DECEMBER | 2016/12 | ISSUE:204
Global
MOUNTHLY ECONOMY NEWS MAGAZINE
Values which carry
TO THE TOP EXCLUSIVE INTERVIEW
Fatİh Karaca Karaca Group CEO
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INTERVIEW FATİH KARACA
FATİH KARACA Executive Committee Member, Karaca Group
THE VALUES OF KARACA HAVE CROWNED US Karaca, one of the most important brands of glassware and home textile sector, made its name in the world markets with its innovative products which it has developed in the recent period. Fatih Karaca, the Executive Committee Member of Karaca Group says that Karaca’s values are the primary factors that carry their brand to the top. Young administrator Fatih Karaca lists these values as follows: “We break new grounds, we realize the dreams. We succeed and we perpetuate the pride of the new accomplishments. We always do better; we improve ourselves and our work. We make the privileges come alive, we add our plus value.” 2 | DECEMBER 2016 |
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KARACA, AN INNOVATIVE AND A VISIONARY FAMILY COMPANY
The foundations of the Karaca Group were laid by four siblings from Malatya in 1973 in the field of decorative glassware production in Suleymaniye, Istanbul. Which factors led Karaca, which is one of the most preferred brands of the glassware sector today and holds 25% market share in Turkey, to the summit? Fatih Karaca, the second generation administrator of the Karaca Group, says that the secret underlying the success is “Karaca’s values” and lists these values as follows: “We break new grounds, we realize the dreams. We succeed and we perpetuate the pride of the new accomplishments. We always do better; we improve ourselves and our work. We make the privileges come alive, we add our plus value.” Today, the most popular brands of Turkey such as Karaca Züccaciye (Karaca Glassware), Karaca Home, Emsan and Jumbo are within the structure of Karaca Group. The companies that exist within the structure of Karaca, which has emerged from Suleymaniye and opened up to world markets, have become one of the most well-known brands in Turkey thanks to innovative breakthroughs of which Karaca Group has made especially in the last 10 years. The Executive Committee Member Fatih Karaca has told the success story of Karaca Group to Ekovitrin. May we get to know you? How did you get into business life? I was born in Istanbul in 1982. I have graduated from Bilkent University. After having graduating, I did master of business administration at Pompeu Fabra University in Barcelona, Spain. I returned to Turkey in 2006 after I have completed my master study. Then, I worked in stores and marketing departments. At that time, Karaca was a company that produced quality and stylish products in various parts of the world, with 30 million Turkish Liras worth of turnover. Perhaps its recognition and awareness was not as good as it is today, however it was a financially strong company. It was a brand favored by the consumers. Nevertheless, we needed to make it better known. We have used our best endeavor in order to realize that objective.
“If you want to compete with world brands such as Villeroy and Boch, and Christofle, you need to do something different. This goes through innovation. By our latest product Fine Pearl Series, pearl true to its name, we took an important step in this regard. Karaca’s goal is to maximize moments in which people enjoy sharing.”
How was Karaca established? Karaca is a family business founded in 1973 by four siblings. They have started this business at a glass workshop in Suleymaniye where is one of the old quarters of Istanbul. They have used to buy simple glasses, glass cups and after having adorned them with decorative patterns have sold them to the customers. Then this business has grown. They have switched to porcelain. After then, a factory has been opened in Bayrampaşa. Glass and porcelain products were again decorated in this factory. And along with it, the business has expanded... We have manufactured new products in 1994 under Karaca brand. Manufacturing of Karaca brand cooking pots has followed that process. We have produced pots and cutlery. Back then, we had been the distributor of many brands in the world. A very strong sales network had been established in Turkey. In 1999, porcelain production has started in Turkey. In those years, porcelain production was being carried out with kaolin material mined in the Limoges region of France. The executives of Karaca have gone to France in 1999. Porcelain dinnerware was commissioned using Limogean material. Later on, in order to spread it to public and being able to have the dinnerware made at more suitable costs, we have bought the raw material, namely kaolin from Limoges region and the production was started in the factory in Tunisia. Karaca’s booming point for porcelain was in 1999 with Limoges dinnerware which it has had manufactured with its own brand. Good quality raw materials were bought from France and taken to Tunisia where production was being realized and these products were brought to Turkish consumers at reasonable prices. 1999 was an important debut for Karaca. The very first glassware store in Akmerkez was opened by Karaca. Back then, it was a company that had has made Karaca branded products; however it was an innovative and visionary family business. We have made an important entrance in retail sector with the first glassware store in Akmerkez. Until 2006, I mean, until I have completed my master’s degree in Spain, and returned to Turkey, such innovations had come through within Karaca. Karaca also has a very important point: 2001 and 2008 were the years Karaca had made the utmost investment and hence has grown. In 2001, there was a major crisis in Turkey. We opened a store in Akmerkez when there was a crisis. A sales organization was established in Turkey. Distributors were set up. There was such a picture until I have started working at Karaca in 2006. If we need to draw an analogy; think of an iceberg. There is a small mass visible above the surface of the water, but there is a much stronger root under the surface. Karaca is such a group. That was the case with Karaca when I came to Karaca in 2006.
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INTERVIEW FATİH KARACA
“Karaca was a very powerful brand in financial and product range terms. That was an advantage for me.” In 2006, Karaca brand was perhaps not that well known in Turkey; nevertheless it was a very strong brand both in financial and product range terms. I can say that, what brought me some advantage was that solid structure. I have received education and came to such a company. Another advantage of mine was that I was 24 years old when I came to Karaca. Our family members, my uncles and my father were incredibly supportive to me. They have conferred me great responsibilities. They have got me make the most important negotiations, the most important deals. Back then, we have made mistakes as well, but I have been incredibly supported by my family members.
“I HAVE BEEN INVOLVED IN THE COMPANY SINCE MY CHILDHOOD” Was it you who wanted to go abroad or your family wanted you to go? At that time I was thinking about where to study in America or Europe. I had the opportunity to learn one of the three mostly spoken languages in the world. Spanish is an important language in the world. I was already speaking English, but it was tempting to learn Spanish. There were very good schools in the field of business administration in Barcelona. Pompeu Fabra is one of the best schools in Spain. It is one of the top 25 schools in Europe. I got accepted into the college later. It is a good school both in terms of recognition and education. That is why I have chosen Spain. I was going to high school. My dad was taking me to relevant fairs abroad. I was also involved in all the negotiation made abroad. I can say that I was raised consciously by the family. There was not a single fair abroad which I had not visited concerning the glassware sector even before I have reached 18 years old. I was per-
sonally involved in the deals made with the customers. My family consciously prepared me for this since I was little. While I was in Spain, my brother went to university in Japan. My cousin received their education in China. We have studied in different countries. I can say that our family elders have opened up our horizons by enabling us to receive education in different cultures.
