Watch out, Ikea: Spanish Teyoland has its eyes set on your market

Spanish Teyoland founder Ignacio Tello

What’s behind the Teyoland project?

The problem most Spanish medium and small manufacturing companies face is the lack of distribution networks. A good product with not enough sale points is a failure. As it happens in the rest of Europe, large commercial infrastructures concentrate the highest sale rates, so this is the logical way to go. We just need to replicate the model.

So Teyoland is the answer.

Absolutely. This was the message from all the sectors I have been in touch with, whether painting, porcelain, furniture… the trend in consumption is quite obvious, and we need to follow it. But the big commercial areas become oligopolies, leaving little room for the rest. It is telling that most of them in Spain are foreign, and they offer products made elsewhere, too.

-Is it so because Spanish products are more expensive?
Of course not, that’s a myth. The key is to bring the manufacturer to its clients, being competitive and specific, too. You must know what your clients are looking for, and how you can fit into their lifestyle.

Here’s where the Ikea model comes in.

Only to a certain extent. We prefer to ask what clients want and their budget, and then we adapt. The range is varied and it works. We have 250 manufacturer associates after some six years of screening and selection, and a team of 14 designers with exclusive creations for us. And loads of illusion!

How would you make room for yourselves in a market that already seems crowded?

Yes, this market has contracted and so there’s less space for newcomers. But our advantage is that we have Spanish manufacturers and we know better than anyone else our clients. Other commercial networks bring foreign products and we can compete against them, and help reactivate the Spanish economy. We can match French, Norwegian or Asian prices. Their networks are going nowhere, so the potential growth in Spain in the near future is there for us, too.

Do Spanish politicians understand the Spanish economy?

It is urgent that they learn where and how we generate jobs. The construction sector is exhausted, in tourism we have sort of reached a threshold, so manufacturing appears to be a great option for economic recovery and jobs. We have already demonstrated that with our exports. The Spanish product is a quality, competitive product.

Teyoland opens a year before Ikea’s announced coming.

Well, consumers will have more choice. We want consumers to love again the Spanish brand, so to speak.

* Original interview.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

Be the first to comment on "Watch out, Ikea: Spanish Teyoland has its eyes set on your market"

Leave a comment