Large Cooking Appliances in Turkey

PROSPECTS

Large cooking appliances to benefit from urban transformation

Large cooking appliances experienced dynamic retail volume growth in 2017, due to the government’s domestic demand stimulation strategy, which led to temporary tax exemption on various commodity groups including large cooking appliances. As most local consumers opted to purchase large cooking appliances in 2017 to benefit from the price advantage, the category registered a volume decline immediately after the termination of tax exemption in 2018, while economic hardship, which caused a significant stagnation in the purchasing power of consumers, also had a marked impact on the overall demand at the end of the review period.

Premium large cooking appliances will register marginal volume growth over forecast period

Large cooking appliances that have a premium positioning demonstrated healthy growth over the course of the review period, as the category was stimulated by the strong growth in housing, while connected ovens demonstrated marginal annual volume sales, as most consumers still perceive such features as a luxury in Turkey. However, at the end of the review period, a marked slowdown was observed in the volume sales of products with a premium nature in the category, as consumers opted to tighten their belts and avoid extra expenses due to the stagnation in their purchasing power.

COMPETITIVE LANDSCAPE

Arçelik AS and BSH Ev Aletleri Sanayi ve Ticaret AS dominate

Enjoying first-mover advantage within major appliances, Arçelik AS and BSH Ev Aletleri Sanayi ve Ticaret AS held dominant combined retail volume share in 2018. In addition, both companies significantly benefitted from owning highly-recognised brands such as Arçelik, Beko, Bosch and Siemens, providing a wide range of products at every price level and having exceptionally wide dealership networks mainly consisting of independent major appliance specialist retailers across the country.

Fragmentation will result in share loss for leading players over the forecast period

While leading players are expected to lose volume share to those offering more affordable large cooking appliances, the likes of Samsung are predicted to gain further retail volume share during the forecast period. This will be mainly as a consequence of their heavy investments in the expansion of their distribution and dealership networks across the country, while Samsung has already benefitted from the positive brand perception that it has successfully built over the review period through its widely available consumer electronics.

New product development with Vestel AF8796 B Oven

Vestel’s new oven with new technology called “Hot air shield” was initially launched in 2017. Hot air shield technology, which is claimed to be pioneered by Vestel, blocks the extremely warm air that rushes out when opening up the oven.

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