“TODAY WE GOT TO MANAGE THE INFORMATION” Did you have a goal like working in this sector? Since my childhood I loved the industry I have been in. I wanted to do this business, but I wanted to do it in a particular way, I wanted to differentiate it. When I came to Turkey in 2006, Karaca was a very strong brand, but it was not recognized. I did this: I have always said that, “Can I make this business more intellectual, can I transform it into a sector where knowledge is governed, and more information is contained? Can I make it an industry where innovations exist, can I make it a sector which people aspire?” That was my ultimate
goal. Let us establish such a sector that Karaca blazes the trail as a brand that possesses excessive knowledge, as a brand that makes many innovations in this sector. I wanted Karaca to be a company that comes to mind in the glassware sector. That was what I wanted to create. We work with the best companies of Turkey and the world. Our consulting firm is McKinsey. We have been receiving consultancy from that company for three years. It is the best consulting company in the world. In America, 90 of the top 100 companies make to the Forbes magazine get consultancy services from McKinsey. I have brought McKinsey and Karaca together. We have been working with Y&R which is one of the best advertising agencies in the world. We have endeavored to institutionalize Karaca, put powerful partners alongside Karaca, and to employ professional people. We also have tried to renew our employee profile. When I have taken office at Karaca, the number of university graduates at Karaca was very few. At the moment, expert-level people who have master’s degree work in this company. Today, we have got to govern the knowledge here.
“There was not a single fair abroad which I had not visited concerning the glassware sector abroad even before I have reached 18 years old. I was personally involved in the deals made with the customers. My family consciously prepared me for this since I was little.”
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“Today, we receive constancy services from McKinsey, which is the best consulting firm in the world. I have brought McKinsey and Karaca together. Again, we have been working with Y&R, which is one of the best advertising agencies of the world.”
“WE HAVE OPENED 105 SHOPS IN 10 YEARS” What kind of assignment was given to you when you returned from Spain in 2006? When I came to Karaca, I was not directly assigned a duty. I wanted to get to know the company from scratch and took office in every unit of Karaca. I have worked in all departments of Karaca for a year. I have worked in the marketing department for three months, two months in the accounting department and warehouse; and most importantly I have worked at the shipping department; and how the goods exit the warehouse, and how do they leave... I have observed these. I had to recognize the company I worked for in all aspects. I have worked in all departments for a year and a half. Then, we have created an organization in the dealer-sales network. There were certain departments that we saw having shortcomings in merchandizing area. I have said that we could grow up in merchandizing area. Back then, many shopping malls were being opened in Turkey. The retail network was growing. We also had to move a little faster in the growing retail network. There I said, “Here, we can bring Karaca to a good place.” At that time the retail was connected to me. When I have joined the company, there were 4-5 small stores. We did not have retail chains. But we have 110 stores right now. From 2001 to 2006 we had 5 stores. From 2006 to 2016 we have opened 105 stores. We have created a very serious network in retail business. Karaca was a company producing very good quality products; it had a very good structure. But there was a need for both expressing that and for a very good marketing activity. We have successfully completed this period.
“DURING A PERIOD IN WHICH EVERYBODY HAS DECLINED, WE HAVE GROWN BY 46%”
“We have endeavored to institutionalize Karaca, put powerful partners alongside Karaca, and to employ professional people.”
Along with your duty at Karaca, going retail has gathered momentum… We have opened 10 stores almost every year. We have personally opened all those stores as Karaca. Apart from that, we already had a dealership system. We have made the dealership system more effective. We have tried to make Karaca a more preferred brand, a more well-known brand. With the confidence stemming from our strong infrastructure, in 2008 crisis we have given a lot more TV commercials, and opened more stores. During a period in which everybody has declined, we have grown by 46%. The 2001 crisis was the year when Karaca has entered the sector as a brand, but 2008 has been Karaca’s year of rising to leadership in the sector. After the crisis experienced in the year of 2008, Karaca has said, “I am the leader of this industry.” We have made use of that crisis in an excellent way. In 2010, we have gone into a restructuring process. Because, according to all research reports, Karaca was one of the brands that came to mind first in three main product groups, namely porcelain, cutlery and pots. Consulting services have been received in order to further emphasize, strengthen, and institutionalizing it. During this period, we have made researches by the research company Ipsos. We have come to realize the following: There was a trend in the world brought by IKEA and Zara. In the past people used to buy a suit every three years. They were changing their home furniture every 10-15 years. With Zara and IKEA entering the retail business in the world market, together with the wind that they have brought, people have increased their purchase frequencies when the prices have gone down. Now people have started to buy a few suits each year. The frequency of buying clothes has changed. For example, furniture bought every 10-15 years has dropped down to 7 years. With the depression of prices, this circulation has increased. Only, we have noticed that; this trend in clothing and furniture had not occurred in the glassware sector. I think I can explain better with the following example: There are two kinds of dinnerware sets. There is a dinnerware set for daily use, and another one for the house guests. The consumer does not use the dinnerware set special to the guests. Since the consumers do not use that special set, it stands in a corner. The consumer uses the daily dinnerware set instead. Hence, this situation does not increase the frequency of use in the sector. However, prices of the dinnerware sets have dropped down. How the prices of furniture have fallen, and how the prices of clothes have declined in the clothing industry, the prices of the dinnerware have dropped as well; but despite that, people have not made any changes in their buying habits of dinnerware. After that research, we said, “There should be nothing like daily set or guest set. The moment you live in is the most special moment. Take out the dinnerware for guests and use it. Their prices are reasonable anyway. Do not stash but use it every day.” We have developed a concept called, “The moment you live in is the most special moment.” We have launched that concept in 2012. Thanks to that concept, Karaca has climbed up another step. It has been a very successful business. In 2013, we have noticed that Karaca was growing so fast and it was riding high. Nevertheless, now you need to look at everything more globally. You need to see clearer. We have realized the importance of strategy. We have noted that an energetic strategy had to be developed at Karaca, and we had to proceed by a powerful vision and a mission. We have met McKinsey at that time. McKinsey has supported us on strategy. In 2013, the company’s vision and mission has been redesigned. When we were working on the strategy, we said, “Let us design the strategy of the brand while we are doing this.” We have started working with Y&R, one of the best advertising agencies in the world on strategy. We have got together with McKinsey and Y&R. We have renewed the company’s strategy.
