Furniture Industry in Turkey
Furniture Industry in Turkey
The furniture industry in Turkey increased by 11.2% in 2023, reaching exports of 4.7 billion dollars. Especially the negativities experienced all over the world due to the pandemic were also felt in our country. However, despite all this, the increase in furniture production continued, including the pandemic period. There has been a serious demand in recent years for Turkey, which has risen from the tenth place to the sixth place in world furniture exports. We can say that purchases in Europe and America have shifted to Turkey, especially due to the depreciation of the Turkish Lira.
Germany, USA, Saudi Arabia, France, UK, Israel, Libya, Qatar and UAE An export share of around 10% is expected in the sector, which has high demand in Turkey , by 2030. The furniture industry in Turkey was positively and negatively affected by the pandemic as people spent more time at home, changing their purchasing decisions especially due to focusing on household items.
People have started to prefer more durable and minimal products instead of cheaper products. Functionality, durability and easy accessibility have become more of a priority in furniture production. While Poland, the largest exporter in the world, earned an income of 17.39 billion dollars according to 2021 data, Turkey remained behind in this ranking with 753.59 million dollars.
Furniture Industry in the World
Anyone who thought that after the extraordinary decline of the furniture industry during the Covid years, we would see years of market stagnation , if not a clear retreat, has been proven wrong. Turnover at current prices will reach 28.1 billion in 2022, with an increase of around 10% compared to 2021 It reached sixth place in Europe, behind Sweden, Spain and Poland.
In recent years, it has been involved in a concentration process led by the most prestigious brands and some private equity funds. This has provided significant employment opportunities both in our country and around the world.
So what exactly happened in the furniture industry in the post-Covid period ? Sandalye Online Founder Özge Yavuz explains this situation as follows: "The market measured in current prices in 2022 experienced a slowdown phase, not a decline. The depreciation of the Turkish Lira and the indirect effects of the restructuring of prices played a role. If we switch to fixed prices, the 10% in the price lists of the companies We see that they were able to get the -12 increase accepted by the market and cover the increases in energy and almost all raw material costs from the beginning . Thanks to this operation, "the marginality of the companies in the sector stopped and many people started to invest in e-commerce and digital transformation ." made it possible".
The Effect of E-Commerce on the Furniture Industry
It can be seen that the USA, which is the record holder in furniture imports, has increased its purchases both in e-commerce and in international imports. There are no official statistics to help us gauge the weight of e-commerce, but there is widespread agreement that, at least in the Turkish market, the desire to experience the store is returning and online purchasing volume is falling. For this reason, the See at Home application created by Sandalye Online appealed to consumers who had to shop for furniture interactively and could not visit stores. It made a significant difference for consumers who were physically far from the store to be able to see the products at home, choose the materials, and create special orders by revising the products they wanted in the best way possible.
While e-commerce furniture sales are showing a downward trend all over the world, it would not be wrong to say that Turkey is not much affected by this.
Turkish Luxury Furniture Industry
According to TOBB data and TÜİK export figures, Kayseri hosts the giants of the furniture export market in Turkey . However, due to the spread of the e-commerce sector, growth was also observed in small-scale companies, and it was revealed that the export share increased more in these companies. This has enabled a development to be achieved at a level that will cover raw material and transportation costs no longer in a single center, but wherever there is a production volume.
Despite the pandemic conditions, the increase in exports in the furniture industry has brought about an increase in production, ensuring the progress of the sector. Companies with highly successful e-commerce systems in this regard have increased their shares in the market.
The sales volume of furniture used especially in bedrooms, chairs, armchairs and seating furniture has gradually increased. While some of the companies in the sector export directly, the majority of them export their products through contracting and architecture companies, especially those doing contracting work abroad.
On the other hand, in recent years there has been a significant increase in the number of our companies opening to foreign markets directly through their own distribution channels. Turkey is making progress towards becoming a world-famous brand as a manufacturer in the luxury furniture industry .
Which Furniture is in Demand?
The most preferred products in the furniture industry are tables and chairs for offices and homes, seating areas, bedroom furniture, cabinets and chairs for bathrooms and kitchens, and what we call complementary furniture groups.
Food and beverage establishments, accommodation facilities and workplaces are the most demanding corporate companies. Individual consumers also contribute to national trade demands by shopping directly. The furniture industry in Turkey is on the rise as a result of the demand for custom-made furniture, which is especially preferred in the projects of construction companies.