With the rapid expansion of e-commerce, just about everything, from concert tickets to holiday home rentals are just a click away. E-commerce in Turkey swelled from $15 million to $200 million in just seven years. Hoping to hit $1 billion by 2008, the market has started to attract the attention of foreign investors interested in purchasing or partnering with well-known Internet sites.
While Turkey saw its first web surfers in 1995, within the last 12 years, the Internet has become a part of daily life. And as of 2000, Turkey had more than two million Internet users. However, the financial crisis of 2001 saw web-based commerce, like many other sectors, hit a slump. As of 2004, it began to bounce back started as the number of users continued to rise, hitting a new high of 16 million in 2007.
700 percent rise in seven years
Global Internet statistics reveal that Internet use in Turkey has increased by 700 percent since 2000. The number of sites and the scope of Internet services continue to grow and new developments are taking place in e-government. Taxation, identification and passport services are available online and several types of invoice payment and charge inquiry transactions can be conducted online. According to a survey conducted by Brown University concerning online services offered by public institutions in 198 countries, Turkey ranks among the top ten, in fact, ahead of developed countries like Germany and Switzerland. The e-commerce market is expected to pull in nearly $1 billion in 2008. This figure also reveals the potential of the market. The New Commerce Law, which obliges companies to have Web sites, currently on hold in Parliament, is helping to boost foreign investor interest in Turkey. Some of the world's largest web-based firms are among the companies interested in Turkey. For example, Ebay, one of world's largest online auction houses, purchased gittigidiyor.com, and Ticketmaster has acquired Biletix. These deals, along with the swift entrance of the Canadian Internet firm WSI, reveal that the volume of the sector has potential for further growth.
German players are showing interest in buying a majority share in Turkey's first business network çember.net, which currently has 250,000 members. Investors in the United States are interested in the shares of tourism operator gezi.net. Franchise.net, which counts Turkey among its operational holdings, and the U.S. Internet giant Lycos's legal tug-of-war over its domain name are seen as significant proof of increasing foreign interest.WSI, which entered Turkey with the consultancy firm Uzunhekim and provides Internet solutions for customers in 18 companies, employs a staff of seven people in Turkey, said WSI Turkey representative Hakan Uzunhekim. “We have 220 employees worldwide for technical support. Companies show enormous interest. We provide services for sectors like production, education, cosmetics, engineering, tourism, transportation, entertainment, interior decoration and jewellery,” WSI England Representative Chris Schofield compares Turkey's current e-commerce market to the United Kingdom's market of two years ago. The UK has experienced notable growth in e-commerce, said Schofield. “In 2000, commerce over Internet was almost non-existent in the UK. Today, sales over Internet in the country make ten percent of all trade. In three years' time, the share of Internet sales will make 20 percent of all sales.”
Value grows three-fold in six months
Schofield says Turkey has the potential to see this growth in terms of technological infrastructure. “Half of 2006's advertising expenses in the UK were spent on advertising on the Web. The Internet will replace traditional marketing,” said Schofield. Çember.net was established as a communication forum for the business world. The site, currently with approximately 250,000 users, is the first online business network in Turkey. German and U.S. companies are looking to purchase the site, said Çağlar Erol, the founder of Çember.net, adding however, that it is too early for the venture at the moment. “Foreign investors are increasing their standing in the market. Foreign entrepreneurs enter the market when the prices are still low. The Internet is maturing. The offers we are getting today are three times the offers we got six months ago.” There is lack of vision regarding the Internet in the business world, Erol added. “The businessmen who have established themselves are those who started business at least 20 years ago. All of them got acquainted with Internet at least five years ago. However, they have to consider something. Until five years ago, tickets were written manually, but now everything is online. Those that are out of date will need time to adapt to the new system. Those that adapt quickly will obtain a lion's share of the market.”It is impossible to survive in the online market with just advertising revenues, said Erol, adding that subscription is a must. Erol plans to make changes to çember.net's infrastructure and to increase its staff to 10 full-time employees.
US after gezinet
Gezi.net, working with 800 hotels and 60 travel agencies, aims to end the current year with a turnover of $4.2 million. According to data from 200,000-member-strong alexa.com, Gezi.net is Turkey's most-visited vacation and travel site and is among those attracting foreign attention. The Internet plays a major role in development projects in Turkey, said Hüseyin Öğüt, gezi.net's Advertising and Marketing Manager. “Currently, everyone invests in technology and the Internet. And Turkey is really very attractive for such investments. Particularly international consultancy companies demand information. Demand comes mostly from the United States. I suppose the interest will continue to grow, and purchases and mergers will increase particularly in e-commerce.”Between June and September, 40,000 visitors hit gezi.net daily, said Öğüt. At present, online travel arrangements take 8 percent of the total travel market. Plane tickets have the largest share in this rate while hotel and accommodation rank second.
Important market for Europe
German firm franchise.net, active in 15 countries, has also recently entered the Turkish market. Today, the Internet affects the franchising sector just as much as the other sectors, said Halil Yelek, managing director of franchise-net. “Turkey, with its 16 million Internet users, has become a very important market for Europe.”In four years' time, the number of the franchising companies will increase four-fold, said Yelek. “Undoubtedly, the Internet has a share in this revival. Now entrepreneurs looking to expand their knowledge of Turkey conduct all their surveys over Internet. Currently, 200 foreign companies offer franchise opportunities in Turkey. However, we expect this figure to increase gradually. As franchise-net, we will benefit from all the opportunities that the Internet offers. We will make a proper position in the developing web-based market, and expand our presence.” It is important to make an effort for the development of these channels, said Yelek.
Activity in e-commerce to increase
Doğan Gazetecilik's online services include fanatik.com, radikal.com, milliyet.com, arabam.com, emlak.com, insankaynakları.com, hangiotel.com and arakibulaki.com. If firms from the United States or Europe want to do business in Turkey, they should first seek local partners, said Çiğdem Toraman, Doğan Gazetecilik's Business Development Director. “If the company has a ready product and localization is not required, then it can enter the market alone. Otherwise, it should work with local partners. Ebay's purchase of 10 percent of gittigidiyor.com is the best example of this.”
Lycos preparing to file a suit over domain name
Lycos, active in 40 countries, is preparing to enter the Turkish market. However, a legal battle with Antalya-based Lycos Gıda Üretim Pazarlama İhracat ve İthalat Ltd Şti over the firm's name has been filed with the Turkish Patent Institution. With the Institution's negative response, Lycos Inc. is preparing to appeal the decision. “I would not think of selling even if they offer $10 million,” said A. Muhsin Tüzer, editor-in-chief of Lycos.com.tr. “I receive many support letters from all over Turkey. Money is not everything.” Google and Yahoo came to Turkey with a ‘tr' extension and the company said that it should do just the same, Tüzer added. “They try to threaten us in the disguise of clemency.”
Foreign investors find a younger market on the Internet
The desire to access a younger market of consumers drives foreign capital's increasing interest in e-commerce, said Fatih Çekirge, editor-in-chief of Hurriyet.com.tr. “Foreigner investors enter the web-based market since the Internet opens the door to a younger population. The Internet is a shortcut to reach both educated and high-income consumers.” Things will accelerate as opportunities and the speed of the Internet rise, he said. “The number of visitors of Hurriyet.com.tr, 650,000 a day just six months ago, has reached 1.2 million, and the number will increase along with the number of Internet users.” Different platforms are emerging besides communication, and Turkey has the opportunity to make transactions in many areas like employment and real estate searches, Çekirge said.
Autor(en)/Author(s): Sevda Yüzbaşioğu
Quelle/Source: Turkish Saily News, 16.10.2007