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INTERVIEW FATİH KARACA How would you describe the change at Karaca? We have brought the values of Karaca to light. When I came to Karaca in the year of 2006, all of its employees would fit into a single room. We were 50 people in total. In 2013, number of our employees has exceeded a thousand people. Today we are one thousand and 700 people. You need to keep the dynamics, which have enabled Karaca to grow, within Karaca. We have said that, together with anthropologists we should analyze what were the facts that have expanded Karaca since 1973 until today, why Karaca has gained momentum but not the other brands, why Karaca has remained at the top till today since 1973, and why other brands have not been able to approach Karaca? We have involved anthropologists in the matter. They have interviewed company partners and employees. They have examined Karaca’s past and said that there were four values enlarging Karaca. First was breaking new grounds. The second was always doing better. Third one was, taking pride in success. Fourth was perpetuating the privileges. We have said that, “If we can relay these values to all our employees, our success will become sustainable.” As Karaca, we always act wondering if we could do better. We have manufactured granite products, and we have offered such products to our customers. It was a very good and successful project. We have not adopted a detached attitude counting on this. We have been working on whether we can do better than granite. Because granite may be good today, but tomorrow something else might be better than granite. For this reason, I can say that we are a brand that attaches great importance to research and development. This year we have produced products made of pearl. Maybe tomorrow maybe we shall be doing something different. There is a value that continuously triggers Karaca’s success. Karaca has initiated many firsts. In Turkey, the first granite product was launched by Karaca; and in the world first pearl set was launched again by Karaca. First retail store in the sector has been opened by Karaca at Akmerkez. Karaca was the company which combined porcelain with steel and produced pots. It was again Karaca to present dowry package, dinnerware, cutlery and pots in the sector and offering it to the customer by means of an organized campaign. Karaca has introduced many firsts. Those firsts have brought Karaca to where it stands today. One of our values is always to do better. We develop ourselves and our business. We always believe in this; we have to improve ourselves. I currently manage Karaca, but in order to be able to manage Karaca at the same momentum even after 5 years, I have to improve myself. If I do not improve myself, I can not improve Karaca. Therefore, we put an emphasis on training at Karaca. We are applying a Management Trainee (MT) program in Turkey. Do you know how we train our managers of the store in the shopping mall? We have built an MT program. We have organized this program together with Boğaziçi University. Each year, this program receives approximately
“Think of an iceberg. There is a small mass visible above the surface of the water, but there is a much stronger root under the surface. Karaca is such a group.”
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10 thousand applications. Only 24 of those applicants get a chance to participate in the program. After the trainings, we hire 12 of them. We do this program several times a year. They are having three months of retail training there. They do not only receive retail training but they also work in all the departments of Karaca. Our fourth value is we make he privilege come alive and we add plus value. With each product we make, we think of that: Let the product we have manufactured make the consumer feel privileged. We want that our Karaca’s specialty is felt by the works we perform at Karaca. We want Karaca customers to feel themselves privileged; feel special when using our products. We prepare all our designs, all our products with this conception.
“MY GREATEST CHANCE WAS ALL FOUR PARTNERS WERE OPEN TO INNOVATION” Karaca is a brand established by four siblings. You are also holding an important position in this group. Is there a conflict of generations in the management? We have not had a conflict of generation within the family. Because, I believe that we have managed Karaca well. If you want to expand, the companies that work with you have to be very good. If only you are good, that will not suffice. Your employees should be good, and your human resources must be very good. The business partners you work with must be very good. If your employees and business partners are good, you can expand whatever business you do. Because, in that way a high quality work is achieved. You do business with qualified people. Right at the moment, professionalism is in the forefront.
“KARACA IS A BRAND THAT COMES TO MIND FIRST IN MANY AREAS” Where do you position Karaca in the industry? Karaca is a very distinctive brand in this sector. If you ask me who our competitor is, I can not tell you that our competitor is specifically this or that. Karaca is the first brand to come to mind when it comes to porcelain. I am not the one who says so. According to the researches carried out, Ipsos and GfK say that. Again, Karaca is the first brand that comes to mind for cutlery. Likewise, Karaca is the first brand that comes to mind for cooking pots. Actually these are all separate works. We have different competitors in porcelain, in cutlery, in cooking pot. Karaca is very strong in many product groups. We are also strong in household textiles. We are the first brand that comes to mind in household textiles as well. How many products are there today in Karaca? There are 8 thousand 500 kinds of products from Karaca store. If you include other stores such as Jumbo, Emsan and Karaca Home, we have about 14 thousand product range in total.
“The factors that make us successful are inventiveness, innovation, having a fine design, the ability to express it and being capable to market it successfully.”
“With the confidence stemming from our strong infrastructure, in 2008 crisis we have given a lot more TV commercials, and opened more stores. During a period in which everybody has declined, Karaca has grown by 46%.”
“WE MAKE PRODUCTION EVERYWHERE IN THE WORLD” How do you make the production? Karaca is a good innovation company. It develops very good products, designs very high quality products, and have those products produced. Karaca can make production all over the world. Today Karaca has production in Tunisia. Porcelain production takes place in Tunisia. Because, production is a particular area of expertise. Sales marketing and design require different expertise. We lead, we develop the product. Let them manufacture the products. Everything is prepared by us. Today, there are factories in Italy and Korea that manufacture for Karaca. 65 percent of Karaca’s products are produced in Turkey. But 35 percent is still being produced abroad. The countries producing abroad include countries such as Tunisia, Poland, Italy and Korea. With the right cooperation, we can manufacture all over the world. While all the steel products are produced in Turkey, we manufacture the products in the field of household textiles in our own factory located in Denizli. Again, there are ceramic products produced in Turkey. We have a production quality standard. We combine that standard and that quality with innovation, and we realize the highest
quality production wherever we can. There is a place the world is going to now. Companies around the world now specialize. Today, our main job must be to produce innovative products, to maintain our research and development in a good condition, and also to make the design well. Production is not our specialty. We definitely find places to produce the products we have designed. Today the point of manufacturing might be Turkey, and tomorrow it might be Italy. What is important here is being able to brand and effectuate the marketing activities. My personal opinion is that production is a different specialty. The actual value added is research and development, design, and innovation.
“OUR OBJECTIVE IS TO BECOME THE FIRST BRAND THAT COMES TO MIND ALL OVER THE WORLD” What are the elements that distinguish Karaca from its competitors, and bring it forward? We match our values up with Karaca’s four basic values. Today, what has expanded Karaca since 1973 to 2016, thus generating a turnover of one billion Turkish Liras is being capable implementing the principles is has
established. It is its desire to do better, to perpetuate privileges and to make feel distinctive and continuous desire to do better. I can list the factors that have made us successful as follows: inventiveness, innovation and having a good design, to be able to express it and market it well. Karaca has engineered granite, and then it has engineered pearl… The products which we shall launch one year later are already known. We have to do something constantly. What you do must generate an added value, and it has to bring novelties to the industry. It must be different from the products that have been available until that day. They have to be healthier, and they have to be more valuable. We are trying to implement this in our products. When it was asked which brand has sold the most dinnerware in the sector during the year of 2012, Karaca was the first brand that came to mind. At the same time, we want to be the first brand that comes to mind in this sector in the world. We have this potential. When we look at the world, products such as porcelain cutlery are sold either on the upper shelves of department stores or in markets. There are not many stores in the world that sell quality products like ours at specialist stores at prices which people
can afford to buy them. Therefore, we have fine prospects before us. We are in a very good position in Turkey; nevertheless being in a good position in Turkey does not satisfy us any longer. We have to be successful in the international market. We have worked in order to be prosperous; we have done whatever it takes to succeed; and we still work for it. In 2012 and 2013, we realized that towards the end of 2012, our main handicap overseas was the background of the brands, their heritages. Because as competitors, there are 300-400 year old companies ahead of us. For example, when you look at brands such as Villeroy & Boch, you see that they have been established in the 1700’s. There is a brand called Christofle. It is one the globally known brands of France. In the 18th and 19th centuries the Ottoman Emperors have brought the dowries from France when their daughters were to be married. But if you say that I shall compete with brands like that, you have to deliver something different. This goes through innovation. It is a little bit difficult to deal with such brands with same products. So, we have said that we need to make an innovative porcelain product. I think we have realized this purpose by means of the pearl series.
