Technology Markets Attract Most of the Investments

The technology market of Turkey in which TeknoSa has been in the leading position for a long time, is experiencing a leadership competition upon the introduction of international retailers like Media Markt, Electro World and Darty

Eklenme Tarihi : 14 Şubat 2008 Perşembe
The competition gets harder in the segment of technology markets of the retail sector. Media Markt has also recently entered the market following Darty and Electro World. A war of selling the most types of products for the lowest prices is being fought between these companies. Not a day passes without the introduction a new frontier into this war. The electronics market cake that is thought to represent about 10 billion dollars is being shared between local and international trademarks. Firms like TeknoSa and Teknolojix represent the local trademarks as the attention of international firms focus more and more on Turkey. Media Markt The company opened its second and third shops in Eskişehir and Mersin. Jams were experienced during both openings and minor contusions also happened as well as various fights during the opening in Mersin. Although the opening in Eskişehir was not very crowded, controversial advertisements in the city and the municipalitys action of removing them were in the agenda. Media Markt, serving in Germany with the motto I am not stupid, has shops in over 470 locations. Saturn, which highlights its tendency towards low prices with the motto Being mean is good, has over 180 shops. Media Markt and Saturn employ more than 20 thousand people in Germany. The systems about the employees of the company are worth reviewing. Every new Media Markt shop opened in Germany, is established as an independent company whose general director own 10 per cent of its shares. This enables them to know their shops better and get motivated without having to wait for directions form the center. They do everything they can to meet the demands of their customers as managers. The structure which is not flexible and central allows the shop to integrate better into the market. For example, special offers change from region to region and they are shaped in accordance with the needs of customers of specific regions. If, for instance, this system was to be applied in Turkey, it is clear that the strategies and special offers in the Etiler and Ümraniye shops of Media Markt will not be the same. However, it should also be noted that the company go over the selection of their managers in Germany with a fine tooth comb. These partners are selected from people who have started as sales employees and earned their positions with an experience of about 15-20 years. This system, in which employees may eventually become company partners, provides extra motivation for them. Electro World The third shop of the chain is also its first shop in İstanbul. The shop, opened in Capacity shopping center in Bakırköy, also started its activity with a crowded and glorious opening. Despite the huge crowd, there has not been any congestion or controversy and the opening day ended without any problems. Authorities later stated that they have been rehearsing this opening with security employees and managers for a month and that they implemented congestion precautions. This also earned the world of retail a term called congestion management. Dixons Stores Group international, active in 14 countries of Europe, opened its first Electro World shop in Bursa. Soon after this, the company opened its second shop in Konya. Especially the second opening after Media Markt was very lively and almost congestions were seen in Konya with the influence of special offers. This opening also went down in history as the first technology market opening at the door of which an ambulance was kept ready. Electro World, an outstanding trademark of DSG International PLC (DSGI), entered Turkey with collaboration of Esas Holding and Odesa. Esas Holding is a company whose chairman of the board of directors is Demir Sabancı, who has past experience in the management of TeknoSa. DSG International PLC (DSGI), an outstanding electronics retail group of Europe in which Dixons Stores Group takes place, serves 100 million people a year with 40 thousand employees and over 1200 shops as well as online shopping organization in 27 countries spread over Europe. DSGI has based its expansion policy on points like specialization in electronics products, large selection of products and trademarks, serving in large sales regions, tending towards markets with potential profitability and expansion and having a structure with the lowest operational costs in present markets. The retail and e-trade trademarks of DSGI are listed as PC World, Currys and in England and Ireland; Elkjøp in Scandinavia; Unieuro in Italy; Electro World in Middle East and Turkey; Kotsovolos in Greece; PC City in France, Spain, Italy and Sweden and in all over Europe. As DSGI expands its international operations, it also strengthens its financial structure. Group sales increased 14 percent in 1 year between April 2006 and April 2007 and the annual endorsement increased 16.3 billion USD. The profitability of the group was 560 million USD in the same period. Darty Darty from English Kesa Group emerged in Turkey with an older yet equally aggressive policy as Media Markt and Electro World. The first and largest shop of Darty in Turkey was opened in Mecidiyeköy. About 3500 different products are being sold in this shop. Kesa Group has an annual endorsement of 6 billion Euros with 821 shops. Darty has 222 shops in 4 countries. CEO of the Turkish shops of Darty and Kesa Turkey partner Nedim Esgin has recently organized a meeting about the activities of Darty in Turkey. Esgin stated in this meeting that Darty has 3 shops and they are going to open 2 more shops soon and added that their number of shops will reach 10. Best Buy is coming Circut City, Radioshack, CompUSA, Gamestop, Greek Germanos, French Fnac, Dutch Euronics, English Maplin, Virgin Stores and Home Retailer are some of the companies whose names are mentioned as investors of the Turkish market. Robert A. Willett, CEO of Best Buy, stated that Turkey is a country of opportunities