Microwaves in Turkey

PROSPECTS

Volume sales of microwaves set to rise due to increasing demand for convenience

As the government opted to pursue a loose fiscal policy and temporarily lifted the special consumption tax imposed on major appliances including microwaves, the category recorded dynamic retail volume growth in 2017. However, as economic hardship became significant and the unit prices skyrocketed following the termination of the tax exemption, microwaves registered a marked decline in terms of retail volume sales at the end of the review period.

Connected microwaves expected to remain a niche in Turkey over forecast period

Microwaves with a high-end positioning demonstrated healthy retail volume and current value growth in Turkey until the latter stages of the review period, due to the outstanding economic growth performance of the country. However, parallel with deterioration in the economy, particularly towards the end of the review period, consumers of microwaves opted for standard and budget-friendly options, rather than those that they perceive as premium, such as connected microwaves, as a consequence of the stagnation in their income levels.

COMPETITIVE LANDSCAPE

Arçelik AS leads microwaves

Arçelik AS continued to dominate microwaves in Turkey in 2018, as it had done over the entire review period, due to the wide availability of its products, as well as owning highly-recognised brands, namely Arçelik, Beko and Altus, offering a wide variety of products positioned in every price level. In addition, the fact that the company holds by far the most extensive distribution network of independent major appliance specialists was another factor underlying its leadership.

Samsung and LG set to become important in microwaves

Consumers are beginning to favour well-known major appliances brands when purchasing microwaves, so the presence of the Far Eastern consumer electronics and appliances giants, namely Samsung and LG, were able to increase their presence in the category over the review period. Both brands swiftly gained notable retail volume share within the category directly following their entry, largely because both enjoy positive brand perception amongst local consumers through their different consumer electronics including televisions and smartphones.

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