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INTERVIEW FATİH KARACA Would you like to tell us about your new product ‘Fine Pearl’ that is made of real pearl? How did this idea come about? We are doing an important job. Your products need to be elegant, valuable and healthy. We have thought about how we could make a difference in our products and based on that consideration we have carried out various researches. We have seen that pearl is a very special material. It is the only natural jewel in the world. You obtain it from the nature, and you can use it without subjecting to any process. Second of all, pearl is a valuable and expensive product. It is healthy at the same time. Latterly, it is being used in anti-aging creams. It prevents women from aging. We thought that we could produce using such a healthy raw material, and that, these products could be warmly welcome by the consumers. This idea has occurred four years ago. In the wake of our Research and Development and Production Development studies, in recent months we have offered our customers Fine Pearl, a pearl series made of real pearl, in Turkey and world markets. How about the interest shown for the products made of pearl? There is an intense demand both in the country and from abroad. At present, the product we produce hardly meets the demands in Turkey. We can only satisfy the demand in the country. We have sent pearl products to Europe. Products will be sent to Germany and Holland in December. Then they will go to Saudi Arabia, Iran, and Azerbaijan. We plan to send our products to England and America later on. In what stage is merchandizing abroad? We have a store in the Netherlands. We have three stores in Saudi Arabia. We have six stores in Azerbaijan. We are opening a third store in Iran. We attach importance to merchandizing abroad. Until now, we have expanded where our own culture dominates. Our dream for the pearl dinnerware set is to reach the consumers in England and France in Europe, as well as those in the United States of America, and to become a brand preferred by the consumers there.
“We put an emphasis on training at Karaca. We are applying a Management Trainee (MT) program in Turkey. Do you know how we train our managers of the store in the shopping mall? We have built an MT program. We have organized this program together with Boğaziçi University. Each year, this program receives approximately 10 thousand applications. Only 24 of the participants get a chance to participate in the program. After the trainings, we hire 12 of them.”
You are a person who cares about advertising and promotion. How have you reaped the benefit of them? One of the best things our team did was marketing activities after the year of 2006. At that time, we have used advertorial segments on TV channels. We have appeared on television programs. We have talked about our products in morning shows. Then we have said that we had to make the brand better known. We have sponsored productions such as Yaprak Dökümü, 8 | DECEMBER 2016 |
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“From 2006 to 2016 we have opened 105 stores. In 2016 we are growing by 22 percent at one-on-one store turnover. We shall realize a 30 percent growth in total. As Karaca Group, we aim to close 2016 with 1 billion Turkish Liras. We have set a 27 percent growth target for 2017. Öyle Bir Geçer Zaman Ki, and Yemekteyiz. With these productions, consumers began to recognize our brand. Between the years of 2006 and 2010, we have introduced Karaca to large masses. We have made Karaca known. We have increased the brand awareness through advertisements, commercials and promotions. We have created an emotional connection with the consumers between the years of 2010 and 2015. As of today, how many dealers and stores have Karaca and the brands affiliated to the Group? As Karaca, we have 650 dealers, thousand one hundred sales points, and 49 franchises. As Jumbo, we have 28 stores. We have 650 dealers at Emsan. Whereas, at Karaca Home we 800 dealers. How shall Karaca close 2016? What are your expectations for 2017? Together with the group companies, Karaca shall close 2016 with a turnover of one billion Turkish Liras. In 2016, we have grown by 22% in stores segment. In the aggregate, we shall materialize a growth over 30 percent. I believe that we shall acquire a 20 percent growth at Karaca Home, and 15 percent growth at Emsan. There is an astronomical growth at Jumbo. 2016 was a year of rapid and controlled growth in general terms. We have very ambitious products. We have developed very good products. We are opening good stores. We have a lot of work to do. In 2017, we have set a 27 percent growth target.
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INTERVIEW NURTEN ÖZTÜRK
NURTEN ÖZTÜRK
THE FUEL
SEC When education and experience are combined with intelligence, it is impossible that combination to bring you to certain points. I think we can achieve much more successful results if we can reflect our feminine susceptibility and sensibility to our behaviors logically.
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WHO HAS CHANGED
THE WOMAN
Executive Board Member of Opet
TOR Opet, founded by two entrepreneur teachers, is one of the most important fuel companies in Turkey today. Nurten Öztürk, Member of the Board of Directors of Opet, and one of its founders, and also who has exhibited how the ladies entering business life could be successful says, “We have established Opet in 1992. We have said that we needed a Turkish fuel company that would provide really good service to this country, and we should establish that company and do the best. We have reached our goal. We are the 4th largest company of Turkey in the fuel sector. We our proud of the point we have arrived at in 25 years.”
Nurten Öztürk, one of the two founders of Opet, Turkey’s fourth largest fuel company that has been established in 1992 with 100 percent domestic capital, is virtually a role model for women in Turkey with her life story ranging from teaching to entrepreneurship. Öztürk, who has succeeded to make her a name as a consequence of the works she has performed in the sector and also the civil society initiatives that have raised awareness in the male-dominant sector, expresses that every idealistic, hard working and educated woman can achieve success in any area she desires. Öztürk emphasizes that women must be more largely represented in business life, and men should take an active role at that point, and says, “Women must be further encouraged by men to take part in the business world. There were three men who affected me in life, and shaped my life. One of them was Atatürk, one was my father, and the other was my husband. I have entered in fuel sector thanks to my husband and we have gotten so far.” Opet’s successful rising in the sector attracts the biggest groups of Turkey, and Opet gets into a partnership with Koç Holding in the year of 2002. Nurten Öztürk states that as a consequence of the synergy created through partnership, which Opet has entered into with Koç Holding on a 50 percent share basis, Opet has gained a rapid growth, and that she has been proud of the point they have arrived at in 25 years.” Öztürk also says that, they have canalized their gains to investments, and underlines that by building schools and the like; they have not forgotten their responsibility towards Turkey and Turkish people. The Member of the Board of Directors of Opet, Nurten Öztürk has told Ekovitrin about the place of women in business life and the success story of Opet. The role of women as executives in the business world and economy in Turkey is gradually increasing. Women are drawing a successful graphic. You are deemed worthy of the Lifetime Honorary Award in the Leader Women Survey. How would you evaluate this award and the role of women in the business world? I think that it is more meaningful if the awards are in return for a motivating effort. For that reason, in my opinion, they also mean a life that is not wasted. Lifetime Honorary Award which I have recently been rewarded with has saddled me with a superb and tremendous responsibility. I think that, getting such an award as a woman might set an example for the women who maintain their lives either in business life or different environments.
