Consumer Electronics in Turkey
Euromonitor International's Consumer Electronics in Turkey report offers a comprehensive guide to the size and shape of the audio and video products market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market- be they new product developments, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 54 | Publication date: Apr 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
In-car consumer electronics (aftermarket); In-home consumer electronics; Portable consumer electronics
Executive summary
Turkish economy and consumer electronics sector continue to grow
The economy in Turkey continued to flourish and to recover from the recession of 2001. Turkey’s exports reached a record high in 2005, as the country exported goods and services worth US$73 billion – making it the 22nd-largest exporter in the world. In 2006, same figure reached US$85 billion according to foreign trade ministry of Turkey. The strong export performance reflects the restoration of inflation rates to single-digit levels and the stable growth based on productivity gains. The EU accession negotiations since 2005 have also been helpful to the Turkish economy, since they have increased foreign investors’ interest in Turkish markets. Although the outbreak of avian flu scared some investors, the recovery was quick, since the government quickly took measures to manage the crisis.
The continued growth of the consumer electronics sector is very much aligned with that of the Turkish economy as a whole. Turkish companies in particular, like Vestel and Beko, have taken advantage of the consumers’ increasing purchasing power and greater confidence to increase their levels of penetration in various markets, by launching massive marketing campaigns, including advertisements and sponsorship, in order to increase both sales and brand recognition/equity.
Product life cycles become shorter
Turkish markets rapidly respond to changes in technology by switching to new and innovative products. For instance, Volume sales of VCRs declined by 50% in 2005 and then by 43% in 2006, while those of DVD players/recorders increased by 27% in year 2006. Furthermore, growth in sales of CRT (cathode ray tube) TVs slowed down and this downward trend is expected to continue. On the other hand, volume sales of digital TVs increased by 70% in 2006 and are expected to increase by 77% in 2007, which reflects a clear trend towards the adoption of newer technologies.
As product life cycles become shorter, companies increasingly need to have flexible operational and marketing capabilities. Firms make new investments in plants that can supply a variety of products to accommodate the rapid changes in tastes and the technological advances of today’s markets.
Industry consolidates to accommodate further growth
Market players are always looking for investment and growth opportunities, because any supplier of consumer electronics products that stands still is destined to fade away, on account of the rapidly changing product ranges, customer needs and falling margins in this market.
In particular, the local companies Arcelik and Vestel recently expressed interest in acquiring and/or strategically working with other suppliers whose operations are aligned with their own strategic goals and product portfolios. As the product life cycle becomes shorter, these companies and others will must be expected to attempt to adapt to new market conditions through mergers and acquisitions, which are cheaper and faster than other strategies such as the creation of new brands or operational capabilities.
This new restructuring will bring threats and opportunities to every player in the market. The number of small dealers will reduce, and some will disappear on account of a lack of financial competitiveness relative to international retailers. In contrast, wholesalers and international retailers will emerge as new, stronger players on account of their greater financial resources and close connections with suppliers and customers.
Growing vendor interest towards all markets
Turkey’s huge and young population offers a unique market opportunity to most of the local and international vendors. Almost all the major manufacturers of consumer electronics products are present in the market, and some of them are seriously considering setting up local production facilities due to the expected future prosperity of the market. Also, the latest products are introduced into the Turkish market simultaneously with their worldwide releases, and the full range of such products is available in Turkey.
Some manufacturers are considering responding to increased competition and falling profit levels by establishing their own production facilities in Turkey and managing all their operations directly, rather than working through distributors and service companies. This is also expected to reshape the entire market within a few years.
