Eager to diversify their markets and curb dependency on Europe, Turkish home and kitchenware companies are seeking to gain a foothold in Gulf countries, according to a top industry official.
Some 60% of the industry’s exports are shipped to Europe, but recession signals in the EU have increased the need for diversification, said Mesut Öksüz, head of the Turkish Houseware Association (Zücder).
Gulf and African nations are particularly promising avenues, according to Öksüz.
He said there is significant potential to expand bilateral trade between Türkiye and Saudi Arabia as the lifting of trade curbs offers a great advantage to Turkish exporters.
Companies from Saudi Arabia, the United Arab Emirates (UAE), and Qatar participated in Zücder’s International Brand and Manufacturer Meeting in May, where they signed important agreements with Turkish firms, Öksüz told Anadolu Agency (AA).
"We will soon have a sectoral trade delegation trip to Saudi Arabia, which is of great importance for our industry and offers immense opportunity," he said.
Major buyers from Bahrain, Kuwait and Oman will also be there for an event from Oct. 31 to Nov. 3, he added.
"Our aim is to bring together our manufacturers with wholesale and retail companies and chain stores operating in Saudi Arabia and neighboring countries," he said.
On his high-profile tour of Gulf countries this July, President Recep Tayyip Erdoğan was accompanied by top Turkish business officials, who signed 26 agreements in three countries – Saudi Arabia, Qatar, and the UAE.
$7B export target
Öksüz said the Turkish home and kitchenware sector’s exports reached $6.12 billion in 2022, and imports stood at $1.47 billion – a net surplus of $4.65 billion.
The price of export per kilogram in the sector rose 13.8% over the past five years to $3.95 in 2022, he said.
The main export destinations are the U.K., Germany, Italy and France, he said, adding that the aim is to take up exports to $7 billion this year.
Öksüz said China, where manufacturing costs are 30-40% lower than Türkiye, has been exerting pressure on prices to regain its position in export markets.
"Still, though, companies importing from China are looking for alternative countries, and we are also getting our share from this search," he added.
Turkish manufacturers have a strong position in the global home and kitchenware sector, particularly in terms of product quality and service, he asserted.
"Today, ‘Made in Türkiye’ has become a preference in many markets," said Öksüz.
About the 33rd International Home and Kitchenwares Fair held in Istanbul last week, he said the event generated deals worth $2 billion.
There was great participation by buyers from the U.S., while interest from nearby markets was also high, he added.