Growing sectors and trade fairs in Turkey in 2017

By News about Turkey No Comments

Over the last 10 years, the Turkish economy has enjoyed exceptional performances and continued growth. Despite the political tensions of 2016, the growth ratios of the Turkish market were only slightly affected, with the 2016 growth rate expected to be the same as that of 2015, around 4% of GDP thanks to the growing sectors in Turkey.

The confidence of foreign investors seems to have remained untouched, as explained by the Turkish Minister of Economy Mr. Nihat Zeybekçi, who has good prospects for foreign investment in Turkey for 2017/2018. According to him, in 2017, the Turkish economy will dissociate itself from the other world economies thanks to the support of the foreign investments that will have exploded. ”

Here are the growing sectors that promise a good evolution in 2017:

►►► Growing sectors in Turkey in 2017

The automotive sector: The country’s largest industry, with a competitive and highly skilled workforce, combined with a dynamic local market and favorable geographic location, the automotive production of 13 international OEMs Turkey has seen an increase of 374,000 in 2002 to more than 1.3 million vehicles by 2015. By the end of 2015, Turkey was ranked Europe’s leading producer of light commercial vehicles (LCV). A 3% change in activity is expected this year.

► The AUTOMECHANIKA trade fair for professionals in the automotive industry is held every year in Istanbul in April. 6-9 April 2017

For more information, click here.

The aeronautics sector: Globally, the aviation is one of the fastest growing sectors at around 3-5% per year, against at least 10% each year in Turkey over the past ten years. Turkish Aeronautics Institute (THK) General Chairman Kursat Atilgan said that over the past 10 years, the aviation sector in Turkey has grown by at least 10% each year. “The Turkish aviation sector has shown extraordinary development”.

ISTANBUL AIRSHOW, for professionals in the aeronautics industry, is held every two years in Istanbul in September. 27-30 September 2017

For more information, click here.

The defense sector: In 2016, exports were up in the Turkish Defense Industry. Indeed, Turkey exported to 108 countries in 2015 which was around fifty in 2010. The United States was the first customer of Turkey with 87.369.000 dollars of purchase. The defense industry has demonstrated its successful export performance and hopes to continue this trend in 2017. The sector has even outpaced other sectors in terms of exports.

► The IDEF’17 ISTANBUL trade fair for professionals in the defense industry is organized every year in Istanbul in May. 9-12 May 2017

For more information, click here.

The plastics industry: Today, 5th, in 2020, Turkey wants to become the leading European plastic producer. By 2015, nearly 135 companies in the sector were foreign-owned. Turkey is making great efforts to gradually adopt European standards.

PLASTEURASIA, a trade fair for plastics industry professionals, is held every year in Istanbul in December. 6-9 December 2017

For more information, click here.

The construction sector: Turkey is among the best manufacturers in the world: 3rd largest manufacturer in the world, 4th largest cement producer in Europe and the second largest in Europe, 25 Turkish companies listed on the “List of 225 world’s leading construction companies”. The sector accounts for nearly 30% of the country’s GDP and it is also one of the fastest growing sectors.

YAPI – TURKEYBUILD EXHIBITION, a trade fair for professionals in the construction industry, is held every year in Istanbul in May. May 23-27, 2017

For more information, click here.

The energy sector: As in 2016, in 2017, the sector will see numerous mergers and acquisitions. The commitment of key decision-makers and market regulators is signaling improvements in the overall investment climate. Interest should remain limited for domestic investors. Foreign investors in gas and renewable power plants have announced a major upcoming investment.

► The SOLAREX trade fair for energy professionals is held annually in Istanbul in April. 6-8 April 2017

For more information, click here.

► The CNR ENERGY ISTANBUL trade fair for professionals in the sector is organized every year in September. 21-24 September 2017

For more information, click here.

——————————————————————————————————————————————————————

Do not hesitate to consult our Why Invest in Turkey page for more information about Turkey.

