Category: Business

EAST TO WEST: TURKISH EXHIBITIONS

Istanbul, for so long tagged with the cliché of being the physical and political bridge between Europe and Asia, is now using its location as a major geographical centre for the exhibition industry. Domenic Donatantonio reports.

Turkey is in the midst of an economic boom, standing in stark contrast to most of its European and Middle Eastern neighbours. In a recent address, president Abdullah Gül said the economy had 8.2 per cent GDP growth in 2010 due to strong exports.

The annual UFI Global CEO Forum at the Pera Palace Hotel in Istanbul on 1-3 February this year, while last year saw the arrival of a new event, Expo Summit Turkey, organised by Manch Communications.

Istanbul is Turkey’s largest city, ahead of the nation’s capital Ankara, and has nearly a fifth of the country’s population with 13 million inhabitants.

According to UFI board member and GM at organiser HKF Trade Fairs, Bekir Çakici, around half of all Turkish exhibitions are held there.

“Even if a sector doesn’t exist in Istanbul, like cattle breeding, still people prefer that the cattle breeding fair is organised in Istanbul,” he said.

“Or, for example a lot of the food processing companies are outside of Istanbul, but fairs about food and food processing technologies are organised in Istanbul.”

Tarsus, a UK-based organiser, has already made a splash in the Turkish exhibition arena in recent years. Last May, the firm agreed a deal to buy a 75 per cent stake in Istanbul-based IFO, one of the largest independent exhibition businesses in the country. The US$15.6m cash deal is part of Tarsus’ expansion strategy to generate 50 per cent of total revenues from emerging markets by 2013.

Group MD Doug Emslie said economic conditions have improved hugely in the country in recent years. “Back when we first looked at the Turkish market in 1998, inflation was 80 per cent,” he said. “In 2002 they passed key economic reforms that helped make the economy a lot more stable. As a result, inflation is now only six per cent. The infrastructure has improved hugely, in terms of airports, roads and hotels.”

ITE Turkey spokeswoman Burcu Yilgor says Istanbul offers a route into one of the fastest growing economies in the world. “Istanbul is the heart of Turkey’s trade.”

“Its widespread economic reforms, increase in foreign direct investment, ongoing changeover to privatisation and growing infrastructure has created a rich environment for business opportunity.” She names agriculture, textiles, automotive, construction and tourism as the main sectors for exhibitions in Istanbul.

To tap into the construction market, CNR Expo has teamed up with the Association of Turkish Building Materials Producers and had discussions with the European and International Federation of Natural Stone Industries for the upcoming Megabuild exhibition in September.

“The Turkish building materials industry is in the global top five with a $70bn production volume and 11.5 per cent growth rate,” said CNR Expo’s executive vice president Ali Bulut.

“The industry’s exports reached $19bn in 2010 but lacked an international exhibition to serve their needs.”

European influx

Hannover-Messe International Istanbul is the Turkish offshoot of the German organiser and venue and is now one of the largest international organisers in Istanbul. General manager Alexander Kühnel says there is now an influx of European exhibitors.

“The exhibition organisers are targeting more international visitors, especially from the Middle East and Africa.”

A youthful city

Kühnel believes one of the striking features of Turkey is its young population. “This booming economy boasts a broad industrial and services base and produces consistently high growth rates,” he said.

And it’s still affordable. Emslie says floor space in Istanbul is around 40 per cent of, for example, UK prices at €100 (US$134) per square metre. But due to the demand in the city, prices are creeping up to €150 in Istanbul.

“Istanbul is just three and a half hours away from western Europe by air,” said Emslie. “It has a more commercial attitude and greater stability. I would urge EW readers to head there. It’s an exciting, cultural and very young city.”

It appears our readers are already taking note.

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➤ CURRENCY

Turkish lira: TL100 = $53.2

US$100 = TL188

➤ POLITICS

Abdullah Gül is president, while Recep Tayyip Erdoğan is prime minister. Interestingly Erdoğan served as Mayor of Istanbul from 1994 to 1998.

