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LEVENT OZCAN AIMSAD Magazine Interview
12 December 2016
The new trend in wooden chairs is the combination of naturalness and design
Levent Ozcan, Chairman of the Board of Leta Sandalye, who blends family experience in the furniture industry with developing technology and new trends, is among the young and successful entrepreneurs of the sector. It would not be enough to explain the success of Levent Ozcan, a successful entrepreneur who has carried his production journey, which he started in the years when chair production was not yet seen as a sector in Turkey, to the level of branding today, only with the furniture production culture inherited from his family. According to Levent Ozcan, who pursues differences in every aspect of his life, trying to implement what has not been done before and most importantly remaining devoted to his work wholeheartedly has a great impact on his success today.
Setting the bar high in his goals, Levent Ozcan, with Leta today, it produces 20 thousand pieces of chairs, tables and armchairs per month in its 52 thousand square meter factory in "Inegol Mobilya Agac Isleri Ihtisas OSB". Levent Ozcan, who started production in an 80 square meter workshop with a staff of 5 in 2003, currently has the fourth largest facility in Europe in terms of production capacity and machinery park with his factory located in "Inegol Mobilya Agac Isleri Ihtisas OSB".
60 percent of Leta's production is a special project for hotels, restaurants and cafes.
Stating that 60 percent of Leta's production is carried out on special project works for hotels, restaurants and cafes, Levent Ozcan said that in the next 5 years, chairs, table They state that they want to be a globally recognized project company in the and sofa group. Ozcan stated that they work to keep customer satisfaction at the highest level by offering the right solutions to the right projects, just like a pharmacy that gives the right medicine to the patient with the right prescription, and explains the company's 2018 targets as opening 15 stores in the country and abroad and not producing for any brand other than its own.
According to Ozcan, who made important statements about the industry as well as the information he gave about his company, chairs are difficult to produce, their profitability is lower than the furniture industry, but when supported by innovations, it is a niche market with added value. Explaining that companies create their own molds and prepare different segments in chair production, which has become a sector especially in the last 5 years, Ozcan said, “In recent years, our customers have been asking whether the product is a new design before the price. In the past, people were just asking the price for a chair to sit on. Now they started asking for models. “This change is happening visibly,” he says.
LEVENT OZCAN AIMSAD Magazine Interview
UNTIL 10 YEARS AGO, WOOD PROCESSING MACHINES WERE NEARLY FEW. BUT NOW WE CAN MEET ALL OUR NEEDS IN OUR INDUSTRY FROM MACHINE MANUFACTURERS IN THE DOMESTIC MARKET. THERE HAS BEEN A SERIOUS DEVELOPMENT IN THE DOMESTIC MARKET, INCLUDING CNC AND MECHANICAL. WE NOW HAVE THE CHANCE TO FIND A BETTER MACHINE PRODUCED IN EUROPE IN TURKEY. AS LONG AS TURKISH ENTREPRENEURS ARE GIVEN OPPORTUNITIES AND SUPPORT, THIS SECTOR WILL CONTINUE TO DEVELOP.
Mr. Levent, first of all, in order to get to know Leta Sandalye better, could you briefly describe the process from the date you were founded until today?
Our history in the furniture industry comes from family. We are now the second generation. During my school years and after my return from military service, I worked with my older brothers and learned this craft in their kitchen. After my brothers decided to retire, I went with my nephew in 2003. Leta We established the chair. We started production in 2003 in an 80 square meter workshop with a team of 5 people. Today, we have reached a total production area of 52 thousand square meters, of which 25 thousand square meters is closed, and employs 400 people. After we believed that we would achieve success in this business, our excitement increased even more and we started institutionalization and branding efforts. We are the first company to move to "Inegol Mobilya Agac Isleri Ihtisas OSB".
What were your goals with this move?
When we moved to OSB, there was no electricity. We set up the factory with generators. It was madness to establish this factory. At that time, everyone looked at us as crazy. But we believed that we would be successful. And we were right. We established the capacity of our factory to 100 thousand units/month. Because I had a goal of being among the top three largest chair manufacturers in the world. Today, we are the fourth largest chair manufacturer in Europe in terms of production capacity and machinery park. Currently there are chairs, tables, armchair We produce 20 thousand pieces of products monthly, including all project parts such as. In fact, we are like a pharmacy that gives the right medicine to the patient who comes to us with the right prescription. We keep customer satisfaction at the highest level by offering the right solutions for the right projects. Starting from 2018, we will not produce for any brand other than our own.
What factors have influenced your company's successful development since the day it was founded? Can you share the secrets of your success with us?
Until 3 years ago, we were producing 50 thousand chairs per month. But in the three-year period, we saw that the market for economical products was blocked. The income level of the country increased, and along with the national income, consumers began to want products in the higher segment. More enjoyable, comfortable, designer, different Chair The demands started coming. This required concentration on labor. While we used to produce more serially, we have now started to produce products with higher added value by reducing the production to 20 thousand units/month. We reached the turnover that we would have achieved by producing 80 thousand units/month with mass production, but with value-added production of 20 thousand units/month. When the expectations of the new generation changed, we kept up with it and renewed our product range accordingly. We also focused on restaurant, cafe and hotel project works.
