What Has Changed In The ‘Best Sellers’ League?

2004 was a boom year for every sector as sales rose rapidly. But growth varied according to the sector. Naturally, there were changes in the respective market shares of companies. In some sectors the leaders remained unchanged, in others there were changes. In fact, no firm figures have been announced. But a special survey by Capital clearly shows how sectors and companies closed 2004 and which companies entered the ‘league of the best sellers’.

The figures for the final quarter have yet to be announced but the Turkish economy is forecast to have grown by 8-9 percent in 2004. It was also an exceptionally good year for the different sectors. In 2004 the automotive market grew by 88 percent compared with the previous year to post record sales of 754,000 vehicles. The figures for the first 11 months of 2004 show that domestic sales on the white goods market increased by around 70 percent. Sales of mobile telephones are estimated to have exceeded 6.5 million.

2004 was a similarly good year in other sectors. But in sectors where competition was particularly intense -- such as automotives, consumer durables and rapid consumption products -- companies were engaged in a merciless competition in order to grab another fraction of market share. As in every competition, some companies took the lion’s share and left their rivals behind. This article gives details of the companies which recorded the highest sales in 2004.

Who is strongest in three sectors?

There was intense competition in consumer durables as companies launched a series of campaigns. As every year, Arçelik sold more than any other white goods producer in 2004. In 2004 Arçelik was the market leader by some distance with a market share of 53 percent. Second came Bosch Siemens Profilo. This group had a market share of 23 percent. Vestel, which has been one of the fastest growing companies in recent years, ranked third in terms of white goods sales with a share of 15.4 percent. These companies were followed by the Italian Merloni with a share of 7 percent.

In 2004 the prices continued to fuel a boom on the television market. Prices were the main competitive factor in 2004. Beko Elektronik retained the leadership of the television sector which it has held for years. Although its market share declined a little, Beko was still the best-selling company in 2004 with a market share of 42 percent. Beko was followed by Vestel, which occupied second place with a market share of 34 percent. Profilo ranked third with a market share of 19.5 percent.

Figures for the PC market in Turkey are only available for the first nine months of the year. According to data from the IDC, HP had a market share of 13.5 percent during the first nine months of the year, making it the leading PC manufacturer in 2004. Second came Casper with a market share of 8.8 percent while Escort ranked third with 7.4 percent.

Merciless competition in automotives

There are 41 different brands competing in the automobiles and light commercial vehicle segment of the automotive market. The large number of players naturally means that competition is also intense. According to data from the Automotive Distributors Association, Renault sold the most automobiles in 2004. Renault sold a total of 84,642 automobiles, giving it a market share of 18.8 percent. The company was also the leader in 2003.

In second place with 51,730 sales, and a market share of 11.5 percent, came Opel. Ford ranked third with a market share of 10 percent, followed by Hyundai with 8.9 percent. Hyundai is one of the fastest growing companies in terms of sales. In 2003 it had a market share of only 4.3 percent but then grew incredibly rapidly in 2004 to leave important manufacturers like Fiat behind.

Ford ranked first in the light commercial segment with a market share of 26.5 percent, significantly ahead of its nearest rival. Fiat had a market share of 15.4 percent and Renault 11.7 percent.

When one looks at the total market for automobiles and light commercial vehicles taken together we see that the rankings were the same as in 2003. In 2004 Renault again sold the most vehicles with 16.3 percent. Ford ranked second with 15.8 percent, ahead of Fiat in third with 11 percent. Hyundai made the most progress compared with 2003. In terms of the total market, Hyundai left brands like Volkswagen and Opel behind and ranked fourth with a total market share of 9.3 percent.

Watch this trio in foodstuffs!

In the foodstuffs market, the highest sellers vary according to category. But one should keep an eye on three companies in this market. The first is Ülker... Ülker is the undoubted leader of the biscuit market and retained its title in 2004 considerably ahead of Eti, its nearest rival. Ülker had a share of 56 percent of the biscuit market. It is a similar situation in chocolate. Here Ülker had a market share of 46 percent. Nestle, Kraft, and Kent each had a share of 8 percent of this market.

Another category in which Ülker is the leader is packet margarine. Here Ülker ranks first with a market share of 34 percent. Ülker is also the second highest selling company in tub margarine, ready to eat soup and cornflower oil.

Unilever is as successful in cleaning products as it is in the foodstuffs group. Unilever’s Knorr brand made it the leader by a considerable margin in the instant soup category in 2004 with a market share of 48 percent. It also continues to rank first in the tub margarine market where its Becel and Sana brands give it a market share of 60 percent. Another category in which Unilever is the largest seller is mayonnaise. The company’s Calve brand gave it a 22 percent market share in the first 11 months of 2004.

Another company which we have to look out for is Tat Gıda. Tat ranks first in three categories. According to data for the first 11 months of 2004, Tat was the leader in the tomato puree category with a market share of 26 percent, in ketchup with 26 percent and in preserves with a share of 30 percent.
The best sellers in 2004  
  
Sector/category The highest selling company/brand Market share (%)(2004)
Canned tuna fish DARDANEL 90,0
Safe bleach (**) KOSLA 78,1
Tub margarine UNILEVER 60,0
Biscuits ÜLKER 56,0
White goods ARÇELİK/BEKO 53,0
Female Sanitary Products ORKİD 51,5
Instant Soup KNORR 48,0
Chocolate ÜLKER 46,0
Toothpaste İPANA 43,8
TV BEKO 42,0
Packet margarine ÜLKER 34,0
Preserves (**) TAT 30,0
Light commercial vehicles  FORD OTOSAN 26,5
Tomato Puree (**) TAT 26,0
Hair gel İPEK 25,3
Bleach (**) ACE 25,0
Ketchup(**) TAT 24,0
Corn oil (**) SIRMA 22,2
Mayonnaise (**) UNILEVER 22,0
Banking (*) ZİRAAT BANKASI 19,0
Automobiles RENAULT 18,8
Shampoo PANTENE 13,8
PCs(*) HP 13,5
Leasing(*) KOÇ LEASE 13,2
Sunflower oil (**) YUDUM 12,5
Insurance (General) (*) AXA OYAK 9,8
Source: The data are taken from companies, executives, professional associations and research institutions.

Not: (*) Data for the first 9 months of 2004.  (**) Data for the first 11 months of 2004.

EBRU FIRAT
efirat@capital.com.tr