Home and Garden in Turkey

Home and garden current value growth rate strengthens in 2019

Home and garden recorded stronger current value growth in 2019 than a year earlier, but failed to match the double-digit percentage growth seen in 2017, as the overall market performance continued to be largely governed by home furnishings, which accounts for by far the biggest share of home and garden in Turkey. This performance was, to an extent, heavily influenced by ongoing stagnation in consumer purchasing power.

Some government actions have more success than others

Following the drastic decline in the exchange rate value of the Turkish lira in August 2018, the presence of inferior light sources, particularly cheap imported LED lamps, rapidly increased. As a result, by the end of the year, the government had taken extra measures to combat this by increasing the frequency of quality inspections in the customs checks.

Branded products continue to benefit from retail modernisation

Despite the fact that consumers became much more price-sensitive than they used to be, branded home and garden products continued to gain ground as they were able to offer an expanded range of affordable products. In line with this, the retail landscape was rapidly modernising in Turkey, including a sharp rise in the number of shopping centres.

Sales increase through discounters and internet retailing

The increasing inclination among consumers in Turkey towards using digital payment systems is helping to drive healthy growth of e-commerce in home and garden. As the regular use of internet retailers and digital payment methods increased, so the product range offered through e-commerce also rapidly expanded.

Current value growth due to rising prices and economic recovery

With the effects of the depreciation of the Turkish lira continuing to filter through in terms of unit prices and with the economy expected to return to positive real GDP growth from 2020, after the stagnation seen in 2019, home and garden is expected to record a double-digit current value CAGR over the forecast period. Among the more dynamic product types will be LED lamps and cordless power tools, driven by the continued transition from other light sources to LED and from corded power tools to cordless power tools.

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