A Turkish showroom furniture retailer will open a branch in the U.S. to sell their wares and hopefully contribute to the countries’ bilateral trade target.
As the country’s oldest furniture showroom dealer, MODOKO wants to bring its competitive capacity, experience, and corporate structure to the U.S., Koray Çalışkan, the firm’s chairman, told Anadolu Agency.
The showroom will be launched with the support of the Turkish Exporters’ Assembly (TIM).
Following the launch, MODOKO aims to reach $1 billion in furniture sales its first year and contribute to the countries’ $100 billion bilateral trade target.
Visiting Turkey this September, US Commerce Secretary Wilbur Ross announced an annual bilateral trade target of $100 billion.
Store to span 50,000 square meters
Expos are not enough for Turkey’s furniture export target of $10 billion for 2023, Çalışkan said, and added: “Turkish firms should establish themselves abroad for permanent growth and sustainable acceleration.”
MODOKO requested a 50,000-square-meter (538,000-square-feet) showroom from the Turkish Exporters’ Assembly, which will meet 75 percent of all expenses, he said.
“We spotted a few places in the US to put our showroom, we will evaluate our firms which will take part in the project, and studies will be finalized next week.”
The showroom will also include all the departments a business needs — management, sales, service, logistics, advertising, and legal, he underlined.
Companies featured in the showroom will not share expenses, but MODOKO will make consignment sales on behalf of Turkish companies, Çalışkan said.
$1B sales target
“The Turkish furniture sector does its production with 80% local sources,” said Çalışkan.
“This provides a price advantage, and we should use this in foreign countries.”
Turkey’s export price per kilogram to Iraq, the country’s main destination for furniture exports, is around $1, while it is $2 for Germany, and $3 for Saudi Arabia.
“This price is $4 for the U.S.,” he explained.
“We can top $1 billion furniture sales in one year if the showroom is established as we planned,” he said.
The store will also contribute to Turkey’s brand value and promote side sectors, Çalışkan added.
Turkey hopes to boost its furniture exports from $3.2 billion to $3.7 billion as of the end of this year.
Hurriyet Daily News