Turkey has seen strong growth in eCommerce, with online retail sales growing at a 35.5% compound annual growth rate since 2008. Key factors driving this growth include high rates of internet and mobile internet penetration among Turkish consumers, widespread credit card usage, a strong logistics infrastructure, and social media-savvy consumers under 35. While eCommerce still only accounts for a small portion of total retail spending, Turkey is well-positioned for continued expansion in online shopping due to strong underlying demand and technological adoption trends.

1. «Digital Bosphorus»
The State of Turkish eCommerce 2013
Sina Afra

2. Turkey continues to be an attractive market for eCommerce
Market Size
36 M
Internet Penetration Internet Users Quality
Ranked #9
47% - Ranked #11 Market Attractiveness
10 M
Online Shoppers
(I) (II) (III) (IV)
Driving Credit Card Excellent High Mobile Viral Paradise
Forces El Dorado Logistics Internet Usage
#2 in Europe Next day 62% YOY Growth Ave age 28,
in credit card delivery is in 3G Subs Top-10 in Social
penetration standard Networks
Turkey is more Turkey is more Turkey is more Turkey is more
US than EU EU than US Korea than EU Japan than EU
CAGR: 35.5% since 2008 & Forecasted to be 16.8% until 2016
Source: Euromonitor, http://internetworldstats.com, Internation Telecommunication Union, Planet Retail, World Bank, World Economic Forum; A.T. Kearney analysis,
Euromonitor, http://www.bkm.com.tr, http://www.slideshare.net/kleinerperkins/kpcb-internet-trends-2012
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3. Internet Penetration:
With 36M, Turkey is in the Top 20 for Number of Internet Users...
... and ranks #11 in Internet Penetration
Source: http://internetworldstats.com/
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4. Market Attractiveness:
Turkey is ranked #9 in A.T. Kearney’s 2012 E-Commerce Index
0 = low 0 = poor 0 = no digital 0 = undeveloped
attractiveness infrastructure laws retail market
100 = high 100 = developed 100 = strong 100 = developed
attractiveness infrastructure digital laws retail market
Source: Euromonitor, Internation Telecommunication Union, Planet Retail, World Bank, World Economic Forum; A.T. Kearney analysis
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5. Driving Forces I:
Credit Cards and POS Terminals are Everywhere
Source ECB, BKM Online Strategy & Economic Analysis Unit - (Turkey), Finarket.ru – (Russia), IFC Mobile Money Scobing - Country Report 2011: Brazil,
Reserve Bank of India, http://www.gaoresearch.com/POS/pos.php, http://www.census.gov/compendia/statab/2012/tables/12s1187.pdf
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6. Driving Forces II:
Turkey has an Excellent B2C Logistics Infrastructure
Source: http://www.utikad.org.tr/haberler/?id=8473
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7. Driving Forces III:
Turkey is ready for the Mobile Revolution in 2013
* Represents ten European countries ***88% mobile penetration – 66M users
**37 M useres own 3G capable devices
Steve Wozniak: Turkcell 3G is faster than 4G networks in US
Source : Turkcell; http://www.gencbusiness.com/gbp-haberleri/2046_cepten-internete-girenlerin-say%C4%B1s%C4%B1-artarken.html;Sureyya Ciliv ---
http://www.dld-conference.com/news/dld-events-related/dld-bosporus-one-night-in-istanbul_aid_3380.html;http://en.teknoblog.com/communication/steve-
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wozniak-turkcell-3g-is-faster than-4g-networks-in-us.html;http://www.slideshare.net/kleinerperkins/kpcb-internet-trends-2012

