Through my lens
As I navigate through the cities of Ankara, Istanbul and Izmir, I have learnt basic Turkish, gained a fuller appreciation of their cultures, diversity, understanding of their political issues, social dynamics and history. My first visit in 2012 as a Singaporean Chinese lady was rather intriguing and eye-opening experience. My surname, Chai means Cay! It certainly helps as conversation starters :) I have been enticed by the sweet tooth of Turks and tried many turkish delights, like Baklava. At the personal and professional fronts, I have been enriched by the new friendships, business and social interactions made possible by my business engagements and personal travels. From my interactions with Turkish people over the last 2 years, I have found Turkish people to be really warmth/hospitable, sociable, very creative, emotional, passionate about their craft, and expressive! Some are very articulate in their words and bilingual in Turkish and English. Some of the locals do not know much about Singapore or know where are we located... and misconceptions that we are in China?! There has been revelations and learnings that guided my thinking and insights. The stories and personal sharing by the local Turks (predominantly Muslims) have encouraged me to write this page. Interestingly, the Turks whom I met are social-media savvy and big users of Twitter and Facebook. During the Gezi Park protests and clashes with their government, they have strong views and posted videos/text in rich expressions. Despite the challenges, God has kept me safe throughout this chapter of my life and I'm most grateful. Jesus is my Lord and He has been with me throughout this journey. Thank you Jesus for planting me here to glean the powerful learning, positioning me at the right place, right time blessings to share with others. |
A Taste of Turkey - Fun Facts & Golden Nuggets
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Overview and Fun Facts!
+ Historically, Turkey has been at the crossroads of trade between Europe and Asia. + Turkey is a nation steeped in rich history and cultural heritage, with its roots in the Ottoman Empire. It has a population of 76mil today, with more than half being <30 years. + Turkey is strategically located on two continents – Europe and Asia – serving as a bridge between the West and the East. The Silk Road, a traditional trade route connecting Europe to China, began in the ancient cities of what is now western Turkey. + Istanbul is centrally located between Europe and Asia, separated by the Bosphorous river. + Do you know that the Tulips came from Turkey? The Dutch brought them to Holland in the 16th Century. Read more in Tulips of Turkey>> + Do you know that the New Testament of the Bible was written in Asia Minor, Modern Day Turkey? (i.e. 7 Churches of Revelations in the book of Revelations) + Noah's Ark is said to be at Mount Ararat. View More |
Turkey as the Rising Power:
+ Turkey is expected to be the fastest growing economy among the OECD members for the next five years until 2017, with an annual average growth rate of 6.7%. + OECD expects Turkey to be the 3rd fastest growing economy in the world, after India and China. + Some observers such as Goldman Sachs estimate that by 2050, Turkey’s economy could be the 2nd largest in Europe, excluding Russia. |
Connect with Turkish Community in Singapore@
Singapore Turkey Friendship Association, a lively community established in 1992 that connects Singapore residents who have visited Turkey and Turks who are residents of Singapore.
Check out the history and activities here>> Experience Turkish culture, try Ebru (marbling) art, cooking, language classes, movies, inter-cultural trips, or meet new friends to enjoy delightful cultural experiences at Turkish Culture Centre in Singapore. Check out their exciting cultural activities and Turkish friendship and festivals week. Explore Turkish Cuisine at East Coast or Sofra, beach road or walk down Haji lane to find the Turkish cafes. |
If you are travelling to Turkey soon, here's some basic Turkish greetings:
*no visa is required for travels to Turkey if you are a Singaporean/PR
- Merhaba(Hello)!
- nasılsın (how are you?)
- iyi günler (Good day)
- teşekkür ederim (Thank you!)
- seni seviyorum (I love you)
Rem, hospitality starts with a cup of Cay or Coffee + a smile!
*no visa is required for travels to Turkey if you are a Singaporean/PR
Trending Now...
My focus is on ICT landscape and emerging opportunities for consumer & lifestyle
electronics and the dynamics of the electronics retailing market in Turkey.