and added İstanbul is the only city that is situated both on Europe and Asia. I think Turkey is a great opportunity. We are coming to engage in the retail sector and provide resources for the country. Willet answered the question about whether there will be a purchase in the Turkish market as: We can solve our own problems without cleaning others cellars. The values of Best Buy are so special a unique that we are so good at investing in a country form zero. However, we will always be open-minded about what is best for shareholders and consumers. Locals FrontierThe most important reason why foreign chains chose Turkey as a target market before many European countries is the population of over 70 million 55 per cent of which is young. However, Turkey is not an Eastern European country that has just adopted free market economy and it has serious local trademarks in this field as well as all other segments of retail. TeknoSa The biggest network in Turkey still belongs to TeknoSa with 182 shops in 52 cities. The endorsement of the company for the previous year was announced as 798.307.075 NTRL (New Turkish Liras). The company achieved to reach a big number of shops which is hard to do in a country like Turkey that is used to the distributorship system. One of the reasons for this success is, certainly, the fact that customers habits changed and the technology market expanded. However, TeknoSa also had some important trademark success during this process. Without doubt, the most important of all is to provide employment that is adequate to manage so many shops in a field like technology. The method used by TeknoSa at this point is praiseworthy. With an investment of about 1 billion dollars, the company turned its building in Kartal into TeknoSa Akademi and the personnel needed by the company is being trained there. TeknoSa, that opens a shop whenever it finds a suitable space, has a property that distinctively displays its power provided by the group behind it; It purchases what it wants.The company firstly bought 2 shops of the digital music retailer Uzelli, present 6 shops of EP that decided to withdraw from the market and shops of a local retailer in Romania called Primex in the year 2007. Purchases comprise a great deal of TeknoSas policy of expansion. Two recent outstanding applications of the company are TeknoSa Asist and TeknoSa Cep. Mehmet T. Nane, General Director of TeknoSa, who spoke during the promotion meeting of Asist application stated that they are going to start the Satisfaction Guarantee system as a pioneering company and added: In case consumers give up on the products they have just bought or experience any kind of problems, we present them the opportunity to replace their products within 15 days from the date of purchase. Few companies in the world offer their customers such a service in this scope. Teknolojix Osman Akın, the general director of Teknolojix, underlines that they have gained a lot of experience in technology retail in recent years. Akın says Our objective in this sector which focuses totally on cheap products with the introduction of foreign companies is to offer products that are not claimed to be but are really cheap. Hyper cheap shopping is a retail shopping understanding that has just been seriously applied in Turkey in the field of technology. This is a concept, developed entirely for price-oriented consumers that seek the cheapest products. At the first stage, Teknolojix organized its Bursa Merinos shop as a hyper cheap shop. This shop was activated with an investment of over 1 million dollars. Hızlı Sistem Hızlı Sistem Shops, that have been producing service in the field of technology retail since 2002, are serving in 29 cities with 35 shops with the motto Expert Technology Market. Hızlı Sistem, a Datateknik Bilişim Grubu company, is expanding with the franchising method. İhsan Taşer, Chairman of Datateknik Bilişim Grubu that aims to increase the number of Hızlı Sistem shops over 150 until the end of the year 2010 stated The purchasing habit for technology products is steadily moving to shops. This ratio has already reached two thirds in many European countries and the USA. The same trend goes for Turkey. We decided to increase our investments in this field in direct proportion with the development of the sector of technology retail. Our goal in the long run is to become one of the two leading players in this field. İhsan Taşer also said With our new investments, our new shops will be reflecting the view and expertise of Hızlı Sistem as well as the place of technology in our lives. We think that the investments we are going to make will also contribute to the business potential of our franchise shop. İhsan Taşer, who also stated that they are also conducting studies to strengthen the infrastructure of the Fast Franchising system, said that they have formed a system in which every detail from shop decoration to opening organizations have been planned and that enterprisers that wish to open shops will be able to open and manage a Hızlı Sistem shop in a faster way. Vatan Computer The firm was established in 1983 in İstanbul Elmadağ as the first computer shop of Turkey. It opened the first large hardware shop in 2002 in Topkapı on a closed space of 3500 meter squares. It moved this concept with over 10000 products to the Anatolian side and opened a shop in Bostancı. This shop was larger than the previous one with a space of 5000 meter squares. These investments were followed in İzmir Bornova with 7000 meter squares in 2006, Ankara Söğütözü with the largest hardware shop space of the world (18.650 meter squares) in 2006 and Adana Vatan on a space of 5000 meter squares in May 2007 as the largest shop of the Mediterranean region. In July 2007, Vatan Bilgisayar met consumers in Bursa with a space of 8000 meter squares and its last shop was opened in Konya on a space 5000 meter squares. Vatan Bilgisayar offers more installments than everyone else for the agreed credit cards and it also announces shocking daily special offers for specific products. Owing to these facts, Vatan Bilgisayar has gained a loyal group of customers in a very short time.
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