The target of Turkey who increased the furniture exports 11 times in last 11 years is exporting volume about $ 10 billion in 2023. At the same time, Turkey is proceeding to be one of the 5 leading furniture countries of the world in 2023
Furniture Industrialists and Businessmen Association (MOBSAD), which was established by 18 furniture manufacturers in June 2006, has been continuing its activities in order to reveal the power of the furniture sector and to present the Turkish furniture to the world. The chairman of the executive board of MOBSAD Adnan Bostan who said that they were aiming to turn the furniture sector that got behind of the sectors as textile and automotive to the shining star of Turkish economy, expressed that they want to generate an important union of forces about exporting, marketing, designing and research and development by bringing the small and medium-sized enterprises together. Bostan who also said that from now on, this sector should be a real “brand” in international markets, gave information about other activities of them as a foundation.
First of all, could you please give some information about MOBSAD? What kind of activities are you doing for the sector?
MOBSAD is a civil society formation established in June 2006 by 18 furniture manufacturers who know the problems of the sector closely and who search the solutions of these problems in unity and solidarity of furniture manufacturers. MOBSAD is targeting to reveal the power of furniture sector that has the potential to be the most important sector of our country and to open doors of world furniture market to Turkish furniture manufacturers which is standing as a pristine environment for Turkish furniture sector. MOBSAD departed to turn the furniture sector that got behind of the sectors as textile and automotive to the shining star of Turkish economy ; to create an important union of forces about exporting, marketing, designing and research and development by bringing the small and medium-sized enterprises together and to make Turkish furniture sector a real “brand” in international markets. We are participating to IMOB fair which is arranged in CNR EXPO since 12 years. In the scope of the fair, we are arranging designing competitions for university students every year in order to pave the way for our youth and to increase the power of Turkish furniture. Apart from that, under the roof of our federation MOSFED, we are taking our places in the fairs which are organized in some locations as China and India which are the new furniture markets of Turkey. The journal of M-Live that we publish once in three months is one of the journals which are mostly read in the field of decoration. MOBSAD has a certain line in the sector since 2006. We are maintaining and developing each valuable activity as fair, journal, manufacturing development, social responsibility project. The members of MOBSAD are “Haute couture designers and expert tailors…” This is to say, they are the standard-bearers of designing, hand works and made to measure. Well, what does this group do different than the other furniture manufacturers? Once, it is the nonvisible force behind the different projects as hotels, holiday villages, castles, residences, and council and ministry buildings around the world. They sign the elating tables sometimes as a partner with our construction firms and also sometimes as a subcontractor. More importantly, the market he contribution to strengthening the Turkish furniture perception in the positive sense at the end of every project they undertook. This group reaches 5000 retail points in our country with 71 members of it and uses its signboard in a few of them, because most of the group consist of the firms which only focused on mass production. Thus, the address of some of our export amount about 100 million Dollars can be seen different as a result of the facts I mentioned just before. While the firms that are the members of the group and retail points considered together, the employment is provided for 25.000 people approximately.
What kinds of problems are lived in export? What kind of solution suggestions do you have about this situation?
There are 10 thousand exporters and 36 thousand manufacturers in the sector. The sector became one of the rare sectors in last 11 years (discounting only the crisis of 2008 and contraction in global crisis circumstances) whose production, export, employment and image developed. We have increased our export about 11 times in 11 years. We are targeting to close the year with 3 billion Dollars. We are also expecting the production with wholesale prices about 8-9 billion Dollars and the market volüme about 11 12 billion Dollars. Because of the problems lived in Middle East and Russia, there has been some decrease in our export rates. However, while you consider the World economy and the other sectors in our country, you can see that there is not a serious reduction in export. We already have alternative markets on our agenda. The first of these alternatives is China, the second one is India and the other one is Nigeria. As MOBSAD, we are especially interested in specific markets. For example; although the China is the biggest furniture exporter of the World, we as MOBSAD have star ted to sell and export the furniture to China in serious amounts. We are targeting to meet our deficit in export with new markets. The general problem of our furniture export is freight… Thus, we cannot take the advantage of USA market hardly any. We could not have reached the export amount about even 50 million USD in this country yet. We as MOBSAD will develop our market network in South America with various projects of ours. When examining the Iran side; last year, the economy of Iran about 400 billion Dollars was opened to the world trade as a result of disembargo. As a result of this situation, we can predict that Iran will contribute the 2016 export target of Turkey about % 8-10. If I should sort the problems in our sector;
