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TURKEY
ACC1Ó Istanbul
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Capital: Ankara Government: Parlamantery DemocracyPopulation: 74 millons (2010)Average Age: 29,2 (2010)Official Language: TurkishLand Area: 783.562,38 km² Hours: GMT +2Main Cities: Istanbul (13,3 millones) Money: Turkish Lira (TRY)
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• Turkey is a rapidly developing country and the largest national economy in Central and Eastern Europe.
• Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector.
• The Turkish economy has shown remarkable performance with its steady growth over the last eight years.
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With extensive projects under way, a growing economy and strengthening export market, Turkey is living up to its billing as the
“China of Europe.”
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Main Economic Indicators
• Its diversified economy,
• Proximity to Europe, Middle East, North Africa and Eurasia,
• Integration with European markets,
• Young and vibrant work force,
• Crisis experienced businessmen and economy management
makes Turkey one of the most powerful economies in the region.
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Market and Consumption
• The turkish market is very dynamic and the motivation for the consumption is very high. Comparing to the Eastern European markets, the turkish market has a larger capacity and comparing to the markets like Germany, France and Italy , as size of the market ,it has a very promising future.
• Although the average income is much lower comparing the big markets of Europe , the consumers give a priority to the luxury consumption. Only in the Marmara Region where Istanbul is the center, 8 million consumers’ consumption habits are very similar to Europe and average product price in sales is higher than in Spain.
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Market and Consumption
• Turkish industry’s first commercial partner is Germany, the second is Italy. The industry buys quality machinery from Germany and Italy and from the rest of Europe. Obviously the interest to colaborate with far east countries is also growing very rapidly.
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Turkey and Neighbouring Countries
• Turkey geographically is as big as France. The distributor usually works with its own branch offices or agents for other regions than Istanbul.
• All the neighbouring countries like, Rusia, Azerbaijan, Kazakhstan, Gulf Region, Iran, Iraq, Turkmenistan are the natural markets of turkish
distributors and importers.
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Near to important markets
• Istanbul is a base for many international companies and only 2,3,4 hours of journey from Fankfurt, Paris, Milan, London, Brussels, Dubai, Moscow, Almaata , Astana, Baku.
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Market
• Is there a market for my product?
• Posibly, yes.
• Why?
• The European products are widely sold products for having good reputation and Catalan products are warmly welcome with very positive image based on the projects realized by Acc10 Estambul.
• It requieres more dedication and a consistent work in the first year. The relation with your partner will be intense. In some cases, several visits to the market is necessary.
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Representatives / Agents and Distributors
• Based on the product and its position in local market, companies should decide either to open an office or work with a local representative.
• Agreements with the agencies under Turkish law are private contracts between two parties and their stipulations vary with the mutual agreement.
• In most cases, companies prefer to be an exclusive distributor / agent.
• Representatives / Agents commission, should periodically visit their customers together with the companies they represent, to maintain strong personal ties, and this is a very important tool in the Turkish market.
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Company Structures
• Family
• The most essential social unit in Turkish culture is the family.
• A Turk’s personal life is dependent on and revolves around family, friends and other community groups. These, in turn, command one’s opinions and decisions.
• Many businesses in Turkey are still family-owned and run and the concept of family connections and influence is apparent during business exchanges in Turkey.
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Company Structures
• Polychronic time
•Turks tend to juggle several activities and issues at the same time and continue multiple conversations simultaneously.
•In a Turkish business environment, it is not uncommon for phone calls to be taken during scheduled meeting and for people to enter the meeting room without invitation.
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Timing
• Timing
• It is important to schedule business appointments in advance to ensure that you avoid Turkish holidays. Try not to make appointments during Ramadan (the fasting period)
• The months of July and August as these are the most common times for Turkish business people to take their annual holiday.
• Punctuality is taken seriously in all business contexts; therefore you should call ahead if you expect to be delayed.
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Greeding and Hospitality
• Initial meetings should always concentrate on relationship building.
• Engage in some light conversation to establish rapport.
• Questions about children will be welcomed.
• The Turks are proud of their country and will enjoy answering questions on their culture and history.
• Most Turkish men love soccer and usually support one of three teams: Galatasaray, Besiktas or Fenerbahçe. Asking after their team's recent fortunes will always produce lively and animate responses.
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Greeding and Hospitality- Cont.
•When doing business in Turkey it is likely you will be taken to restaurants. Turks enjoy food and the meal is a time for relaxing and engaging in some good conversation. The host always pays for the meal. The concept of sharing a bill is not usual.
•The extra time is required for plenty of face-to-face meetings, many more than would be usual in Cataluña, and lots of small talk, conversation, and wining and dining.
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•Business is personal in Turkey. Although this is changing with the more corporate culture in some of the larger companies, many businesses are still family owned and run.
•Turks will look at doing business with those they like, trust, feel comfortable with and with those that can provide a long term relationship.
•As well as looking to the person, Turks are also clever business people. Ensure your proposal clearly demonstrates the mutual benefit and profitability of any agreement or partnership.
If you are going to Turkey to do business, know two things. Your success is defined by your ability to build effective personal
relationships combined with a clearly outlined and well presented proposal.
NEGOTIATION
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• If your doing business in Turkey involves negotiating,
• it may not always be necessary to focus on financial benefits.
• it is just as useful to point to areas such as power, influence, honour, respect and other non-monetary incentives.
• It is most likely that you will meet and negotiate with senior members of a family. Turkish business people want to meet directly with the decision maker in foreign company, even close the deal right away.
• Send your top person to meet with their top person. This would be also indicative of how much you value your prospective business in Turkey.
NEGOTIATION
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OTHER ISSUES
• Legislations and regulations changes very often. Adaptability to the changes will be required.
• Be always behind their importer/ distrubutor and try to help solving local problems and obstacles.
• Flexibility is the key to do business in Turkey. (Logistics, production, customer requirements, preparing new paperworks if needed, etc)
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OTHER ISSUES
•Even though the market size seems big, all players and customers are well known by the distributor / agent who works in the sector. Thus, companies always require to be the exclusive distributor / importer.
•Most of the time, searching for a second agent / distributor always has a negative impact on the international company. Problems most probably occur;
• different pricing • Different payment conditions or services, etc.
•Turkish business people makes emotional decisions. Financial benefits are not always the prirority.
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MUCHAS GRACIASALI KAHVECIOGLU
ACC1Ó A BARCELONA
Passeig de Gràcia, 12908008 Barcelona
Servei d’orientació a l’empresa902 62 77 [email protected]
ACC1Ó A CATALUNYA
Comarques CentralsTel. 938 777 [email protected]
GironaTel. 972 940 [email protected]
LleidaTel. 973 728 [email protected]
TarragonaTel. 977 251 [email protected]
Terres de l’EbreTel. 977 449 [email protected]