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“EDUCATED WOMEN WHO HAVE A CERTAIN BACKGROUND SHOULD NOT SIT AT HOME” In the last 10-15 years there has been a significant increase in the number of female executives, business women and female entrepreneurs. They are successful at what they do. You are also one of those successful women. How would you express women’s role in the business world? I believe that education is the most important thing to be able to struggle against difficulties, to be a good individual and to come to a good position. When education and background are combined with intelligence, it is impossible that combination to bring you to certain points. I think we can achieve much more successful results if we can reflect our feminine susceptibility and sensibility to our behaviors logically. In that sense, a woman’s sensitivity, approach to people, communication skills, and her nature to protect what she has acquired and foresee the future arising from her maternal instincts cause women to further progress. However, I believe that first of all they need to receive a decent education or well-train themselves in order to get to that point. Unfortunately literacy rate for the women in our country is very low. I do not associate literacy with success. In the first place, an educated woman is an individual who aims to be capable of disciplining herself, promoting her relations with others, successfully managing human relations in social life, and being able to grasp and perform her duty. In that sense, I say education comes first. I believe that our educated women who have a background might reach a certain place as well. Of course, if they do not prefer to sit at home. Especially, our educated women sometimes take the easy way out; or just because they consider that they would not be able to maintain the home, family and business triangle in a real healthy manner, our really very well educated women, who could actually be prosperous might sometimes get the idea “I do not need to work,” either due to favorable economic conditions or due to workload. When such women lock themselves in their homes or waste time in shopping environments, I become worried for a wasted power roaming around.
“NUMBER OF WOMEN INVOLVED IN BUSINESS LIFE MUST INCREASE” Turkish Industrialists and Businessmen’s Association (TÜSİAD) contains the word “men” but it is being ruled by female chairpersons during the last three periods. How would you evaluate female entrepreneurs’ role in business life and economy? What kind of a development has been experienced in this sense? In our country and in many countries of the world, the duty of the man and woman has been predetermined. The woman has been given maternity, and housework duties; and the man has been assigned the duty to hustle in the outer life and act as the head of the family. I respect that, but at the same time I believe that unless it re-
NURTEN ÖZTÜRK INTERVIEW quires a physical strength, a woman could do anything a man could do. In that sense, even the highest-ranking officials of idealistic, hardworking and truly experienced women could take the chair as heads of state. In fact, they set a good example. Therefore, the number of women in business life must increase. I personally try to implement that in our own company. The sector which we are in was a male-dominant sector. I am the first company owner and a woman executive who has entered in this sector. In the years when I have first entered the sector, there were women virtually working at lower levels, at a secretarial level. Now there are many women in managerial position. I believe that, here, I have it said to a certain extent: “So, that has been possible. Women could work in this sector too.” I was encouraging the spouses of our dealers saying, “Go to the stations. Support your husbands who operate the stations. That business place is also the place where you earn your livelihood. Men make houses, women make homes.” I believe that women should be supportive. The most important driving force to spark the women is the men. Men play a significant role. There are three men who affect me in life, and shape my life. One of them is Atatürk, one is my father, and the other is my husband. When we look, all three are male. By the way, I have to give my mother the credit for all she has done. Although she was illiterate, she had improved herself, and since she was a woman who believed that her children should received their education, she has been greatly supportive. What are the characteristics that bring a woman forward? My main occupation is teaching. My husband used to be a teacher like me. After 9 years of teaching, he has gone into trade. After then, he said, “Come and support me.” After 13 years of teaching duty, I switched to business life. We had been trading mineral oil. The educational level of those who bought mineral oil at time was at a certain level at that time. Since I was a woman, I was regarded as a stranger at first. But when they saw that I was a woman taking care of them, asking them how they were doing, reminded them of their payments, they liked it. We have been able to make the collections more soundly. My husband has found time for more business follow-up in the market. He did not have to worry for having left things undone. If there is a hole in the bottom of a sack, you cannot keep in whatever you put inside the sack. In that sense, we are a family that epitomizes to gain a footing as husband and wife. My husband’s foresight, common sense, strenuousness have been the most important factors for me to enter in business life. Frankly speaking, whenever I have experienced difficulties and said, “Should I go back to teaching?” my husband has always said, “Be patient. They will consult you even if they leave this room.” Not every man could say that. Therefore, I always say: There are three men who affect me in life, and shape my life. Since that day, we have mutually complementary but different ways just like two peas in a pod. We have a lot of good sides in different aspects of life. In that sense, we have respected each other. Together we eliminated our shortcomings and trotted.
“The sector we are in was a male-dominated sector. I am the first company owner and a woman executive who has entered in this sector. In the years when I have first entered the sector, there were women virtually working at lower levels, at a secretarial level. Now there are many women in managerial position.”
What are your suggestions for women to get more involved in business life, to be represented more? There is no such a thing like big job or small job. Whatever job you do, if you do the best you reach somewhere. That job could be garbage collecting too... I tell my grandchildren some made up stories about how someone who did nothing has climbed up after he started collecting garbage. Therefore, before anything else, you shall know yourself. You have to ask, “Who am I, where am I, what are the things I could accomplish? What can I do after I get to know myself, what is necessary for this?..” The answers to these questions should be sought. Capability, skill, determination, consistency are extremely important. You can not be successful if there is no happiness and passion. That is why I say, “You will either do what you love, or you will find something to love in what you do.” For example, fuel is a mechanical sector. Since service is important in this sector, I have put the human factor forward at our gasoline stations. By the Clean Toilet Campaign, I have replaced the car with human being. Until then, the gasoline stations were rendering fuel services to vehicles only. I said that, initially the owner of this vehicle had to receive services at the stations. First, people should be served. We have acted with this approach. All the civil society initiatives we have done and the value we have given to people have enabled Opet’s brand image to develop and be successful. As Opet, we have made a difference in this respect. Creating good teams, working with good employees is very important in achieving success. In life, nothing is accomplished alone. Again, I believe that the success it the common work of those who say, “I will be successful.” We have succeeded as a family. What it takes to succeed in that sense? Above all, it is necessary to desire and to act in a determined and consistent manner within the triangle of love, respect and tolerance. Of course, being happy is also very important. I believe that one should not expect happiness from others. One has to experience happiness personally, to make people happy… We need to be smiling people. We need smiling people, people who could provide a perspective on life. A woman has to feel it in her veins as well. For that reason, I say that a woman should not stay at home but work. A woman must be trained very well so that she could be a good mother, and raise smart children…
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INTERVIEW NURTEN ÖZTÜRK What kind of changes have taken place at Opet as a result of a female executive and businesswoman’s What kind of awareness have you have created especially through your environmental efforts? Before launching the Clean Toilet Project in the year of 2000, the toilets at the fuel stations were extremely dirty, in a condition which you could not step in. Cleanliness and hygiene were not as they had to be. While improving physical conditions of the toilets on one hand, we have trained gasoline station personnel and the owner of the station on the other. I think that we have made a significant change in terms of the sector. We have also educated the people in vicinity of the stations. We have visited the schools around the stations and provided training. We have gathered people in sports halls, conference halls and organized trainings. At the moment, our fellow workers at our call center, which consists of 70 staff members, listen to customer satisfactions and complaints with respect to Opet. The callers are absolutely contacted back within three days. If the problem is not solved, then I am informed about it. So, if there is a problem, it is being solved in anyway. After we have cleaned the toilets from this point of view, with the Green Road Project, we have realized an environment planning and landscaping at the gasoline stations. We have planted trees and flowers around the station, and greened. We have said, “Every gasoline station should be a green oasis,” and consequently we have started foresting an area of one and a half area around each station. In a way, we have blazed the trail in the sector. We have done this at our stations and made a difference. This situation has positively reflected on other gasoline stations that provide services around the existing stations, from our perspective on hygiene and nature. They also have made some works in order to render better services to their own customers. Our stations must be more orderly, cleaner, their environment should be greener. In that sense, I think that we have made a significant change in the sector. Do you stipulate this when giving franchising? Stations might switch to other companies every five years if they wish so. We call it usufruct period. If they want, they could change it in five years. It was not like that before. The usufruct period was varying from 15 years to 25 years. The return on investment was solid. Transfers against hefty sums have begun. So, a distribution company which thinks to own a corner station invests enormous amounts regardless of its profitability. This time, the vendors tempted by the amount paid have begun to move to other brands. So a very slippery ground has formed. You can see an Opet station as another station after
“There are three men who affect me in life, and shape my life. One of them is Atatürk, one is my father, and the other is my husband.”
