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MODULAR KITCHEN

MARKET IN TURKEY

The report explains general situation of Turkey’s modular kitchen market. It includes export and import numbers of Turkey’s in modular kitchen by years, annual turnover, distribution channels, domestic and international competitors, number of home sales by years.

KUBRA BAYRAM JULY, 2015

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INDEX

1. General Information about Modular Kitchen Market in Turkey

1.1. Table 1: Domestic Competitors …………………………………….. 1

1.2. Table 2: International Competitors …………………………………. 2

1.3. Pie Chart 1: Kitchen Furniture by type and distribution channels in Turkey … 2

1.4. Table 3: Kitchen Furniture Turnover in Turkey ……………………………… 4

1.5. Table 4: New Residence Numbers in Turkey ………………………………… 4

1.6. Table 5: Percentage of Kitchen Type by branded and unbranded in Turkey … 4

2. What is the average price of kitchen that sold through a distributor and contract?

2.1.Table 6: Export and Import numbers of Turkey, 2007 – 2014 ……………….. 6

2.2. Graph 1: Trend of Import & Export of Turkey, 2007 – 2014 ………………... 6

2.3.Table 7: Import Number of Turkey from Italy, 2007 – 2014 ………………… 7

2.4.Graph 2: Trend of Turkey’s Import from Italy, 2007 – 2014 ……………….... 7

2.5.Table 8: Import Number of Turkey from Germany, 2007 – 2014 ……………. 7

2.6.Graph 3: Trend of Turkey’s Import from Germany, 2007 – 2014 ……………. 8

2.7.Table 9: Turkey Kitchen Import by Countries, 2014 …………………………. 8

2.8.Pie Chart 2: Percentage of Turkey’s Importer Countries in Kitchen, 2014 ……8

2.9.Table 10: Kitchen Import of Turkey, 2015 …………………………………… 9

2.10.Pie Chart 3: Distribution of Kitchen Sales in Turkey ……………………….. 9

2.11.Table 11: Distribution of retail segment by Companies ……………………..10

2.12.Table 12: Distribution of Contract Sales by Companies ………………….... 11

3. Performance on the Turkish population: Distribution of wealth, weddings and

GDP …………………………………………………………………………….....12

4. Data on supply: the main distributors based on the volume and value of sales. Who

are the main contractors?

4.1. Table 13: Kitchen Sales Distribution by Companies……………………….. 13

4.2.Graph 4: Total House Sales in Turkey, 2013, 2014, 2015 ………………….. 14

4.3.Graph 5: House Sales by type of sales, 2014 ……………………………….. 14

4.4.Graph 6: House Sales by state of sales, 2014 ……………………………….. 15

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1. General Information about Modular Kitchen Market in Turkey

How much does the market supply for kitchens in annual turnover and volume?

Source: Report CSIL, the Turkish kitchen furniture market

The modular kitchen market of Turkey, in terms of volume, recorded a sales area of approximately

750K kitchens ( annually ), of which around 85 – 90K have known brand. We can indicate domestic

and international competitors as below:

National Competitors Headquarters Kelebek Mutfak Ruzgarlibahce Mah. Kavak Sokak No:31/1 BBlok Kavacik Ist. Domsan Organize Sanayi Bol. Hazar cad. Sincan, Ankara Lineadecor Gebze Organize Sanayi Bolgesi Tembelova Alani Genclik Caddesi No: 3004 41400 Gebze – Kocaeli,TR Eurodecor Borsab Organize San. Bolgesi 8. Cadde No:3 Bozuyuk/Bilecik Intema Buyukdere Cad. Ali Kaya Sok. No:5 34394 Levent/Istanbul Istikbal Regina Organize Sanayi Bolgesi 43. Cadde No:37/B 38070 Melikgazi Kayseri/TR Vanucci Kemal Turkler Mah. Firat Cad. Ekin Sok. No:4 Sancaktepe/Istanbul Mopa Cankiri devlet yolu 5. Km Guzelhisar mevki 06750 Akyurt/Ankara Uzay Gebze Guzeller Organize Sanayi Bolgesi Gebze / Kocaeli Ahsapsan Selimpasa Merkez Mah. 705 cad. 5008 sk. No:3 34020 Silivri/Istanbul Demsas Tepe Mutfak Beytepe Koyu Yolu No:5 06800 Bilken / Ankara Kale Mutfak Buyukdere Caddesi Kaleseramik Binasi 34330 Levent/Istanbul Doruk Ahsap Sogutlu Koyu Sogutlu Cad. No:2 Cilimli Duzce, TR (Dorstil Kitchen) Bodrum Mutfak Ataturk Bulvari Yahya Cavus cad. No:4 Konacik 48400 Bodrum/TR Artekol Ankara – Bursa Karayolu Otel Park ve Ozdilek Yani Inegol/Bursa Art Decor Omeraga mah. Sahabettin Bilgisu Cad. No:36 Izmit/TR

