TURKISH WHITE GOOD INDUSTRY

1. TURKISH WHITE GOOD INDUSTRY Duygu Kıran Özlem Kuzey

2. OUTLINE • General overview of the White Good Industry • Definition • History and Growth of White Good Industry in the World • History and Growth of White Good Industry ın Turkey • Turkish White Good Industry • Structure of White Good Industry • Conduct of White Good Industry • Performance of White Good Industry • The Role of Government Policy • The Problems of Turkish White Good Industry • Suggestions • Conclusions

3. White good is a large machine that accomplishes some routine housekeeping task which includes cooking, food preservation or cleaning whether in a household, İnstitutional,commercial or industrial settings.

4. The Evaluation Of White Goods industry; 1874: William Blackstone invented the first washing machine which was made from wooden and worked by human force. 1893: In Chicago World fair first motor-driven dishwasher was introduced. 1908: The first electric dish washer and electirc oven were producedç 1914: First electric refrigerator was produced 1930: first deep freze entered the market. 1937: First automatic washing machine was produced. 1958: First no-frost, automatic freze refrigerator and deep freze entered the market. 1977: Electronic and touchscreen washing machine and refrigerator were produced

5. Hıstory and Growth of White Good Industry in Turkey • 1955:First white good firm is established. 1959:First washing machine 1960:First refrigerator 1963:First oven • After 24 Jan. 1980:developing white good industry. • 1990: Turning point of the industry.

6. The structure of White Good Industry • Names,Numbers • Market Shares of Firms • Products and Product Differentiation

9. Products and Product Differentiation • Main white good products: • Refrigerator • Dishwasher • Waching machine • Oven

10. Products and Product Differentiation • Refrigerator: no-frost, double door,table top refrigerators,single door,side by side,nostalgia models • Washing machines:capacity of laundry between 3 and 10 kilograms • Dishwasher:normal, combi and narrow • Ovens :double parts and single cavity(narrow, fan heating, electric with fun,multifunctional).

11. Conduct of White Good Industry • Business Objectives • Pricing Policy • Branding and Marketing • Research and Development

12. Business Objectives • Mission : Economical apropriate, innovative and competitive products. • Vision : Generating strategies and making profits.

13. Pricing Policy • Big export capacity with exporting the %60 of • productions. • All brands in the world produces in Turkey. • Foreign firms import the white goods from Turkey.

14. Branding And Marketing • An example of the marketing study in the white good • industry: • Vestel Marketing has a structure that emerge 7 parts: • sales, marketing, services and operation, finance, • information and risk control, information technologies and human resources. In the part of service and operation, Vestel marketing realized that products distributes rapidly and actively.

15. Branding And Marketing • Vestel marketing uses three different distribution channels: • Main distribution channel which is a dealer group consists of stores and showrooms. • Second distribution channel is wholesalers. • Third channel consists of big retailers like Carrefour, Metro, Praktiker, Tansaş and Maxi.

16. Research And Development • An example for R&D study in white good industry is; • Arçelik R&D, which works at global standards for • technology and product development, focuses on products • that: • Are environment-friendly (recover, recycle, reuse and • low energy, water and detergent consumption), • Ensure comfort and customer satisfaction • (smart, quiet, practical), • Are affordable and comply with the standards of the • future.[1] • [1] www.arcelik.com.tr

17. Research And Development • Another example for R&D study is Vestel R&D study; • Vestel invested in five points (England, USA, Hongkong, Manisa, İzmir) in the world for R&D projects. It’s aim is pursuing the growth in the world closely.[1] • [1] www.vestel.com.tr

18. THE PERFORMANCE OF WHITE GOOD INDUSTRY Profitability And Growth Production Export Import Domestic Sales Quality Of Productions Technological Progress

19. Profitability And Growth • Production of White Goods ** Source: TURKBESD

20. Profitability And Growth • Export of White Goods

21. Profitability And Growth • Import of White Goods

22. Profitability And Growth • The Comparison of Export And Import of White Goods

23. Profitability And Growth • Domestic Sales of White Goods

24. Quality of White Goods • Quality of products is important in White good industry because it effects • Brand • Consumer Satisfaction • Competition • Market Share

25. Technological Progress In general, the cheap technologies which are improved in aero-automotive sectors are adopted to white goods. That kind of technological improvement activities are used to develop the products for competition and to reduce the costs.

26. THE ROLE OF GOVERNMENT POLICIES Government incentive application should be raised for developing white goods industry. Because; • In white goods industry, the %80-90 of the ancillary industry firms are small and medium scale firms (KOBİ), investments seem impossible without government incentives for KOBİ.

27. THE PROBLEMS OF TURKISH WHITE GOOD INDUSTRY AND SUGGESTIONS • Problems:Like every industry, Turkish White Good Industry meets some obstacles and has some problems; • White goods are appraised like luxury consumption goods and the tax rates are high about %25 which causes decrease in sales. • In the white good industry, the sales of raw materials with high price is a serious problem for the development of industry. • Satisfaction level of television and refrigerator approaches to %100. The demand for refrigerator as a white good can increase only if high-tech products are produced.

28. THE PROBLEMS OF TURKISH WHITE GOOD INDUSTRY AND SUGGESTIONS • In the white good industry, the most important negative factor is the general situation of economics and change in income distribution. The decrease in purchasing power of customers causes the deceleration of the growth rate of domestic market.

29. THE PROBLEMS OF TURKISH WHITE GOOD INDUSTRY AND SUGGESTIONS • Suggestions:Some suggestions which can help to overcome the problems of industry are; • High tax must be removed for consumption goods. For this reason, consumption goods and basic necessity must be separated. • All producers have recognized the importance of export for the development of the white good industry. Firms must find new foreign markets to provide the continuity of increasing export. • Sellers must be adapted to changing the marketing structure.

30. THE PROBLEMS OF TURKISH WHITE GOOD INDUSTRY AND SUGGESTIONS • Personnel and the employees must be trained to fulfill the quality product and efficiency by the implementation of professional education project. • The producers and ancillary industry must concentrate on standards and quality control. • For stable growth, firms must prepare a production and sales plan which includes energy savings, simple usage, after-sale service and convenient price factors in production and sales stages.

31. CONCLUSION • Turkish White Good Industry firms compete with global markets by producing high-quality products. They follow the technological, design and quality improvements and join in world fair organizations in order to give the new products publicity. • In long term future plans, the growth rate of white good market is expected about %7 per year. With this foresight, after ten years, with 15 million production capacity and 6 billion Euro endorsement, Turkish White Good Industry will have the %25- %30 of market shares in Europe market. With the same foresight, the employment rate is expected to be about 200 thousands.