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Cultivate Turkey Market 18 Years, Open a New Chapter in Globalization

161 25 May 2023
Turkey sits astride two continents of Europe and Asia. The great civilizations of the East and the West, ancient Roman civilization and Islamic civilization, have all ever met here. The collision of different civilizations has left a profound imprint on this land, and for this reason, Turkey often showcases its stronger inclusiveness compared to other countries on the European continent.
 
As the third largest exporter of ceramic tiles in Europe after Italy and Spain, Turkey is also the fifth largest exporter of ceramic tiles globally. And architectural ceramic has always been one of the highly competitive industries in Turkey. Currently, there are 25 ceramic enterprises and 30 ceramic factories in Turkey building ceramic industry. With an annual capacity of 650 million square meters, Turkey ranks sixth in the world in terms of production and sales volume (based on data of 2022). As around 55% of Turkish ceramic products output is sold abroad, mostly to European and North American markets, corresponding quality, product design and fashion trends of ceramic tiles are all in line with Europe, mainly focusing on the medium and high-end products.

Owing to Turkey's geographical location and comprehensive strength in the global ceramic industry, the entry to Turkish market means occupying the bridgehead of the high-end European market.
 
After 18 years of solid and creative efforts, KEDA Group has achieved "triple jump" in Turkey ceramic industry and become a crucial supplier of ceramic machinery and industrial services in the local area. It has sold a total of 27 kilns, 70 presses and more than 60 polishing lines, covering all building ceramic customers and production areas in Turkey. In 2017, KEDA Group has established a subsidiary to promote localized services, forming a flourishing situation co-existing and win-win with the ceramic industry in Turkey.

The BOZUYUK factory in Turkey, for which the cornerstone was laid on March 18th, 2023, is an important strategic step for KEDA Group to promote localization in Turkey.
 
"Professional + service", cracking ceramic machinery market in Turkey

Italian ceramic machinery and equipment have dominated Turkish building ceramic market for decades. Abdullah Turkan, the Turkish agent of KEDA Ceramic Machinery, recalled: "I got my impression that before 2000, none of the machinery in Turkey's ceramic factories came from China, but all of them were from Italy."
 
Just under such a background with significant challenge, KEDA Group began to enter the Turkish market in 2005.

Unlike in China, the products of KEDA Group did not enjoy high popularity and reputation at the initial stage of entry. They were unknown in the local market. For this reason, KEDA Group has developed a targeted sales strategy for the Turkish market. First its flagship product of cost-effective polishing and edging machines were sold to break new ground in the local market. Meanwhile, "intimate & considerate" services were provided to help KEDA's polishing and edging machines build their reputation and occupy a certain share in the local market, making "presence" of KEDA brand known in the local market.
 
▲In October 2019, Jie YAO (the fifth from the right), Overseas Marketing Director of KEDA Ceramic Machinery, Yu YANG (the second from the right), the GM of Turkey, Saudi Arabia and Russia Sales Territory, took a group photo with executives of Akkuc company in Turkey
 
"Because Italian equipment had been used in Turkey for a long time, when we first came in, they were arrogant and prejudiced against Chinese machinery and equipment by first impressions. Relying on the cost-effectiveness, services and communication of languages and culture, We gradually built confidence among customers through more visit and contact. Starting from a single machine to a production line, we had sales step by step. Later, we adopted the ‘contracting model’ and sent a dozen engineers to the factory of customer to deliver services. Gradually, we were on familiar terms with our customers." Jie YAO, Overseas Marketing Director of KEDA Ceramic Machinery, said.

From dominating Turkey market with polishing machine to the real sales of whole production line, KEDA Group's market development in Turkey had not all been plain sailing. In the tenth year (2014) since KEDA Group entered Turkey market, its first kiln was finally sold and in the following year, the first press was sold successfully. Only from then did KEDA Group truly embark on the road of market "expansion".
 
With the tireless marketing efforts of the Turkey marketing team led by Yu YANG, the General Manager of Turkey, Saudi Arabia and Russia Sales Territory, KEDA Group won the first real order for the whole factory and whole production line in Turkey in 2015. This was a landmark market penetration undoubtedly. And the successful operation of TR051 whole production line in Turkey in 2016 completely reversed Turkish customers'bias against "Chinese Pattern" and removed their doubts about Chinese whole line machinery and equipment.
 

▲Glazed tile whole production line project contracted by KEDA Group ignited in Turkey TERMAL Company in 2016
 
Including continuous ball mills, presses, dryers, kilns, and polishing lines from KEDA Group, the whole production line adopted high-output and direct-connected production mode which was kind of "Chinese Pattern". It was the first time for Turkish customers, who had long-term contact with "European Pattern", to know this kind of production mode. And the kiln configured for this project was also the longest one in Turkish ceramic industry at that time. KEDA seized this hard-earned opportunity and collaborated with various departments to strive hard for a high-quality project, greatly exceeding customer expectations. The project had created considerable economic benefits for customers when put into production successfully. And KEDA Group shot to fame locally and really came to prominence with its whole factory and whole production line machinery and equipment in Turkey, becoming a very competitive oriental supplier in Turkey ceramic machinery market.


 
▲KEDA's first continuous ball mill put into production in Turkey in 2018
  
Heading against the wind, and beginning to excel instead of catching up with rivals

At the end of 2019, the major countries of building ceramics producing in the world were affected by the sudden COVID-19 in some way. Since Turkey's ceramic industry focused on the export of ceramic tiles, despite the decline in domestic demand, there were an explosive growth in Turkey's ceramic industry due to a strong rebound in global demand for high-end products. In this critical window of market, Yu YANG, the General Manager of Turkey, Saudi Arabia and Russia Sales Territory, made a decision that was very difficult for herself but very important for the company: traveling to Turkey to grab orders when the epidemic was spreading around the world.
 