A Snapshot: Why Turkey for Consumer Electronics? |
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Top 5
Growth Drivers & Emerging Trends |
1. Strong domestic market with growing young, tech-savvy, middle-class population:
Turkey is the largest youth population which serves as an attractive consumer market, given the potential of >37mil (51% its 74mil population below 31 years old). It is the largest youth population compared to EU countries, and Germany in another 3 years. 2. Growing digital industry and mobility affluence driving consumer trends and spending propensity: Turkey has strong connectivity and increased consumer receptivity towards buying consumer goods (both digital and offline). This is boosted by its strong and growing base of >20mil broadband internet subscribers, 68mil GSM users, and 54 mil credit card users (2012). 3. Geostrategic location serves as emerging base to enter Europe and MEA: A manufacturing base for consumer goods targeted for Europe but they are also increasingly selling to Asian markets such as Japan. Turkey has inroads for selling to Central Asia, North Africa and the Middle-east. Turkish enterprises place their connection to these markets as their value proposition when courting SG companies to partner them. 4. Pro-investment environment for R&D activities based in Turkey: The Investment Support and Promotion Agency of Turkey (ISPAT) provides R&D expenditure allowances and incentives for Singapore tech and CE companies setting up R&D centre/activities, such as, income withholding tax exemptions, social security premium supports, stamp duty exemptions, cash support for entrepreneurial scientists. 5. EU Customs Union and FTA with 22 countries: There is free circulation of goods between Turkey and 27 European Union member countries. Turkey also signed FTA with 22 countries, such as Israel, Chile, Switzerland, and Asia, S. Korea. |
Insights on Retailers:
Competitive Retail Environment for Electronics in Turkey |
For first-time market entry, consider these factors:
+ Understand Tukish culture and learn basic greetings. Turks talk about relations and hospitality before business. If you know the language, it is a legs up for you. Learn to accept the Cay (tea) or Su (water) as it's polite. Generally, Turks are very warm and hospitable to foreign guests/visitors of Turkey. + Decide on the type and modes of distributions first; Consider fashion-based (for lifestyle electronics) or IT distributor for technical superstores (for computer peripheral type) + Partner with retailer with digital channel (e-commerce) to extend potential for multi-retail strategy and joint-marketing strategies. Get to know the RIGHT people is pivotal. They can help open doors for you. + To invest in building brand awareness (e.g. through in-store presence) and be prepared to spend/co-share marketing activities’ costs with chosen retailer/distributor + Competition in the Turkish retail sector is intensifying. Investments made by international actors in the Turkish market increasingly continue. Media Markt, Dixons, Darty, Electro World and Best Buy have also been included in the chain stores in Turkey. In late 2013, Bimeks has merged with ElectroWorld in a bid to gain bigger market share. In the recent years. entrance of the international actors into the Turkish market has made a favourable effect on the growth rate of the sector. It is the first time foreign retailers, BestBuy and MediaMarkt has met in the Turkish market in 2009. However, BestBuy announced that they decided to leave Turkish Market in 2011 while one of the biggest local retailers, Bimeks went public in the same year. +Outlook: The Turkish retail market continues to grow in line with consumers’ increasing per capita purchasing power and the development of modern and organised retailing. Per capita private consumption, which stood at US$7,350 in 2011, is expected to exceed US$10,000 by 2015. ‘Invest in Turkey’ predicts that strong economic performance will be supported by a young population that stimulates consumer spending. As a consequence of the strong demand from Turkish consumers, retail investments have been experiencing strong momentum in recent years. Turkey has become one of the most popular destinations for foreign investors, including private equity firms, global supermarket chains, fashion retailers and several other retail concepts. The generally applied VAT rate varies between one per cent, eight per cent and 18 per cent. + Foreign vs Local Retailers: Most electronics retailers are focusing on domestic market in Turkey due to growing potential. Foreign retailers, MediaMarket, and Darty might find it challenging to differentiate their services due to local retailers/technical super stores like Teknosa, Bimeks, Vatan. Last year, one of largest US electronics retailer, BestBuy was bought by the largest local retailer, Teknosa. Main trend is that organised channels, such as the technical superstores (where most consumer electronics products are sold) are increasing shares and expanding rapidly across Turkey. Among them, Teknosa has the most well-established and stores in 77 cities (out of all 81 cities in Turkey). Despite late market entry in 2011, the second largest and listed retailers, Bimeks also captures 21% of market share and growth in 2011/2012. Key retailers, Bimeks and Teknosa’s Kliksa.com were introduced during this mission and shared useful insights with Singapore companies. Analysing the major retailers working with Neotech also shows that both local electronics retailers (Teknosa, Vatan, Bimeks) contribute the largest share of revenue for Neotech, as compared to foreign retailers like Darty, Media Markt, Media Saturn, Electroworld. |
Insights on
E-Retailers Rising consumerism and booming e-Commerce as growing trends that offers opportunities for tech companies to pursue omni-retail strategy. |
+ Strong economic growth, rising IT literacy, improving telecoms infrastructure and one of the youngest populations in Europe have driven e-commerce sector expansion in Turkey. For instance, Turkey has strong connectivity and increased consumer receptivity towards buying consumer goods (both digital and offline). This is boosted by its strong and growing base of >20mil broadband internet subscribers, 68mil GSM users, and 54 mil credit card users (2012).