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five years, or you can see the station of a different company as Opet after five years. I think the shortening of the five-year transition period has been negative for the sector. At least it is the case for us. Because all your investment is wasted when one of the vendors, which you have taken great pains with, made changes in their minds, you have constructed a perception, acts greedily and goes to another company just for money. However, station-wise it has such a plus too: they transfer the knowledge and experience they have gotten from us. They offer much more distinctive services. We develop projects in order to improve our stations and provide better services to our customers. We also try to do that with civil society initiatives. Following the Green Road Project, we have carried out a project called Model Village. We have gone to Anatolia. By means of the Respect for History Project, we have materialized activities that support physical rehabilitation and community development. We have restored historic buildings. We have restored all the villages within the boundaries of the National Park. Within the scope of the project, 57th Infantry Regiment Martyrs’ Cemetery, and Akbaş Martyrs’ Cemetery which is one of the two biggest hospital martyrs’ cemetery have been renewed faithfully. During the last three years, we have prepared a project called Traffic Detectives. More than 2 million people have become traffic detectives. According to the statement made by the Minister of Internal Affairs, mortality rate of our children between 3 and 17 years of age have lessened by 3.7 percent. We are so glad for that. The basis of our works is education and human. Today, you have become a Turkish brand competing with your opponents and world’s giants in this sector. How was this success achieved? In the 1980’s, my husband wanted to take up business and take his chances in the mineral oil industry. Then he wanted me to join him. Within ten years, we have become the biggest mineral oil and fuel distributor in Turkey. The company managers we work with and other people in the fuel sector said, “Why do not you occupy in operating a filling station?” After that, we started to have some stations. When number of those stations has increased to 17, we have said, “We do this job really well.” Until then, there were always foreign companies in the sector. They had come to Turkey 50 years, 100 years ago. There was no fuel distribution company established with domestic capital. There was Petrol Ofisi, but it was a public corporation. We have come to Istanbul in 1992 and founded Opet. We have said, “We need a Turkish fuel company that will provide really good service to this country; so we will establish it and do the best.” This was our organizational goal. We our proud of the point we have arrived at in 24 years. Because, we have indeed achieved our goal. We are the fourth largest company in Turkey in the fuel sector. Therefore we are proud. The goal is to get further forward of course.
“My main occupation is teaching. My husband used to be a teacher like me. After 9 years of teaching, he has gone into trade. After then, he said, “Come and support me.” After 13 years of teaching duty, I switched to business life.”
“WE HAVE CREATED A SERIOUS SYNERGY WITH KOÇ HOLDING “ You have achieved a successful ascent with your husband. This ascent has also caught the attention of the Koç Group and became a partner to you with a 50 percent share. How did this give you acceleration? Of course, we now have gained a great acceleration. When we reached 2000’s, we had become a fuel company with more than 600 stations. Certainly, in those times we had survived a crisis period, and the economic environment during the crisis period was not very good. We were considering that it would be better if he had a strong partner. We were working with Aygaz. We were meeting with the executives of the Koç Group. Then they offered us a partnership. They were already following us up. Opet’s name had become known in the sector. In fact, back then, I mean in 2002, we had started the Clean Toilet campaign. That campaign had created a tremendous impression. I guess that had caught their attention. At the end of 2002 we have become partners with Koç Group. We always feel the praise and support of the family. Both Mrs. Semahat’s and Mr. Rahmi’s approaches were very important too. The brotherly approaches of the late Mustafa, Ömer and Ali were very important as well. I could say that ours was becoming friends at the same time, beyond commercial dimension. We have created a serious synergy. As a consequence of this synergy, our company started to grow much faster.
“WE ARE A COUNTRY THAT RUNS AHEAD OF TIME ” How do you evaluate the progress of the last 15 years in Turkey from the eyes of a businesswoman? I am a person who always want to be proud of my country. I am uncomfortable with my country’s name to appear among those underdeveloped, or being classified as a developing country. I believe that we are a country that does not run to catch the era, but run ahead of time. For this to happen, investments have to continue. I find the works that serve Turkish people positive. The roads, bridges, and tunnels built are the things that we should be proud of. But what I particularly consider is that they have to proceed in a very healthy manner, and in coordination with somebody. Besides that, I think that, apart from our main truths and objectives, branches to support such objectives must be renewed and acted within a system. “Turkey is a beauti-
“At the end of 2002 we became partners with Koç Group. We always feel the praise and support of the family. We have created a serious synergy. Thanks to that, our company has started to grow much more rapidly.”
ful mosaic,” we say. In other words, I strongly believe that a healthy integrity both in terms of map and geography and in terms of other courses will take us beyond the era that we desire.
