Building, supporting and expanding friendly, mutually beneficial relations with partners focused on long-term cooperation.

MERX, whose export activities began on a large scale back in 2003, has every reason to give advice to newcomers who are just opening up their export horizons. In any business it is always more difficult to start than to continue. It was in connection with this that, in a conversation with Mykhailo Kovaliuk, the head of the export department at Merx, who at our request remembered its export history, we spoke in more detail about its beginning.
– Are you interested when it was easier to export Ukrainian products – when the company was just beginning to enter foreign markets, or now? I will definitely answer, because at that time it was easier for us to enter the market environment, but we had more regulatory difficulties and customs clearance. Now the situation is different: there are fewer customs barriers, but the markets have become more commodity-intensive, therefore the competitive struggle for the buyer has become more acute.
– Then, when companies started exporting their products, which markets were, let’s say, the most friendly to them?
– The then exit to the Russian market attractive for all Ukrainian furniture makers for our products turned out to be effective, but not very comfortable. And it is clear why: in Russia, the furniture industry is sufficiently developed, there are many manufacturers, therefore our products immediately fell into a tough competitive environment.
Quite effectively we sold in Kazakhstan, a country that still does not have high-tech furniture industry. The country is geographically large, so we formed our dealer network there by regional or zonal principle.
It worked well on the market of Central Asia – Kirzizstan, Uzbekistan, Tajikistan. Our trading strategy, which was well developed in Kazakhstan, was perfectly adapted to local market realities. Friendly, as you said, the markets of the Baltic countries, Georgia, Moldova, Armenia, Azerbaijan and, oddly enough, Belarus, which is a recognized furniture country, also turned out to be our products. Since 2006, sales of furniture on the US market will start.

– Do you have any secret?
– It is simple – building, supporting and expanding friendly, mutually beneficial relations with partners focused on long-term cooperation.
As a result of building partnerships:
– the dealer networks were created according to the regional principle; – the logistics chain, optimized delivery and high-quality after-sales service were well established, which ensured high customer loyalty,
– ensured compliance with standards (ISO, EAC, UkrCSM with the requirements of EU, US, Canadian standards).
MERX takes part in Euroexpofurniture exhibitions (Moscow, Russia), Eurocucina switches, ISaloni (Milan, Italy), The Melbourne Home Show (Melbourne, Australia), Canadian Furniture Show (Toronto, Canada).
14 business forums (Ukraine, Thailand, Greece, Turkey, Spain, Italy, Malta, Dominican Republic) were held with our partners.
More than 300 companies visited MERX as part of B2B meetings.
– It is clear that for objective reasons, we had to part with the large Russian market. And more?
“And the markets of the countries of Central Asia have ceased to be accessible to us – also through Russia, in that direction closed the transit of Ukrainian goods through its territory. The alternative route by the Black and Caspian Seas turned out to be economically advantageous – expensive. In addition, such a route significantly increases the transit time, which is no longer profitable for our Eastern partners. And another important factor: Russia and China did not slow down to strengthen their positions in those markets.
– When the company was preparing to sell furniture to other countries, it was for this purpose that it updated its product range, model range, or offered to foreign markets as domestic?
– No, we didn’t create models specifically for export, so the range of our products is so wide that it allows us to form an offer for any market.
The main philosophy of MERX is “continuous development”, which provides an opportunity to constantly update and improve the technical base and production resources.
A wide range of products allows foreign partners to meet the wide demand of customers.

– From the past we move on to the present. If we talk about your current breakthroughs in the markets of Australia, USA, Canada, then this choice is due to the fact that in these foreign countries traditionally more Ukrainian lives, who will be loyal to the products of their countrymen?
– Partly this factor was really taken into account. But the basis of such a decision is still an understanding of the potential of these markets, the promotion of products on foreign markets, and the conduct of business negotiations followed by the conclusion of contracts. Since 2006, sales of furniture on the US market will start. Non-standard projects, creative solutions and creative approach to work are the daily work of the MERX salon in New York. MERX was the first Ukrainian manufacturer to be represented at The Melbourne Home Show, the largest furniture exhibition in Australia. We entered the Canadian market thanks to our participation in the Canadian-Ukrainian project to support trade and investment (the CUTIS project). The result was participation in the Canadian Furniture Show and the opening of the MERX brand salon in Vaughan, Canada. Friendly interstate relations of countries contribute to the revival of trade between them.
“By offering the same products to the border, it also sells to Ukrainian, but the company, nevertheless, created a new innovative kitchen model, Naomi, to participate in the exhibition in Australian Melbourne. Why such an exception?
– There is no exception, because the Naomi kitchen was not really created specifically for the exhibition in Melbourne. It just so well happened that the production of a new kitchen project coincided in time with the participation in The Melbourne Home Show.
Naomi kitchen embodies both the latest technologies of furniture production and design solutions.
– The fact that metric systems – ours and the American – do not differ for you in complexity or an obstacle, because somehow you need to make changes to existing models of furniture products? In this case, it is certainly necessary to produce special furniture for the overseas market.
– We have advanced technologies, flexible production, so there were no difficulties to adapt to the specific needs of the American market. We are ready to implement customized solutions for the most demanding customers.
– What are the aesthetic and stylistic furniture tastes of Australians and Americans, what is the fashion in overseas markets?
– The world is now globalized, so regional tastes, preferences and features are increasingly leveled, adapting to the global. Trends in European furniture are characteristic and quite acceptable for the American, Canadian or Australian markets.

An individual approach to customers and ready-made interior solutions secured us to the positions of a leader who managed to change the perception of quality and prove to the consumer that real furniture should combine comfort, design and reliability.
– What new markets did MERX set out for, so to speak, to conquer?
– First, we will strive to consolidate our foothold in the markets of the United States, Canada, Australia and the European Union. The markets for the countries of the Middle East, in which we see great potential, have been identified as promising for themselves. We are ready to renew friendly relations with partners of the CIS while restoring favorable political and economic conditions. Thanks to UAM for inviting Israeli designers and architects who are interested in Ukrainian furniture to Ukraine. After participating in negotiations with them, we hope for their effectiveness. We closely cooperate with the State Office for the Promotion of the Export of Ukraine, a consultative and advisory body under the Ministry of Economic Development and Trade of Ukraine, as a “single window” of assistance to Ukrainian exporters in entering foreign markets.

The heading “Success Stories” was founded as part of a grant project with the support of the Swiss Cooperation Office in Ukraine, the project name: “Increasing the level of cooperation and trust with joint participation in international and national government procurement” – TENDER TOGETHER.