➤ FOUR-STAR HOTEL RATES

TL100-TL240

➤ AIRPORT TAXI TO THE CITY

Around TL30

➤ AVERAGE PRICE OF A BURGER

Big Mac Meal TL10.50

➤ DID YOU KNOW?

1. Istanbul is a cosmopolitan city built on two continents, Europe and Asia.

The most recent population census shows that it has a population of about 12 million people, of which almost 65 per cent are inhabitants on the Asian side.

2. Agatha Christie’s 1934 novel Murder on the Orient Express was written in the Pera Palace Hotel in Istanbul, Turkey.

Any comments? Email exhibitionworld@mashmedia.net

via.

February 21, 2012
FORMER WORLD BANKER WOLFENSOHN MAKES STUNNING CONFESSION

THE VIDEO EVERYONE NEEDS TO SEE, BUT FOR DIFFERENT REASONS… THE FORMER PRESIDENT OF THE WORLD BANK, JAMES WOLFENSOHN, MAKES STUNNING CONFESSIONS AS HE ADDRESSES GRADUATE STUDENTS AT STANFORD UNIVERSITY. HE REVEALS THE INSIDE HAND OF WORLD DOMINATION FROM PAST, TO THE PRESENT AND INTO THE FUTURE. THE SPEECH WAS MAS MADE JANUARY 11TH, 2010. THE NEXT 19 MINUTES MAY OPEN YOUR MIND TO A VERY DELIBERATE WORLD.

HE TELLS THE GRAD STUDENTS WHAT’S COMING, A “TECTONIC SHIFT” IN WEALTH FROM THE WEST TO THE EAST. BUT HE DOESN’T TELL THE STUDENTS THAT IT IS HIS INSTITUTION, THE WORLD BANK, THAT’S DIRECTING AND CHANNELING THESE CHANGES.

WOLFENSOHN’S OWN INVESTMENT FIRM IS IN CHINA, POISED TO PROFIT FROM THIS “IMMINENT SHIFT” IN GLOBAL WEALTH.

February 19, 2012
Yemeksepeti.com in Talks to Sell Stake to Investors, CEO Says

Yemeksepeti.com, an Istanbul-based company offering web-based meal order services, is in talks with private equity and venture capital firms to sell a stake of 10 to 15 percent, chief executive officer Nevzat Aydin said.

Three major shareholders including Aydin, who is also the co-founder of the company, own 70 percent of the company, Aydin said in a telephone interview yesterday.

A decision on whether to sell the stake or not will be made by the end of March, Aydin said.

To contact the reporter on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

via Yemeksepeti.com in Talks to Sell Stake to Investors, CEO Says – Bloomberg.

February 18, 2012
Turkcell Donates TRY5 Million to “Turkey’s Money-box” to Initiate Education Campaign in the Van Earthquake Zone

By Turkcell

Published: Wednesday, Feb. 15, 2012 – 1:41 am

ISTANBUL, February 15, 2012 — /PRNewswire/ —

Turkcell (NYSE: TKC, ISE: TCELL), the leading communications and technology company, has initiated an education campaign in the Van region, which continues to struggle with the unfolding and devastating effects of its recent earthquake, with a donation of TRY5 million. Supported by the Ministry of Education (MEB) and in partnership with the Turkish Education Foundation (TEV), the education campaign will be supported with a teachers’ campus and student dorm, as well as scholarships for promising students. Additionally, a communication center will be launched in Van-Ercis.

In a continuing effort to stand shoulder to shoulder with earthquake victims in the region, Turkcell, together with TEV, has appealed to all individuals, corporations and institutions for a collaborative gesture by donating to “Turkey’s Money-box” for the revival of Van. The project features a Teacher Campus consisting of 2+1 houses to be built on 5 acres of land and a dorm to be built on land of 1,500 square meters; each are to have a capacity of 100 people and feature surrounding social facilities. The Teacher Campus will enable teachers also to live with their families. Construction is set to commence in March 2012 and be completed in time for the new education term in September 2012. Additionally, 100 scholarships will be granted in association with TEV to successful students attending Industrial Occupation High Schools. The more donations there are, the greater number of teacher’s houses built and scholarships granted.