“SUN AND WIND MUST BECOME PROMINENT IN RENEWABLE ENERGY” How should Turkey’s energy politics and energy future be? Energy costs have a very important role in the formation of the current account deficit. What kind of policy should we pursue? There are talks about construction of nuclear power plants. What should be Turkey’s energy future policy with Russia? When I look from the perspective of a human, the future of the world is much bigger. For example, the Kyoto Protocol has been pronounced. Global warming has been mentioned, but the world is losing blood every day. It has been said that something should be done jointly in this respect, but even developed countries have not lent to it at the beginning. But now they see that we are losing the world. For that reason, we need to cooperate in order
to protect the world. Certainly, fossil fuels in particular have a characteristic that would affect global warming a little more negatively. Therefore, measures, which would provide us environmental recycling or would delay the warming in our world to be taken. Besides, as a country, our foreign energy dependency should also be reduced. After all, we are a country with goals. We are people who have goals. But as a human, I want to criticize here. We have goals, we have expressions, but when we get in the action, we act individually. We look at it like ‘let always others do, let them do the hard work, and let us watch them.’ We know it from our own industry. When someone sees that a station on the road, where it can tolerate only one station, makes profit, three or four other stations open on the same road. Then, none of them could profit. So, it is possible to give many similar examples. With respect to energy, I sincerely believe that solar power, wind power, as well as alternative energy sources need to be brought forward gradually not only in our country but also all over the world. Fossil fuels will of course be used in vehicles during the process. There are tools to minimize the damage to the environment, and attention is paid to that anyway. In
fuels, it is also necessary to carry out actions to reduce the harm to the environment with additives. We are doing this. In other words, as Opet, we have developed some products that prevent the pollution of nature. We are acting with the thought that the vehicles of the customer who buy fuel from us should be less harmful to the nature. We are performing our works in this direction, and as Opet we are trying to carefully calculate our carbon footprint.
“TURKEY IS THE COUNTRY THAT COLLECTS THE HIGHEST TAX ON FUEL” Despite the drop in oil prices, customers are buying the fuel at steep prices in Turkey. How would you interpret this? In our country the system is established in this way. So to speak, we are in the position of tax collectors. Very high taxes are being paid in our country. Turkey is the country that collects the highest tax on fuel. The customer thinks that the fuel companies sell us the fuel at high prices. The reason of high fuel price is exorbitant tax rates. Tax rates are lower in other countries.
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INTERVIEW NURTEN ÖZTÜRK
Due to the support of Opet, one of the Ekovitrin’s Editor-in-Chief Bilal Koçak and Chairman of the Board of Nurten Öztürk is an admirer of Mevlana. sponsors of the G-20 Summit held in Directors Kamuran Abacıoğlu have visited Nurten Öztürk, the Member of the On her desk, there are figures of Muslim Antalya last year, President Erdoğan Board of Directors in Opet’s administration building in Istanbul, Ataşehir. Saint Mevlana. presented Nurten Öztürk a painting that the hadith “Letüftehannel Constantiniyye, feleniğmel emiru, emiruha, feleniğmel ceyş-u, zelikel ceyş (Istanbul will certainly be conquered. What a beautiful commander who conquers it; what a beautiful soldier who conquers it) was written. This painting takes its place among the pieces which Nurten Öztürk cherishes mostly.
Before initiating the Clean Toilet Project in the year of 2000, the toilets at the fuel stations were extremely dirty, in a condition which you could not step in. While improving physical conditions of the toilets on one hand, we have trained gasoline station personnel and the owner of the station on the other. I think that we have made a significant change in terms of the sector.
With the Green Road Project, we have realized an en- Following the Green Road Project, we have carried out a vironment planning and landscaping at the gasoline project called Model Village. We have gone to Anatolia. stations. We planted trees and flowers around the By means of the Respect for History Project, we have mastation, and greened. We have said, “Every gasoline terialized activities that support physical rehabilitation station should be a green oasis,” and consequently and community development. We have restored historic we have started foresting an area of one and a half buildings. We have restored all the villages within the kilometers around each station. In a way, we have boundaries of the National Park. blazed the trail in the sector.
All the civil society initiatives we have designed and the value we have attached to people have enabled Opet’s brand image to develop and prosper. As Opet, we have made a difference in this sense.
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Nurt en Öztürk
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WHO IS NURTEN ÖZTÜRK? Born in Mengen in 1949, Nurten Öztürk has completed her primary and secondary education in Mengen and graduated from Sinop Girls’ Teacher Training School, Çapa Higher Teacher Education School, and Science Faculty Zoology-Botany Department respectively, and has started to work as a biology teacher in Akşehir Teacher School in 1971. The same year she married her school friend Fikret Öztürk. She has given priority to laboratory studies in all the schools she has been assigned. She has quit her career as a teacher in 1984 and begun to work for Öztürkler Petrol Ltd, a family company that has been established in 1980. Together with her husband Fikret Öztürk, she has come to Istanbul in 1992 and founded Turkey’s first domestic fuel company Opet Petrolcülük A.Ş. The civil society initiatives in which Nurten Öztürk, who has worked in all departments of the company since its establishment, has assumed the leadership of are the activities designed for solving the social problems. Nurten Öztürk, who is the opinion leader and manager of “Clean Toilet Campaign”, “Green Road Project”, “Model Village Project”, “Respect for History” Project,” and Traffic Detective Project” has personally touched the lives of more than twenty million people to date by means of five major civil society initiatives. Nurten Öztürk, who currently continues her duty as the Founding Member of Opet Board of Directors is a mother of two sons and a daughter.
LIFETIME HONORARY AWARD Nurten Öztürk, who was honored with Meritorious Service Medal by the Turkish Grand National Assembly, awarded with “Golden Awards” from Great Britain due to “Clean Toilet” campaign that has concerned over 9 million people, was deemed worthy of “Lifetime Honorary Award” by MediaCat last month. WWW.EKOVİTRİN.COM
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INTERVIEW ALİ KİBAR
NEW
THINKING POSSIBILITIES
ALİ KİBAR Hyundai Assan’s Chairman of the Board
“As the Hyundai family, our export target in 2017 is more than 210 thousand. Decrease in loan interest rates pushes up automotive sales. All the moves which the government shall make in this direction shall contribute to the sector. There is no need to be desperate for 2017.”
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INTERVIEW ALİ KİBAR
“2016
HAS BEEN
A FLUCTUATING YEAR”
Hyundai Assan’s Chairman of the Board Ali Kibar says, “The year of 2016 was an extremely fluctuant year for the automotive sector. The social and political changes that have taken place have greatly influenced the sector. Even if the increase in the foreign exchange rates might have caused uneasiness in the market, the automotive sector will close the year with a slight increase.”
Hyundai, which has been producing in Turkey since 1997, and has an active role in the domestic market, contributes significantly to the country’s economy, employment, and exports especially with its domestic production. Hyundai Assan’s Chairman of the Board Ali Kibar has explained Ekovitrin how the year of 2016 has passed for the automotive sector and 2017 his predictions for 2017. Ali Kibar says that 2016 was a fluctuating year, but in 2017 we should not be despondent. How would the Turkish economy close the year? What are your forecasts for 2017? Parallel to the deceleration in the growth rate of the Turkish economy, there is an increase in the rate of unemployment. The economic slowdown trend has actually started in the second quarter. And in the third quarter, due to the impact of the coup attempt, that economic slowdown has given way to economic constriction. We see that the industrial production index has decreased by 0.08 percent in the second quarter compared to the previous quarter, and by 3.1 percent during the third quarter compared to the previous third quarter. The rise in the unemployment rate as of April is the reflection of this course of the economy. In fact, the picture we are currently in is not all that encouraging, but we must not get desperate. The government needs to pursue more persistent policies, especially on the money markets and industrial enterprises. Besides protecting current investors, it is imperative the government to take encouraging steps in order to have new investments made to the country without any hindrances.
