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Opportunities there to supply to and source from Turkey

With 25,000 trade visitors over 5 days, and more than 200 exhibitors, the Kirtasiye Ofis Exhibition in Istanbul is the second largest European event dedicated to the office products sector. In keeping with its policy of keeping in touch with local markets, ISG attended the event, the only specialised international OP publication to do so.

All but a handful of the exhibiting companies at this year's event were Turkish, but the show is by no means just a local show. "During the event, there are a good number of international visitors, especially from Turkey’s traditional trading partners in the Balkans, Russia, CIS states, and the Middle East and North Africa," confirms Event Manager Ilhan Polhat.

"The event attracts many international visitors from Turkey's traditional trading partners," says Event Manager Ilhan Polhat.

Malaysian company Chee Wah, was one of the few non-Turkish companies exhibiting this year. "Turkey's central geographical location was one of the factors behind our decision to come here," explained Export Manager Kevin Chong Foong Sin. Chee Wah is aiming at the lower to mid range of the market with its Campap brand of products. "One of our advantages is that we can initially deliver in smaller quantities which allows our clients to trial products before going ahead with larger orders," he continued.
One strategy is to have a stand for one year with the goal of finding a local distributor, or just to come as a visitor. "I would certainly favour this strategy," says Levent Artan, former president of local trade association TUKID.

Potential of back-to-school products

After the economic meltdown of 2001, Turkey has enjoyed a period of relative stability. Inflation is stable at around the 8-9% mark, high by Western European standards, but a far cry from the three-digit rates of a few years ago. Increased stability is also bringing renewed economic development,
and GNP had almost doubled since 2002 in dollar terms. And with a population of almost 70 million, this represents some interesting possibilities for foreign suppliers.
Also worth noting is the high number of young people in the population. Over 30% of Turks are between 10 and 24, meaning that there is a high demand for school and student products, as evidenced by the large number of exhibitors for this sector at the show. Another indicator of dynamism comes from TUKID. "We added 30 new members last year," confirms new TUKID president and president of FOSPA, Serdar Polat. "Overall, the economy is growing by around 6%," he added.

TUKID President Serdar Polat: "We added 30 new members in 2006."

Market consolidation and new players

Increased stability is also encouraging major retailers and office suppliers to take a closer look at the country. Carrefour has had a presence in Turkey since 1993 and in 2006 its sales were estimated at US$1.7 billion. Metro also has Cash & Carry stores and Real Hypermarkets, Tesco has a small presence in the Izmir region, and rumours that Wal-Mart is planning to buy Migros' Turkish operations, run by local conglomerate Koç, have been circulating for a number of years. The UK's DSG International Group are also entering the market later this year. In the last year or so, there has been some consolidation amongst local supermarket chains, and also in office products wholesale sector, though distribution still remains fragmented by Western European standards.

In terms of dedicated office products suppliers, several well-placed people I spoke to hinted that Lyreco would soon be entering the Turkish market. Perhaps it was this rumour that prompted Office 1 Superstores, in Turkey for 10 years, to exhibit at the Stationery Show for the first time. "Being here is very good for our local image," said Office 1 Marketing Manager Burcu Bulut. Office 1 currently operates 25 outlets in the country and achieves around 70% of its business in the commercial stationery sector.

"We are using this show to promote our image within the OP trade," says Burcu Bulut of Office 1.

Brands prefer to work with local distributors

Most suppliers prefer to work with a local distributor who knows the Turkish market. Swiss paper and craft products manufacturer Artoz has just celebrated its first year on the Turkish market with its local partner Yener. "Our first year has been better than I could have expected," commented Sales and Marketing Director Hakan Cambel. "I feel that there is a real need on the market for our kind of products."
To help local retailers to better understand what can be created with their products, Artoz flew in German scrapbooking and paper crafts specialist Anna Dederer to demonstrate different card making and crafting techniques to exhibition visitors.

Swiss company Artoz flew in German paper crafts expert Anna Dederer to demonstrate different crafting techniques.

Another company that is pleased with its progress on the Turkish market is Italian fine writing instruments manufacturer Aquila Brands, who was previewing its latest range of Mercedes licensed products for the first time at the show, before they go on general sale in June. "We're doing well in Turkey," CEO Guiseppe Aquila told ISG, who went on to say that their fastest growing markets are in The Middle East and China.

German manufacturer Pelikan has recently named new Turkish company Mika as its distributor for its Printer Supply products, after experiencing problems with its previous distributor. "Our company was only established in 2005, so it is quite a coup for us to be awarded the Pelikan business," confirmed Mika founder and CEO Mine Yavuzcan.

An alternative source to Asian suppliers

Turkey's proximity to the main European markets and its relatively low cost labour market can make it an attractive location to source products from.
"We have had some enquiries at the show from Western European importers," stated Abdul Rahman Can, International Business Manager of whiteboard manufacturer Akyazi. "We are being told that there are some quality issues with Asian sourced products," he added. An opinion echoed by Servet Calisir of lever arch files manufacturer Kraf. "European retailers demand consistent quality in their private label products," he noted. "For a small difference in price we can provide this consistency. It's also an advantage for us that we can make deliveries in 4-7 days."

According to Kraf's Servet Calisir, European retailers like the consistent quality and short delivery times offered by Turkish manufacturers.