Home and Garden in Turkey

Home and garden records positive current value growth in 2017

Following a dramatic slowdown in economic growth and sharp depreciation of the Turkish lira against the euro and the US dollar, home and garden recorded modest current value growth between 2013 and 2016. However, in 2017, although there was no significant change in consumer purchasing power, the market achieved double-digit current value growth.

Increasing price sensitivity of consumers hampers stronger value growth

Despite a sharp rise in volume sales in the majority of home and garden categories thanks to the positive impact of lower VAT and rising consumer confidence, stronger current value growth was hampered by intensifying price competition in numerous categories, particularly indoor furniture, home textiles, homewares and light sources. Fierce price competition was mainly seen between branded products in indoor furniture and home textiles, mainly due to the fact that the vast majority of the leading players opted to pursue aggressive price promotion campaigns following the reduction in VAT, while in homewares and light sources price competition largely stemmed from the huge price gap between branded and unbranded products.

Branded home and garden gains significant value share in 2017

The value share of branded home and garden products increased gradually over the review period. This was largely down to a rise in consumer purchasing power and a transformation of the retailing landscape following a construction boom in the country, leading to a rapid rise in the number of shopping centres, which are where consumers mainly find branded products.

Internet retailers and discounters play a key role in driving value growth

Home and garden companies have used more dynamic retailing channels to boost their value sales, particularly since 2013, when profits started to fall due to the negative economic outlook. Given the fact that internet retailing and discounters were two emerging channels in Turkey, companies increased their focus on expanding their retail distribution through them.

Further steady value growth anticipated over the forecast period

Home and garden is expected to record a positive value CAGR at constant 2017 prices over the forecast period, despite the fact that the reduction in VAT on indoor furniture was only temporary, ending in September 2017. Future growth will be mainly driven by indoor furniture companies running aggressive price promotions early in the forecast period, particularly supporting sales of branded products.

Files are delivered directly into your account within a few minutes of purchase.