1. Skilled labor should be grown in furniture designing.
2. SMES should be supported
3. The export destinations should be diversified
4. Publicity and Marketing activities should be increased
5. The importance should be placed on branding
6. The importance should be placed on designing, research and development and innovation activities.
7. Undercapitalization and financing issues should be solved
8. The informality should be stopped
9. Value-added product manufacturing should be performed and the manufacturing should be in compliance with international standards
The furniture sector has a target about 25 billion dollars for manufacturing and 10 billion dollars for exporting in 2023. How did the problems in our country affect these targets?
Although our sector lived constriction about % 3 with 2.3 billion Dollars in 2015, in fact the sector grew in terms of many indicators while the regressions in the World in general economic indicators considered. As you mentioned, the target of our sector is 10 billion Dollars of export in 2023. For this purpose, we should concentrate on export. We should create the branding also in furniture sector as in all other sectors while concentrating on export. If they consider the fact as a basis that most of the sector consists of SME scale firms, the branding will be on the agenda of small and medium sized enterprises. Besides, the sector should increase its performance in the fields of designing, branding and marketing in order to pass over the crashes of current markets in export and to reach the EU and North American markets which are traditional and has high purchasing power. The ground will be gained in these fields will bring the development of export automatically. However, the development in export is not enough. furniture. Today, our furniture sector is at the 12th place in the world. We want to be one of the first 5 furniture countries of the World in 2023. All indicators Show that, Turkey’s economy is poised to become one of the world’s largest economies. Because of the strong foundations in economy, we do not think the problems lived in our country will affect our export targets.
The biggest factor which introduces the sector around the world is the fair IMOB indubitably. What can you say about this fair that will be arranged for 13th time? Will there be innovation for the sector?
We take a part in the fair of IMOB (International Istanbul Furniture Fair) which is the third most important fair of the World since 10 years. This year, we have provided business contacts reaching 1 billion Dollars. We have increased our workload about the rate of % 20. From now on, we are appearing in 5th Hall which is known as the MOBSAD Hall with the world’s only identity stand. In this year’s fair, we have constructed furniture city in 5th Hall over 11 thousand square meters that includes even the ATMs. The important decision makers of furniture industry from 100 countries met our hall. Also, as every year, we have exhibited the greatest designs and most expensive products in the fair. We will take our place at 5th hall also in 13th IMOB fair. Our members will exhibit our products that will brand the fair in our stands. All of our members already got into an intensive tempo for the time being. Everyone is working to rush their products for the fair. We as MOBSAD are preparing some surprises for the visitors. We will explain these surprises in the coming period.
Italy is the one of the nearest competitors of us. What kinds of differences are there in manufacturing between Turkey and Italy?
Italy carried its brand value to a quite high point with the channels of promotion, marketing and advertisement. We are also working to create a strong brand perception that the brand value of Turkish furniture is high and Turkish furniture is quality. Besides, in Italy, each part of dining room set is manufactured in different workplaces and the montage of them is done by branded expert firms and it is marketed accordingly. Thus, it becomes possible for production capacity to be raised. In that point, there should be concentrated on mass production-automation Technologies, the companies alreadypassed to mass production should be specialized on specific issues and they should be promoted to use new producing technologies. It is thought that, this will decrease the costs and increase the quality as well as it will increase the capacity. We have started a new era for manufacturing the furniture that has the aesthetic of Italy, standard of German and touches unique to Turkey. We think Turkish furniture will get ahead of Italian furniture in the next process.
The furniture manufacturing leaped forward in last 10 years. What are the most effectiv reasons of this situation?
The cliché as “Better than Chinese, cheaper than Italian” which we were trying to break since a long time is giving the place slowly to the discourse as “One of the bests of the world in value-added furniture that is producing the design”. The furniture sector that could not get enough share from the dynamism of Turkey in 80s and 90s entered a new phase with the new millennium. The export volüme which gained strength especially after 2005 made the sector evolved simply. If we get apart from the exceptional examples until this period, while the companies which were devoid of “foreign and critical eye” were on the prowl of manufacturing the most quality one in their own scale solely , now they are faced with a market which requires the standardization, mass production, environmental awareness, human health, ergonomics, aesthetics, quality and finally design. From now on, the furniture sector showed an incredible.
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