Up-market retailer, Harvey Nichols’ recent announcement of plans to open a branch of in Turkey is another reminder why the country is a potentially lucrative yet un-tapped market, Ledbury Research report in their latest newsletter.
Ledbury believe Turkey is an important market to watch out for, and one that many more luxury brands will be investigating over the coming months.
Turkey has an extremely wealthy and long-established middle and upper class, principally based in Istanbul and Ankara. Their income pushes Turkey into the top 20 countries ranked by the total income of individuals in US$ (in millions) held by the wealthiest 10% of individuals.
And as Ledbury Research says,
All the countries on this list are either well established ‘luxury nations’ or are the ‘BRIC’ countries (Brazil, Russia, India and China) which are seen as the key areas for growth for luxury goods (and mass market goods, for that matter). Turkey (and to an extent Mexico) stands out within this list as a market where there is ‘demand’ but currently lack of supply, luxury-goods wise: Istanbul and Ankara airports have a very small number of luxury brands present, and both cities do not have all that much in the way of luxury brand presence (designer/fashion labels are becoming reasonably well represented, however).
Although Turkey has a conservative Islamist government, the country remains firmly pro-Western particularly amongst the wealthy. It is also likely that Turkey will be admitted to the EU by 2008 which will make doing business with the country much easier, importing of goods simpler, and ‘currency risk’ will virtually disappear.
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Turkey has very great potential for companies. last year, turkey was the fastest growing country on the world.
April 12th, 2005 at 4:41 pm
Turkey is the place to be. It has a young experimental crowd which will make a great market for branded products. Especially clothes!
October 18th, 2005 at 6:49 am