Turkey has seen strong growth in eCommerce, with online retail sales growing at a 35.5% compound annual growth rate since 2008. Key factors driving this growth include high rates of internet and mobile internet penetration among Turkish consumers, widespread credit card usage, a strong logistics infrastructure, and social media-savvy consumers under 35. While eCommerce still only accounts for a small portion of total retail spending, Turkey is well-positioned for continued expansion in online shopping due to strong underlying demand and technological adoption trends.
2. Turkey continues to be an attractive market for eCommerce
Market Size
36 M
Internet Penetration Internet Users Quality
Ranked #9
47% - Ranked #11 Market Attractiveness
10 M
Online Shoppers
(I) (II) (III) (IV)
Driving Credit Card Excellent High Mobile Viral Paradise
Forces El Dorado Logistics Internet Usage
#2 in Europe Next day 62% YOY Growth Ave age 28,
in credit card delivery is in 3G Subs Top-10 in Social
penetration standard Networks
Turkey is more Turkey is more Turkey is more Turkey is more
US than EU EU than US Korea than EU Japan than EU
CAGR: 35.5% since 2008 & Forecasted to be 16.8% until 2016
Source: Euromonitor, http://internetworldstats.com, Internation Telecommunication Union, Planet Retail, World Bank, World Economic Forum; A.T. Kearney analysis,
Euromonitor, http://www.bkm.com.tr, http://www.slideshare.net/kleinerperkins/kpcb-internet-trends-2012
2
3. Internet Penetration:
With 36M, Turkey is in the Top 20 for Number of Internet Users...
... and ranks #11 in Internet Penetration
Source: http://internetworldstats.com/
3
4. Market Attractiveness:
Turkey is ranked #9 in A.T. Kearney’s 2012 E-Commerce Index
0 = low 0 = poor 0 = no digital 0 = undeveloped
attractiveness infrastructure laws retail market
100 = high 100 = developed 100 = strong 100 = developed
attractiveness infrastructure digital laws retail market
Source: Euromonitor, Internation Telecommunication Union, Planet Retail, World Bank, World Economic Forum; A.T. Kearney analysis
4
5. Driving Forces I:
Credit Cards and POS Terminals are Everywhere
Source ECB, BKM Online Strategy & Economic Analysis Unit - (Turkey), Finarket.ru – (Russia), IFC Mobile Money Scobing - Country Report 2011: Brazil,
Reserve Bank of India, http://www.gaoresearch.com/POS/pos.php, http://www.census.gov/compendia/statab/2012/tables/12s1187.pdf
5
6. Driving Forces II:
Turkey has an Excellent B2C Logistics Infrastructure
Source: http://www.utikad.org.tr/haberler/?id=8473
6
7. Driving Forces III:
Turkey is ready for the Mobile Revolution in 2013
* Represents ten European countries ***88% mobile penetration – 66M users
**37 M useres own 3G capable devices
Steve Wozniak: Turkcell 3G is faster than 4G networks in US
Source : Turkcell; http://www.gencbusiness.com/gbp-haberleri/2046_cepten-internete-girenlerin-say%C4%B1s%C4%B1-artarken.html;Sureyya Ciliv ---
http://www.dld-conference.com/news/dld-events-related/dld-bosporus-one-night-in-istanbul_aid_3380.html;http://en.teknoblog.com/communication/steve-
7
wozniak-turkcell-3g-is-faster than-4g-networks-in-us.html;http://www.slideshare.net/kleinerperkins/kpcb-internet-trends-2012
8. In Turkey, banks are leading the way, and there is much potential for the rest…
Source: Evolution of M-Commerce – Fatih Isbecer, http://mobilike.com/wp-content/uploads/downloads/2012/11/madreport_Q3_2012.pdf
8
9. Driving Forces IV:
Turkish Internet Users Love Social Media
Turkey ranks 7th for Facebook users Turkey ranks 11th for Twitter users
Source: http://semiocast.com/publications/2012_01_31_Brazil_becomes_2nd_country_on_Twitter_superseds_Japan,
Socialbakers, http://www.appappeal.com/maps/facebook
9
10. Driving Forces IV:
Turkish Internet Users Love Social Media
Turkey ranks 14th for YouTube users Turkey ranks 20th for Pinterest users
Source: Pinterest http://www.appappeal.com/maps/pinterest, http://www.appappeal.com/maps/youtube
10
11. Growth:
Turkish eCommerce has Enormous Potential
If TR were to reach
Turkey Now Turkey F2016
EU averages
Internet 36 M 48 M 42 M
Penetration 47 % 63.5 % 53 %
E-commerce 10 M 31 M 16 M
Users
28 % 87 % 36 %
Online Spending
182 EUR 567 EUR 209 EUR
per Internet User
Source: http://www.itu.int/ITU-D/ict/newslog/CategoryView,category,e-shopping.aspx, http://mashable.com/2011/02/28/forrester-online-sales-europe,
http://www.tuik.gov.tr, http://www.iabeurope.eu/news/4269m-europeans-online-across-28-markets-%E2%80%A6-from-belgium-to-bulgaria-uk-to-ukraine---
11 europeans-are-more-connected-than-ever before.aspx; http://internetworldstats.com,
12. Turkey’s Online Retail Growth is 2x the Global Average with 35.5% CAGR
Turkey’s Online Retailing is forecasted to grow by 16.8% annually until 2016.
