GlObAl lIFESTylE MONITOR: TURkEy
Insights Supply chain
Global Lifestyle Monitor: Turkey
The Turkish economy has rebounded strongly, and consumer confidence has exhibited an upward trend since the 2009 global recession. Turkey’s economy grew 9.2% in 2010 and 8.5% in 2011, but economic growth is projected to moderate in 2012 (+1.2%). Turkey’s positive economic expansion is shown in rising incomes and in its population’s growing purchasing power, which has helped bolster consumer enthusiasm for shopping and apparel. In fact, real clothing expenditures are projected to grow 13% from TRY 36.1 billion in 2011 to TRY 40.6 billion in 2016, faster than in the U.S. (+9%) and the EU (-1%).* The Global Lifestyle Monitor survey found that Turkish consumers shop more often for clothes than their European counterparts and agree about the value of durable apparel and good prices. While economic forecasts for 2012 are more conservative, one of Turkey’s distinguishing features—its young and growing population—is enticing to domestic and international brands and retailers and will drive continued demand for cotton apparel.
Shopping habits Clothing purchases this year compared to last year Ages 15–34
26%
Ages 35+ Less
25%
22%
Same
49%
35%
43%
More
Top places Turkish respondents buy most of their clothing Percentages in red indicate a significant difference Ages 15–34
Ages 35+
Specialty shops
48%
37%
SHIFTING SHOPPERS
Independent stores
22%
34%
Increased urbanization and a young and economically active population are major influences in the growth of Turkey’s retail sector. In 2011, Turkey ranked (for the first time) as one of the ten most attractive destinations for retail investment (Metro Group). In 2012, 32% of Turkish consumers shopped at unorganized retail channels, down significantly from 41% in 2008. Specialty stores, where 43% of Turkish consumers purchase most of their clothing, are the most popular shopping destinations. While specialty stores have become the preferred stores for consumers of all ages, younger Turkish consumers (ages 15–34) are more likely than older consumers (ages 35+) to buy clothing at specialty shops (48% versus 37%), and older consumers are more likely to split their shopping time between specialty and independent stores. Similar to other countries surveyed, an increasing number of Turkish consumers are including online stores as a shopping destination. Internet shopping has increased significantly, with 16% indicating they shop online for clothing, up from only 4% just two years ago. Most consumers start their Internet clothes shopping by using search engines (74%), coupon/discount websites (39%), social media sites (30%), or fashion trend websites (26%). Turkish consumers who use the Internet to clothes shop say they do so to research clothes (59%) or to compare prices from different stores (44%).
Department stores
16%
14%
Sporting good stores
5%
1%
Street markets
4%
6%
Chain stores
2%
4%
Hypermarkets
1%
1%
Factory outlets
1%
1%
Internet
1%
1%
Fiber attitudes Important to know fiber content before purchasing clothing
% responding “yes”
67% 96% 84% 62%
Prefer cotton or cotton blends for clothing worn most % responding “yes” 75% 86% 90% 83%
PURCHASING PATTERNS In their survey responses, 84% of younger consumers, who make up 34% of Turkey’s population, said they love or enjoy clothes shopping, and 62% said they shop for clothing at least once per month (versus 70% and 49%, respectively, of older consumers). Younger Turkish consumers also continue to demonstrate a significantly higher likelihood of purchasing clothing on impulse
[email protected]
Turkey
Italy
Germany
UK
Source: Global Lifestyle Monitor Survey
© 2012 Cotton Council International and Cotton Incorporated
Supply chain insights
Global Lifestyle Monitor: Turkey than older consumers (40% versus 31%); however, impulse shopping has increased for both age groups. When asked if they purchased less, the same, or more clothing this year compared to last year, 42% of Turkish respondents said they purchased the same amount; 29% reported purchasing less clothing; and 24% reported purchasing more. The percentage of all respondents, who report purchasing more clothing, is up; only 20% reported purchasing more clothing in 2010. These results may be related to the larger presence and increased availability of shopping malls in Turkey. In the coming year, Turkish consumer apparel purchases will be buoyed by enthusiastic shoppers and the continued development of attractive shopping destinations.
Denim demand Average number of jeans owned 8
Turkey Italy Germany UK US*
6
5
7 5
*Source: Cotton Incorporated’s Lifestyle Monitor™ Survey
Comparison of denim wardrobe distribution
INCREASING DENIM OWNERSHIP Affinity for denim has remained strong over the past few years, as 65% of Turkish shoppers say they love or enjoy wearing denim. Younger consumers are more likely than older consumers to say they love or enjoy wearing denim (76% versus 49%). Turkish consumers own an average of eight denim garments, five of which are denim jeans. When compared to the U.S. and Europe, denim ownership is lower among consumers in Turkey. However, younger Turkish consumers’ denim ownership is more in line with their European counterparts, as they own more denim garments (10 versus 7) and jeans (6 versus 4) than older Turks. Overall, Turkish consumers’ denim wardrobes are less fragmented than the denim wardrobes of consumers in the U.S. and Europe; two-thirds of Turkish consumers’ denim wardrobes are dedicated to jeans, compared to 45% in the U.S. and 43% in Europe.
