Case study - Igus
Turkey: The currently small turkish market raises great expectations
Igus is deliberately refraining from making schedules for Turkey
For further development of the Turkish markets Igus is deliberately refraining from making fixed schedules. “Step by step we are seeing what we can do for the customers.” It is also applicable for other work like packaging or engineering apart from distribution. “We are taking the time and we want to get to know the local market”, says the Igus manager.
For the position of managing director in Turkey, Igus is intentionally looking for a local. “In Germany it is surely possible to find qualified employees who also know the Turkish culture very well”, says Peplinski. “I really want someone who has grown up in Turkey because I think that cultural sensibilities are very important in the long run.” The understanding of local conditions and customers is so important to him that Peplinski admits it is more work if you have to deal with another culture.
He is even more excited if he can pick up ideas from the foreign markets. “Many innovations are born at Igus because of direct suggestions of customers. We probably would not get such information if we didn’t go so deep in the market.” There is a massive advantage for a company in opening its own branch as compared to market development through dealers: “A dealer has its own interests and that is normal and he may not give all the information to us. With our own branch we have our eyes and ears in the market.”
Local expertise in Turkey is important
Even for preparations Peplinski relies on the local expertise: “I would recommend starting with a local consultancy firm to look for personnel as well as for establishing the company.” Especially the bureaucratic conditions in Turkey are not so simple. He explains with the help of an example: “In Turkey the tax authorities work differently from those in Germany. One or two weeks after the company is founded an inspection is conducted and they check if the office is really equipped like an office. We reported the opening online and the revenue office was there in two hours.” Since nobody at Igus reckoned with such a fast response, the office was not ready which is why the approval got delayed at first and we got it only after a second inspection. On the other hand some bureaucratic processes can take longer than expected according to Peplinski.
In Turkey you need to have a lot of patience and time, he says. “From the six branches that we opened in the last twelve months, this was the most complicated. However, when the official tasks are complete everything works 100 %.”