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Sourcing Furniture from Turkey

Sourcing Furniture from Turkey ET2C Int.

Sourcing Furniture from Turkey is an alternate option for those companies currently purchasing from the more common Asian supply base.

Overview

Sourcing furniture from Turkey is an untapped opportunity for many businesses. Furniture plays a vital role in our lives as it essentially turns a house into a home giving us a space for comfort and relaxation. Varying in shapes and sizes, furniture takes up most spaces in our homes, helping us have a healthier and more organized lifestyle. These days, people tend to spend a lot of time and money to find furniture that adds charm, class, style, and function to their homes or offices, which leads to furniture becoming a huge sector; globally in dollar terms it was $547 Billion in 2020 and is and is expected to grow a further 44% by 2027 to $789 Billion.
When looking for overseas manufacturers of furniture, the two most common countries would be China and Vietnam. Both have the raw material and the labour pool to produce furniture across a wide range of styles and with different materials. It is no surprise, therefore, that they take the number one and two spots on the list of the largest furniture manufacturers/exporters globally (China and Vietnam respectively).

furniture factory manufacture Turkey Sourcing Procurement ET2C Int.

Covid has significantly disrupted both these Asian markets due to the related shortages of containers and the subsequent upward pressures on freight rates. This has been no more profoundly felt than in the furniture sector when buyers are often trying to cram as many bulky items as possible into containers. When you are only able to get 40 items in a container (compared with 10,000 pieces), the cost implications of the high freight costs will have a tangible impact on your landed price. The result is that buyers are scouring other markets for furniture opportunities particularly where there are freight savings from ‘near-sourcing’ countries.

Lucky Number 13

Casting one’s eye down the list of furniture manufacturers/exporters, Turkey makes the cut at 13th. Is sourcing furniture from Turkey a viable option for you? There are many reasons and we have set some of these out below:

1. Heritage

The Turks have been producing furniture for centuries. There are examples of furniture that date back to the Hittites in the Anatolian region. As with many ancient civilisations, the skills and workmanship were passed from generation to generation via family-owned workshops. These workshops, which are still active today, have been producing hand-carved furniture the same way for generations. This expertise was built upon in the dawn of industrialization as mid to large scale production capabilities were developed. These large-scale factories enabled automated mass production of standardized products with the majority of output destined for export.

Handcrafting wood turkey sourcing supplier manufacture factory ET2C int.

2. Raw Material

Turkey has access to a range of raw materials that either grow domestically or are produced locally (such as steel etc). Particularly with regards to wood, there is a broad abundance of local wood that can be used in furniture production providing a range of different physical characteristics. The total land area of Turkey is more than 80 million hectares, with forests making up 27.2 percent (21,2 million hectares) of that. With 9,000 herbaceous and woody plant species, Turkey possesses one of the world’s most diverse floras. This gives the country easy access to many trees for roundwood production such as Calabrian pine, Crimean pine, Scots pine, beech, fir, spruce, cedar, and oak.

Forests Turkey Raw Material wood sourcing ET2C Int.

3. Established Industry

Turkey’s milling and wood manufacturing industry is qualified to supply wood products to overseas markets, especially those countries that do not have an advanced wood fabricating segment. Besides, Turkey is in a favourable position to provide semi-processed wooden items and furniture to the EU owing to its flexibility, comparatively lower labour costs and design capability.

Furniture Factory Turkey Sourcing Procurement ET2C Int.

4. Export Track Record

Turkey exports to over 170 countries and the biggest importers of Turkish furniture are Germany, Saudi Arabia, USA, France, UK, Israel, the Netherlands, Qatar, Romania, United Arab Emirates, the Czech Republic, Italy, and Azerbaijan. Moreover, many of the manufacturers have reinvested in their capabilities during the pandemic.

5. Not Asia

In order to build ‘flex’ into any supply chain it is important to identify suppliers in different markets. With Turkey sitting on the edge of Europe, it is perfectly positioned as a near sourcing option when it comes to furniture.