Turkey
Europe
US
Jeans
67%
43%
45%
Skirts
8%
7%
5%
Jackets
8%
12%
9%
Shorts
7%
13%
15%
Shirts
6%
19%
19%
Dresses
4%
7%
5%
Purchase drivers Top factors that influence Turkish consumers’ clothing purchases
Associations with Cotton
PRIMARY
SECONDARY
Turkish survey respondents describe cotton apparel using the following words:
Durability
Brand Name
Color
Performance features
Price
Environmentally friendly
Quality
Cleaning requirements
Finish
Fiber content
Style
Endorsement
DECISIONS ON CLOTHING AND COTTON When asked what influences their apparel spending, the vast majority of Turkish shoppers (95%) said durability is a key factor, followed by price (93%), color (93%), quality (90%), and finish (86%). The primary purchase drivers are consistent across the younger and older segments; however, within secondary drivers, brand name is more important to younger consumers than older consumers (82% versus 70%). For Turkish consumers of all ages, clothing quality is crucial to capturing their shopping dollars. Identifying the content of clothing has increased significantly among consumers, as 84% of respondents (up from 75% in 2010) say they always or usually check the fiber-content label before buying clothing. Given that 92% of Turkish consumers indicate that cotton is a quality fabric, it is not surprising that more than half indicated that they are bothered by cotton being substituted for synthetic fibers in key apparel items, such as t-shirts and denim jeans. With 75% of Turkish shoppers preferring cotton and cotton blends for the clothing they wear the most, they will continue to look for and choose cotton-rich products, such as denim, to satisfy their apparel needs.
[email protected]
Country of origin Source: Global Lifestyle Monitor Survey
About the survey This issue is part of a special series of Supply Chain Insights reporting results from the Global Lifestyle Monitor survey, a biennial consumer research study sponsored by Cotton Council International and Cotton Incorporated. In the 2012 survey, 5,000 consumers (approximately 500 in each of the 10 countries surveyed) were surveyed via telephone, faceto-face interviews, and online. Respondents were male and female, aged 15 to 54. The ten countries included in the 2012 survey were Brazil, China, Colombia, Germany, India, Italy, Japan, Thailand, Turkey, and the United Kingdom. *Source: Euromonitor International
© 2012 Cotton Council International and Cotton Incorporated
Global Lifestyle Monitor: Turkey
The Turkish economy has rebounded strongly, and consumer confidence has exhibited an upward trend since the 2009 global recession. Turkey’s economy grew 9.2% in 2010 and 8.5% in 2011, but economic growth is projected to moderate in 2012 (+1.2%). Turkey’s positive economic expansion is shown in rising incomes and in its population’s growing purchasing power, which has helped bolster consumer enthusiasm for shopping and apparel. In fact, real clothing expenditures are projected to grow 13% from TRY 36.1 billion in 2011 to TRY 40.6 billion in 2016, faster than in the U.S. (+9%) and the EU (-1%).* The Global Lifestyle Monitor survey found that Turkish consumers shop more often for clothes than their European counterparts and agree about the value of durable apparel and good prices. While economic forecasts for 2012 are more conservative, one of Turkey’s distinguishing features—its young and growing population—is enticing to domestic and international brands and retailers and will drive continued demand for cotton apparel.
Shopping habits Clothing purchases this year compared to last year Ages 15–34
26%
Ages 35+ Less
25%
22%
Same
49%
35%
43%
More
Top places Turkish respondents buy most of their clothing Percentages in red indicate a significant difference Ages 15–34
Ages 35+
Specialty shops
48%
37%
SHIFTING SHOPPERS
Independent stores
22%
34%
Increased urbanization and a young and economically active population are major influences in the growth of Turkey’s retail sector. In 2011, Turkey ranked (for the first time) as one of the ten most attractive destinations for retail investment (Metro Group). In 2012, 32% of Turkish consumers shopped at unorganized retail channels, down significantly from 41% in 2008. Specialty stores, where 43% of Turkish consumers purchase most of their clothing, are the most popular shopping destinations. While specialty stores have become the preferred stores for consumers of all ages, younger Turkish consumers (ages 15–34) are more likely than older consumers (ages 35+) to buy clothing at specialty shops (48% versus 37%), and older consumers are more likely to split their shopping time between specialty and independent stores. Similar to other countries surveyed, an increasing number of Turkish consumers are including online stores as a shopping destination. Internet shopping has increased significantly, with 16% indicating they shop online for clothing, up from only 4% just two years ago. Most consumers start their Internet clothes shopping by using search engines (74%), coupon/discount websites (39%), social media sites (30%), or fashion trend websites (26%). Turkish consumers who use the Internet to clothes shop say they do so to research clothes (59%) or to compare prices from different stores (44%).
