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NEWSLETTER 2011
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the legislation of European countries were important targets to accomplish
within this sector examination study and subsequently concluded report
conducted by the Board.
Findings and proposals stated in the Preliminary Report are explained
below.
Turkish FMCG Retail Market
The FMCG Retail Market enlarged significantly and made progress
since the 1990s in Turkey. However this progress is not as evident as that
in the European countries. As a matter of fact, the shares of organized
retail in the retailing FMCG has increased only TRY 20 billion: total
trade which was TRY 72 billion in 2004 has exceeded TRY 93 billion
in 2009. While the weight of organized retail was around 30% in 2004,
it surpassed 43% in 2009. These numbers are relatively inferior to the
figures s of the European countries.
As for the concentration rates in the retailing of FMCG, they are still
very low when compared to those in European countries. The total market
shares of the four largest retailers (hereinafter referred to as “CR4”) are
91% in Sweden, 68% in UK, 67% in Germany, 65% in France, 50% in
Hungary and 20% in Italy, while it is 14% in Turkey. CR4 concentration
rate within organized retail in Turkey is 32%.
Buyer Power in the FMCG Sector
One of the paramount competition concerns posed in the present
FMCG sector is the difference of economic power level in between the
supplier and the distributor such as purchasing, bargaining and managerial
power. Indeed, with the development of this sector, the distributors or
distribution groups have vigorous economic powers and impose their
prosperous commercial conditions to producers, suppliers or providers.
The main obstacles encountered on the buyer power in the Turkish
FMCG Retail market are as follows:
• Fees are demanded from the suppliers under various names such
as listing fees, shelf fees, demo area fees (such as gondolas, pallets,
shelf position placement in accordance with traffic within the