Upload
mgill
View
351
Download
3
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
BEWARE THE TURKS!
A practical experience in Turkish Retail
Market
byHamdi Kulahcioglu
SOME HIGHLIGHTS
•Young, dynamic population (median age 29 & over 50% below 29)
•Football is a religion as well as islam
•Emotional people, close family and friendship relationships
•Becoming an increasingly more and more consumer society
•Very connected online, 35M active internet users, #4 in facebook, #2 in MSN Messenger
LOCATION, LOCATION, LOCATION
• Total 291 shopping malls, 7.3 million m2
• 100 m2 per 1000 people
• 102 in Istanbul, 189 other cities (only in 49 cities out of 89)
• per m2 revenue 442TL=GBP164 (up from 394TL last year, 12% increase)
• Total 2011 revenue 35 billion TL=12.60 billion GBP (İstanbul 45%, rest 55%)
• Total 1.2 billion visitors in 2011
BAGDAT STREET
BAGDAT STREET
ISTINYE PARK
ISTINYE PARK
ZORLU CENTER (2013)
ZORLU CENTER (2013)
NISANTASI
NISANTASI
KANYON
KANYON
ISTIKLAL STREET
THE RIGHT PARTNER
•make sure they have track record
•make sure they understand your brand and what to do with it
•make sure they have the financing, access to retail and the team to execute
•and really...partner with them
THINK GLOBAL, ACT LOCAL
Depending on market dynamics business model maybe revised
•merchandising
•pricing
•communication
•distribution
•service
LOCAL COMPETITION
•don’t underestimate local players
•they discount heavily
•strong local players exist in the market with the goodwill and advantages of being local, also some of them have become global players
BUSINESS PLAN & CONTRACT
• Make sure the BP is realistic and achievable
• Worst case scenario should be clearly defined in the contract (option to take over locations from partner very important for franchisor-landlords should consent)
• Follow closely, if the partner is really selling the merchandise at regular prices or discounting heavily to compete/clear inventory. “Recipe for failure”
• At the end of the day, partner should make money as well. in case they are not making money, franchisor should listen and understand, try to help.
FOLLOW THROUGH
•Frequent visits in the market
•Intelligence through other sources, friends
•Is the partner executing, developing the brand properly and developing the business efficiently
SUCCESSFUL …
BURBERRY FCUK
MARKS & SPENCER TOPSHOP
FRED PERRY DEBENHAMS
ACCESSORIZE CLAIRE’S
MANGO GAP/BANANA REP.
ZARA ALDO
THANK YOU!