“Turkey Is A Developed Country”

Nokia is the world’s largest manufacturer of mobile telephones. Its share of the Turkish market is much larger than its share of the global market. Nokia Turkey General Manager Imred de Jong says: “Turkey does not lag behind developed countries in terms of the use of technology and Turks are very dynamic in terms of acquiring the latest technology.” Jong notes: “The cost of mobile telephones in Turkey is high when compared with other countries. But mobile telephone penetration is very high.”

Nokia Turkey General Manager Imfred de Jong has been an expat for many years, working for Nokia since 1996 in various parts in Europe. Imfred de Yong describes Turkey as a special country with its own different dynamics. “More than 90 percent of the people in Turkey use a mobile telephone. The rate of penetration is very high. If you look at the operators and the quality of the services they provide, then the sector does not lag behind those in developed country,” he says.

Nokia has a global market share of 40 percent in mobile telephones. De Jong says that its market share in Turkey is much higher. He says that the greatest competitive advantages Nokia enjoys in terms of protecting this high market share is that it is brand which best understands different consumer groups.

Capital spoke with Nokia Turkey General Manager Imfred de Jong about the Turkish telecommunications market, the competition in mobile telephones and Nokia’s innovation-focused production strategies.

* In 2006 a total of 1 billion mobile telephones were sold worldwide. Nokia has a share of 35 percent of this market. How has it achieved this success?
One of the biggest reasons for this success is the products that we offer on the market and the fact that they have been designed according to our talent for manufacturing for needs. In addition to all of these things, Nokia has invested in its brands since the day that it was founded. For this reason, we are one of the most valuable brands in the world. The situation is no different in Turkey. Our brand recognition is very high. We aim to provide our customers with the very best in both the products and the services we provide them. In addition, we have long had a presence in developing countries such as China and India. And we are now very strong in these countries.

* Would you categorize Turkey as being amongst developing countries?
In fact, when you look at it, I don’t see Turkey as a developing country. I can say this clearly about the telecommunications sector at least. More than 90 percent of Turkish people use a mobile phone. This is clear evidence that mobile telephone penetration is very high. Moreover, if you look at the operators and the quality of service that they provide, you will see that they use the latest technology. I think that, in this sense, particularly in the technology sector, Turkey does not lag behind developed countries. I can say that, when we compare Turkey with countries such as China and India, then, just like these markets, it is growing very rapidly.

* What was Nokia’s market share in Turkey in 2007 and what will it be next year?
Unfortunately, I cannot give a figure for the market share for Turkey. But we want to increase our market share next year. But our share of the market in Turkey is much higher than that of the global market. We shall have a global market share of 40 percent in the second half of the year.

* What is the situation in terms of competition on the mobile telephone market in Turkey and in what direction is it developing? Where does Nokia stand in competition?
Nokia is a brand which offers a solution for everybody. For this reason, we have a very broad product range. Our portfolio ranges from products produced for very basic needs to those which use highly advanced technology. The greatest advantage we have over our rivals is that we are not only focused on specific areas of the market. One of our great advantages sides is that we offer innovative solutions for all segments. In addition, Nokia is one of the companies which best understands the consumer. We have a superb research facility which identifies customer needs, knows how they use mobile telephones and knows which of the services they are offered the consumers use and which they do not. We can monitor our rivals very well. We can differentiate ourselves from our rivals. Nokia has always maintained its characteristic of being the leading brand in areas where there is intensive use of technology, such as in music, navigation and the use of the Internet. In addition we are a brand which creates the market, not follows it.

* Do you believe that major brands experience difficulties when they are global but behave locally? How do you overcome these difficulties?
I attribute being able to overcome difficulties mainly to the breadth of the product range. When we offer the right product for the country concerned, then we overcome the difficulties. This means making a lot of plans. Having such a broad product range makes it essential that one has a lot of product capacity. At the same time, it ensures that the logistic system is also strong. But the most important factor is that one has to learn to know the markets very well. Because Nokia is the world’s largest manufacturer of mobile telephones. Last year, we sold over one million products a day throughout the world. Achieving such a huge volume means being strong enough to create economies of scale. This is very important from the point of view of profitability.

The Latest Trends In Mobile Telephones

All Services On The Mobile
 In the telecommunications sector, the number of functions on mobile telephones are increasing. The fact that services such as navigation, music, photographs and videos have all been included in a single device is one of the main reasons for the increase in mobile telephone use. Now consumers can look for songs on their mobile telephones, take photographs, write messages and check their emails.

Nokia In The Center Of Development
Previously, the Internet was just used to search for information. But now it is used to share information. Sites such as Facebook and YouTube offer the chance to develop personal content. The frequency and intensity of communications have both increased. This communication can be conducted not just via a computer but via a mobile telephone. In addition to offering new products, Nokia also offers more service possibilities. When you load a GPS system onto your telephone for navigation,
you can use it to see where to go for shopping.

Hande Yavuz
hyavuz@capital.com.tr