Turkey has attracted the attention of the world especially because of the export-oriented growth, structural reforms and major investments in last decade. This has led growth in furniture exports, too, so much so that the sector set its major target 2023 as being one of top-five industries in the world. This idea keeps the sector very assertive. Ahmet Güleç, Chairman of the Board of Federation of Furniture Industrialists and Businessmen (MOSFED), says that they had targeted to be one of the first 5 furniture countries in 2023 with a manufacturing volume of 25 billion dollars and export volume of 10 billion dollars. The figures Mr. Güleç pronounced at a recent press conference are not something could be underestimated. Pointing out that the quality and current usage rate of Turkish furniture of 72.4 as of 2016 should be increased, Ahmet Güleç said that there were 36 thousand furniture manufacturers in 61 provinces of the country and that they had been realizing 5.749 billion dollars worth of furniture manufacturing with an employment power of 500 thousand heads. Güleç said the total of the sector had a growth of 10 billion dollars.
Highlighting the fact that furniture is an employment-friendly sector generating foreign trade surplus, Güleç said, “Furniture industry has an influence on 19 sectors. Turkish furniture industry realized 2 billion 315 million dollars worth of exports in 2015. This figure represents 12th rank in Turkey’s total export items.” He mentioned main export markets as Iraq, Saudi Arabia, Libya, Germany, Azerbaijan, France, Turkmenistan, England, UAE and USA adding that the main target markets were USA, Germany, France and the UK. “We realize exports to 204 points by around 10 thousand export companies,” Güleç noted. “Our exports to Saudi Arabia increased by 2.7%, to England by 0.2% and to the USA by 0.3%. The volume with Russia decreased down to the line below top-ten and the USA replaced Russia with which a political crisis had been experienced. This is an important development. The seeds planted for some years have started to give the fruits. We are expecting folded increases in our exports to the USA in future years.”In order to read the figures supplied by Güleç we need to look at the World figures in production:
Furniture is one of the major industries in the world yielding a total annual value of average 437 billion dollars as the main industry and sub and auxiliary industries.
Furniture and Mattress Industries in Turkey and in the World
China, Germany, Italy, Poland and USA are the largest exporters of furniture in world markets. In this enlarging market, Turkey aims to be one of the top countries at the race and it has all elements and opportunities to reach its targets. Investments both in production and in research and development activities as well as the supports and incentives of state are on the increase for years. Though there are more to be done to become a major country in terms of setting trends in designs, like Italy, several designers in Turkey has managed to sell their designs and products in almost all parts of the world.
A good number of powerful producers are active in furniture industry. In addition to them, major investors are seeking partners and opportunities to invest in Turkey and to establish partnership with Turkish furniture and mattress companies. They invest serious funds in this industry.
Turkey has an ambitious target for the year 2023 aiming to export 25 billion dollars worth of furniture to international markets. In order to be one of the top five countries in the world we have to do more than that especially in the promotional fields. We have to invest and spent more for marketing and promotion of Turkish furniture products. We must participate more fairs, visit every event in the world related with this industry, and seek more opportunities in every square meters of the globe.
THY, the national flag carrier, is the most successful example in our efforts in world markets. For many years, the THY has been known as the top airline having the most destinations in air flights. Even they are still expanding to reach more parts of the world.
Another point that needs to take into account is the network that is needed for any powerful industry who wants to be an international player. Furniture industry has a powerful supplier network who produces quality elements for furniture manufacturing and higher technologies needed for better products. The best and the most attractive fabrics, upholstery, linens are made in Turkey. Every needs of the manufacturers are met by several stakeholders in the furniture industry. One only need to act as an intelligent entrepreneur in this sector by aiming high in international markets.
All of our views expressed for the furniture industry can be repeated almost as the same for especially the mattress industry. All are true for this segment as well. In 2015, mattress industry in the world has sold about 2 billion dollars worth of mattresses. Chinese are leaders in this market with their annual exports about 442 million dollars. Poland comes next with 237 million dollars of exports who was followed by Portugal with 89 million dollars of exports.
Chinese companies in total is also the leader in the market in terms of the total weigh of exports with 105 thousand tons. Poland and Portugal follow them. Turkey ranks at fourth position with its 15 thousand tons of mattress exports. This shows that Turkish manufacturers have become mature enough to compete in the world markets with major producers.
Mattress Industry in the World
40 percent of the mattresses manufactured in the world are spring type of mattresses. 45 percent are made foam based. The USA, China and Brazil are top producers and consumers of mattresses in the world. Top three importers of mattresses in the world are Germany, France and the USA. Top three exports of mattresses ranked as Poland, China and Belgium. By now Turkey is not mentioned among top ten countries importing and exporting mattresses.
Mattress industry in Turkey
95 percent of mattresses in Turkey is produced as spring type, only 5 percent of mattresses are made of foams. Investment of mattress manufacturers totaled about 40 to 50 million dollar. There are 25 firms in the mattress industry each are employing 50 to 500 workers in their facilities. With smaller sized businesses the number of companies active in mattress manufacturing in Turkey rises up to 400. Since entry costs are rather low in the industry there are more producing companies more than the need. Some of them are makeshift companies who have low quality products.
Major producers are concentrated in Kayseri, Istanbul and Izmir. Kayseri meets almost half of total manufacturing in the country with its annual production of 2 million mattresses. Annual exports of these companies run about 46 million dollars. Most of the mattresses produced in Turkey is sold in European and Middle Eastern countries. Turkey is located in an advantageous position both geographically and in terms of labor, energy, raw material supplies for mattress manufacturing. The mattress industry sells about 4 million mattresses annually in the country, 3 million of them are distributed through classic channels, while 1 millions are sold in exclusive and moderns sales channels. The growth pace of the mattress industry is forecast to be higher then before, when the investments in hotel and hospitality industries with their needs of about 900 thousand items of mattresses.
There are powerful brands belonging to these major companies. Thee brands of Boydak group is seen as the leader in total sales, with its Istikbal, Bellona and Mondi brands, who also sell furniture and mattresses to world markets. Among other brands in the business are BRN, Yatas, Idas, Monessa, Laressa, Isbir, Edas, Nobel, Kilim, Homevs, Indivani, Visco Love, Kayzer, Pierre Cardin, Kaybed, Ipek Furniture etc. They are active both in domestic and international markets.
The industry is still growing with the new entrants in the market. New brands are emerging. Companies are growing by additional machinery and investments. Machine manufacturers, component suppliers, from both Turkey and from foreign countries from four corners of the world are trying to sell their products to mattress manufacturers in Turkey. They are all participating in the fairs and trade events held in the world, and spending in promotional activities. Sectoral media and publications are also growing and proliferating. Because, mattress industry is still growing and promises more opportunity in the future.
Any company who invests for branding, emphasize on R&D, targeting major markets in Europe, USA and in Japan may get its share in this ever growing market. Since the 2000’s, manufacturing of mattresses has been moving away labor based manufacturing to technology based production. Buyers are demanding A class mattresses and lower costs. If the producers in Turkey aim for high quality premium products, and invests more in their businesses, they may easily compete with their European rivals and become successful more in the future. If then, their competition may come to Turkey as brands who wants to buy their goods from Turkey.
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