Tag: Trendyol

  • 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.”

  • Trendyol helped create 1.1 million jobs in Turkey

    Trendyol helped create 1.1 million jobs in Turkey

    In its 10th year, Trendyol, the largest e-commerce platform in Turkey, has announced the results of an independent study “Trendyol’s impact on the Turkish economy”. According to Trendyol founder and CEO Demet Mutlu: “In 2020, 98 thousand businesses, mostly SMEs, and 1.1 million individual sellers sold 347 million products on Trendyol. By digitalizing the commercial activities of SMEs and local merchants, Trendyol helps them grow their business and expand their customer reach. As a result, we were able to make a measurable impact on the Turkish economy and this study estimates that we have contributed to the creation and retention of 1.1 million employment.” 

    Trendyol Demet Mutlu

    In its 10th year, Trendyol, the largest e-commerce platform in Turkey, has announced the results of a study, “Trendyol’s impact on the Turkish economy”, conducted by the independent research organization PAL. 

    The study shows that Trendyol has made a measurable impact on Turkey’s economy. 98,000 businesses, mostly SMEs, and 1.1 million individual sellers sold 347 million products on Trendyol in 2020.

    90% of the sellers increased their turnover and 82% employed more people 

    According to PAL, after joining Trendyol, 90% of sellers increased their turnover and 82% hired more employees as they upscaled their businesses. The study also shows that 80% of sellers increased their know-how on consumer preferences and market trends. Trendyol is also credited by 77% of sellers for helping their businesses minimize the economic impact of Covid-19.

    Trendyol contributed to the creation and retention of 1.1 million jobs and is estimated to help create, 2.4 million jobs by 2023

    Sales on the Trendyol platform have a positive knock-on effect on related sectors, such as manufacturing, packaging, marketing, delivery and customer service. Trendyol’s strong performance contributed to the creation and retention of 360,000 direct and 708,000 indirect employment. Study findings estimate that Trendyol’s impact on employment will reach 2.4 million jobs by 2023, a significant increase from the current 1.1 million.

    43% of sellers on Trendyol are from provincial cities 

    Trendyol supports regional development by connecting local SMEs and merchants from provincial cities with customers in regional hubs. In 2020, the number of sellers outside three major cities (İstanbul, Ankara, İzmir) reached 42,000, and 93% of these sellers have accessed new customers through Trendyol. Mutlu states: “We are committed to digitalizing our merchants and providing financial support to help grow their businesses.”

    Trendyol Demet Mutlu 30 10 20

    During the pandemic, 17,000 women entrepreneurs started selling on Trendyol

    Mutlu states: “We believe it is our responsibility to increase the role of female-headed businesses in the economy. This is reflected in our company values: 42% of the Trendyol team and 41% of the management team are women, considerably higher than most global technology companies. During the pandemic, 17,000 women entrepreneurs started selling on our platform. 25% of all our sellers are female-led companies which is a significant achievement for Trendyol given that only 10% of employers in Turkey are women.”

    Trendyol’s second-hand platform, Dolap, has 400,000 women sellers who work from home raising their children and caring for their families. Trendyol is leading the way in providing an additional channel of socio-economic engagement to stay-at-home mothers which benefits the household economy and encourages entrepreneurial activity within the home.

    98% of sellers on Trendyol are Turkish companies

    “Trendyol is proud to champion domestic production. Turkish companies represent 98% of our marketplace and 72% of the products are locally produced. Increasing the brand recognition and the footprint of Turkish products in the global marketplace is the focus of our e-export operations, as is increasing the number of Turkish companies that can e-export from Turkey” Mutlu said. 

    Active customers reached 19.3 million in 2020

    In 2020, 19.3 million active customers made at least one purchase on Trendyol platforms, compared with 9.2 million in 2019. In the last quarter of 2020, Trendyol delivered an average of 1.1 million packages per day.

    Trendyol allocates 28% of its total budget to Research & Development

    Mutlu states: “Trendyol has attracted $335 million FDI into Turkey and used this investment for the development of the digital ecosystem. Trendyol also allocates 28% of its total budget to R&D and offers competitive job opportunities for top talent from Turkey and Europe.”

    Trednyol Demet Mutlu 03 10 2020

    Trendyol will continue to deliver positive impact on local economies

    Mutlu states: “At Trendyol, we see it as our responsibility to strengthen the digital ecosystem and to create value for our customers, sellers, and our country as a whole. By digitalizing and supporting local businesses, we enable Turkey’s entrepreneurs and business owners to invest in their families, their communities and in Turkey. 

    We will continue to work hard to grow the positive impact we have for our country and all our stakeholders. ”

  • Turkish E-Commerce Raises $26 Million From Kleiner Perkins

    Turkish E-Commerce Raises $26 Million From Kleiner Perkins

    Nope, it’s not China or India. It’s Turkey.

    Kleiner Perkins Caufield & Byers, best known for investing in Google, Amazon, Twitter and Zynga, has made a bet on Turkey as the next big market with its first major investment there.

    The receiving company — Trendyol.com, an e-commerce site based in Istanbul — is announcing today that it has raised $26 million from Kleiner Perkins and Tiger Global.

    Trendyol is similar to other flash sales sites in the U.S., such as Gilt Groupe, Rue La La, and Ideeli. The site sends out daily emails offering a heavily discounted selection of clothes. Consumers have a limited amount of time to purchase the items before the sale expires or quantities run out.

    The company was founded by Demet Mutlu, a 29-year-old dropout from Harvard Business School — she is now running the company with about 350 employees.

    Kleiner partner Aileen Lee said a combination of a hardworking executive team, the company’s phenomenal growth, and Turkey’s increasingly attractive market opportunity led to the investment. Plus, it doesn’t hurt to introduce e-commerce to a market that doesn’t have a strong brick-and-mortar environment.

    Check out some of these facts:

    * Turkey has 35 million Internet users, representing the third largest Web market in Europe.

    * Turkey is a socially engaged country, ranking fifth-highest for Facebook usage globally; eighth for Twitter and first for FriendFeed.

    * Turkey has a high credit card penetration rate of about 60 percent with 46 million credit cards.

    * In the past 16 months, Trendyol has signed up four million members, translating into one out of every nine Turkish Internet users.

    “When you go there and walk around the company, it looks like any other hypergrowth Silicon Valley start-up,” Lee said. “Trendyol has an incredible dedication to customer service and is driven by metrics and analytics. It has a good sense for what to outsource and what to keep in-house, and is building the brand.”

    She said Trendyol has also been good at leveraging social media, including a store inside Facebook that allows users to make purchases without leaving the site.

    The funding will be used for new initiatives, such as building out the company’s customer service team, increasing its membership, and potentially moving into new geographies. Trendyol.com has secured more than $50 million in total financing since the site launched in March 2010.

    via Turkish E-Commerce Raises $26 Million From Kleiner Perkins – Tricia Duryee – Commerce – AllThingsD.