Tag: Gitti Gidiyor

  • Turkey e-commerce firms set for shakeout

    Turkey e-commerce firms set for shakeout

    * Online shopping booms in Turkey

    * Sector has advantages over developed, emerging markets

    * Foreign investors seeking opportunities

    * But period of big, easy investments may be ending

    * Small firms will struggle to gain scale to survive

    Evren Ballim

    ISTANBUL, Jan 16 (Reuters) – Swiss venture capitalist Klaus Hommels, an early-stage investor in Skype and Facebook, hadn’t thought much about Turkey or its e-commerce potential when he met Sina Afra in a Burger King at a Berlin airport in 2008.

    But Hommels sensed an opportunity as he listened to Afra, a Turkish former eBay executive, talk about his plans for an online shopping club in his fast-growing native country.

    Two months later, with financial support from the Swiss financier, Markafoni.com was born – a pioneer private shopping club in a country which now spends half a billion dollars a year buying clothing and accessories online.

    “We had 10 minutes and we went to Burger King…That’s how it started. There’s a big risk in over-analysing stuff,” Hommels told Reuters on the sidelines of a conference on start-ups in Istanbul last year.

    “Turkey is a very young and viral nation,” he said.

    The e-commerce sector in this country of 75 million has boomed over the past five years, catching the eye of leading international investors and e-commerce giants such as South Africa’s Naspers, eBay and Amazon.

    eBay initially invested in its Turkish clone GittiGidiyor in 2007, going on to buy almost the whole firm four years later, while Naspers bought 68 percent of Markafoni in 2011.

    Amazon invested in online flower delivery site Ciceksepeti in the same year, while tech-focused hedge fund Tiger Global bought into private shopping club Trendyol.

    According to a report on e-commerce in Turkey by consultants Deloitte, 17 merger and acquisition deals were closed last year. Nevzat Aydin, chief executive of online food delivery site Yemeksepeti, estimated foreigners had invested some $500 million in the sector over the past two years.

    But most of the big deals have probably been done for now, and industry experts expect a period of consolidation as smaller e-businesses struggle to ensure their survival by scaling up and attracting heavyweight partners.

    “There is a period of two years ahead of us which will be different to the past two to three years,” said Aydin, whose firm attracted a $44 million investment from U.S. private equity firm General Atlantic last year.

    “Smaller firms will need to narrow their distance to the top ten. Firms with a valuation of $1-10 million need to grow – the number of small-scale firms is too high.”

    SHOPAHOLICS

    At current growth rates Turkey’s population is set to overtake Germany’s, the largest in the European Union, by 2025. Per capita income has nearly tripled over the past decade, though the crisis in Europe slowed growth last year.

    Shopping malls sporting luxury brands from around the world have sprung up in cities across the country to meet the demands of a rapidly growing middle class, but as Internet penetration rises, online shopping is proving just as addictive.

    The country has over 35 million Internet users, and ranks seventh in the world for Facebook users, according to Socialbakers, a social media analytics platform.

    Industry executives estimate at least 8-9 million people are shopping online with a turnover of some $7.2 billion last year.

    Internet card payments for various purposes rose about 30 percent to 30 billion lira ($17 billion) in 2012 and are expected to more than double by 2015, according to Interbank Card Center, which collates data about card usage in Turkey.

    According to calculations based on the data, Turks spent $450 million on clothing and accessories, $395 million on grocery and food shopping, and $2.1 billion on electronics bought online last year.

    The shopping clubs draw in customers by offering them discounts on branded and luxury goods and sending them daily emails of the latest offers once they register.

    “Women have discovered online shopping in the past two to three years,” said Burak Buyukdemir, founder of Etohum, an initiative that supports Internet entrepreneurs in Turkey.

    “That was one of the most important reasons behind the boom in e-commerce. Private shopping clubs like Trendyol and Markafoni, their target audience is women.”

