WhatWood interview with Ali Kiliç, General Director of Kastamonu in Russia

The devaluation of the ruble has led to a deplorable state of the already unsteady economy in our country. However, the reliance on import substitution stimulates domestic enterprises not to stop in development. And while large companies continue to operate in Russia, there probably isn’t a huge crisis in the furniture market. We asked the General Director of Kastamonu in Alabuga SEZ, Ali Kılıç, about how it is possible to achieve their goals and implement bold projects in unpredictable economic conditions.

― Ali, would you please tell me, what are the development prospects of MDF/HDF of the Russian markets and laminate flooring for the next few years?

― In Russia, the crisis is gradually coming to an end. Demand and consumption in the MDF/HDF market are gradually stabilizing. But the construction of large-scale MDF/HDF production requires a lot of investment, so, most likely, in the near future it will be difficult to attract them to our country. However, those projects that have already been financed will continue to develop further.

― In your opinion, what indicators are important for the company to occupy a leading position in the Russian and world markets?

― We produce materials for the furniture industry, without which it is impossible to produce any goods. Therefore, we must constantly keep abreast of technical and technological innovations, leading world trends in the development of the furniture industry and interior design. Knowledge of new products allows us to keep pace with the times and successfully compete with other companies in the market of materials for the furniture industry and interior design.

To date, we are exporting about 40% of the products manufactured at the plant to Tatarstan. Both MDF and products based on them — laminate flooring and high-gloss MDF — are highly demanded overseas. The current market situation allows us to successfully compete in the markets of different countries: from European Union countries to China, where there are many strong local manufacturers who do not need to add the price of interstate logistics to the production cost of their goods. But our products are distinguished by an optimal combination of price and quality, the availability of a wide range of decors and a flexible pricing policy while working with dealers; all this ultimately distinguishes our products in the foreign market and promotes the development and expansion of our export shipping destinations.

― What marketing tools does the company use to increase the recognition of Kastamonu in Russia?

― Today the success of the company is not limited only to the growth of its financial and production indicators. To achieve the result, it is necessary to conduct a multifaceted operations within the enterprise and competently build ways of communication with its partners. To do this, it is important to have timely information on trends and changes in the industry, establish long-term work with suppliers of raw materials and equipment, regional authorities, supervisors, partners, dealers, end users and even industry competitors.

When our company began to implement an investment project in Russia in 2011, we initially set ourselves the task of making a bright, recognizable and memorable brand. In the conditions of high competition in the woodworking sector, where interests of both Russian companies and international global holdings intersect today, we were able not only to become a recognizable company on the market, but also to become a leader in the export of laminate flooring among enterprises whose production is located in Russia. The marketing strategy “Made in Russia” contributed to this result. For consumers, we position our products as products of European quality manufactured in the territory of our country. On each package, we note the competitive advantages of our products and share with our customers in that we are proud of creating high-quality products in Russia.

The main message that the company seeks to communicate to its customers is to promote the idea of “living better is easy.” Using modern and environmentally friendly materials, it is possible to easily implement various and unique interior solutions and quickly create space for comfortable rest, work or study.

― What is the difference between the preferences of the Russian consumer of MDF/HDF based products from the Turkish or European consumers?

― Preferences are the same for Russian, Turkish, and European consumers. The paramount importance to the client’s choice is the quality of the product, which must be correlated with the price of the purchased goods…

This interview of the general director of Kastamonu company in Russia Ali Kılıç was published at Russian Timber Journal №07-2018.