Summary

Supply chains and sourcing strategies have been largely turned on their head over the course of this Pandemic. Buyers are looking for other opportunities outside of the more traditional sourcing jurisdictions, like China. Sourcing furniture from Turkey will only enhance your sourcing strategy and breadth of the sourcing market. This is especially important if you are a European business.
As ET2C, we are well placed to provide you with the best furniture products Turkey has to offer. For all enquiries, please contact us at contact@et2cint.com.

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Turkey Manufacturers: A Near Sourcing Alternative for Textile Products

Turkey Manufacturers ET2C Int. Sourcing Procurement Suppliers

Turkey manufacturers are well-positioned to complement your supply chain with their proximity to the EU market.

The country has a broad and established manufacturing base which sits on the edge of Europe. This is important from a ‘near sourcing’ perspective and provides an alternative sourcing option for UK/EU companies. This is particularly true at present given the current spike in freight rates on the main trade routes out of Asia. Having an alternative near shore option will mitigate the high freight rates as well as shorten lead times considerably.

Sourcing Textiles

One of Turkey’s key export industries is the textile and apparel sector, which has been a very important driving force for the economy in terms of GDP and employment. These sectors accounted for 17% of the country’s exports in 2019. As a part of global trade, Turkey is one of the main actors in the apparel industry as the 7th largest supplier in the world, and the 3rd largest supplier of the EU, which has high standards and sophisticated customer needs with the top five foreign markets for Turkey’s exports being Germany, Spain, UK, Netherlands, France.

There are many reasons why Turkey manufacturers are ranked so highly:

Low labor costs are a significant advantage when compared with European producers, and the labor cost is obviously a significant part of the Bill of Materials for “cut and sew”.

Cotton production – As the seventh-largest cotton-producing country in the world, Turkey has access to an uninterrupted supply of cotton, which is the main raw material dominating the textile market owing to its features like high absorbency and strength.

cotton sourcing Turkey ET2C Int Sourcing suppliers

Proximity to European markets – short lead-times – With many retailers demanding products with short lead times, Turkey has a big advantage with its proximity and can react more quickly; a key aspect of the fashion industry.

Sustainability – Turkish production complies with international ecological standards, such as the prohibition of the use of harmful dyes.

• Its skilled workforce, modern production equipment, and national infrastructure also guarantee a sustainable competitive advantage.

Turkey manufacturers also have an advantage of an agreement with the EU which removes tariffs and duties on most goods. This also reduces the landed cost price further.

Main Categories

Within the textile and garment sector, there are a range of categories.

Garments

As the main center for clothes, Istanbul prides itself on its designers, fashion, and shopping malls; where you can find the harmonious mixture of the West-East, and Old-New. Due to recent domestic and foreign investments, Istanbul is fast becoming a fashion hub.

clothes sourcing Turkey ET2C Int Sourcing fashion apparel

As a global sourcing center that is in both Asia and Europe, Istanbul has attracted the attention of many international fashion sourcing offices, trading companies, and major retailers and department stores. Since Istanbul became a commercial and fashion center, most manufacturers have moved production facilities to inner regions. Izmir, Bursa, Ankara, Denizli, Gaziantep, Kayseri, Tekirdag, Adiyaman, Kahramanmaras and Adana are now the main cities for the production of knitted and crocheted garments.

Carpets & Kilims (Rugs)

The history of carpets dates back to the 3rd and 2nd Centuries BC. They were introduced to world civilization by Turks as a decoration item for walls and floors, the earliest samples of which have been found in Central Asia. This is an art form that the Turks discovered, developed, and introduced to the world as they traveled across vast regions. Since the mid-15th century, Turkish rugs have been highly praised in Europe and played an indispensable role in European social life, even depicted in the paintings of the time and regarded as a status symbol. Today, Turkish carpets and kilims from the Ottoman Empire are displayed in the most prestigious museums. Turkey continues the tradition of hand-made carpets and rugs with ornamental motifs and different weaving types, exporting them to a wide range of countries.