*Table1. Domestic competitors

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Int. Competitors COUNTRY DISTRIBUTOR IN TURKEY

Berloni Italy, Pesaro Stil Yapi San ve Tic. LTD. STI – Istanbul

Scic Italy, Parma Maslak Yapi – Istanbul

Veneta Cucine Italy, Biancade Degisim Florya / Istanbul, Birsin Muhendislik / Istanbul, De-sign Mimarlik / Istanbul, T-Tasarim Mimarlik / K. Maras, Tur-mak / Konya, Yapi-Tas / Ankara, Bante / Izmir, Aktosunlar / Bursa

Nolte Germany

Record Cucine Italy, Venice Kule Mobilya, Istanbul / Kocaeli

Hacker Kuchen Germany Hacker Mutfak Efes Ltd. Goztepe / Ist.

Nobilia Germany Arcelik Mutfak, Istanbul

Varenna Poliform Italy, Como Ital Deko, Istanbul

Poggenpohl Germany Prestij Deco, Istanbul

Bulthaup U.S.A Eczacibasi Intema A.S, Moda Bagno Tic. – Ist.

Leicht Germany Tekart Koleksiyon, Ist.

Snaidero Italy, Udine Modem Mutfak Dekorasyon, Ist., Istikbal, Kayseri

Siematic Germany CK Yapi Dekorasyon, Ist.

Boffi Italy Mozaik Design, Ist.

Pedini Italy Kayhan Yapi – Ankara, Artella – Ist, Asfa Insaat/ Adana

Arrital Cucine Italy Simetri Tasarim, Istanbul - Ankara

Aran Cucine Italy

Dada Kitchens Italy Konak A.S., Koala Dis Tic. Ve Tekstil, Ist.

Alno Kitchen Germany Eko Grup, Istanbul

Wellman Kitchen Germany Eko Grup, Istanbul

Bauformat Germany Demsas, Istanbul

Warendorf Germany Miele Elektrikli Aletler, Onalanlar Yapi, Ist.

Valcucine Collections Italy Modulnova Italy Arredo3 Cucine Italy Lube Italy Stosa Italy

Sem Collections, Istanbul Statu Mobilya, Istanbul Kontur Yapi, Istanbul CBC MOB. DEK., Istanbul Nuryapi Seramik, Istanbul

*Table2. International Competitors

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The largest domestic manufacturers in terms of modular kitchen in Turkey are Kelebek, Domsan,

Lineadecor and Istikbal Regina. Each of these companies produce about 10K kitchens annually.

In terms of value, the modular kitchen market in Turkey produce 530m euro profit annually. Some

peculiarities of the specific market in Turkish kitchens are reported in the two pie charts contained

as below;

Kitchen furniture by type (CSIL, 2009): Kitchen furniture distribution by channel

(CSIL, 2009): *Pie Chart 1. Kitchen furniture by type and distribution channel

The market size of modular kitchen sector is about 6.5 – 7 billion euros all over the world. *

In terms of Turkey, the market size of modular kitchen has reached about 600 million euros in last

years. This figure is accounted as 500 million euros for un-branded kitchens and 100 million euros

for branded kitchens.*

According to data of MUDER (Association of Modular Kitchen Companies in Turkey), kitchen

furniture market has reached 885 million euros turnover in 2014 as shown below table;

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Kitchen furniture sector by pieces and turnover in Turkey

2013

2014

Kitchen Furniture Market Size in Turkey - Pieces

980.000 1,070.000

Growth

%14

%9,2

Kitchen Furniture Market Size in Turkey - Turnover

2,200.00 (TL)

876 million (€)

2,550.00 (TL)

885 million (€)

Growth %18,9 %15,9

*Table3.Kitchen furniture turnover in Turkey

While there were 9 foreign brands in modular kitchen market in Turley, in 2009, this number has

reached about 35 foreign brands in 2013 year. The foreign modular kitchen brands in Turkey are

consisted of %60 by Italian and %40 by German companies. * The market size for branded kitchen

in Turkey is growing about %15 per each year. The foreign brands are aiming to increase their market

share to 40 – 45 million euros in the market at the end of 2015. *

In Turkey, the construction companies built about 700 thousands new residences each year and the

kitchen companies produce about 1 million new kitchen designs. As indicated below table, 1 millions

new residences constructed in Turkey, in 2014 and %25 of kitchens supplied by branded kitchen

companies for these new residences.