What’s more, in contribution to an improvement of the unemployment problem in Van, a communication center with 100 staff will be launched in Van-Ercis with the support of the MEB. The MEB Communication Center, to be open 7/24, will initially take calls related to MEB Educational Technologies. The call center is planned to be opened in March, and will employ staff from the neighborhood of Van with 50% being disabled.

Commenting on the project, Turkcell CEO Sureyya Ciliv said that “Right after the earthquake, we got together to meet the urgent requirements of people in the affected region. While delivering these services, we had one question in mind, “What else can be done?”. In answer to the question, we came up with this project, into which we put our minds, knowledge, experience, hearts, and the love that we feel for our people, in order to share in the future and hope of Turkey. Ciliv went on to comment that “People living in Turkey harbor a noble instinct to be helpful. With this value, we can unite to overcome even the most difficult situations in the hardest of times. We thought to ourselves, “Why not include more people and institutions in this movement to reach out to more people in need?”, and together with TEV we launched the “Turkey’s Money-box”. As Turkcell we initiated a transparent, accountable and an exemplary campaign, donated TRY5 million to the “Turkey’s Money-box”, and loudly deliver this simple message to all individuals and institutions: We will build a Teacher Campus and dorm with the support of the MEB to provide warmth to both teachers and students. We will also support education through scholarships. Let’s rebuild Van with every cent donated to “Turkey’s Money-box”. Let’s reach out to more people and revive Van!” Sureyya Ciliv concluded his comments by thanking the MEB and TEV for their cooperation in this project.

Individuals or institutions wishing to support the Teacher Campus project can donate towards the total TRY60,000 cost of a furnished house, whereby the property is named after them.

Donations can be made by sending an SMS to 5283 from Turkey and Northern Cyprus thereby making an automatic donation of TRY5, by writing VAN in the text body, or else online by credit card at . Additionally, money transfers can be made at the banks listed below.

*Akbank Ozel Bankacilik Nisantasi Branch (branch code 775) TRY account IBAN – TR50 0004 6007 7588 8000 0065 65 EURO account IBAN – TR91 0004 6007 7503 6000 6565 65

*YapıKrediBankasiEsentepeOzelBankacilikCenter (branch code 375) TRY account IBAN – TR88 0006 7010 0000 0000 0065 65 EURO account IBAN – TR07 0006 7010 0000 0000 6565 65

*Garanti Bankasi Mecidiyekoy Branch (branch code 119) TRY account IBAN – TR68 0006 2000 1190 0000 0065 65 EURO account IBAN – TR84 0006 2000 1190 0000 6565 65

*Is Bankasi Gayrettepe Branch (branch code 1080) TRY account IBAN – TR91 0006 4000 0011 0800 7679 03 EURO account IBAN – TR87 0006 4000 0021 0801 4815 02

*Vakiflar Bankasi Mecidiyekoy Branch (branch code 153) TRY account IBAN – TR94 0001 5001 5800 7299 6194 69 EURO account IBAN – TR60 0001 5001 5804 8013 2226 95

ABOUT TURKCELL

Turkcell is the leading communications and technology company in Turkey, with 34.4 million subscribers and a market share of approximately 53% as of September 30, 2011 (Source: Operator’s announcements as of September 30, 2011). Turkcell is a leading regional player, with market leadership in five of the nine countries in which it operates with its approximately 63.3 million subscribers as of September 30, 2011. The company covers approximately 87% of the Turkish population through its 3G and 99.07% through its 2G technology supported network. It has become one of the first among the global operators to have implemented HSDPA+ and achieved a 42.2 Mbps speed using the HSPA multi carrier solution. Turkcell reported a TRY2.5 billion (US$1.5 billion) net revenue with total assets of TRY16.6 billion (US$9.0 billion) as of September 30, 2011. It has been listed on the NYSE and the ISE since July 2000, and is the only NYSE-listed company in Turkey.

Read more at

For further information please contact Turkcell

Nihat Narin, Division Head of Investor and International Media Relations Tel: +90-212-313-1244 Email: nihat.narin@turkcell.com.tr

Banu Uzgur, International Media Relations Manager Tel: +90-212-313-1506 Email: banu.uzgur@turkcell.com.tr

investor.relations@turkcell.com.tr

You can now follow the most up-to-date Turkcell developments on twitter by clicking on the link below.