Rug textile Turkey manufacturers ET2C International sourcing

In the meantime, machine-made rugs and carpets are also not neglected. Their durability, colorfastness, anti-soiling finish, ease of cleaning, and antibacterial properties made Turkey one of the biggest suppliers in this sector. Manufacturers continue to introduce new trends, a variety of different types of carpets, innovative designs, and colors to the world market.

Footwear

The Turkish footwear industry has developed very quickly due to modern manufacturing techniques, quality raw materials, qualified workers, and high design capabilities. It has a powerful position among exporters of high-quality fashion goods. About 70% of the production volume of the sector is carried out in a semi-machine manufacturing process, and approximately 15% of the manufacturing is manual. In 2019, the production of Turkish shoes has reached more than 392 million pairs, including sneakers, boots, plastic shoes, and slippers. The production of military boots and work safety shoes has also considerably increased in recent years.

Today, the Turkish shoe industry has the ability to create its own brands and styles. The performance of the industry is highly dependent on exports, with the main markets being the Middle East & Europe.

shoes footwear sourcing Turkey ET2C Int Sourcing

 

Home Textiles

The Turkish home textile industry now plays an important role in world trade with its ability to meet the high-quality standards of all sophisticated consumers.
Nearly all types of home textiles are manufactured in Turkey: towels, bedsheets, bedspreads, curtains, blankets, pillows, quilts, cushions, eiderdowns, table linens, lace, and sleeping bags.

The largest quilt factory in Europe is located in Turkey. In addition, the industry has managed to reduce production costs below the world average while improving product quality and carrying the tradition from the past to the present.

home textiles sourcing Turkey ET2C Int Sourcing

To meet the demand for environmental protection within the international market, Turkey also provides traditional fabrics made from pure cotton or linen without the use of chemical dyes. At present, the Turkish home textiles industry has realized the growing demand for healthier and more environmentally friendly products in the international market and has rapidly adapted to the development of legal and technical regulations.

Leatherware

The history of the Turkish leather industry can be traced back to 500 years ago. The production of this sector is based on modern technology and historical background. Today, the industry has a worldwide reputation for its well-designed and stylish products.

Although initial efforts to modernize the leather industry began in the 1970s, significant progress on the real industrial scale began in the mid-1980s. In recent years, this field has shown rapid progress. Today, production meets international standards and environmentally friendly production policies are highly valued: around 90% of production is based on health and environmental standards.

Leatherware sourcing Turkey ET2C Int Sourcing

The technological advancement of this industry is vital to a highly competitive industry and is growing rapidly. Today, the Turkish leather industry exports its own leather. Now, the industry is beginning to pursue value-added and advantageous innovation, branding, and design.

Turkey’s leather garment industry produces the best quality leather garments for men and women. Most of the major companies in the industry are producing original collections under their own brands. The industry creates its own fashion using unmatched quality colors, patterns, manufacturing processes, and materials. Due to these characteristics of the industry, Turkish leather clothing products enjoy a high reputation and are appreciated all over the world.

Turkey Manufacturers – Our Network

Turkey manufacturers are well positioned to add to your supply chain across a broad range of categories – particularly when freight rates are so high. The Textile & Soft goods sectors are well established and provide a near sourcing option for UK and EU companies looking to source closer to their own markets.

At ET2C, we are well placed to help manage your sourcing needs across multiple markets with teams on the ground. For more information on how we can help you with your Turkey sourcing or for other markets, please contact us at contact@et2cint.com.

 

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Turkey Sourcing: Part of a Global Sourcing Strategy

Turkey Sourcing ET2C Int.

Turkey Sourcing now forms part of our expanding network of offices across the global sourcing landscape.