The number of new residence constructed in Turkey

2012

2013 2014

800 thousands 850 thousands 1 millions

*Table4. New residence number in Turkey

*Percentage of kitchen furniture by types in new residence in Turkey

2012

2013 2014

Branded Unbranded

%22 %78

Branded Unbranded

%24 %76

Branded Unbranded %25 %75

*Table5.Percentage of kitchen type by branded and unbranded in Turkey

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Kitchen furniture distribution by channel in 2013 year: Contract & Projects 204 thousands ( numbers of project ) Retail 30 thousands ( sold kitchen numbers )

*Data Update Source : Milliyet Newspaper

*Reference Link : http://www.milliyet.com.tr/banyo-mutfak-sektoru-yukseliyor-konut-1860411/

*http://sektorlernedurumda.blogspot.it/2013/07/hazr-mutfak-sektoru.html

2. What is the average price of kitchen that sold through a distributor and contract?

Source: report CSIL market Turkish kitchen furniture

The average price of a modular kitchen is 1.2k euro. The standard size of a kitchen is installed in an

apartment of 12m3. But, if we consider the contract and retail channels retail list prices are

different.

In the channel contract, the price of a good kitchen can cost 2K euro, even though the average price

is € 1K, if not less.

These values so low depend essentially on three factors:

*The enormous fragmentation of the Turkish kitchen market (the market leader

has a %3.4 based on the profits of the sale),

*Most manufacturers considered unbranded operates only in the contract channel,

*The majority, if not all, of the manufacturers sell their kitchen without appliances

and various.**

**Turkish kitchen producers generally have contractual agreements with manufacturers of

such equipment.

Data on the import and export of the last eight years in annual spending

In the retail channel, the prices are rather higher. The average price of branded kitchen

is about € 3-4K. The Turkish company with the higher prices of the price list

(excluding European producers) is Ahşapsan with its classic line can reach 20K euro,

with appliances included.

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Source: turkstat.gov.tr

In 2014, Turkey has registered imports of cuisines from around the world for a total of about 15,3M

Euros. Trend in growth by years shown below graph.

Foreign Trade of Kitchen Furniture in Turkey, in Euro

2007 2008 2009 2010 2011 2012 2013 2014

Import

30.386.933

28.669.032

10.824.772

13.547.229

11.795.781

14.433.368

19.023.441

15.383.784

Export 4.355.350

5.915.136

8.804.294

6.696.504

5.961.942

8.156.549

14.184.980

13.093.039

Total 34.742.283

34.584.168

19.629.066

20.243.733

17.757.723

22.589.917

33.208.421

28.476.823

Table 6. Export and Import numbers of Turkey, 2007 – 2014

*Graph 1: Trend of Import & Export of Turkey, 2007 - 2014

0

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

30.000.000

35.000.000

2007 2008 2009 2010 2011 2012 2013 2014

Kitchen Import & Export of Turkey by years

Export Import

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Regarding to data of TURKSTAT (Turkish Statistical Institute), the value of imports from Italy has

reached about 7,552M euros in 2014 as we indicated below.

Import Turchia dall’Italia, Valori in Euro

2007 2008 2009 2010 2011 2012 2013 2014 16.517.984

16.189.365

6.736.829

6.793.032

6.735.517

7.990.206

11.732.245

7.552.356

Table 7. Import number of Turkey from Italy, 2007 – 2014

Graph 2: Trend of Turkey’s Import from Italy, 2007-2014

The value of imports from Germany has reached about 6,738M euros in 2014 according to data of

TURSTAT.

Import Turchia dall’Germania, Valori in Euro

Table 8: Import number of Turkey from Germany, 2007-2014

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000

18.000.000

2007 2008 2009 2010 2011 2012 2013 2014

Import Turchia dall’Italia

2007 2008 2009 2010 2011 2012 2013 2014

12.567.429

10.624.342

3.731.363

6.293.188

4.761.302

5.782.516

6.897.285

6.738.919

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Graph 3: Trend of Turkey’s Import from Germany, 2007-2014

In 2014, Italy has been the first number of importer of Turkey in terms of modular kitchen with the

value of 7.552M euros.

Kitchen Import of Turkey by countries, 2014, in Euro

Italy Germany France Greece Georgia South Africa Others Total

7.552.356 6.738.919 9.227 24.359 56.886 623 1.001.350 15.383.790

Table 9: Turkey Kitchen Import by countries, 2014

Data Source: Turkstat

Pie chart 2: Percentage of Turkey’s importer countries in kitchen,2014

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

2007 2008 2009 2010 2011 2012 2013 2014

Import Turchia dalla Germania

49%44%

7%

Kitchen Import of Turkey by countries, 2014

Italy Germany Others

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Recently, the value of imports in kitchen furniture of Turkey from Italy has reached about 2.176M

euros in the first four months of 2015.