Dealing with customers in Turkey for many years, Yu YANG was very sensitive to the local market. She knew that the trend of capacity expansion in the post-epidemic period in Turkey will be a great opportunity for KEDA Group to "occupy" the local market. Taking no vaccine, she "ventured" to Turkey twice in 2020. In her own words, "go with a strong sense of mission and fear inside". Yu YANG was also the first person of international marketing team of KEDA Ceramic Machinery to venture abroad.

"God rewards the diligent" was the best interpretation of Turkey's marketing team's travel abroad during epidemic in 2020. When European competitors were still hiding at home in fear of epidemic, KEDA's marketing team in Turkey adhered to the idea that "enterprise's benefit is above all" and took the initiative to visit customers. Featuring the unique diligence and quick response, they raced against time while flexibly dealing with the needs of different customers. When the epidemic ravaged the world in 2020-2021, the marketing team fulfilled its mission and captured 8 whole line projects in Turkey market. In 2021, Yu YANG led team of Turkey, Saudi Arabia and Russia Sales Territory to achieve orders of 53 million USD, which was also the territory receiving highest sales orders in 2021.


▲In March 2022, the glazed tile production line customized by KEDA Group for Turkey's ceramic giant VITRA successfully put into production
 
During that time, Yu YANG and her team often stayed up late at night to complete the scheme and rushed to customer's office for a face-to-face discussion the next morning. Driving back and forth between several ceramic factories for a few hours is really a test of willpower. "Sometimes I feel so tired that I want to give up, but finally, I have gritted my teeth and got on with it. I am a pertinacious person. With more efforts and attention to the details, I can also improve myself by considering things from perspective of customers and understanding their needs. Yu YANG said.
 
It was this fearless courage, sincerity and professionalism that had moved many customers. KEDA Group had achieved a total sales of 43 presses, 14 kilns and 21 polishing lines in Turkey within three years, being ahead of major European competitors to become the main supplier of new production lines in the market and making KEDA Group fully occupy the local market.


 ▲Group photo of marketing team in Turkey

At this moment, KEDA Group had achieved transcendence truly by overtaking its European competitors "on a bend" in Turkey market.

Investment in local production facilities, transforming from equipment manufacturing to industrial services
 
In 2017, after the successful entry of KEDA's whole factory and whole production line into Turkey market, which began to have "siphon effect", KEDA Group set up a trading subsidiary quickly in Turkey - KEDA Turkey Machinery Trading Co., Ltd. (hereinafter referred to as "Turkey Subsidiary") and an IZMIR spare parts warehouse, to build a local service system, realize the local storage and sales of accessories and consumables, and move services forward further. This happened right after KEDA's setting up an India subsidiary in 2016.
 

▲KEDA Turkey Subsidiary established in 2017
 
As the second overseas subsidiary established by KEDA, Turkey Subsidiary was also a strategic stronghold closest to the European hinterland at that time, which was operated in an asset-light model.
 
Localized operation was the overseas operation strategy carried out by KEDA Group consistently, and its Turkey Subsidiary continued this practice. Turkey Subsidiary had 18 local employees, including 4 after-sales service personnel (after-sales service staff for press, polishing machine and kiln ), 3 sales support personnel for accessories and consumables, and 2 warehouse management staff, etc. currently. Through practice exploration of business in past years, Turkey Subsidiary had established a rapid response system and feedback mechanism within 7 × 24 hours without time difference and language communication barriers, deepening cooperation between KEDA Group and customers.
 
After 2020, with the further expansion of KEDA's market share in Turkey and the further increase of its brand influence, the original spare parts warehouse of Turkey Subsidiary could not meet group's strategic needs in Turkey. Therefore, with the great promotion of the company's decision-making level, KEDA Group purchased a 43000 square meter industrial land in BOZUYUK Industrial Zone, BILECIK Province, Turkey in 2022 for the construction of a new base in Turkey.
 
Jie YAO, Overseas Marketing Director of KEDA Ceramic Machinery, said that KEDA Group wished to strive for further improvement based on the existing spare parts warehouse and after-sales service system by building BOZUYUK factory in Turkey. Local production, procurement and supply of some machinery, auxiliary equipment, and accessories and consumables in Turkey could be realized through sharing resources and realizing complementary advantages with China headquarters. New business of equipment maintenance and renovation was to be added to speed up feedback to the market and improve competitiveness.
 

▲Effect chart of BOZUYUK factory
 
More than 20 heads of local businesses in Turkey attended the groundbreaking ceremony for BOZUYUK factory in person. And the chairman of KEDA Group, Cheng BIAN, said to his colleagues in Turkey's ceramic industry in the ceremony: "With the establishment of BOZUYUK factory, we will take root in Turkey further and transform from a ceramic machinery manufacturer to an industrial service provider who provides comprehensive solutions, so as to create more value for customers with better service. We will provide Turkey's ceramic industry with China's cost-effective accessories and consumables. Our goal is to make Turkey's ceramic industry more competitive in terms of machinery, consumables and accessories. Serving as a bridge, we will bring most cost-effective products, and more favorable and convenient services to our customers. This is our utmost purpose."
 
Based on the current progress of infrastructure construction and Turkey's policies and systems, BOZUYUK plant was expected to be put into production in the first half of 2024.


 
▲In March 2023, KEDA Group's executive team visited Termal Seramik Ceramics Factory, the whole production line here was built by KEDA
 
After the completion of BOZUYUK factory in Turkey, Turkey Subsidiary will play a better role as a hub in the future, implement resource integration, and make greater contributions to Turkey's ceramic industry. And as a strategic base of the company, it will support markets in the Middle East, North Africa and Europe as well.

(Jiansheng XIE, President Office)
 
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