    FIERCE COMPETITION

    Online revenue in 17 major European markets, excluding Turkey, will increase from 96.7 billion euros ($129 billion) in 2011 to 172 billion euros by 2016, with an annual growth rate of 12 percent, according to Forrester Research.

    Turkey could see even sharper growth than more developed economies in debt-choked Europe. Meanwhile, its robust logistics and banking payment infrastructure make it more attractive for investment than many emerging markets peers.

    But almost every e-commerce business in Turkey with annual turnover of over $30 million already has a heavyweight investor behind it, and there are not many potential targets left for newcomers, industry executives say.

    There are hundreds or thousands of small-scale e-commerce firms, but many are too small to absorb big investments easily and lack distinctive business models.

    “Foreign funds are trying to find potentially promising targets,” said Serkan Borancili, co-founder of GittiGidiyor, who sold his stake to eBay in 2011 when his company was valued at $218 million.

    “Some funds are willing to invest $200 million. Such large funds are coming to Turkey, but there’s no target.”

    Turning a profit is increasingly difficult in a highly competitive market. Borancili estimated that all except the largest e-commerce firms in Turkey were in the red, and said margins had fallen sharply as firms tried to scale up.

    That means foreign investors interested in entering Turkey may be best advised to remain on the sidelines for now.

    “Private shopping models are going to consolidate,” said Yemeksepeti co-founder Aydin. “We are going to see acquisitions, mergers…and collapses.”

  • Ebay office by OSO Architects, Istanbul

    Ebay office by OSO Architects, Istanbul

     by retail design blog

    Ebay office by OSO Architects Istanbul Ebay office by OSO Architects, Istanbul

    The new office of “E-bay – Gitti Gidiyor” which is one of the most important players of e-trade in global and local markets is located in My Office Building in Istanbul Atasehir. The office is positioned on one floor of 2000m² with a ceiling height of 530cm.

    Ebay office by OSO Architects Istanbul 02 Ebay office by OSO Architects, Istanbul

    In line with the global trend of change in today’s modern offices, E-bay Istanbul office is planned as an “open office”. Accordingly, the inside office areas can be described by 4 functions:
    – The entrance hall & social facilities
    – Open office
    – Meeting rooms
    – Technical & service areas

    Ebay office by OSO Architects Istanbul 03 Ebay office by OSO Architects, Istanbul

    The entrance hall that will build the initial perception of visitors for the office is designed as an impressive & inviting place. The desired “inviting sense” is emphasized by the natural wood work at the floor and ceiling and by the reception desk positioned at the back. The wooden pergola representing the entrance hall and invites people to walk through the reception.

    Ebay office by OSO Architects Istanbul 04 Ebay office by OSO Architects, Istanbul

    The semi permeable pergola ensures the building of a visual relationship with the “social area” behind the entrance, whereas strengthening the building of an effective impression with this visual sophistication. “E-bay” s globally existence and the fact that you are in the Turkish office in time being is symbolized with the stilized world map and red colour Turkey perception in the left of entrance hall.

    Ebay office by OSO Architects Istanbul 05 Ebay office by OSO Architects, Istanbul

    The “social place” positioned behind the entrance hall is the only place visitors allowed to see, besides the meeting rooms. So, the place welcoming the visitors and used for celebrations of office staff in-house also includes various services like; cafe-bar, library, on-line music, TV, projection and play station games. This place gathering improvised activities such as quick meetings as well as international presentations, serves as an “agora” where the staff can entertain & interact. A terrace is related with this place which can also be used as a smoking area.

    Ebay office by OSO Architects Istanbul 06 Ebay office by OSO Architects, Istanbul

    The open space working area holds 164 staff on 1.100m2 with a maximum of 225 seats. The ceiling design of the open space -which is a challenge to overcome the typical acoustical problems encountered in such areas, reflects an irrational order of lighting instruments and acoustical panels.

