S. Korean Daewoo brand courts Turkish customers
Posted by meb at March 11th, 2008
South Korean Daewoo Electronics is preparing for entry in to the Turkish electronic and household appliances market — a crucial market that the company sees as a springboard to reach further into markets in the Middle East and Central Asia.
Murat Gelgeç, the general manager of Demaks, Daewoo’s main distributor in Turkey, noting that they made their decision to invest in Turkey at a time of contraction in the household appliances and electronics sector, said, “South Koreans are amazed at [Turkey’s] economic stability and growth rate.” The company currently has production facilities in the UK, Spain, Italy, Hungary and Romania, and its products are preferred by affluent consumers in Europe and the US. Daewoo’s goods have great appeal to Turks, as well. Gelgeç claimed that their customers have already lined up to buy their fridges, washing machines, and LCD and plasma TV sets straight from Spain, “We’ve sold 70 percent of our anticipated stock,” he noted. He explained that faced with this great interest, Daewoo has plans to initially open nine shops, the number of which will jump to 50 by the end of the year. Describing Daewoo as a true South Korean tiger, Gelgeç indicated that they planned to see their products available at every point of sale and in all technology markets across Turkey. As the company will establish chain stores, wholesalers are awaiting its entry with anticipation. However, Daewoo’s entry will predictably undermine the high profits of the distributors of other brands, Gelgeç acknowledged, citing as an example the prices of 32’’ Flat LCD flat-screen televisions. The prices of these televisions have been stagnant for five months, but companies have started to cut prices due to the increasing competition with Daewoo’s entry into the market he said.
Daewoo was roots going back to 1967, with 64 production facilities and 40 R&D centers worldwide.
source: Today’s Zaman
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