M. Akın Akçalı
Chairman of the Board
Bosad (The Association of Paint Industry)
The deceleration of global economic growth, high inflation rates, and the war between Russia and Ukraine triggering the energy crisis caused serious problems. These uncertainties point to the fragility of the economic recovery.
In the shadow of international developments in our paint industry, I can describe the year 2022 as a year of economic problems such as high inflation, dramatically increasing energy costs, supply problems, increase in commodity prices and fluctuations in exchange rates.
On the other hand, the problems in the supply chain due to the Russia-Ukraine crisis and the corresponding increase in inflation were also reflected in the prices of raw materials used in the production of our industry. As an industry, we are directly affected by the crises in the world, as we are dependent on raw material imports.
Despite all these negativities, we have worked hard to improve our current situation
and increase our production. To summarize, we can say that 2022 has been relatively stable compared to previous years. According to Bosad reports, there was a volumetric contraction of 6% in the first three quarters, and we think that the year ended around 10%.
We predict that the size of our Turkish paint industry in 2022 will be approximately 950 thousand tons. Construction paints account for 60% of the total sectoral volume, and industrial paints for 40%.
We predict that the industrial growth in 2023 will be parallel to this year. In line with the global growth strategy of the Turkish paint industry, the investments and incentives to be made in our industry and the production of high value-added domestic substitute raw materials will develop our country’s economy, increase the volume of our value-added products in exports and our representation power in global markets.
In 2023, when we will celebrate the 100th anniversary of our Republic and the 20th anniversary of Bosad, we, as Bosad, are holding an event where the global paint
industry will come together. As Bosad, we will host the annual evaluation meeting of the World Coatings Council, of which we are a member, in March.
As we enter the second century of our Republic, I wish that this meeting we will host will be beneficial for our country and our industry.
Mehmet Hacıkamiloğlu
CEO
Polisan Holding
2022 was a year of economic contraction in general. Although factors such as the Russia-Ukraine crisis, cost increases and fluctuations in exchange rates were reflected in different industries, the paint industry focused on its targets to increase its share in the global market.
As Polisan Kansai Boya, we finished 2022 in line with our targets in terms of turnover and
profitability. We export to 26 countries, including Austria, Azerbaijan, Bulgaria, Egypt, France, Georgia, Russia, Israel, Turkmenistan, Netherlands and Romania, and we increased our exports by 79 percent in 2022 compared to the first nine months of last year.
We increased the number of our overseas stores to 127 with the showroom we opened in London. We opened our e-commerce side this year and our promotional activities continue. Today, digital and green transformation is at the center of the world agenda.
There is a significant increase in the demand for environmentally friendly paints. We are quite strong in high performance, environmentally friendly (low VOC, etc.) paint products. We can reach almost every point of Turkey through dealers, retail outlets, chain markets and ecommerce.
In addition to 5000 sales points, we offer service with our products in 345 stores of two chain markets. In 2023, we will focus on the strategies of increasing our share in our foreign markets and increasing the number of our stores.
Moreover, we will also start the projects we target in new markets. In 2023, we are also working to increase our share in e-commerce by concentrating on our online activities. We are focused on growing online.
“More exports” is at the top of our agenda. We plan to increase brand awareness and open new stores in foreign markets. By expanding our value-added product portfolio, we will continue to offer quality solutions with innovative, creative and highperformance products to help consumers achieve the living spaces they dream of.
Mehmet Mutlu Uysal
General Manager
DYO
As DYO, we were affected by the logistics crisis triggered and deepened by the global epidemic, manufacturers’ declaration of force majeure, the inflation that is on the agenda of all countries, and the exchange rate increase in our country in 2022.
Producer cost increases are expected to continue due to the increase in energy costs that started with the Russia-Ukraine war, the continuation of the high course of transportation
costs in 2022, inflation and the increase in exchange rates.
Despite all these developments, we work on stable and sustainable growth targets together with our employees, dealers, suppliers and stakeholders, and we create all our strategies accordingly. Despite all the difficulties, we continued on our way with firm steps, by following all market conditions instantly with our strong ecosystem and taking quick decisions and actions with our agile management approach.
We produce paints for 11 main sectors and dozens of subsectors connected to these sectors in our İzmir and Kocaeli factories. We exported to more than 50 countries in Asian, European and African markets with our business partners abroad.
As DYO, we have developed sustainability and climate- oriented approaches in our value chain and determined the social, environmental and social value creation topics as the main focuses of the next 3 years. In our environmental priorities, we have actions for climate change and plans to reduce resource use.
We continue our efforts to increase the environmentalfriendly products in our product range. We use plastic packaging made from 30% recycled material in our products. We define our managerial goals as prioritizing digitalization investments, strengthening our
portfolio with innovation and sustainability-oriented products, and most importantly, managing all our processes with a common mind.
However, in this process, we were shaken by the earthquake disaster that occurred in Kahramanmaraş and deeply affected 11 of our provinces. Therefore, while work continues on our medium-term goals, our priority for today will be to heal the wounds of the earthquake disaster.
As a brand of Yaşar Group, we have contributed and continue to contribute to the cash and in-kind donations. We participate in regional support and medium-term plans in coordination with all the non-governmental organizations, of which we are members.
Pınar Adabağ
Marketing Manager
Marshall
In the third quarter of 2022, the Turkish paint market grew by 99 percent on a turnover basis. As Marshall, we have grown above the market average in the same period.
We are an industry dependent on foreign raw material supply in decorative paints, therefore we experienced problems both in raw material supply and high production costs, increasing energy costs and upward fluctuations in the exchange rate policy affected the whole industry.
One of the most important developments of 2022 for Marshall was the launch of our FIT branded products, which started to be produced in our solvent-based production facility that we invested in the previous years.
Thus, FIT was added to the sub-brands of Luxe, Enamel, Pastel, for which we received very good comments. In 2022, we continued our Let’s Color project and provided paint support to the Bilecik Gölpazarı Municipality Taşhan Conservation Area Landscaping Project.
Within the framework of the cooperation protocol we signed with the Ministry of National Education, we continued the paint grants we made for painting schools.
In 2023, many industries, especially in areas such as inflation, energy and logistics, will continue to face difficulties in Turkey as in the world economies. As for the paint sector, we think that the volumetric contraction will continue as in 2022.
With the serious increases in prices, the transition to products in the economic segment is increasing intensively. We expect the share of products in the price-quality balance to meet the demands in this segment to increase.
We anticipate that the trend towards digitalization will increase with applications such as
GO-BOYA. We predict that the use of platforms such as Ustamburada.com that brings together consumers and craftsmen will increase, both meeting the needs of consumers and providing new job opportunities for craftsmen.