Would you like to establish your business in Turkey in a sustainable way or participate in a trade fair in Turkey? The ERAI Turkey team is trained and available to accompany you! Contact us for more information about our services: [email protected] / +90 216 463 33 66.

Looking for a prestigious office for rent in Istanbul

By ERAI Turkey services No Comments

As you plan to set up your business in Turkey, you should be aware of the important steps for a healthy and efficient implementation. Among these, finding the right place to set up an office is by far one of the most difficult. If you are looking for a prestigious and well-located office for rent in Istanbul, you surely know that this search can be laborious and compelling. The difficulty of finding a suitable place plus the language barrier, the administrative constraints as well as innumerable procedures imposed by the State which, by their complexity can discourage you.

ERAI Turkey is well aware of the problems that foreign companies may encounter. This is why the company offers high-quality offices located in the most important business district on the Asian side of Istanbul. With quality service and exceptional comfort, you only need to concentrate solely on your productivity and the development of your business in Turkey.

ERAI Turkey provides a warm and welcoming workplace, as well as practical ways to help you achieve your goals successfully! Do not hesitate to contact us if you are looking for an office for rent!

You will have a closed or open-space office, in a professional environment where many French-speaking or English-speaking managers are already available. You will have access to the following features:

  • Furnished desktop 9‐15 m² (office chair and cabinet included)
  • High speed internet + wifi + digital phone
  • Air Conditioning/Heating
  • Access meeting rooms with seating ranging from 6 to 20 people.
  • 24/7 On-site access
  • 24/7 Security
  • Daily office cleaning
  • Access to underground parking
  • Photocopy / Fax / Scanner
  • Convenient location in the heart of the business district on İstanbul`s Asian side.

French version of the article HERE

Check this link to see all photos ERAI Turkey offices. Do not hesitate to contact us via this form or by email [email protected]!

5 tips to negotiate well with Turkish entrepreneurs

By Advice about Turkey No Comments

You will soon have appointments with Turkish entrepreneurs and you don’t know much about the local practices to be applied before and during the interview. Here is an article that will help you to better understand your interlocutors better. You will also find some basic practical tips to know before you jump into the water.

1 / Identify your contact person

Identifying the identity of your interlocutor, but especially his position in society is a crucial point that must not be overlooked before your appointment. This information will determine the tone of your conversation.

If you are going to meet the decision-maker of the company, CEO, owner or partner, you will need to be more global and direct, and thus give global information (potential turnover, forecast sales volumes, etc.). The goal is to convince him that the project will be beneficial and fruitful for his company.

If, on the other hand, you are going to see an employee of the company who will hand in a report of the interview to the decision-maker, give more precise figures, explain the step-by-step processes, do not hesitate to give technical details. By convincing him by precise means of the potential success of the project, you will give him the keys in hand so that he himself can convince his superior.

2 / Taking the cultural aspect into consideration

Turkish culture has an important place in professional talks. Know that the Turks are warm and appreciate to exchange a few words at the beginning of interviews and then slowly bring the discussion to the professional side. You will be systematically offered a drink, tea or coffee, then the host will accompany you to drink it. Turkish people appreciate that you enjoy their tea or coffee, so for them, it is nice to share this cup with you. Moreover, if you want to attract the positive attention of your partner potential, learning a few words in Turkish and then slipping them into a conversation can only be a bonus for you.

The Turkish entrepreneurs are very warm, smiling but slightly stressed to meet a foreigner for the first time, especially if his English is insufficient (according to him). It will be good to relax the atmosphere from the start by complimenting the English of his Turkish interlocutor or apologizing for not being able to communicate in his language. Finally, you will end the interview with a “thank you” for the welcome and the time granted. If the interview ends at dinner time or lunch, you may be invited to share a meal with the host. This is not a form of politeness, it is a sincere proposition! If you accept, you will have the opportunity to eat in good company, surely in a pleasant place, with perhaps a view of the Bosphorus, while strengthening your complicity with your interlocutor who will attach importance to it.

