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Turkey- A Retailing Persepctive
Turkey is a transcontinental country located in both Europe and Asia. It has a population of around 80 million people who are mostly Muslim. Turkey has a developing economy and consumer spending has been increasing in recent years. The retail sector in Turkey is dominated by large international retailers and hypermarkets, though traditional small stores still play a role. Major challenges for retailers include EU accession, market consolidation, and bureaucracy, but opportunities exist in expanding chain retailing and private labels.
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Turkey- A Retailing Persepctive
- 1. Turkey Shamini Rajaganesh
- 2. Overview The Countryin a Gist Economics Market Characteristics Cultural Climate The Retailing Sector Major Challenges Future Opportunities References
- 3. Turkey Transcontinental Country Southeastern Europe and Southwestern Asia Strategic location Modern Turkey was found in 1923.
- 4. Turkey Capital : Ankara Currency : Turkish Lira People: Turks Ethnic Groups : Turkish 70-75% Kurdish 18% other minorities 7-12% (2008 est.) Language : Turkish and other minor languages
- 5. Turkey Religion : Islam ( 99.8%) Population : 79,749,461 (July 2012 est.) Median age : 28.5 years Urbanization : 70% of the population; 1.7% of annual rate of change Government : Republic of Turkey Type: Republican Parliamentary Democracy
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- 7. Economics (2011) Consumer Producer GDP inflation Inflation 9.6% 10.45% 13.3% Q1-Q3 2011
- 8. Economics (2011) Exports Imports $133 $212.2 Billion Billion
- 9. Exports Apparel Export Percentage Germany UK Italy France Iraq Russia Textiles 11% Food 28% 14% Metal 14% 17% Transport Equipment 16%
- 10. Imports Machinery Export Percentage Russia Germany China US Italy France Chemicals Iran Fuels 8% 9% 23% 11% Semi-finished goods 13% 18% Transport Equipment 18%
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- 13. Consumer spending level US$12,948 US$6,977 • 2014 • 2010
- 14. Turkey and EU Application Council of for EU Europe membership 1949 1963 1987 1996 European Custom Economic Unions Community
- 15. Foreign Direct Investment Slow until 2003 New FDI Law in 2003 Simpler and quicker procedures Reducing macroeconomic imbalances Functioning market economy
- 16. Foreign Direct Investment FDI inflow in USD Billion
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- 19. Cultural Context Highcontext, indirect, emotion-based culture Closed to outside information Process information subjectively and associatively. Values : Hospitality, justness, benevolence, keeping word and trustworthiness.
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- 22. Global Retail DevelopmentIndex 2010 Rank 2011 Rank
- 23. Lifestyle/Shopping Habits Increasingpopularity of malls Young population Leisure focused One stop shopping mall Urbanization Increasing favorability towards imports International trend awareness Consumer Confidence Index : 90.99%
- 24. Market Structure Customer is the “KING” Oligopolistic Market Increase in international retailers 1998 27.4% 2008 • Retail sales
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- 26. Retail Sector Growth 140 120 100 Home RetailFood Retail Billion US$ 80 Food Retail 60 Electronics Apparel 40 E-Commerce 20 0 2010 2014E
- 27. Retail Formats Hypermarkets– more than 2,500sq m Large supermarkets – between 1,000 and 2,500sq m Supermarkets – 400 to 1,000sq m Small supermarkets – less than 400sq m Medium markets – 100 to 50sq m Bakkals – 50sq m or less
- 28. Format Division 2004 MarketShare % 2010 Market Share % Traditional retail Traditional retail Organised Retail Organised Retail 37% 45% 55% 63%
- 29. Market Entry bytop retailers Turkey
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- 31. Number of RetailOutlets based on type
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- 35. Challenges EU accessionperiod – Social, legal, political turmoil Consolidation of the local market Improving operational efficiency Corruption Bureaucracy Unorganized legal system
- 36. Opportunities and Trends Unexplored chain retailing Increase in branded imported items CRM activities initiation Increase in private labels Turquality- 10 global brands within 10 years
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- 38. References 1. http://www.atkearney.com/index.php/Publications/foreign-direct- investment-confidence-index.html 2. http://www.atkearney.com/index.php/Publications/retail-global-expansion- a-portfolio-of-opportunities2011-global-retail-development-index.html 3. http://www.goturkey.com/contentk.php?cid=51371&typ=c&lng=en 4. https://www.cia.gov/library/publications/the-world- factbook/geos/tu.html 5. http://news.bbc.co.uk/2/hi/europe/country_profiles/1022222.stm#facts 6. http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by- country/country-profile/europe/turkey/?profile=all 7. Deloitte retail sector update. 2011 8. Louargand M., (2011) “Turkey: Modernizing through mall developments”, Insider’s Perspective. Volume 36, Number 2. 9. PricewaterhouseCoopers, “From Beijing to Budapest: Winning Brands, Winning Formats”, 2005/2006 4th Edition. 10. PricewaterhouseCoopers, (July 2007) “Retail and Consumer Worlds”.