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How will the automotive sector, one of Turkey’s most important export items, complete the year of 2016? Would you briefly evaluate the sector as domestic and foreign markets? At this point, how do you describe Hyundai’s role in this sector? It would certainly not be wrong if we say that the automotive industry is the locomotive of this country. Since the automotive industry steers the economy in terms of production and export, slightest changes that occur seriously affect both the industry and the economy. The year 2016 continues in an extremely fluctuant manner in terms of the automotive industry. The social and political changes which have happened during the year have greatly affected the industry. The recent economic developments in Europe and America, elections and varying exchange rates depending on such events have inevitably caused changes in the figures and market shares. Although the rise in exchange rates cause concern in the markets nowadays, the automotive industry shall show some increase in November and December. I believe that we shall finish the year in figures close to last year. Export figures, in foreign market, is one of the greatest pride sources of our country. The automotive giants that produce in our country contribute to the economy by realizing exports to many countries of the world, mainly to Europe. The total export figure is expected to exceed 1 million. This is definitely a very good news and development both for our country and our industry. I anticipate that these figures shall be slightly increasing next year. As you know, Hyundai is also one of the important brands that has been producing in Turkey since 1997 and has an active role in the domestic market. Particularly along with the domestic production, it greatly contributes to the country’s economy in terms of both employment and exports. Our export figure in 2016 is over 207 thousand. We export our i10 and i20 models, which we produce, to more than 40 countries. The number of vehicles we have exported to date has exceeded 1 million in last September. The countries where we mostly export are Germany, England and Italy respectively. But in the near future we are planning to export to new markets similarly.
“HYUNDAI ASSAN’S 2017 EXPORT TARGET IS TO SURPASS 210 THOUSAND” In 2016, there was a significant increase in exports as well as domestic sales. In your opinion, will this increase continue in 2017? How does the upturn in European economy affect automotive exports? I can say that the export figures in the year of 2017 shall be approximate to this year’s figures. Perhaps by an optimistic scenario, I can estimate that this figure shall materialize at the level of 1,200,000. As Hyundai family, our export target for the year of 2017 is over 210 thousand. My opinion is, unless the economic balances in Europe differ, the process shall be similar. Loan interest rates continue to decrease. How would the decrease in the vehicle loan interests have an impact on the sector? 70 percent of the automotive sector proceeds upon use of credit. For this reason, the use of credit in the sector is extremely important for the future of sales. There are also consumers
who buy with net prompt cash; but the changes that occur in the duo of credit and interest rates remarkably reflect on the sales. Therefore, the decline in interest rates on loans means that sales will identically go up. It is a totally positive situation, and all the moves the government will make in this direction will contribute to our sector, thus accelerate the purchasing process of the consumers. Compared to European and world markets, the number of cars per capita is still far behind in Turkey. When does Turkey reach these averages? People in Europe mostly use public transportation, but the number of vehicles per capita is still higher than ours. Because, there are big differences between per capita incomes. Furthermore, the tax system abroad is different than the one in our country. There, it is possible to buy a car at a lower price on easy terms of payment along with tax related conveniences arising from their tax system. In order to increase the number of vehicles in our country, the current tax system has to be downscaled, the exchange rates, and loan interests should progress at
low level. When these criterions are fulfilled, there is no doubt that the number of vehicles would also increase in our country.
“PRICE INCREASE ON IMPORTED VEHICLES IS INEVITABLE” What is the effect of fluctuations in foreign exchange rates on car sales? In order to have a noticeable increase in the sales of vehicles, what is the level of foreign exchange rates should be? Currently 70 percent of the vehicles sold in our country are imported vehicles. The slightest changes in the exchange rates certainly affect stocks and sales directly. Against rapidly rising rates, it is inevitable the brands to increase their prices. This affects domestic manufacturers as well. Because, even if the production is made in our country, differences in the exchange rates in the cost of the subsidiary industry and similarly related suppliers will naturally increase the prices of the domestic products. For this reason, the fixed exchange rate which follows a low trend positively affects the level of sales.
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INTERVIEW ALİ KİBAR
“TURKISH CONSUMERS PREFER SUVS” What are the criterions that Turkish people prefer when buying cars? In recent years, the Turkish consumer has begun to go towards SUVs rather than sedan models. One of the main reasons for this is that they want to be safe with higher vehicles in traffic. Larger interior and capacity of the luggage at the same time are the most important features for consumers. In addition, another factor for the rise of this trend is the consumers’ desire to have a more stylish automobile as a symbol of status. The small, diesel-powered, automatic alternatives available on the market have an important share in the rapid rise of the segment. A similar rise is also noticeable in Europe.
“WE HAVE A 70 PERCENT MARKET SHARE” With how many types of vehicles in total does Hyundai serve in Turkey; which of your makes are more preferred? What are the reasons of preferences for that model? Hyundai realizes its sales by 10 different passenger car models in Turkey. From A-segment to the largest SUV segment, there is an appropriate product for every use and every budget. As Hyundai, we have about a 70 percent market share in the A-segment with our i10 model. Apart from this important leadership of ours, our i20 model in the B-segment is ranked among the top three top selling small vehicles in our country. Our sedan models Elantra and Accent Blue are also our most preferred models. We also compete in
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the rapidly rising SUV-C segment with our Tucson model. This model of ours sustains it leadership among gasoline powered SUV models.
“IN 2017, WE SHALL MAKE A BREAKTHROUGH BY OUR MAKE İ30” Would you please brief us about your new makes? I think that in 2017, Hyundai shall make a breakthrough with the new i30. İ30 is one of the most important players in the C-Segment, and it is one of the most preferred and favored makes thanks to its quality, comfort, and stylish design. Therefore, it is our most important novelty which we shall be offering to the market. Our new make i30, which we have recently launched, likewise come to the forefront as one of our innovations for the year 2017. Will Hyundai reach its targets in automotive sales in Turkey in 2016? Can we get the target, expectations and investments for 2017? As Hyundai, we anticipate that we will reach our targets for 2016. It is hard to predict for now for the next year. In addition, we reached up to 245 thousand products by expanding our production capacity three years ago. We currently do not have a new investment plan for our factory in Izmit. Our production processes will contiune with our current capacity and models. With the newly updated Special Consumption Tax system, it is possible to say that the market will contract by 10 percent compared to 2016 and that there will be some decline in the luxury segment in particular. As a result, this will make middle segment models more preferable.
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The automotive giants that make production in our country contribute to the economy by realizing exportation to many countries in the world, notably to Europe. The total export figure is expected to exceed 1 million. For sure, this is an extremely good news and development for our country, as well as our industry.
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