SOURCE Turkcell

February 16, 2012
Valentine Sales Are Record for Amazon-Backed Site in Turkey

Ciceksepeti.com, the Turkish flower delivery website that is 18 percent owned by Amazon.com Inc. (AMZN), had record sales on Valentine’s Day yesterday with orders about 20 times the site’s daily average, founder Emre Aydin said.

The company shipped 60,000 orders and sold 600,000 roses it imported from the Netherlands for the day, Aydin said in an interview in Istanbul.

Ciceksepeti revenue may double this year and deliveries for Mother’s Day, May 13, are likely to surpass those for Valentine’s, Aydin said without giving a sales figure. The company has about 90 percent of the online flower delivery business in Turkey, he said.

The company is looking at acquisitions of other gift websites in Turkey, he said. Gifts and gourmet food will probably rise to about 25 percent of total revenue by year end from 12 percent today and may surpass flower sales “within a few years,” he said.

Ciceksepeti.com, founded in 2006, received an investment from Antwerp-based venture capital fund Hummingbird Ventures last year, Aydin said.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

via Valentine Sales Are Record for Amazon-Backed Site in Turkey – Bloomberg.

February 16, 2012
Three Economic Lessons Imported From Turkey

By Rana Foroohar

I just returned from a week in Istanbul, where I was reporting a piece on what Turkey’s burgeoning contemporary art scene tells us about where the country is headed politically (you can look for that in our upcoming style and design special in the magazine later this month). But I also learned a few economic lessons that have particular relevance to the U.S. and global economy right now.

1. Manufacturing matters. In Istanbul, I met up with Ersin Akarlilar, the CEO of Mavi Jeans. If you aren’t already wearing Mavi, your kids probably are – the company sells hundreds of millions of dollars worth of high end, slim fitting denim all over the world. Building a global luxury brand is tough, especially for an emerging market firm that doesn’t have the cache of European heritage. But Mavi has managed to do it, in part because they kept an ownership stake in their factories, which allows them to have enough supply chain flexibility to respond quickly to market trends. “If Nordstrom calls and says they want 10,000 pairs of jeans in department stores within a month, you’d better have factories that can produce and ship them quickly enough,” says Akarlilar. Otherwise, the retailer will move on to the next hot brand that can. If Mavi had outsourced production to Asia, where labor is half the price it is in Turkey, they wouldn’t have been able to get the product to market on time or on budget. But since they kept what’s known in the trade as a “vertically integrated supply chain” (meaning, production, marketing, and sales are done in the same place) they’ve managed to thrive, and are now worn by the likes of Kate Winslet and Chelsea Clinton.

(MORE: Euro Banks Swap Cash for Trash)

2. There’s no such thing as decoupling. There’s a lot of talk in the global economy right now about how emerging markets don’t need the West. It’s just not true. As Mavi and many other firms in Turkey pointed out to me, despite government efforts to diversify into new regional markets, Europe still represents over half the country’s trade, and it’s an even bigger chunk of the market for many countries in the Middle East and North Africa. Europe is even China’s number one trading partner. What happens in the West is felt by the East, and visa versa. That’s one big reason we’ll see an across the board slowing of emerging market growth this year.

3. Political risk is under-rated as a driver of the global economy. Turkey has been in the news a lot this year because Prime Minister Recip Erdogan has emerged as a regional leader in the post Arab Spring world. But a little over a year ago, nobody could have predicted Arab spring. Meanwhile, France’s vicious rejection of Turkey’s EU bid has helped turn the country, which for years had been Westward facing, in a new direction. It’s not just the Middle East that’s facing major political change – China will have a new leadership in 2012. There are elections coming not only in the U.S., but also in France, and in Brazil. Four seats on the U.N Security Council will change over this year, too. It’s time to start thinking about political risk again when calculating global economic growth. There will be a lot of the former this year – how much of the latter remains to be seen.

via Three Economic Lessons Imported From Turkey | Business | TIME.com.

February 10, 2012