8. In Turkey, banks are leading the way, and there is much potential for the rest…
Source: Evolution of M-Commerce – Fatih Isbecer, http://mobilike.com/wp-content/uploads/downloads/2012/11/madreport_Q3_2012.pdf
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9. Driving Forces IV:
Turkish Internet Users Love Social Media
Turkey ranks 7th for Facebook users Turkey ranks 11th for Twitter users
Source: http://semiocast.com/publications/2012_01_31_Brazil_becomes_2nd_country_on_Twitter_superseds_Japan,
Socialbakers, http://www.appappeal.com/maps/facebook
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10. Driving Forces IV:
Turkish Internet Users Love Social Media
Turkey ranks 14th for YouTube users Turkey ranks 20th for Pinterest users
Source: Pinterest http://www.appappeal.com/maps/pinterest, http://www.appappeal.com/maps/youtube
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11. Growth:
Turkish eCommerce has Enormous Potential
If TR were to reach
Turkey Now Turkey F2016
EU averages
Internet 36 M 48 M 42 M
Penetration 47 % 63.5 % 53 %
E-commerce 10 M 31 M 16 M
Users
28 % 87 % 36 %
Online Spending
182 EUR 567 EUR 209 EUR
per Internet User
Source: http://www.itu.int/ITU-D/ict/newslog/CategoryView,category,e-shopping.aspx, http://mashable.com/2011/02/28/forrester-online-sales-europe,
http://www.tuik.gov.tr, http://www.iabeurope.eu/news/4269m-europeans-online-across-28-markets-%E2%80%A6-from-belgium-to-bulgaria-uk-to-ukraine---
11 europeans-are-more-connected-than-ever before.aspx; http://internetworldstats.com,

12. Turkey’s Online Retail Growth is 2x the Global Average with 35.5% CAGR
Turkey’s Online Retailing is forecasted to grow by 16.8% annually until 2016.
Source: BKM; http://blog.euromonitor.com/2012/08/turkeys-e-commerce-sector-boosted-by-economic-growth-and-young-populace.html
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13. B2C Online Spending was 15 Bn TL in 2012
Soucre: BKM
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14. Share of Online Retail to Total Retail by Country
1,200
Source(s)
Turkey http://www.deloitte.com/assets/Dcom-Turkey/Local%20Assets/Documents/turkey_tr_cb_retailsectorupdate_040612.pdf, http://blog.euromonitor.com/2012/08/turkeys-e-commerce-sector-boosted-by-economic-growth-and-young-populace.html
USA http://mashable.com/2012/02/27/ecommerce-327-billion-2016-study/
UK http://www.ons.gov.uk/ons/datasets-and tables/index.html?pageSize=50&sortBy=none&sortDirection=none&newquery=retail&content-type=Reference+table&content-type=Dataset; http://www.bis.gov.uk/policies/business-sectors/retail,
http://www.sas.com/offices/europe/uk/downloads/press/sas-verdict-retail2012.pdf, 1 http://www.retailresearch.org/onlineretailing.php
Russia http://www.slideshare.net/YandexBusDev/ecommerce-jan2013
Brazil http://www.thomaswhite.com/explore-the-world/bric-spotlight/brazil-retail.aspx,
http://blog.shop.org/2012/01/16/brazil-and-china-emerging-online-retail-powerhouses/
India http://www.business-standard.com/india/news/indian-retail-sector-outlook-in-2012-stable-fitch/155599/on, http://gain.fas.usda.gov/Recent%20GAIN%20Publications/India's%20Food%20Retail%20Sector%20Growing_New%20Delhi_India_4-24-2012.pdf,Forrester Research
Online Retail Forecast, 2011 to 2016 (Asia Pacific)
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15. Most Visited Websites in Turkey – Domains & eCommerce
Source: comScore 09/01/2013 – Avg. Unique Visitors Sep’12 – Nov’12
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16. Interesting Facts about Turkey’s Shopper Profile - I
40% 50%
of shoppers prefer of shoppers aggressively
luxury items bargain when they shop
This ratio
decreases with 42% of shoppers like
social status to try new
brands and shop
for new items
40% 44% 30%
of shoppers are
willing to pay a
premium for
of shoppers
look for items
of shoppers go
for the
31% of shoppers consider
their favorite on sale. cheapest item fashionability of an item
brands.
as a major criterion in
their purchase decision.
Source: 2012, İpsos KMG-Türkiye’yi Anlama Kılavuzu
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17. Interesting Facts about Turkey’s Shopper Profile - II
10% of 14-35 17% of 14-35
year old women are year old men are
taller than 1.70 taller than 1.80 m
1.70 m 1.80 m
35% of men
31% 47% of women
of women consult others
while shopping
wear shoe size 38 wear shoe size 42
Source: 2012, İpsos KMG-Türkiye’yi Anlama Kılavuzu
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18. AT Kearney Top-10 E-Commerce Index Markets
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19. Disclaimer
• This analysis was prepared by markafoni – the leading flash sales and online fashion group in
Turkey. Please do not hesitate to share your comments or feedback sina@markafoni.com
• Please use the content of this presentation but disclose your source as «The State of the
Turkish eCommerce 2013, by Markafoni »
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