We Track Trends in the Construction Sector Through Building Material Retailers

In this issue covering paints, building chemicals and insulation, we are launching a new article series. Building material retailers, which form the sales arm of the industry, undoubtedly hold significant importance.

It would be fair to say that building material retailers are the areas where the current state of the sector, new trends and consumer preferences can be most easily observed. We are starting our series with Tekzen, one of the country's most important building material retail chains. We spoke with İbrahim Yıldırım, Purchasing Category Manager of Tekzen's Home Decoration and Paint divisions, about trends in the building material retail sector and consumer preferences. Yıldırım started work at the Merter store in March 1998 and served in various positions at Tekzen stores both within and outside Istanbul until March 2011. Since March 2011, Yıldırım has continued in his role as category manager in the purchasing department. Over the past 2 years, İbrahim Yıldırım has managed categories including construction, paints, flooring and wall coverings, and home decoration. He is married and has one daughter. Evaluating Tekzen's recent sales specifically in paint products, Yıldırım noted, "In the second quarter period of April, May and June when paint sales are typically highest, we could not achieve the momentum we expected due to rainy weather and the Ramadan period. Despite these factors, we achieved 25% growth in sales. The needs from that period were postponed to September-October, and therefore with increased sales during those months, we anticipate finishing the year in the paint category with 35% growth."

"Building material retailers are generally where end consumers shop."

Regarding the profile of paint product buyers, Yıldırım explained, "In our country there is the reality of painting contractors, and the vast majority of these contractors work with open accounts, cheques and promissory notes, which is why they shop from hardware suppliers. End consumers generally shop at building material retailers. The most attractive advantages that building material retailers offer consumers are product variety, colour selection and after-sales services, which is why building material retailers are increasingly preferred. Looking at the customer profile, we can identify 80% end consumers and 20% painters."

Adding New Colours to Life is Possible

Commenting on current trends in paint products and colour interpretations, Yıldırım said, "Although there is a wide variety of paint products, this year soft colours, earth tones and beige shades are in particularly high demand. The era of every wall in a home being the same colour is over. Increasingly, different colours are used in each room, and even contrasting colours on the same wall." Explaining the factors that lead to the decision to repaint, he noted, "In previous years, with very few colour and paint options, we only painted our homes when walls became dirty or aged. However, with the increase in colour varieties through mixing machines over more than 10 years, and with paint becoming more quality and longer-lasting, it is now seen by homemakers especially concerned with decoration as a seasonal renewal. We can describe home repainting as adding a new colour to people's lives."

Yıldırım pointed out that with the proliferation of building material retailers, consumers have greater opportunity to conduct price analysis through brochures delivered to their homes, emphasizing that product features and prices are influential in purchasing decisions.

Yıldırım noted that Tekzen, in addition to paint products, also sells wallpapers and wall panels, describing their activities in these product categories, "Wallpapers have continued with serious growth over the past 2 years, growing 61% last year, and we anticipate closing this year with 70% growth. We work with approximately 200 different product varieties. Taking customer requests into account, we increased our range of wall panels and this year we also started selling ceiling panels. Because they provide a natural appearance, are very easy to apply, and provide insulation, they will become a good sector in the coming years. New companies are joining the sector every day, and brands other than new companies are also watching and trying to position themselves. We can understand this from the interest shown at the stands of these kinds of companies at trade fairs." Yıldırım also stated that sales of building chemicals and insulation products are growing at around 20%, though he noted that these types of products require more professional skill and that professionals tend to prefer hardware suppliers or small and medium-sized businesses that sell these products.

Renovations and Upgrades Anyone Can Do

Although used more often by professionals, particularly abroad, many people prefer to do certain small renovation and upgrade work themselves rather than pay professionals. When asked about the situation in Turkey, Yıldırım said, "Abroad, because professional labour and skilled work command high fees, people try to do things themselves both to have a hobby and to avoid paying these fees. For this, they attend courses and training programmes. They dedicate time to this, and most importantly, they prioritize it. Similar behaviour exists in our country but it is not widespread. It can become more common through courses and training programmes, and through workshops conducted in partnership with companies in-store. Through product use and assembly manuals and simple assembly applications, consumers can be encouraged. Together with our respected competitors and through outlets operating under the name of home improvement centres, we are trying to promote this. We are planning initiatives that will make people feel like professionals using a single assembly apparatus with a very simple and clear diagram."