Reduction in Value-Added Tax to Emerge as a Key Driver for the Furniture Manufacturing Market in Turkey Until 2020, Reports Technavio

LONDON--()--Technavio analysts forecast the furniture manufacturing market in Turkey to grow at a CAGR of more than 9% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the furniture manufacturing market in Turkey for 2016-2020. To calculate the market size, the report considers the furniture produced by manufacturers in Turkey. The report also presents the manufacturer landscape and details of furniture manufacturers in Turkey.

Technavio consumer and retail analysts highlight the following three factors that are contributing to the growth of the furniture manufacturing market in Turkey:

  • Availability of cheap labor
  • Reduction in value-added tax
  • Increase in investments in new technology

Availability of cheap labor

The major distinguishing factor in the furniture manufacturing industry is the cost of the product, which is directly dependent on labor costs. This works in the favor of Turkish manufacturers due to the abundance of cheap labor in the country compared to other European countries that are faced with issues such as strong labor rights, shorter working hours, high wages, and social security costs.

“Availability of cheap labor enables Turkey to provide high-quality furniture that conforms to European standards at low prices and provides the country with a competitive edge over other European countries, thereby offering potential growth opportunities for manufacturers in the market,” says Brijesh Kumar Choubey, a lead analyst at Technavio, specializing in research on retail goods and services.

Reduction in value-added tax

In 2009, the Turkish government reduced value-added tax (KDV) for furniture and home appliances by 10%. This initiative has had a remarkable positive impact on the retailing as well as manufacturing sectors in the furniture market. The benefits included increase in the volume of trade, increase in production, economic healing, and rise in employment.

Increase in investments in new technology

According to a report from the Export Promotion Center of Turkey (ÝGEME), in 2009, there was an increase in investments in new technology in the furniture manufacturing sector, which was aimed at improving the quality of products to meet international standards. Manufacturers are applying for certifications such as ISO 9000 and employing designers to develop new styles to cater to the ever-changing tastes of customers. These factors are resulting in improvements in quality and innovations in design of the furniture manufactured in the country, which is leading to global demand for Turkish products and propelling the growth of the market.

Competitive market landscape

The furniture manufacturing market in Turkey is fragmented and comprises a mix of small, mid-sized, and large manufacturers, with a total of more than 40,000 companies being present in the market. Approximately 60% of the manufacturers in Turkey are small and mid-sized players. Privately owned companies account for over 67% of the market, joint stock companies for 12.5%, unincorporated associations for 8.1%, limited companies for 7.2%, and unlimited and cooperative companies for 2.2%.

“Favorable demographics and positive economic development in Turkey, coupled with a large population are resulting in high domestic as well as global demand for the furniture manufactured in the country. Furniture manufacturers in Turkey are adopting state-of-the-art technologies to enhance productivity, while focusing on establishing uniqueness in their products,” adds Brijesh.

Some of the key manufacturers in the furniture manufacturing market in Turkey are:

  • ABC Mobilya
  • Alfemo
  • Alpino
  • Armonna Furniture
  • Arno
  • Atagur

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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

Technavio analysts forecast the furniture manufacturing market in Turkey to grow at a CAGR of more than 9% during the forecast period, according to their latest report.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com