Furniture companies form joint venture to increase exports

Engin Esen – ISTANBUL

Seven major Turkish furniture brands have come together under one name and created f-tr Furniture Partners, a company that will provide consulting and research services to Turkish exporters in developed markets such as the United States, Germany , France and Great Britain.

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“While we are competing in the domestic market, we have decided to create a strong synergy in order to face strong competition in the foreign markets,” company chairman Muzaffer Çelik told Hürriyet Daily News.

The incorporated company, which includes Adore, Çilek, Doğtaş Kelebek, Gündoğdu, İşbir, Kilim and Nurus, has an initial capital of 10 million Turkish liras (nearly 935,000 dollars), he said.

Altogether, these companies have an annual turnover of approximately $ 530 million.

“Our group will carry out research and development activities [R&D] market research and work among large global importers such as the United States, Germany, Great Britain and France, where market penetration is quite difficult, ”Çelik said.

In these selected countries, they wish to engage in activities in areas such as joint logistics and after-sales services.
The joint venture will also strive to overcome the “scale problem,” which is a major obstacle for Turkey’s furniture industry, especially to compete with China, he added.

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“When it comes to exporting, we believe that uniting our scales will bring various advantages. With this export partnership, we will deploy our strengths. Our main objective is to increase the added value of our products and to improve the use of our capacities.

The Turkish furniture sector has grown rapidly over the past two decades. In terms of furniture exports, Turkey has ranked eighth in the world in recent years.

In the first 11 months of this year, Turkey exported furniture exports worth $ 3.9 billion, up 25% year-on-year. During the same period, furniture imports amounted to $ 500 million.

According to the latest figures from the Ankara Furniture Merchant Chamber, Turkey has climbed to sixth place with a 3% share in global furniture production.

“Our growth objective is to be among the top five countries. We have developed extraordinary strategies to achieve this. We learn what can be sold in target markets and analyze their needs. Instead of trying to sell our products, we plan to make products that could be easily sold in these markets, ”Çelik said.

The United States was the top importer of home furnishings last year, paying $ 75 billion, and the majority of those products – worth $ 55 billion – came from China.

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Due to pandemic supply chain disruptions and rising freight costs, Turkey has gained market share from China in the US market, Çelik said.

Turkey also has a great advantage in European markets due to its proximity to the region and the wide range of road, rail, sea and air transport opportunities.

f-tr Furniture Partners will attend the five-day Istanbul Furniture Fair which will launch on January 25, 2022.

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