Turkey’s Kitchen Import, 2015, Jan. – April, in Euro

Countries January February March April Total

Germany

387.034 691.404

964.054 616.764

2.658.256

Italy

297.296 827.060

346.597 705.245

2.176.198

U.S.A

0 0

0 7.435

7.435

Others

66.215 16.484

39.681 34.580

156.960

Total 750.545 1.534.948 1.350.332 1.363.024 4.988.849

Data Source: TURKSTAT

Table 10: Kitchen Import of Turkey, 2015

Data on exports of cuisines from Turkey weren’t found about who are the main players in the

market in terms of sales in the retail channel and contract

Source: report CSIL market Turkish kitchen furniture

Recalling that the sales channels in kitchens are 80% contract and 20% retail, pie below specifies

the division of the retail.

Pie chart 3: Distribution of kitchen sales in Turkey

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The companies are sold around 150K kitchens per year through the retail channel. Increase in value

in recent years. The average size of a showroom of a branded company is about 150m2. Larger

distributors can reach large areas 300 – 500m2.The leader companies in this segment (top 20) cover

about 25% of the market in terms of annual revenue, for total of €44,2M euros:

Table 11: Distribution of retail segment by companies

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Through the contract channel, kitchens sold annually greater than retail channel. The top 20

companies in this segment cover approximately %20 of the market and a total bill of €71,7M euros:

Table 12. Distribution of contract sales by companies

3. Performance on the Turkish population: Distribution of wealth, weddings and

GDP ;

The information on the population, the rate of population growth, marriages and GDP all refer

to 2013 and 2014 years;

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Population 77 323 892 (2014)

Poor Population 14,9% (2013 )

Growth Rate 1,33% (2014)

Total Fertility Rate 1,97 bambini per madre (2014)

Weddings 600 138 (2013)

Annual Growth Rate 1,65% (2013)

GDP 2013 $822,1 billion

GDP 2014 $800,0 billion

GDP Growth Rate (% annuale) 2,90% (2014)

GDP Per Capita $19,556 (2013)

*Source for data about country profile of Turkey, TUIK

**Reference link ; http://www.turkstat.gov.tr/UstMenu.do?metod=temelis

4. Data on supply: the main distributors based on the volume and value of sales. Who are

the main contractors?

Source: report CSIL market Turkish kitchen furniture

The first 11 positions of Turkish kitchen market are occupied by national companies, some of which

are official dealers of European brands like Arcelik Mutfak ( Retailer Nobilia ), Eczacibasi Intema (

Retailer Bulthaup ), Istikbal Mutfak ( Retailer Snaidero ), Muban ( Retailer Berloni ). It should also

mention Degisim ( Retailer of Veneta ), Demsas ( Retailer of Bauformat) and. The market is very

fragmented with the top of 33 players with an overall 22.8% market share.

Companies marked with (*) in the table are those that sell their own kitchens with appliances and

various including the sale and price.

In the main channel, contact, manufacturing companies in value of turnover and sales volumes are:

Multi Turkmall (Turkish-Dutch company of real estate); Sinpas Group, connected to the kitchen

manufacturer Vanucci; Enka Construction; Antalya Homes, which cooperates with the furniture

manufacturer Yatas; Cebeci Construction; Nurol İnşaat; Gama Holding; Mesa Imalat;

Tefken Construction and others.

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Table 13. Kitchen sales distribution by companies

Additional relevant information on the sale of real estate in Turkey, especially in

Istanbul:

In 2014, the number of homes sold in Turkey totally 1,165,381 with a primary focus in

Istanbul for 20% of the total with 225,454. It is followed by Ankara with a 11% to 131,825

and 71,779 to Izmir with a 6% and Bursa with 42,437 for a 4%.

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Graph 4: Total house sales in Turkey, 2013, 2014, 2015

In Istanbul, about 87,757 homes sold in 2014 are mortgaged,

122,518 homes second-hand and 102.936 first hand home were sold in 2014 in

Istanbul; totally 225,454 in Istanbul,

In June 2014, in Istanbul it was sold about 600 houses to foreign families.

House sales by type of sales, 2014, all Turkey

Graph 5: House Sales by type of sales, 2014

50 000

100 000

150 000

House Sales Numbers

2013 2014 2015

389 689

775 692

1 165 381

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1

House sales by type, 2014

Mortgaged sales Other sales Total

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House sales by state of sales, 2014 – All Turkey

Graph 6. House sales by state of sales, 2014

*Data Source: TURKSTAT

541.554623.827

1.165.381

1

House sales by state of sales, 2014

First hand Second Hand Total

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