Source: BKM; http://blog.euromonitor.com/2012/08/turkeys-e-commerce-sector-boosted-by-economic-growth-and-young-populace.html
12
14. Share of Online Retail to Total Retail by Country
1,200
Source(s)
Turkey http://www.deloitte.com/assets/Dcom-Turkey/Local%20Assets/Documents/turkey_tr_cb_retailsectorupdate_040612.pdf, http://blog.euromonitor.com/2012/08/turkeys-e-commerce-sector-boosted-by-economic-growth-and-young-populace.html
USA http://mashable.com/2012/02/27/ecommerce-327-billion-2016-study/
UK http://www.ons.gov.uk/ons/datasets-and tables/index.html?pageSize=50&sortBy=none&sortDirection=none&newquery=retail&content-type=Reference+table&content-type=Dataset; http://www.bis.gov.uk/policies/business-sectors/retail,
http://www.sas.com/offices/europe/uk/downloads/press/sas-verdict-retail2012.pdf, 1 http://www.retailresearch.org/onlineretailing.php
Russia http://www.slideshare.net/YandexBusDev/ecommerce-jan2013
Brazil http://www.thomaswhite.com/explore-the-world/bric-spotlight/brazil-retail.aspx,
http://blog.shop.org/2012/01/16/brazil-and-china-emerging-online-retail-powerhouses/
India http://www.business-standard.com/india/news/indian-retail-sector-outlook-in-2012-stable-fitch/155599/on, http://gain.fas.usda.gov/Recent%20GAIN%20Publications/India's%20Food%20Retail%20Sector%20Growing_New%20Delhi_India_4-24-2012.pdf,Forrester Research
Online Retail Forecast, 2011 to 2016 (Asia Pacific)
14
16. Interesting Facts about Turkey’s Shopper Profile - I
40% 50%
of shoppers prefer of shoppers aggressively
luxury items bargain when they shop
This ratio
decreases with 42% of shoppers like
social status to try new
brands and shop
for new items
40% 44% 30%
of shoppers are
willing to pay a
premium for
of shoppers
look for items
of shoppers go
for the
31% of shoppers consider
their favorite on sale. cheapest item fashionability of an item
brands.
as a major criterion in
their purchase decision.
Source: 2012, İpsos KMG-Türkiye’yi Anlama Kılavuzu
16
17. Interesting Facts about Turkey’s Shopper Profile - II
10% of 14-35 17% of 14-35
year old women are year old men are
taller than 1.70 taller than 1.80 m
1.70 m 1.80 m
35% of men
31% 47% of women
of women consult others
while shopping
wear shoe size 38 wear shoe size 42
Source: 2012, İpsos KMG-Türkiye’yi Anlama Kılavuzu
17
19. Disclaimer
• This analysis was prepared by markafoni – the leading flash sales and online fashion group in
Turkey. Please do not hesitate to share your comments or feedback sina@markafoni.com
• Please use the content of this presentation but disclose your source as «The State of the
Turkish eCommerce 2013, by Markafoni »
19