+ Growing middle-class shopping online: The future of the Turkish middle class seems promising given the sustained economic growth. According to Turkstat, the middle class population is expected to see an increase in their income levels. With an annual income of between US$7,500 and US$76,000, the middle class is expected to account for about 72 per cent (61 million) of the country's total population by 2025. They represent a huge market opportunity for electronics, consumer goods manufacturers and automotive makers. The 31.5 million people expected to join the middle- and upper-middle class ranks, with an annual income ranging between US$19,000 and US$76,000, will emerge as the key consumer target for such industries. Demand is expected to be high for quality and luxury brand products. + Internet penetration in Turkey has more than doubled in the last five years, and reached 45 per cent in 2011. Mainly driven by the young population and its increasing income level, Internet penetration is also positively affected by discounted prices and expanded coverage. Turkstat’s household information technology usage survey, conducted between January and March 2011, revealed that 47 per cent of Internet users surveyed in Turkey went online to find information on goods and services, whereas seven per cent of the users purchased goods during that period. The use of the internet to make transactions is well established in Western countries such as the UK and is beginning to take off strongly in emerging markets such as Turkey, creating opportunities for businesses while improving the shopping experience for consumers. There were 35 million e-commerce transactions in Turkey in 2011, according to the Turkish Interbank Card Centre, representing 57% growth year-on-year (y-o-y) from 2010. + Retailers expect more revenue (10-15%) from online sales channels by 2015. Turkey retailers and distributors have diversified distribution channels, such as e-commerce as integrated, sales and branding platform. Physical retailers like Gold Computers (www.hizlial.com) and Bimeks (www.bimeks.com.tr) have established e-commerce portals with increased sales revenue; Pure online player, HepsiBurada (www.hepsiburada.com) is the largest B2C portal with >3 mil active users. Largest retailer, Teknosa also set up an ecommerce (kliksa.com) in 2011 to leverage on the fast-growing potential. E-Retail is booming in Turkey and offers new opportunities for companies to partner with click-and-mortar retailers to distribute products and complement their global branding strategy. Furthermore, ongoing technological development and Turkey's growing youth population will continue to support the rapid expansion of Turkey's e-commerce sector. 1TTurkish internet retailing1T is forecast to expand by 54% in real terms over 2012-2016P0F[1] + Partnering with click-and-mortar retailers/distributors might benefit companies to find alternative retail channels that are more affordable and effective. [1] http://www.internetretailer.com/2012/08/23/online-sales-grow-turkey http://www.hurriyetdailynews.com/internet-shopping-new-retail-choice.aspx?pageID=238&nID=22464&NewsCatID=344 http://blog.euromonitor.com/2012/08/turkeys-e-commerce-sector-boosted-by-economic-growth-and-young-populace.html |
Useful links and resources
- GoTurkey | Facebook | Pinterest
- Turkish News (breaking news, economy, arts and culture, politics)
- Singapore Turkey Friendship Association
- Turkish Cultural Centre in Singapore
- All about Turkey
- Invest in Turkey
- Istanbul for Wine Lovers: A Turkey of Turkish Wines
- Republic of Turkey Ministry of Economy
- Republic of Turkey Prime Ministry Investment Support and Promotion Agency
- Tax system in Turkey (by PWC)
- Invest in Turkey: Economy, Country Profile and Corporate Tax (by KPMG)
- FATIH
- Food
Chicken Wings http://bibucuk.com.tr/tr/default.aspx
http://www.baydoner.com/en/ - Popular Turkish Retailers, Distributors, and IT associations:
- Other resources : Doing Business in Turkey (2013)
Download the presentation slides by clicking on the links below.- Turkey’s economy: Market insights (Part 1 | Part 2 | Part 3 | Part 4)
- Spending the Turkish way
- Turkish tax and corporate laws
- Opportunities in Turkey’s automotive sector
- Case sharing: Turkey’s financial sector
- Introduction to Turkish culture
Doing Business in Turkey (2012)- International Direct Investment Climate in Turkey
Mr. Kenan Güçlüol (Expert), Ministry of Economy, Turkey - Turkey’s New Investment Incentives Program
Mr. Mehmet Ali Çolakoğlu (Head of Department), Ministry of Economy, Turkey - Getting into Turkey through joint ventures
Mr Cem M. Erkus, PriceWaterhouseCoopers, Turkey - Navigating around risks in Turkey
Mr Cagdas Cataltas, Associate Consultant, Control Risks - Doing business the Turkish way: Let’s have a cup of çay
- International Direct Investment Climate in Turkey