ET2C Turkey

Set amongst rolling hills on the Western Aegean coast of Turkey, sits the ancient city of Izmir. Its history stretches back to around 3,000 BC with the founding of the city of Yesilova Mound by the Trojans. However, it took the name Smyrna from the Greeks for most of antiquity. With its natural harbour, the city has always been strategically well placed for trade. Moreover, to this day it is an important Turkish Port. A growing and dynamic hub, Izmir is now the third-largest city in Turkey. It is easily accessible (unlike Istanbul) and also benefits from a broad range of manufacturers located in the surrounding region. It, therefore, is the perfect location for ET2C to open our latest office. In fact, we are pleased to announce we have commenced trading as of the 17th December.

Izmir Turkey

The Global Sourcing Landscape

Over the past year, lockdowns and disruptions have resulted in many companies questioning their incumbent supply chains and sourcing markets. The need to build in supply chain resilience has become increasingly important particularly as the severity and frequency of these supply chain shocks is trending upwards. Part of this robustness is around spreading the risk across multiple sourcing markets to the point where we believe that companies will be looking to remove dependance on any one market. Of course, this is not going to be feasible when it comes to markets such as China, given its scale and export experience, but it will at least set the tone for sourcing strategies into 2021.

Turkey Sourcing

For these reasons, we have targeted Turkey as our next market to invest in and establish a company. The country has a broad and established manufacturing base which sits on the edge of Europe. This is important from a ‘near-sourcing’ perspective and provides an alternative option for UK/EU businesses to compliment existing Asian supply-chains. The ability to offset shipment times and any capacity constraints will provide strategic opportunities for some companies.

We see the main benefits of Turkey sourcing are:

1. Location

Bridging Asia and Europe, Turkey is situated on the edge of one of the largest trading blocs in the world. It means shipping into Europe and the UK takes days rather than close to a month in most cases out of Asia. It fits into any ‘’Near Sourcing” strategy for European companies. In addition, it has the ability to ship across the Atlantic to the Americas as well. There is a free trade deal with the EU and the UK is also in the initial stages of discussing a separate trade deal on similar terms post the 31st December Brexit deadline. Also, Turkey provides access to neighbouring Eastern European markets

Turkey Sourcing ET2C Int. Office Izmir
The building in Izmir where the new ET2C office is located

2. Broad Manufacturing Base

The Turkish manufacturing base covers a wide range of products including textiles, white goods, furniture, bikes, industrial, plastics, general consumer goods, and the automobile accessories sector. It benefits from its own raw material resources that allow it to manufacture products without complete reliance on importing the raw materials.

3. Cost Advantages

Of course, cost is always going to be important. And it is true that the FOB costs from Turkey are competitive given the cost of labour, raw material availability, and the well-developed infrastructure throughout the country. However, the landed cost, particularly for the EU, will be the determining price to assess given the low shipping costs and tariff benefits. Like China, there are clusters of manufacturing across the country that benefit from the scale of each sector.

4. ‘’Flex”

Simply because of the proximity to the EU, there is greater ‘flex’ in supply chains whether it relates to product development cycles or production. This means that companies do not need to plan so far ahead. In this way, they can leverage the additional time available for quick turnarounds and late adds. This certainly gave the Turkish garment sector an advantage in the context of fast fashion.

Turkey ET2C Office Izmir
ET2C office in Izmir

5. People

In the past, low-cost countries have always relied on cheap factory worker labour compared with more developed economies. In 2020, it is no longer solely about the cost of labour, albeit it is still important. The factory workers need to be skilled and efficient in what they do. This certainly applies to Turkey, which has a skilled worker-pool that is competitively priced benefiting the manufacturing sector and exports more broadly.

Summary

Although it has been a challenging year, we are delighted to have commenced operations in Izmir, Turkey. It will provide our clients with access to a range of Turkish manufacturers in a market that greatly benefits from a ‘boots on the ground’ approach. We plan to quickly expand our supplier network within the market and work with our clients, both across trading and buying offices, to seamlessly deliver our range of services.
At ET2C, we are well placed to help manage your sourcing needs across multiple markets with teams on the ground. For more information on how we can help you with your Turkey sourcing or for other markets, please contact us at contact@et2cint.com.

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