Currently, 60 percent of production is project-based production. As a leading name in the movable furniture sector for projects, In addition to chairs, we also produce tables and armchairs. In addition to the projects that come to us directly, our interior architects can also identify the products to be applied in the project together with our customers. Many private hotels throughout Türkiye, restaurant We provide service to cafe and cafe projects in accordance with the concept. For example, we recently received the projects of the chain stores that Gurkan Sef in Nisantasi, Istanbul will open in the country and abroad. Project-based value-added production, export and in the furniture industry Mobility made us feel the crises less. We distributed our risk by diversifying markets instead of focusing on a single market. We breathe easier.
What kind of structure are you in the domestic market?
We have our own stores in 4 locations across Turkey: Istanbul, Bursa, Mobiliyum AVM in Inegol and again in the center of Inegol. We are now looking for a second location on the Anatolian side of Istanbul. Our industry has not yet become professionalized like furniture. However, there are no competitors in the chair industry as much as in the furniture industry. We can give 10 dealerships in 10 days. There are demands regarding dealership, but I plan to move forward in this regard with slower and firmer steps.
In addition to the domestic market, do you have any work or projects abroad?
We especially aim to open dealerships abroad. We will open our first store in Erbil. We have a dealership negotiation with a company we work with in Greece and a company in Germany. But we are not acting hastily. We need to mature. We experienced a transformation in the 3-year period. We do not provide franchises or dealerships. We open our stores ourselves. This makes it easier for us to identify and correct deficiencies in our stores. We aim to reach a total of 15 productive stores at home and abroad by the end of 2018. We want to become a world brand in the future, and the way to do this is by establishing our own store system. For example, there are those who want a dealership for London. They came to the factory and selected products. But instead of giving a dealership right away, we first suggested working together for a year, getting to know each other, carrying out operations together, working on a project basis, and that's how we made a start for London. In this process, we will gradually reduce the share of the big brands we supply furniture to in our production.
Which markets will your export growth focus on in the coming period?
15 percent of our total production is export. We also supply goods to Switzerland, mainly through our partners in Arabia, Iraq, Greece, Kosovo and Kosovo. Additionally, countries such as Sweden, India, Brazil, Taiwan, Kenya, Malta and Nigeria are among the countries to which we send products, although not regularly. On the other hand, our search for new markets always continues. In this context, we also visit fairs that interest us in different countries.
What is your strategy for growth in the next short and medium term? Could you give detailed information about your investment plans?
LETA
“DEALERSHIP REQUEST RECEIVED FROM LONDON”
LETA WE DO NOT PROVIDE FRANCHISE OR DEALERSHIP. WE OPEN OUR STORES OURSELVES. THUS IT IS EASIER FOR US TO SEE AND COMPLETE THE DEFICIENCIES IN OUR STORES. THERE ARE SOMEONE WHO WANT DEALERSHIP FOR LONDON. THEY CAME TO THE FACTORY AND SELECTED THE PRODUCT. BUT INSTEAD OF PROVIDING A DEALERSHIP IMMEDIATELY, WE SUGGESTED THAT WE WORK TOGETHER FOR A YEAR, GET TO KNOW EACH OTHER, CARRY OUT OPERATIONS TOGETHER, AND WORK ON A PROJECT BASIS, AND WE MADE SUCH A START FOR LONDON. DURING THIS PROCESS, WE WILL GROWTHLY REDUCE THE SHARE OF THE BIG BRANDS TO WHICH WE SUBMIT FURNITURE TO IN OUR PRODUCTION.
Could you give information about your new product developments? How much budget do you allocate to R&D in this regard? In what areas and topics will your new product work be in the coming period?
We have an R&D unit of 12 people. We allocate 3 percent of our annual turnover to R&D. At least 40 percent of the products on the market as models consist of our designs. We have serious problems with imitation. A continuous R&D study continues. Studies are being carried out for both improvement and innovation. The reason why we are one of the best players in the market is our fast action, flexible production capability and R&D power. This is the most important point where we differ from our competitors.
Our magazine In this month's cover story, we cover chair production machines. Since you are one of the largest companies in chair production in Turkey, we wanted to hear from you about the developments in this field in Turkey. What kind of changes have been experienced in the chair production, exports and market in Turkey in the last 10 years?
The entrepreneurship of the Turkish people is also felt in the chair industry. Today, we are no better than Italy. The initiative of our colleagues and Turkey's steady growth have also affected the sector in the last 10 years. A company producing more than 100 large and small chairs was established in Inegol. A superior product of a product made in Italy can be produced in Turkey. We might not have been able to talk about the existence of a sector 10 years ago, but we have started to become a sector, especially in the last 5 years. Companies began to form their own patterns, the markets they appeal to and different segments emerged.
What are the chances and advantages of Turkish chair producing companies abroad? Which regions/countries in particular have potential for export?
