Household Appliances Supply Industry Sector in Turkey
The following statement by a representative of a leading main industry company summarizes the main industry’s support and the supply industry’s efforts:
" We are only as competitive as the supply industry; therefore, it is critical and vital to plan our actions by finding a common language. "
THE REGIONS WHERE THE SECTOR’S SUPPLIERS ARE MOST DENSELY LOCATED
DOMESTIC SUPPLY RATE
CAPACITY
As of 2016, the average capacity utilization ratio of BEYSAD-member companies is 73%
TURKISH HOUSEHOLD SECTOR
in 2016
Ranks 1st in production among EU countries
Ranks 2nd in production in the World
Ranks 5th in household export throughout the world
With over 25 million capacity in terms of 4 main product groups
More than 7 million demand in domestic market
> China is by far the world’s largest producer. Between 2009 and 2014, Chinese output grew by over 40%, to reach close to 330 million units.
> To put Chinese production into context, output in the next nine countries combined was just 57% that of China.
> Turkey became the second largest producer of major appliances in the world in 2011, after China, overtaking the US, which is now fourth after Brazil.
> Italy remains in the top 10 but was the largest loser over the review period, dropping from fourth position to rank only eighth in 2014. Poland and Turkey absorbed a large part of Italian production, with Whirlpool, Indesit, Electrolux and Candy relocating.
> South Korea continues lose production output to neighbouring low-cost manufacturing hubs.
> Brazil is Latin America’s main producer and the world’s third largest, after China and Turkey. During the review period it grew at a 5% CAGR, despite seeing a significant slowdown in 2013 and 2014, as the government’s IPI incentive ended.
THE RECORDED FIGURES FOR TURKEY’S HOUSEHOLD APPLIANCES PRODUCTION IN THE LAST TWO YEARS ARE PROVIDED BELOW.
TURNOVER
The total purchases made by the big four main industry companies (Arçelik, BSH, Indesit, and Vestel) amounts to approximately USD4 billion. When the supplies provided to other main industry companies (Candy, Simfer, Termikel, Ugur, etc.) as well as the manufacturing of small home appliances, air-conditioners, electronics, and other goods are added; the turnover of the intermediate goods production made for the Industry exceeds USD4 billion.
THE RECORDED FIGURES FOR TURKEY’S HOUSEHOLD APPLIANCES SALES IN THE LAST TWO YEARS ARE PROVIDED BELOW.
FOREIGN TRADE
The export volume of the appliance goods main industry has risen up to USD4 billion. When LCD and panel TVs are added, this figure exceeds USD6 billion. 66% of these exports are being made to EU countries. Notwithstanding the fact that EU is the most important market for the sector, Turkish manufacturers have the ability to reach almost all countries with their production facilities located especially at Russia and China.
In appliance exports, Turkey ranks 5th after China, Mexico, Germany and Poland. The countries the Appliance Supply Industry mostly exports to are UK, France, Germany, Italy, Spain and Iraq respectively.
REGARDING APPLIANCES SUPPLY SECTOR; THE FIGURES ARE AS FOLLOWS
Turkey boasts a significant advantage in trade thanks to its close distance to Europe as well as the recently fast developing markets of the Middle East and Central Asia. African market, where appliance goods ownership is very low and an increase in demand is expected, also carries importance for the future. Turkey is turning into a vital base of supply for the main industry which feels the need to establish production facilities both in EU and in other markets.
