Draka Polymer Films

Draka Polymer Films is a producer of PCV films with one factory in the Netherlands and one in France. Although Draka was exporting to Turkey for 25 years and had 20 loyal Turkish customers, they asked Alliance experts to find a distributor for the Turkish producers of stationery products. Alliance experts brought them in contact with a range of new potential distributors and agents.

Local distribution as strategy

The total demand in the Turkish office supplies sector is big, but the stationery producers are relatively small companies that can best be served by a local distributor.

Alliance experts searched for potential agents / distributors for the products of the factory in the Netherlands. The candidates needed to be able to communicate in English and know the producers of stationery products (office supplies) in Turkey. We found eventually multiple interested and suitable companies.

Late payments and changing exchange rates

As the most important issue in the stationery market in Turkey, we see the system of late payments (10-12 months) and the fast changing exchange rates. Because of this, producers and importers act as financiers of the sector.

Global position of the Turkish market

Turkey ranks number 11th in export of stationery products (= office supplies) in the world. The stationery sector has a high potential in the country’s economy. It is the most advantageous country in the Eurasian region, in terms of quality, equipment and especially logistics.

It is estimated that the size of the stationery sector in Turkey is around 3.5-4 billion dollars, with about 350 suppliers, producers and wholesalers and 25 thousand retailer companies.

It can be said that 70 % of the Turkish stationery market is imported and 30 percent is made up of domestic products. According to TUKID (Association of Importers, Exporters and Wholesalers in Stationery Products), there are 30.000 companies in the sector including retailers. There are about 120 domestic producers, about 10 foreign producers and about 200 importers. There are about 500 brands and 80% of these brands are foreign brands. There are two publicly traded companies that are traded in the Turkish Stock Exchange.

Stationery products are mainly imported from China, Germany, Austria, USA, Canada, Italy, France and Japan.

Challenges

Despite all the positive developments, it can be said that tradesmen attracted by high profits, enter the sector with uninformed investments, and harm the sector. It is also seen that Turkish producers are having problems with finding raw materials

Like many sectors, the stationery sector is also under the threat of products coming from the Far East, not passing quality-safety tests. On the other hand, the Turkish market has a socio-economic structure that is open to entrepreneurship and innovations, takes risks and loves production and consumption. As a market, there is a potential exceeding the population of many countries in the world. Turkey has a young population and there are currently about 15-16 million students.

Positive responses

Most of the companies that Alliance experts contacted saw working with a Dutch company like Draka as a great opportunity. After the introductions by us, Drake followed up with these companies.

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