    Ebay office by OSO Architects Istanbul 07 Ebay office by OSO Architects, Istanbul

    The ordered and monotonous effect of furnish plan is avoided by the chaotic and colorful design of this cavernous suspended ceiling which enables to perceive the full height of the space. The circle carpet pattern which is used in other branch offices as well is applied to reflect the company’s corporate identity.

    Ebay office by OSO Architects Istanbul 08 Ebay office by OSO Architects, Istanbul

    There are 12 meeting rooms with different sizes 7 of which are used externally. Each meeting room has a name and a digital door print symbolizing a historic place such as Boğaziçi, Efes, Nemrut, Galata, etc… The hi-tech infrastructures of the rooms are export from UK. Acoustical panels are used in ceiling design of these rooms where international meetings are held.

    Ebay office by OSO Architects Istanbul 09 Ebay office by OSO Architects, Istanbul

    Designer: OSO Architecture
    Project Team: Okan Bayık, Serhan Bayık, Ozan Bayık, Armağan Ekiz
    Floor Area: 2.000 m²
    Project Management, Mechanical Project, Electrical Project: EE Istanbul
    Construction: Decart Insaat, Ege Klima , Ozısık Elektrik
    Wood Works: Trimline
    Lighting Design: OSO Architecture
    Lighting: Demiralp Aydınlatma
    Photos: Gürkan Akay

    Ebay office by OSO Architects Istanbul 10 Ebay office by OSO Architects, Istanbul

    Ebay office by OSO Architects Istanbul 11 Ebay office by OSO Architects, Istanbul

    Ebay office by OSO Architects Istanbul 12 Ebay office by OSO Architects, Istanbul

    Ebay office by OSO Architects Istanbul 13 Ebay office by OSO Architects, Istanbul

    Ebay office by OSO Architects Istanbul

  • EBay raises stake in Turkish site in latest deal

    EBay raises stake in Turkish site in latest deal

    By Phil Wahba

    NEW YORK | Tue Apr 12, 2011 11:05am EDT

    ebay

    NEW YORK (Reuters) – EBay Inc will buy most of the stake it does not already own in a Turkish auction website, in its latest move to strengthen its main marketplaces business.

    EBay took a minority stake in Istanbul-based GittiGidiyor in 2007 and said on Tuesday that it would buy more shares to raise its ownership to 93 percent. The companies did not disclose the terms.

    The move comes two weeks after eBay said it would buy e-commerce service provider GSI Commerce for $2 billion, a deal seen as an attempt to take on No. 1 Web retailer Amazon.com Inc.

    “EBay definitely has the acquisition machine cranked up again — and it’s focused toward marketplaces,” said BGC Partners analyst Colin Gillis.

    While its PayPal payment system has been driving eBay’s growth for years, the company is also trying to lift its more familiar marketplaces unit. The unit, a high-margin but mature business that connects online buyers and sellers, accounted for 62.5 percent of eBay’s sales last year.

    The president of the marketplaces unit left the company in September, but that has not prevented Chief Executive Officer John Donahoe from making deals while he looks for her replacement, Gillis said.

    “He needs to get the marketplaces turned around in order to be seen as a successful CEO,” Gillis said.

    EBay said that it did not expect the transaction to affect the 2011 profit outlook it gave last month and anticipated the deal would close in the second quarter, subject to regulatory approval.

    The company, which generated about 54 percent of its 2010 revenue of $9.16 billion outside the United States, has made other overseas deals. In December, it bought Germany’s brands4friends for $200 million.

    GittiGidiyor has 6.4 million registered users in Turkey and employs 150 people. At the end of 2010, eBay had 94.5 million registered users.

    Shares of eBay were down 1.6 percent at $30.69 in morning Nasdaq trading.

    (Reporting by Phil Wahba, editing by Gerald E. McCormick and Lisa Von Ahn)

    via EBay raises stake in Turkish site in latest deal | Reuters.