Industry & Retail
From The Report: Turkey 2013
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Accounting for between a quarter and a third of GDP, Turkey’s industrial sector is a global player in areas as diverse as automotive, ready-to-wear, chemicals and retail. A major source of Europe’s industrial imports – as well as a destination for the continent’s exports – Turkey also carried out significant trade in industrial goods with the Middle East, Central Asia and beyond. Despite the global financial crisis that struck in 2008, the contribution of industry’s value added to GDP in the republic managed to surpass that in the euro area in 2010. The next decade will likely see a continuation of the ongoing gradual shift in export markets away from Europe and toward Asia and Africa. At the same time, increased spending on R&D and efforts to meet the goals set for 2023 will be vital if the country is to produce higher-value-added goods, and thus keep ahead of its lower-cost Asian and African rivals.
This chapter contains interviews with Mehmet Büyükekşı, Chairman, Turkish Exporters’ Assembly; Ahmet Zorlu, Chairman, Zorlu Holding; Norbert Klein, CEO for Turkey, Middle East, North Africa, Bosch Siemens Home Appliances; and Mehmet Nane, President, Shopping Centres and Retailers Association.

Articles from this Chapter

Overview

Key targets: The national development strategy has set high GDP and export aims
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Accounting for between a quarter and a third of the country’s entire GDP, Turkey’s industrial sector is a world player in areas as diverse as automotives, ready-to-wear, chemicals and retail. A major source of Europe’s industrial imports – as well as a destination for the continent’s exports – Turkey is also a major industrial trader with the Middle East, Central Asia and beyond. Indeed, wherever Turkish Airlines (THY) opens a new route, be it to Ouagadougou, Burkina Faso or Ashgabat,…

Analysis

Steel support: Metals production climbs with exports playing a central role
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In 2012 metals and metal products were Turkey’s fourth-largest export industry after automotives, chemicals, and textiles and ready-to-wear. Indeed, by 2011 the sector had already reached an all-time high in crude steel production, of 34.1m metric tonnes (MT), while it has long since regained and surpassed the output levels it had before the global downturn. Aluminium output is also high, with the need for additional capacity in order to meet growing domestic demand already clear. The sector has…

Interview

Targeting opportunities: OBG talks to Mehmet Büyükekfli, Chairman, Turkish Exporters’ Assembly
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Interview: Mehmet Büyükekfli How was the government’s 2023 export strategy formulated, and what would you say to those who argue that its targets are unrealistic? MEHMET BÜYÜKEKfiI: The global financial crisis of 2008 motivated Turkish policymakers to develop a long-term national strategy that could ensure sustainable export growth. In particular, we wanted to craft a plan that could continue to generate results even in the face of adverse external conditions. This plan is bearing fruit,…

Interview

OBG talks to Ahmet Zorlu, Chairman, Zorlu Holding
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Interview: Ahmet Zorlu How has the local textile industry evolved amid increasing global competition? AHMET ZORLU: Turkey has a long and illustrious history in the textile business dating back to the days of the Ottoman Empire. However, in the early 2000s, local companies in this business faced challenging conditions in the global market, which was being flooded with less expensive products from high-volume manufacturers based in Asia. At the time, many analysts questioned whether Turkey would…

Analysis

Head out on the highway: International automotive companies gain a presence via joint ventures
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The sixth-largest vehicle manufacturer in the EU and the 17th-largest in the world, Turkey is now a major player on the global automotives map. Indeed, within the EU, it is first in light commercial vehicle (LCV) production and second in buses, turning out a total of 1.073m units of all kinds in 2012. Now, the sector faces major challenges, including keeping its output up in the face of decline in its main market – the EU – while also trying to achieve the ambitious targets put forward by the…

Viewpoint

Norbert Klein, CEO for Turkey, Central Asia, Middle East and North Africa, Bosch Siemens Home Appliances, on Turkey’s status as a regional base for multinationals
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Turkey recently became the biggest producer of white goods in Europe. When we take a broader view and look beyond just this sector, we can see that the country is now sea of opportunity for investors outside of the European continent. Crucially, it possesses a large and growing domestic market, making it an attractive destination for multinational corporations engaged in everything from white goods production to automobile manufacturing. Moreover, the country has a highly qualified (and young) workforce,…

Analysis

Targeting changing markets: Declining European economies are affecting the direction of exports
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Given that exports accounted for around 20% of Turkey’s GDP in 2012 – a good year for export growth – it is clear that the country’s overseas traders are clearly a vital part of its economy. Industry is a major contributor to exports, with manufacturing a particularly vital component of Turkey’s export picture. Yet challenges remain, particularly in boosting the contribution to value-added. In addition imports are still greater than exports, which has been disrupting the balance of payments…

Analysis

Bringing chemicals into the mix: A growing sub-sector is changing the import and export rankings
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Taken in its broadest sense to include sub-sectors such as petrochemicals, fertilisers, soaps and detergents, pharmaceuticals, paints and colouring agents, as well as raw chemical production, Turkey’s chemical business ranks second among domestic export industries, after automotives. Indeed, the sector has been steadily climbing its way to a higher position, recently overtaking textile and steel exports. Now, the chemical industry faces the challenges of continuing to expand and of meeting its…

Analysis

Keeping up with tradition: Sales of textiles and clothing remain steady
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Known all over the world for its carpets and clothes, Turkey has long held a major place in the world textile and ready-to-wear markets. In recent times, however, that status has been challenged by lower-cost Asian producers, obliging the sector to go further upscale, and capitalise on its great structural flexibility in order to beat competitors. In 2012 the ready-to-wear and clothing sector was the third-largest exporter in Turkey, responsible for over $16bn of goods sent overseas, and served…

Interview

OBG talks to Mehmet Nane, President, Shopping Centres and Retailers Association
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Interview: Mehmet Nane What key consumer trends have been the main drivers of growth in the retail industry? MEHMET NANE: Strong demographics and sustained economic development have played crucial roles in the dynamism of the retail industry. With over 700,000 young professionals entering the job market each year, the number of potential consumers has increased dramatically, as has the demand for new shopping outlets. This trend has been particularly strong in eastern regions where fertility rates…

Overview

Shop ‘til you drop: New malls and loyalty to local stores keep spending numbers high
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Amid the growth in incomes and the overall economy, Turkey’s retail sector has acquired modern-scale segmentations with plenty of local and foreign players benefitting from rising consumption. Indeed, the sector has expanded rapidly in recent years, with urban centres like Istanbul seeing an array of new shopping centres constructed. Meanwhile, the traditional corner stores and local discount and retail outlets have also been playing a robust game, as Turks exercise their right to shop both at…