2 +20 5Spain 26.6 36.4 +37 5Romania 12.3 24.6 +100 3Indonesia 17.7 20.2 +14 3Vietnam 17.8 20.1 +13 3United kingdom 6 19.7 +230 2Japan 16.2 15.1 -7 2Furniture Imports By Country ( In US$ Million)Source: TUIKTurkish Furniture Enlarges To Western MarketsIn recent years, Turkish furniture brands have started taking market share in Italy, Germany andChina, the dominating powers in the global furniture industry.
  7. 7. This was according to the Executive Board Chairman of Burosan, Murat Dilme. He added thatBurosan, a national furniture company in the southern state of Adana, has established exports toItaly.“Our goal is to serve Turkish brands find more confidence in markets in all corners of the world,”said Mr Dilme. “We have become a trademark when it comes to office furniture. We are proud toexport our products from Adana to the rest of the world and 10 percent of our income comesfrom exports.”Burosan provides a broad range of products to both the European and Middle Eastern markets.“After offering furniture items to the Italian Aviano Air Base, we have made military bases forNATO member countries, the United Nations and the United States throughout the world ourpotential markets. We will supply all the furniture requires of the United States bases in Bulgariaand Romania by 2012,” added Mr Dilme.The Future Is BrilliantTurkey’s relatively young population is an significant determinant of the industry’s substantialperformance in the long run. 2011 forecasts point that 26.6 percent of Turkey’s total population isunder the age of 14. In addition, only 6.3 percent of the total population are aged 65 or above.The median age of the Turkey’s population is 28.5 years.Turkey’s total population is estimated to have reached around 79.7 million by July 2012. Its bigpopulation combined with Turkey’s relatively young population bodes well for the country’sfurniture industry - an industry known to be traditionally labor-intensive. If Turkey is able tokeep to nurture its industry and its workforce, it will only be a matter of time before itaccomplishes its aim of becoming one of the world’s top 10 exporters of furniture.http://www.furnitureinturkey.com/turkey-flying-leader-furniture-industry/

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