Destination: 2023. It’s not the title of a science-fiction novel, but the time-limit established by the Turkish government. It aims to achieve several development objectives in the industrial production, exportations and welfare state, especially in southern Turkey.
The road map towards the finish line has significant investments, intended mainly to infrastructures and public housing. Overall, growth plan has reserved 5 billion dollars to furniture sector, directing higher financial flows towards domestic production and exportations. Regarding the considered market, also indirect benefits are expected for foreign products, since Turkey has never closed the door.
It’s one of the reasons for which Italy stays as leading partner, at 5th place among the commercial provenances in the country governed by Erdoğan. In fact, aggregating all its productive sectors, Turkey is the first Middle Eastern markets of Italian export and tenth overall. However, in 2016 Italian incomes from Turkey dropped by 3,8%: 9,6 billion euros compared with 10 billion in 2015.
Whereas, Italian furniture export beyond Bosphorus turns out to be anti-cyclical. According to ITA (Italian Trade Agency), furniture exports from Italy – comparing from January to July 2016 and the same period in 2017 -increased by 13,8%, from 24 million euros to just over 27 million. This has contributed to consolidate the significant sector of Italian furniture in Turkey, equal to 15% of sector importations from abroad.
In this context office furniture are noteworthy, but kitchens have great prospects. According to CSIL (Italian Centre for Industrial Studies), a very large part of the Turkish market is occupied by handcrafted productions, without brand and quality. In 2015 companies which produce and/or trade modular branded kitchens represent 15% of the market share, including foreign brands (mainly from Italy and Germany) often collocated with mediation of local importers.
Although this strong domestic competition, Italian kitchens had been received by Turkish Westernized consumers with a medium-high budget. They are attracted by Made in Italy design and high-quality products. According to Aniello Musella, director of ITA, Istanbul, Izmir, Bursa, Ankara and Antalya are cities where consumers who want to buy Italian products don’t differ from the Italian ordinary one, thanks to the presence of big shopping centres and organised distribution networks which imitate European and American chains.
Also Gabriele Magliola’s experience in Turkey is attributed to past agreements with big chain stores (Mudo and Tepe Home) but for the placement of furniture not produced in Italy and different from kitchens. Now times are ripe for Italian kitchens and for new brands entry, such as Turi Group able to satisfy the Italian product needs of medium market segment and service, assistance and logistic requirements of Contract.
Somehow Berloni started two years ago when it entrusted own kitchens distribution on Turkish market to EczacıbaşI Group both on Retail and Contract. The Group is a Turkish titan, a relevant player with its own specialized divisions in commercial and constructions sectors.