Mehmet Yayla QLife Journal Interview .
Interview realized by Kilim Furniture Chairman Mehmet Yayla with QLife Journal...
QLife: Mr. Mehmet, can we get to know you a little?
Mehmet Yayla: I was born in Hacilar town of Kayseri in 1962.
Following the completion of my primary, secondary and high school education in Kayseri, I graduated from Firat University Faculty of Science. I am married and have 5 children.
QLife: Can you tell us about the importance of branching out in the production?
Mehmet Yayla: Branching out in production increases both fruitfulness and the competition capacity.
Plain production of the companies effectuate great conveniences in labour, quality, after sales services and providing the materials. If furniture companies would not deal with every production and branch out in their fields, for example a company could only produce couches and sitting groups and intensify on this business, the company would be competitive and enhance its quality. Unfortunately furniture makers in Turkey manufacture armchairs, couches and sitting groups, beds, bed bases, even modular furniture, bed rooms, teenager groups, etc. For this reason, there is a great difference between the cost and competitiveness of a company only manufacturing couches and sitting groups as I have mentioned in the example and a company producing everything. Plain production always enhance the production power of competition.
QLife: Would you tell about Kilim Furniture’s brandization process?
Mehmet Yayla: Kilim Furniture initiated its first advertising efforts in 1996. In 2003, changed its logo and started to rise upon its new motto “one rug (Kilim) is enough my darling”. Meanwhile widened its production fields by investing in both machinery and construction and renewed range of products in accordance with the wishes of our public. Not only that but also performed the requirements of the era and gave great importance to Research–Development activities.
QLife: What are the production and employment targets of Kilim Furniture?
Mehmet Yayla: Production target of Kilim Furniture is to reach 200 million TL turnover.
Parallel to this to increase the employees number up to 1400.
Kilim Furniture effectuate its production in 418 thousand meter square open and 110 thousand meter square closed area. Kilim Furniture employs 850 employees. Kayseri Sponge Industry which is an affiliate of Kilim Furniture employs 50 employees. Additionally, 250 employees are employed in different marketing companies. Total working employee number is 1150.
QLife: Will you mention about product range of Kilim Furniture?
Mehmet Yayla: As known, Kilim Furniture manufactures couches, sitting groups, salon sets and bed and bed bases as called soft groups. Additionally established greatest modular furniture plant of Turkey producing bed chamber, dining rooms, teenager groups, plasma Units and hall stands.
QLife: I suppose you have started creating collection for 2011. Can we get some information about the collection?
Mehmet Yayla: Our preparations for 2011 are continuing and we are constructing 10 thousand meter square depor for this.
Because we were experiencing difficulties in 4th, 5th and 6th months especially for modular furnitures. We shall stock up in January, February and March . We shall exhibit our new products both in sitting groups and modular furniture in CNR Istanbul on February 7. We hope our customers shall be able to take the opportunity to see our nice designs.
QLife: How did Kilim Furniture affected from variable economic structure of the country?
Mehmet Yayla: Kilim Furniture come of the variable economic structure of the country by gaining strength.
Trade is changing great shell. Especially nowadays efficiency, product development, purchase cost and strategic marketing became very important issues. Companies which cannot implement the elements I have mentioned above shall have great difficulties. Of course the quality should be in the forefront.
QLife: Permanent sectoral achievement depends on what issues?
Mehmet Yayla: Non-governmental organizations like MOSDER are very important. As we have mentioned above the branch out is very important for permanent sectoral achievement. Share of the sector in gross national product of Turkey is 1% which is 7,5 billion dollars. This rate is 2% in developed countries. That is to say, furniture need of Turkey still too much and world is very small. Transportation is easy to everywhere. In caseTurkey proves herself in furniture sector and solidarity in furniture sector is maintained and opens to world market then furniture sector shall expand largely. Course of the policy of the government is convenient. Our relations with our neighbors even with the countries once we experienced difficulties are very steady and we must evaluate these opportunities well.
Future of the Furniture sector is very prosperous. Especially Turquality is very significant for furniture companies, because the chance for opening showrooms in other countries due to the support of EU shall be very high and we shall provide our certificate in the near future. Additionally, as furniture sector is a labor intensive profession, employment load should be decreased, especially labour compensations should be cancelled. The taxes paid by qualified employees with high wages following minimum wages should be lower. Besides increasing the numbers of furniture branches in school of arts and special furniture design departments in Faculties of Architecture would trigger the achievement of furniture sector. As the furniture is bulky, low in value and high in freight, our expectation is freight support be given to furniture makers by the government. Especially VAT should be lowered to 8%. These factors provides the permanent achievement of the sector.
QLife: We know that you realise export to many countries. Did Kilim Furniture caught the export targets envisaged for 2010? What are your 2011 export target and strategies?
Mehmet Yayla: Kilim Furniture have not achieved for 2010 export targets in full. Reason is to meet the requirements of the market upon intense demand from domestic market. Kilim Furniture has provided 35% growth in 2010. Also equilized the export number of last year. Our export target for 2011 is around 18 million dollars. We prescribe 20% growth with increase in domestic market.
QLife: Are you planning to participate in new sector with new investments? If yes, which sectors you will prefer?
Mehmet Yayla: We shall be completing our shortcomings in 2011 with new furniture investments.
This year we have added 10 thousand meter square closed area. Additionally there shall be 2 million dollars machinery addition. We are planning to participate with investments in other sectors in 2012. Besides Kayseri Sponge Industry takes place in Kilim Furniture structure. Kilim Furniture effectuate sponge production both for herself and also for other companies in the market.
Our investment with first priority is to enhance our production capacitiy by increasing 850 employees number to 1400. We are working on our target for investments in connected sectors for 2012.
29 January 2011