Table of contents
CONSUMER ELECTRONICS IN TURKEY : MARKET INSIGHT
EXECUTIVE SUMMARY
Turkish economy and consumer electronics sector continue to grow
Product life cycles become shorter
Industry consolidates to accommodate further growth
Growing vendor interest towards all markets
KEY TRENDS AND DEVELOPMENTS
Consumers become more brand conscious
Price wars
After-sales service gains in importance
Changes in distribution
MARKET DATA
Table 1 Sales of Consumer Electronics by Sector: Volume 2001-2006
Table 2 Sales of Consumer Electronics by Sector: % Volume Breakdown 2001-2006
Table 3 Sales of Consumer Electronics by Sector: % Volume Growth 2001-2006
Table 4 Sales of Consumer Electronics by Sector: Value 2001-2006
Table 5 Sales of Consumer Electronics by Sector: % Value Breakdown 2001-2006
Table 6 Sales of Consumer Electronics by Sector: % Value Growth 2001-2006
Table 7 Consumer Electronics Company Shares 2002-2005
Table 8 Consumer Electronics Brand Shares 2002-2005
Table 9 Sales of Consumer Electronics by Distribution Format 2001-2006
Table 10 Forecast Sales of Consumer Electronics by Sector: Volume 2006-2011
Table 11 Forecast Sales of Consumer Electronics by Sector: % Volume Breakdown 2006-2011
Table 12 Forecast Sales of Consumer Electronics by Sector: % Volume Growth 2006-2011
Table 13 Forecast Sales of Consumer Electronics by Sector: Value 2006-2011
Table 14 Forecast Sales of Consumer Electronics by Sector: % Value Breakdown 2006-2011
Table 15 Forecast Sales of Consumer Electronics by Sector: % Value Growth 2006-2011
DEFINITIONS
LOCAL COMPANY PROFILES - TURKEY
ARCELIK AS - CONSUMER ELECTRONICS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Arcelik AS: Key Facts
Summary 2 Arcelik AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 3 Arcelik AS: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 4 Arcelik AS: Competitive Position 2005
SAMSUNG CORP - CONSUMER ELECTRONICS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Samsung Group: Key Facts
Summary 6 Samsung Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Samsung Group: Competitive Position 2005
SONY EURASIA PAZARLAMA AS - CONSUMER ELECTRONICS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Sony Eurasia Pazarlama AS: Key Facts
Summary 9 Sony Eurasia Pazarlama AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Sony Eurasia Pazarlama AS: Competitive Position 2005
TüRK PHILIPS TICARET AS - CONSUMER ELECTRONICS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Türk Philips Ticaret AS: Key Facts
Summary 12 Türk Philips Ticaret AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Türk Philips Ticaret AS: Competitive Position 2005
VESTEL ELEKTRONIK AS - CONSUMER ELECTRONICS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Vestel Elektronik AS: Key Facts
Summary 15 Vestel Elektronik AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 16 Vestel Elektronik AS: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 17 Vestel Elektronik AS: Competitive Position 2005
IN-HOME CONSUMER ELECTRONICS IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 16 Sales of In-home Consumer Electronics by Sector: Volume 2001-2006
Table 17 Sales of In-home Consumer Electronics by Sector: % Volume Growth 2001-2006
Table 18 Sales of In-home Consumer Electronics by Sector: Value 2001-2006
Table 19 Sales of In-home Consumer Electronics by Sector: % Value Growth 2001-2006
Table 20 In-home Consumer Electronics Company Shares 2002-2005
Table 21 In-home Consumer Electronics Brand Shares 2002-2005
Table 22 Sales of In-home Consumer Electronics by Distribution Format 2001-2006
Table 23 Forecast Sales of In-home Consumer Electronics by Sector: Volume 2006-2011
Table 24 Forecast Sales of In-home Consumer Electronics by Sector: % Volume Growth 2006-2011
Table 25 Forecast Sales of In-home Consumer Electronics by Sector: Value 2006-2011
Table 26 Forecast Sales of In-home Consumer Electronics by Sector: % Value Growth 2006-2011
IN-CAR CONSUMER ELECTRONICS (AFTERMARKET) IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Sales of In-car Consumer Electronics by Sector: Volume 2001-2006
Table 28 Sales of In-car Consumer Electronics by Sector: % Volume Growth 2001-2006
Table 29 Sales of In-car Consumer Electronics by Sector: Value 2001-2006
Table 30 Sales of In-car Consumer Electronics by Sector: % Value Growth 2001-2006
Table 31 In-car Consumer Electronics Company Shares 2002-2005
Table 32 In-car Consumer Electronics Brand Shares 2002-2005
Table 33 Sales of In-car Consumer Electronics by Distribution Format 2001-2006
Table 34 Forecast Sales of In-car Consumer Electronics by Sector: Volume 2006-2011
Table 35 Forecast Sales of In-car Consumer Electronics by Sector: % Volume Growth 2006-2011
Table 36 Forecast Sales of In-car Consumer Electronics by Sector: Value 2006-2011
Table 37 Forecast Sales of In-car Consumer Electronics by Sector: % Value Growth 2006-2011