Market Trends of Turkey E-commerce Industry
This section covers the major market trends shaping the Turkey E-commerce Market according to our research experts:
Fashion Industry to have a Significant Growth in the Country
- Fashion and fashion Apparel products are some of the most targeted product categories on Turkey's e-commerce website. Additionally, according to the Turkish Statistical Institute and the ministry of trade, apparel exports from Turkey increased by 14.71% Y-o-Y in January-February 2022. Turkey has exported apparel worth USD 3.074 billion in the first two months of 2022, compared to USD 2.680 billion in 2021.
- The Turkish fashion industry seems dominated by multi-category retailers, online marketplaces, and private shopping sites. Renowned online stores in Turkey are Hepsiburada, Gitti Gidiyor, Trendyol and Araba.com. Also, the online store is cost-effective and has a low monthly cost of these websites compared to opening an actual store. These factors contributed to passing on the low-price benefits to the customer.
- Many brands also focus on extending their business in other regions as a business expansion. For instance, in May 2022, Trendyol, a Turkish eCommerce firm, opened its first office outside of its home country in Berlin. The company is also focusing on opening offices in Amsterdam and London by 2023 and will be hiring 200 employees in Berlin. Additionally, Trendyol will focus on fashion, with the expectation of offering more categories In Germany.
- In addition, the E-commerce industry is experiencing growth in the forecast period. For instance, according to eticaret.gov.tr, the percentage of e-commerce retail in Turkey reached 20.4% in December 2021, while in January 2020, it was around 11.7%.
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Advancements in Technology to Propel Market Growth
- The Increasing internet penetration and the growing use of smartphones are expected to support the growth of the e-commerce sector in the country. Change in taste of consumers towards online buying as the smartphones and Internet has become more widely used. According to the survey done by the Turkish Statistical Institute, 92% of the households had access to the Internet from home in 2021, which was an increase from 90.7% in 2020.
- Additionally, according to eticaret.gov.tr., the Ecommerce sales value from Household & small appliances and appeals & footwear accessories in the first half of 2021 were the top contributor to e-commerce sales in Turkey, followed by electronics, supermarket, and food. Household & small appliances sales were around TRY 22.4 billion while appeals & footwear accessories sales were at TRY 10.9 billion.
- With the growing use of smartphones and tablets in the country, online retail eCommerce continues to grow. Thanks to technological advancements such as 5G wifi, branded shopping apps, and social shopping, people can shop on their phones.
- Several e-commerce companies provide virtual try-on solutions primarily for the Beauty and Retail markets. Also, other features such as push notification for change in price and stock has made it convenient for customers to get information with just a click. All of this will support the growth of the eCommerce market in Turkey.
