Inegollu furniture makers, which make up 20 percent of Turkey’s furniture exports, are trying to overcome the contraction in the domestic market in export markets. Furniture makers, which have been concentrating on the Indian market for the last 3 years, managed to increase their exports here from $2.9 million to $9.5 million in 3 years.
BURSA – Inegol Furniture Manufacturers Association (IOS) President Okan Guler, 1.3 billion population of India is an important market for the Turkish furniture sector emphasized. Recalling that they took action to get a share of the market dominated by Chinese and Italian companies as Turkish furniture makers, Guler said that they organized fairs in India as iOS. Okan Guler, “Our export figure in the Indian market was $2.9 million in 2016. In 2017, we organized fairs with 35 companies. Then the export figure increased to $5.8 million. In 2018, we made our second fair and exports of Turkish home furniture to India reached 9.5 million dollars. At the end of this year, our target is $15 million. As long as we continue to work in target markets, our exports will increase.” Pointing out that Turkish furniture stands out with the quality and price advantage of Turkish furniture in the Indian market, IOS President Guler said that they compete with Italy with quality and Chinese furniture with price advantage in India. Announcing that they will hold their third fair in November this year, Guler said they wanted support from the state especially on freight. Okan Guler stressed that after the fairs, foreign trade teams remain in India and have penetrated the market through company visits and Market research.
Furniture maker to focus on exports in 2019
IOS President Guler also gave information about other markets on the route of furniture makers. “B2Bs made in South Africa and South Korea are yielding results. We bring in reception committees and we make B2Bs. Last year we made our first fair participation in South Korea. This is the second time we’ve been there. Japan and South Korea are value-added markets. We also need STas for the Russian market, which is a good market for us. Furniture taxes are too high in Russia. If there is a Mutual STA, we can supply the tree used in furniture raw materials in exchange for the furniture sold. This is reflected positively in our costs. Some of our companies opened warehouses in America. Exports are continuing. We have a trade structure that’s moving forward with confidence, though not too fast. In 2019, the furniture maker will focus on exports. Every exported product contributes to closing our country’s current account deficit. As furniture sector and Inegol, we are an exemplary district and sector in this regard.”
“The discount on furniture should include raw materials”
Okan Guler, as furniture makers announced their demands from the state. Guler, state support, not regional, said they want to be given sectoral. 8 percent VAT reduction to become permanent expressed that they want Okan Guler, said that the discount should include raw materials. Okan Guler said: “There is employer peace of mind. It’s very important for us that severance pay is assessed in a fund. We’re a labor-intensive sector. Furniture is produced in every part of Turkey. The furniture maker needs to be supported in this sense. If that’s achieved, there’s doping in the industry. We want this for all furniture manufacturers, not regional.”
Furniture exports to India:
2016 $2.9 million
2017 $5.8 million
2018 $9.5 million
2019 (Target) $15 million