Seizing the opportunity amid crisis
Posted by meb at November 5th, 2008
While the economic crisis becomes a nightmare for many Turkish companies, others interpret the hardship generated by the financial crunch as a great opportunity for growth and expansion. The firms that gained experience from the 2001 economic crisis in the country, are now able to create advantages out of the recent turmoil.
Instead of allowing the global economic crisis to turn into a nightmare, some Turkish firms have preferred to see the current turmoil as the creation of opportunity.
Unlike many Turkish companies that have downsized, suspended investment and dismissed staff, some have continued to move toward growth, by keeping consumer demand in mind and by offering favorable prices. Firms that emerged from the 2001 economic crisis slowly growing in the shadows now have a loyal customer portfolio and are ahead of competition in terms of creating brands.
Simit Sarayı, whose star shined during the 2001 crisis as an address offering affordable food, has signalled plans to open new branches both at home and abroad. The firm, which started its journey with just five staff members at a tiny store, selling simit, a ring-shaped bread covered in sesame seeds, currently employees 1,500 people in 65 stores countrywide.
“Our aim was to sell simit for the same price it is sold on the streets. The 2001 crisis made this possible (with the fall in rental prices),” said Haluk Okutur, chairman of Simit Sarayı. Meanwhile, during better economic times, the firm focused on creating a brand for itself and offering a comfortable place for costumers, he said. The recent crisis has not affected the firm, Okutur said, adding the aim was to open 50 branches each year and speed up projects abroad.
Okutur advised other firms not to close up shop. “It would be a real blow if firms restricted their moves based on their fear of the crisis. It is crucial to introduce structure and remain open to innovations during such periods.”
Price policy
LC Waikiki, which has become Turkey’s largest clothing chain offering affordable prices as a result of the 2001 crisis, also plans to expand abroad. LC Waikiki is among firms that created advantages from the 2001 crisis, said Hami Cilara, marketing manager of the firm.
“Prior to the crisis, we had focused on growing in the domestic market via the wholesale market. We had 20 stores, but lacked retail identity.” During the times of crisis, the firm realized it was impossible to create brands with that structure, Cilara said. “With a rapid decision, we standardized the brand and designed a more suitable price policy. We are now collecting the fruits of those decisions.”
The firm has been growing 40 percent each year and aims to add 10 more stores to its existing 215 stores this year, Cilara said. In addition, the company will seek to open 50 new stores in 2009 and focus on external markets in 2010, he added.
In times of crisis, Koton, a leading Turkish enterprise in the retail clothing industry, aims to grow its Winmax brand, which offers favorable prices. During this period, brands that offer competitive prices may loom large, said Koton Chairman Yılmaz Yılmaz, adding the decline in rents may introduce new brands in shopping centers.
“Europe, which requires rapid production, may look to Turkey rather than the Far East. The firms that offer rapid and quality production may move ahead during this period,” he said. Koton, which had nine stores in 2001, currently has 130 stores at home and 55 stores abroad.
Crises offer the best periods for changes in strategies, said Ece Ege, one of the creators of Dice Kayek, a world-renown fashion brand. “Products with added value loom large during such periods. Aesthetic creations start to draw more attention.”
Semt Tekstil Marketleri, a retail brand founded by Tohum Holding in September 2007, is also among those that turned the crisis into an opportunity. The firm has opened 30 stores as of October. “We have oriented toward products with favorable prices with high demand,” said Yılmaz Yaman, the firm’s managing director.
source: Turkish Daily News
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