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TurkeyShamini

Rajaganesh

Overview

The Country in a Gist

Economics

Market Characteristics

Cultural Climate

The Retailing Sector

Major Challenges

Future Opportunities

References

Turkey

Transcontinental

Country

Southeastern Europe

and Southwestern

Asia

Strategic location

Modern Turkey was

found in 1923.

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

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

Economics

Economics (2011)

GDP

9.6%

Q1-Q3 2011

Consumer inflation

10.45%

Producer Inflation

13.3%

Economics (2011)

$133 Billion

Exports

$212.2 Billion

Imports

Exports

Apparel

Textiles

Food

Metal

Transport Equipment

27%

17%

15%

14%

14%

11%

Export Percentage

Germany UKItaly FranceIraq Russia

Imports

Machinery

Chemicals

Fuels

Semi-finished goods

Transport Equipment

23%

19%

18%

13%

11%

9%8%

Export Percentage

Russia GermanyChina USItaly FranceIran

The Market

Consumers

Consumer spending level

US$6,977• 2010

US$12,948• 2014

Turkey and EU

Council of Europe

European Economic

Community

Application for EU

membership

Custom Unions

1949 1963 1987 1996

Foreign Direct Investment

Slow until 2003

New FDI Law in 2003

Simpler and quicker procedures

Reducing macroeconomic imbalances

Functioning market economy

Foreign Direct Investment

FDI inflow in USD Billion

Foreign Direct Investment

Culture

Cultural Context

High context, indirect, emotion-based

culture

Closed to outside information

Process information subjectively and

associatively.

Values : Hospitality, justness, benevolence,

keeping word and trustworthiness.

Hofestede’s Dimensions

Retail Sector

Global Retail Development Index

2010 Rank

2011 Rank

Lifestyle/Shopping Habits

Increasing popularity of malls

Young population

Leisure focused

One stop shopping mall

Urbanization

Increasing favorability towards imports

International trend awareness

Consumer Confidence Index : 90.99%

Market Structure

Customer is the “KING”Oligopolistic MarketIncrease in international retailers

1998

27.4%

•Retail sales

2008

Retail sales

Retail Sector Growth

2010 2014E0

20

40

60

80

100

120

140

Home RetailFood Re-tailFood RetailElectronicsApparelE-Commerce

Billion

US

$

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

Format Division

64%

37%

2004 Market Share %

Traditional retailOrganised Retail

55%45%

2010 Market Share %

Traditional retailOrganised Retail

Market Entry by top retailers

Car

refo

ur

1993

Tesco 2003

Metro 2007

Turkey

Ikea 2006

Major retail players

Number of Retail Outlets based on type

Shopping Centre Development

Challenges and Opportunities

Challenges

EU accession period – Social, legal, political turmoil

Consolidation of the local marketImproving operational efficiencyCorruptionBureaucracyUnorganized legal system

Opportunities and Trends

Unexplored chain retailingIncrease in branded imported itemsCRM activities initiationIncrease in private labelsTurquality- 10 global brands within 10 years

References

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. 20118. 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”.