Opportunity for Turkish hardware retailers

The structure of the Turkish hardware market has seen change over the last five years as a result of the growing popularity of DIY superstores. A fear of suffering the same fate as food shops some years ago has suddenly now seized the 50 000 hardware retailers. For the DIY stores now established in Turkey have developed into the destination for weekend shopping excursions. However, it is not only end consumers who like shopping in DIY superstores, but painters and decorators and other tradesmen as well. Broad product ranges, attractive packaging, payment by instalments and other DIY store marketing strategies are making the hardware retailers look for possible ways to keep pace with the new market trends.
In order to profit from these trends as well, the traditional hardware retailers have combined forces to form the Nalbur Birlesik Zincir Magazalar A.S. (United chain of hardware retailers plc). This organisation offers a new franchising concept designed to meet the requirements of the changing market. The decision was made in favour of franchising because it seems more successful than other systems. Those responsible are convinced that they will be better able to fulfil the expectations arising from changing trends and also that this is the most economic way to reach the consumer.
To implement the concept the organisation needs 1 000 hardware retailers in the first phase as partners and/or shareholders. In a second stage it has its sights set on 2 200 partners.
Two variations on the concept
Two business concepts are available. The hardware retailer is not required to go to any great expense for the first variation, since he only needs to display the Vidahaustore logo on his shop door. This then identifies the shop as a sales outlet for the organisation’s electronics business.
Through the second variation the retailer is integrated into the franchising system. Members profit from joint purchasing, from inventory planning and advertising campaigns as well as from the franchised name when it is a question of raising loans and suchlike.
Head office supports the retailers through measures which include strategic positioning of the shop and also draws up feasibility studies, offers management training, financial and legal aid, logistical solutions plus sales opportunities through the internet and other technological innovations.
The shops of retailers who join the franchising system are remodelled and restructured in line with the new concept. In general the…