Furniture is produced all over the world. But chair production is not a production found everywhere. For this reason, the sector is lucky in foreign markets. Our colleagues can reach all over the world, to different countries in different continents of the world such as South Africa, Japan, Canada, Argentina. At this point, following different designs and technology will bring success in foreign markets. Companies that attach importance to R&D are companies with a future. Chair is a product that has a wide range of uses all over the world. There are markets everywhere.
Our colleagues just need to open those doors and push them. In that sense, we are a lucky sector. The reason why it cannot be produced everywhere like furniture is that profitability in the chair industry is very low. For this reason, entrepreneurs do not engage in production in this field. This job is done by people who come from the ground up. It continues today because those who started this business with their apprenticeship are a part of the chair industry. If the issue is only financial, devoting this effort to another sector can bring much more profitable business. It is also an area that requires great sensitivity regarding customer satisfaction. You can take back a 300 lira chair because of a 1 lira mistake on it or just because a thread came out of the fabric. Raising people at every stage is a job based on human labor. Even though state-of-the-art machines are used, the human factor is very important for us. Machine and human adaptation takes up to a year.
Could you comment on the course of wood use in chair production, the change in consumer demands and interest? What are the most important developments in wooden chairs in recent years? What are the driving forces of development?
Special products in the sector, using different trees products is wanted. The dominance of beech in the market in the past was replaced by more textured, natural-looking trees such as walnut, oak, and different tree varieties growing in African countries. As expectations have changed, the variety of trees used has increased. In recent years, our customers ask whether there is a new design before the price. In the past, people were just asking the price for a chair to sit on. Now they started asking for models. This change is happening visibly.
Could you share with us your future predictions regarding the use/consumption/production of wooden chairs? Do you think the use of wood will increase in this area? If yes, what will be the conditions and reasons that enable this?
The use of wood has never declined. While colors and fabrics change, the use of wood will not change. In fact, there is an increasing return to the use of raw wood. In fact, as living conditions improve and modernize, interest in nature increases. When natural products are used, people can manage the house because their strength is higher. It becomes more free. Otherwise, when unnatural products are used, more care must be taken to prevent the furniture from getting scratched and worn out, and over time, the household starts to take over. At this point, the phenomenon of design combined with naturalness comes to the fore.
AS WE, AS CHAIR MANUFACTURERS, EARN, OUR NEED FOR MACHINES INCREASES EVERY DAY. AS THE CHAIR INDUSTRY IS SLOWLY BECOME A SPEAKER IN TURKEY, THE SUBSIDIARY INDUSTRY WILL ALSO DEVELOP IN THIS LINE. ALL MACHINE MANUFACTURERS CAN CARRY OUT NEW PROJECTS IN ACCORDANCE WITH OUR DEMANDS AND NEEDS. IN THIS WAY THEY ALSO DEVELOP THEMSELVES.
In our magazine, we also discuss the materials used in the manufacture of wooden chair We also cover the development of woodworking machinery production. We would also like to hear your opinions on this matter. How do you think Turkey has developed in the field of woodworking machinery from past to present?
Until 10 years ago, woodworking machines were almost non-existent. But now we can meet all our needs in our industry from machine manufacturers in the domestic market. There has been a serious development in the domestic market in CNC, including mechanics. We now have the chance to find a better machine produced in Europe in Turkey. As long as Turkish entrepreneurs are given opportunities and support, this sector will continue to develop. As chair manufacturers, our need for machinery increases day by day as we earn more. As the chair industry gradually gains a say in Turkey, its sub-industry will also develop in this direction. All machine manufacturers can make improvements in line with our demands and needs. In this way, they also improve themselves.
Finally, what are your expectations and demands from the woodworking machinery industry/companies? What are your suggestions and recommendations for establishing new collaborations in order to achieve greater success together?
Sectors need to come together more to understand each other better. We can also contribute to the development of the sector through sharing meetings that we can hold not only when we have a problem or need, but also from time to time. Contact It is beneficial to be in a state of being. Sectoral associations can carry out projects for these associations.
“WE NOW HAVE 4 STORES, THE TARGET IS TO REACH 15 STORES”
TODAY, WE CONTINUE OUR PRODUCTION WITH 400 EMPLOYEES IN A TOTAL 52 THOUSAND SQUARE METER AREA, 25 THOUSAND SQUARE METERS OF WHICH ARE CLOSED. OUR FACTORY LOCATED IN INEGOL FURNITURE WOOD WORKS SPECIALIZED OIZ IS CURRENTLY THE FOURTH LARGEST FACILITY IN EUROPE IN TERMS OF PRODUCTION CAPACITY AND MACHINERY PARK. OUR GOAL IS TO BE A PROJECT COMPANY THAT HAS INCREASED AWARENESS IN THE WORLD WITH ITS CHAIRS, TABLES AND SOFA GROUP IN ITS PRODUCT RANGE IN THE NEXT 5 YEARS. IN ADDITION TO PRODUCTIVITY, EMPLOYMENT TRAINING AND R&D WORKS WITHIN THE FACTORY, WE ALSO STARTED SHOPPING. WE CURRENTLY HAVE 4 STORES IN MAJOR CITIES, OUR GOAL IS TO REACH 15 STORES DOMESTIC AND ABROAD BY THE END OF 2018.
Source: AIMSAD DERGISI