DecorMayisHaziran2018

still a certain amount of red tape in the
bureaucracy. Some practical measures
should be taken to facilitate the businesses.
I believe that there is more
room for better solutions in this field.
Italians are our major competitors in
furniture business. Now we are getting
shares away from Italians and we are
keen on offering better projects, better
products and better presentations at
every project we have been engaged
in. For example, a hotel project means
business for several months, including
completing its furniture, fixtures
and other parts. We make a palace
which takes three and half years to
complete only the furniture part. The
average value of the products sold in
export markets is about 3.7 dollars per
kilo. However, the median added value
of the products sold by the member
companies of Mobsad could reach up
to 25 dollars per kilo. Some countries
apply custom taxes on weigh bases and
we can pay these taxes easily at these
prices. We are successful because we
sell higher value added products to our
solution partners in joint projects we
make with them. Logistics and tariff
costs can reach up to 30 percent in
exports. This is normal for us because
we also pay taxes for the materials that
we import. But those factories that produce
mass products sell their products
at 2 thousand dollars and they pay 3
thousand dollars for tax. It is difficult
for them to be profitable. For these
reasons, several Turkish producers
have established businesses in Iran, as
an example.
As an association you do not only sell
furniture but also assume contract businesses,
because your products have
higher added values and are used for
decorations. What is your share in the
furniture industry in Turkey?
We do this fast and successfully. So,
we have been preferred more. We do
the royal suits, receptions and lobbies
of most of the major five star hotels
in Antalya. There are several 5 to 7
star hotels in foreign markets that we
have deals with. Turkish contractors
build some of them. We are solution
partners of these companies. Most of
our earnings come from them. About
40 percent of our production goes to
these projects. I also want to emphasize
another point. Since the homes becoming
smaller and have less space for
furniture, the elements are becoming
more and more by architects as parts of
their design not by the consumers. For
this reason, architectural projects are
becoming more important and companies
are employing architects in their
payrolls.
Because of several reasons, such as
economic pressures, 2017 was not a
bright period for the industry. But we
hear from several industries that the
year 2018 seems that it started well.
What is the position of the furniture
industry? What are expected from the
year?
As usual, we started the year 2018 with
fair activities. Bread is in the belly of the
lions. Of you work hard, you reach more
people and run on the right path you
can hit your targets. We heard about
serious figures for growth, even some
were successful to double their sales.
Some others loose their customers and
become smaller. I can say that this is
highly related with their strategic plans.
Presently, though they have problems,
Iraq, Libya, Saudi Arabia and Syria are
our major markets that we keep our
businesses going. They are both constructing
homes in Turkey and we got
their works they held in their countries.
They experience our products here in
Turkey and order us more in their businesses.
So the contract businesses are
important for us. We assumed larger
projects in Saudi Arabia, in Qatar. Mobsad
member companies all have selling
stores and distributors in Azerbaijan
and in other Turkic countries.
What are your new targets for the
future?
As an association we want to start an
activity in America. Exporters Association
and Economy Ministry have trade
centers in the US. Industries can have
special spaces in these centers for business
relations. We consider focusing
on higher level of market to concentrate
in certain regions. Our products are
good for Russian market. We deliver
the products direct from Turkey. The
space and the organization is managed
by the exporters associations. We took
our products there to display. State funds
pay 75 % of the costs rest are paid by
our organization. The office got orders
and we ship the products from Turkey.
We aimed to reach potential customers
in these markets through trade centers
already operational in these countries.
88 DECOR • May - June 2018