The CPG market in Turkey is a far cry from haggling for spices, fabric and produce at the local bazaar. Turkey opened its first modern mall, Galleria Atakoy, in 1988 and since then, modern shopping meccas have popped up all over cities like Istanbul. Bagdat Avenue, an 8.7-mile shopping sweet spot in Istanbul, was even ranked the No. 4 on a list of the “world’s best shopping avenues.”1
It’s no surprise that shopping experiences that offer convenience and proximity appeal to Turkey’s young consumers. Turkey is a youthful country with 44 percent of its people less than 25 years old—the youngest population in Europe. Turkey’s young consumers are in many ways defining the CPG market in that country: Consumers ages 25-34 represent the highest average spending, and 60 percent of shopping center visitors in Turkey are below 30 years of age.
By 2025, it is expected that the majority of Turkey’s population (over three quarters) will live in cities, so shopping malls will continue to be a convenient option for young, on-the-go urban professionals. CPG companies can’t afford to overlook the in-store experience. To improve relevance and capture the attention of young Turks, CPG companies in Turkey are looking to build capabilities that enable them to collect real-time and accurate data from the store that can, in turn, be used to inform corrective actions or recommendations right at store shelves. Insights derived from shopper analytics can also guide both product development and promotional allocation mix and even help CPG companies optimize their promotional outlay—a massive cost for most companies.
Getting even closer to home
Online shopping is also a destination of choice, as it accommodates the consumer’s desire for convenience and closeness. Indeed, in Turkey online sales have grown by an average of 25 percent annually since 2007, with 2013 sales topping the previous year’s by 40 percent. Global market research predicts that between now and 2017, Turkish online retail sales will grow by 107 percent, reaching a $6.6 billion market value.2
The rise in online shopping will put more data at the disposal of CPG companies. Armed with information about their customers, CPG companies can use analytics on to create digital marketing and sales initiatives, as well as consumer-generated content, to engage young consumers.
Whether online or in-store—the consumer goods market in Turkey is thriving—and a young population will likely keep up the market momentum.
1CNN; “Shopping in Singapore is better than Paris;” January 6, 2012; online at http://travel.cnn.com/explorations/shop/mystery-shoppers-rank-worlds-best-shopping-avenues-060108