Department stores
16%
14%
Sporting good stores
5%
1%
Street markets
4%
6%
Chain stores
2%
4%
Hypermarkets
1%
1%
Factory outlets
1%
1%
Internet
1%
1%
Fiber attitudes Important to know fiber content before purchasing clothing
% responding “yes”
67% 96% 84% 62%
Prefer cotton or cotton blends for clothing worn most % responding “yes” 75% 86% 90% 83%
PURCHASING PATTERNS In their survey responses, 84% of younger consumers, who make up 34% of Turkey’s population, said they love or enjoy clothes shopping, and 62% said they shop for clothing at least once per month (versus 70% and 49%, respectively, of older consumers). Younger Turkish consumers also continue to demonstrate a significantly higher likelihood of purchasing clothing on impulse
[email protected]
Turkey
Italy
Germany
UK
Source: Global Lifestyle Monitor Survey
© 2012 Cotton Council International and Cotton Incorporated
Supply chain insights
Global Lifestyle Monitor: Turkey than older consumers (40% versus 31%); however, impulse shopping has increased for both age groups. When asked if they purchased less, the same, or more clothing this year compared to last year, 42% of Turkish respondents said they purchased the same amount; 29% reported purchasing less clothing; and 24% reported purchasing more. The percentage of all respondents, who report purchasing more clothing, is up; only 20% reported purchasing more clothing in 2010. These results may be related to the larger presence and increased availability of shopping malls in Turkey. In the coming year, Turkish consumer apparel purchases will be buoyed by enthusiastic shoppers and the continued development of attractive shopping destinations.
Denim demand Average number of jeans owned 8
Turkey Italy Germany UK US*
6
5
7 5
*Source: Cotton Incorporated’s Lifestyle Monitor™ Survey
Comparison of denim wardrobe distribution
INCREASING DENIM OWNERSHIP Affinity for denim has remained strong over the past few years, as 65% of Turkish shoppers say they love or enjoy wearing denim. Younger consumers are more likely than older consumers to say they love or enjoy wearing denim (76% versus 49%). Turkish consumers own an average of eight denim garments, five of which are denim jeans. When compared to the U.S. and Europe, denim ownership is lower among consumers in Turkey. However, younger Turkish consumers’ denim ownership is more in line with their European counterparts, as they own more denim garments (10 versus 7) and jeans (6 versus 4) than older Turks. Overall, Turkish consumers’ denim wardrobes are less fragmented than the denim wardrobes of consumers in the U.S. and Europe; two-thirds of Turkish consumers’ denim wardrobes are dedicated to jeans, compared to 45% in the U.S. and 43% in Europe.
Turkey
Europe
US
Jeans
67%
43%
45%
Skirts
8%
7%
5%
Jackets
8%
12%
9%
Shorts
7%
13%
15%
Shirts
6%
19%
19%
Dresses
4%
7%
5%
Purchase drivers Top factors that influence Turkish consumers’ clothing purchases
Associations with Cotton
PRIMARY
SECONDARY
Turkish survey respondents describe cotton apparel using the following words:
Durability
Brand Name
Color
Performance features
Price
Environmentally friendly
Quality
Cleaning requirements
Finish
Fiber content
Style
Endorsement
DECISIONS ON CLOTHING AND COTTON When asked what influences their apparel spending, the vast majority of Turkish shoppers (95%) said durability is a key factor, followed by price (93%), color (93%), quality (90%), and finish (86%). The primary purchase drivers are consistent across the younger and older segments; however, within secondary drivers, brand name is more important to younger consumers than older consumers (82% versus 70%). For Turkish consumers of all ages, clothing quality is crucial to capturing their shopping dollars. Identifying the content of clothing has increased significantly among consumers, as 84% of respondents (up from 75% in 2010) say they always or usually check the fiber-content label before buying clothing. Given that 92% of Turkish consumers indicate that cotton is a quality fabric, it is not surprising that more than half indicated that they are bothered by cotton being substituted for synthetic fibers in key apparel items, such as t-shirts and denim jeans. With 75% of Turkish shoppers preferring cotton and cotton blends for the clothing they wear the most, they will continue to look for and choose cotton-rich products, such as denim, to satisfy their apparel needs.
[email protected]
Country of origin Source: Global Lifestyle Monitor Survey
About the survey This issue is part of a special series of Supply Chain Insights reporting results from the Global Lifestyle Monitor survey, a biennial consumer research study sponsored by Cotton Council International and Cotton Incorporated. In the 2012 survey, 5,000 consumers (approximately 500 in each of the 10 countries surveyed) were surveyed via telephone, faceto-face interviews, and online. Respondents were male and female, aged 15 to 54. The ten countries included in the 2012 survey were Brazil, China, Colombia, Germany, India, Italy, Japan, Thailand, Turkey, and the United Kingdom. *Source: Euromonitor International
© 2012 Cotton Council International and Cotton Incorporated
