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Home Appliances Industry in Turkey

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Home Appliances Industry in Turkey
Subject: Home Appliances Industry in Turkey

Turkey has risen to become one of Europe’s leading home appliances manufacturers. The white goods sector provides jobs for over two million and has a production capacity of more than 25 million units per year, which is the second largest capacity in Europe after Italy. (ISPAT, 2010) The home appliances sector in Turkey earned revenue of $8 Billion in 2008, and approximately 16 million units were produced of which approximately 12 million were exported both in 2008 and 2009. (Ministry of Industry and Trade, 2010) Arcelik, Vestel, BSH, Indesit and Kumtel are the main home appliances producers ranking in the Istanbul Chamber of Industry ISO 500 list in Turkey. Currently, Arcelik owns the 50 percent of the market share, (Arcelik, 2011) and Vestel owns about 20 percent of the market. (Vestel, 2011) Besides Turkish producers, there are also world wide known brands competing in the home appliances market in Turkey which are importing from other countries. Whirlpool had a deal with Vestel to sell its products in Turkey.(Hurriyet, 2007) Samsung also entered the Turkish market very aggressively, and The biggest challenge that our company may face in the home appliance industry would be the very high custom tax rates. Turkish government tries to attract multinational companies to invest in Turkey, and provides many benefits to those who are producing in Turkey. In order to compete with other brands, it would be for our benefit to either acquire an existing brand or found manufacturing facilities in Turkey. Dryer machines are getting popular in Turkey, however there are no any other companies that are manufacturing these machines. Even the largest home appliances manufacturers import dryers to Turkey, and our company may receive significant benefits if we focus on dryers since there is demand in the market. In conclusion, home appliances industry is very competitive in Turkey. Having competitors that are in the market
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