Istanbul
20 October 2007
Economic performance in Turkey in recent years has not gone unnoticed by global franchising leaders. Turkey’s journey in franchising, began in 1985 by the real estate company Turyap, has transformed into a $30 billion sector today
The fast-increasing purchasing power and consumer awareness that has accompanied Turkey's solid economic growth in recent years has whet the appetites of foreign franchising companies who are rushing to get a piece of the pie.
Now worldwide brands are coming to the country to invest in the food, textile, coffee and real estate sectors.
Dalmayrr of Europe, for instance, has made an investment of 50 million euros and Delimanjoo of Korea, a producer of special cakes, will enter the Turkish market soon. Kochlöffel, one of the well-established firms in the German fast food sector known for its roasted chicken, is knocking on Turkey's door as well.
The Paris-based Diet Coach of healthy living is coming to teach people “how to remain healthy and thin.” A delegation of top-level managers from 25 German brands will arrive soon to conduct market research.
International brands got interested when consulting agencies started making investment plans in the country. Franchise-Net, therefore, took the initiative and stepped into the Turkish market.
The sector grows to $60 billion
A total of 800 firms provide franchising services, 200 of which are foreign firms. The sector has a volume of $30 billion but is set to grow to $60 billion by 2010, according to research conducted by the Franchise & More consulting company.
A franchising fair that has been held since 2005 in Turkey will host many companies this year as well, 15 percent of which are international brands here to get a feel of the current prevailing atmosphere. Increasing public awareness, a young population, openness to innovation and a growing economy attracts these brands to invest here.
Germans are influential in Turkish franchising market
German Franchise-Net started business in 1996 and has provided services in 15 countries to date. Franchise-Net Turkey General Manager Halil Yelek said franchising is a niche in the world, except the United States, and about 1,000 companies in Germany are in the franchising business. The most important problem in the sector is branding, he added.
Boom in franchising expected
“In the last four years the number of franchising companies in Turkey has increased four-fold,” Yelek said. He added, “there is a serious awakening in the sector. As soon as the awareness blossoms the most effective communication tool, the Internet, will be the stage of a boom in the franchising business.” Turkey has 46 members in the Franchise-Net, 350 in the Franchise & More and 200 members in the franchising fair.
Subway launches raid, targets 80 stores
Sandwich chain Subway has 30,000 stores in 86 countries. Turkey Subway Franchise and Development Agent Nilay Çetin said the company aims for 10 stores in Turkey by the end of 2007. “Right now, we have six stores and within the next seven years we aim to have 50 stores in Istanbul and 80 nationwide,” Çetin said.
In the last two years, Subway has left McDonalds trailing behind, both in terms of franchising and number of stores.
Dalmayrr to invest 50 million euros
One of the most assertive international brands seeking investment opportunities in Turkey is the German Dallymayr Kafe. The company that is well-established across Europe has initiated plans to invest 50 million euros in Turkey.
Dallmayr Turkey General Manager Akın Güngör said they decided to invest since demand for coffee has increased in Turkey and by 2008 Dallmayr will have 35 sales points.
Franchise academy founded
For further information and experience in the field of franchising, a franchising academy has been founded at Istanbul's Aydın University. The National Franchising Association (UFRAD) will train young entrepreneurs interested in the franchising business. UFRAD's Vice President Osman Bilge said the number of applications is quite satisfactory and they will roll up their sleeves to educate entrepreneurs in classes that hold 20 students each.
Brands set to enter Turkish market
DELİCE
Active since 1998 in the Korean fast food sector, Delimanjoo will provide franchising services in Turkey. The company is a fitting example of an appropriate business model for small places.
KOCHLÖFFEL
German Kochlöffel will provide franchising services in Turkey. The company is making a total investment of 300,000 euros, including decoration expenses in Turkey. Most of Kochlöffel branches are located in malls on busy avenues.
Source :
www.turkishdailynews.com.tr
