Interview by Hasan Ercazip
We are in Dubai for The Big 5 Show… While chatting with our Turkish and Greek marble friends at the Zabeel Hall, Flavio Marabelli, Honorary President of the Confederation of Italian Marble Machinery Manufacturers, passes by. We greet each other and say, “Can we have a chat when you are available?”… Flavio says, “Of course, whenever you want” and this interview is born… When we meet one of the doyens of the natural stone sector, we start talking about the world economy.
Closed markets, energy crisis, inflation
“I cannot say that I am very optimistic about the general state of the sector,” Flavio begins. And first he comments on a general picture: “As you know, there are still many closed markets. We could face a global energy crisis. The uncontrolled increase in the price of gas and oil, also linked to the war situation, has disrupted business a lot. Big markets like Italy and Turkey have been negatively affected. We also have a global inflation problem. The gas crisis at Europe’s doorstep is obvious. We continue to experience the volatile and unstable atmosphere we experienced during the pandemic for other reasons.”
The situation in China affects us all
Of course, the topic turns to China… We ask Marabelli about his 2023 expectations for this giant market… “China is one of the biggest markets in the sector. Both as a consumer and a producer. The closure of this market had a very negative impact on the trade volume. Not only the countries in South East Asia, which are close to China, were affected by this situation. Countries like Italy and Turkey also suffered from this problem. The 2023 Xiamen Fair will be held with the participation of only Chinese companies and Chinese representatives of international companies, just like 2022. As such, we have a fair with 1000 Chinese companies, but it has lost its international character.”
Development is difficult without Xiamen Stone
So how will the crisis in China be overcome? Flavio Marabelli sees travel restrictions in China as the biggest problem at this stage. And he underlines the role of the Xiamen fair here with these words: “If the quarantine processes related to Xiamen Stone are lifted in 2024, if the fair can return to its old days, if we can go directly to China, everything will be better. As a sector, we need to bring this value back to Xiamen, which is the most important address of the international market. If these trade restrictions continue, I don’t think the Chinese market will show a great development. China and the countries around it are really important for the marble market. It is hard to imagine the industry without them, so they need to recover.”
Quality is high, pricing is bad
And Turkey… Flavio Marabelli appreciates the development of the Turkish natural stone sector, but underlines one problem: “Turkey is both our close friend and one of our toughest competitors in the sector. It is a country that is really at the forefront with its production quality and diversity. The people are also very good. But their pricing is bad. They have incredible quality marble, but they sell with very low profit margins. It is very important for them to make good pricing not only for themselves but for the whole sector. Turkey is very dependent on China for raw material sales. Italy also sells blocks, but not as much. I think the Turks need to reconsider their strategy and focus on different markets. Maybe if they can produce slabs instead of blocks and sell them in a value-added way, they can make more profit. Also, Turkey’s advantage is that its production costs are much lower compared to Italy. They should be aware of this and start selling with higher profit margins.”
Marble needs an international identity
We also ask Flavio about the changes in Turkey in the last 20 years… He begins with a clear appreciation: “The Turkish State has achieved great things in the last 20 years. Turkey is becoming a world brand. Both the quality of the stones mined and the quality of the people working in the sector have reached very good places. I think Turkey will achieve more. The government needs to be a little more supportive. Quarry opening permits and licenses take a very long time. These kinds of issues need to be facilitated. In order for Turkish companies to have a presence abroad, financial support is provided by the state, but this is not a good situation. Because they are directly dependent on the state. There are many Turkish companies that have problems in this regard. One year they are supported, the next year they are not. I think fair organizations need to be done better. The number of foreign exhibitors at Marble Izmir is decreasing. I remember 5-10 years ago, the fair was very good. There were many foreign exhibitors. There were many especially from India. Last year, apart from a few Italian companies and Iran, there was not a very strong foreign participation. Foreign participation needs to be strengthened.”
Artificial products are our common rival
As Marble Trend, we have always preferred to look at the natural stone sector from a broader perspective. Yes, there is great competition within the sector, even within the country. But the real problem is the strengthening of artificial products against natural stone. Marabelli underlines this last point: “There is more competition in the sector than ever before. Things are not like they were 10 years ago. I am not talking about competition between countries, but between artificial products and natural stone. People are turning to artificial products because they are more affordable. As natural stone producers, we need to make a difference with added value. Only then can we convince customers to buy natural products.
