Microwaves in Turkey

PROSPECTS

Sales of microwaves in Turkey continue to decline amid economic downturn

Retail volume sales of microwaves dropped dramatically in Turkey in 2018 and 2019 due to the negative economic situation in the country and the removal of the temporary tax exemption on durable goods, including major appliances such as microwaves. It is expected that sales of microwaves will start to revive in 2021, parallel with the expected recovery in the economy.

Household penetration rate of microwaves is expected to remain very low

While microwaves is set to demonstrate positive retail volume growth over the forecast period, sales will not reach the levels seen in most years of the review period. The low household penetration rate of microwaves in Turkey in comparison to other major appliances is not expected to increase, largely due to the long-established perception of the potential hazards of microwave cooking, including its negative impact on the nutritional content of food.

Value sales hindered by consumers’ reduced purchasing power

The slowdown in the Turkish economy has caused significant decline in consumers’ purchasing power and, thus, increasing price sensitivity within society. This has led buyers of microwaves to choose lower-priced models, limiting value sales.

COMPETITIVE LANDSCAPE

Dominant Arçelik AS faces competition from more affordable brands

In 2019, there were still relatively few players in microwaves in Turkey. Arçelik AS remained the dominant player in 2019 thanks to its wide distribution, technical after-sales service and high consumer recognition of its Arçelik, Beko and Altus brands, which are present across the price spectrum.

Samsung focuses on increasing its retail volume share of microwaves with expansion investment

The retail volume share of economy brands of microwaves is expected to rise due to consumers’ constrained purchasing power and the increased availability of these appliances in discounters. Local brands are expected to gain greater prominence also for these reasons.

Manufacturers of connected microwaves expected to push their products in electrical stores

Despite the expected growth in economy products, unlike other major appliances categories, the target consumer base for microwaves is quite limited, comprised mostly of more educated urban consumers who are unable to allocate much time to household tasks such as cooking. In the review period, connected microwaves remained in a very small niche as these consumers opted for standard and budget-friendly options rather than those perceived as premium.

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