3 / Find out about the country’s economic situation

You may offend your host and jeopardize your credibility if he realizes that you do not have the basic economic knowledge about his country. Turkish people appreciate the interest in their country and like to know that their trading partners are concerned about the economic well-being of the country in which they want to do business. So be warned or even make a study on the country BEFORE getting in business with Turkish entrepreneurs.

The subject to be avoided is still a political subject. Not knowing the opinion of your interlocutor on the subject, it is better not to give your opinion neither on the government nor on the overall political situation of the country.

4 / Show your commitment to the development project in Turkey

During the appointment (which you surely have to prepare upstream), we advise you to have:

  • Your business card, to be presented at the beginning of the meeting
  • Brochures in English or Turkish
  • Samples (if possible to leave to the prospect)
  • A price list (if you want to share it with the prospect)
  • Some technical sheets if the presentation of your product requires precise details

It is not usual to bring a gift to his prospect, but a small box of chocolate will be very appreciated, especially for the prospects with whom you feel a real interest.

But the most important thing is to bring with you a specific plan of actions, although it will certainly not be the final action plan. The Turkish entrepreneurs must feel that you are motivated, prepared to face the market and determine to breakthrough. If he is not confident, he will doubt your credibility and his interest will remain only superficial.

5 / Make concessions and stay flexible

Flexibility is the biggest complain that Turkish businessmen make about some European companies. They complain of the rigidity in action plans, deadlines, prices and the most basic processes of partnerships.

The Turks have direct and instant decision-making methods that are rarely found in some European countries and they ask foreign entrepreneurs who are rather thought-provoking. The Turkish will, therefore, expect from you flexibility that must be granted without falling into excess.

If you wish to be trained or accompanied during your professional meetings with Turkish companies, send us an email at [email protected] or contact us by filling the form!

The French version of the article, click here.

Find Your Ideal Business Partner in Turkey

By Advice about Turkey No Comments

 

The pattern most borrowed by French companies wishing to establish themselves in Turkey is the partnership agreement with a local company in the form of a distribution contract. The company is, therefore, working with a Turkish company of the same sector as a business partner in Turkey which has the capacity to distribute the products in question. This affiliation with an already existing market player is beneficial for several reasons:

  • EASY AND SMALL COST OF ESTABLISHMENT: It allows the French company to quickly settle in the Turkish market, without having to go through many formalities or unblock large costs.
  • MINIMIZING RISK: Commitment to the market is shared with a local company, reducing risks in the event of failure
  • BENEFIT FROM LOCAL KNOW-HOW: It allows to have commercial and technical support on the spot, thanks to the partner who knows the market and already knows its needs
  • QUICK SALES: It allows the company to benefit from the customer portfolio of its partner and to realize sales quickly

The objective of this partnership is a matter of both parties fully satisfied with the mutual commitment. Foreign companies benefit from it as mentioned above but for a Turkish company, this type of commitment remains a challenge as well as a big commercial, marketing, and sometimes technical investment. Why? Indeed, it takes a huge amount of effort to implement a brand new brand and to put in place a large number of procedures, or even to hire additional staff before making any sale.

It is therefore essential to have sharp and relevant criteria in your search for the ideal business partner in Turkey and then to make compromises for a good bilateral understanding.

WHAT YOUR CRITERIA SHOULD BE?

FLUID COMMUNICATION:

Prefer a partner who speaks a common language with you. CEOs or business managers often speak good English, but there are exceptions.

ASK YOURSELF THE RIGHT QUESTIONS:

  • Check the credentials of the team in place
  • What work methods does the company use internally? Will you be able to adapt to the methods?
  • Does the team have experience on the ground?
  • What are their existing customers’ portfolios?
  • In which market does this company evolve?

BE VIGILANT ON THE FINANCIAL WEALTH OF THE PARTNER:

It is best for you to control your partner’s financial solvency before making any decisions. ERAI Turkey can perform a financial analysis for you. Do not hesitate to contact us.

BE REACTIVE AND MONITOR:

Turkish companies criticize a lack of responsiveness of international companies in their decision-making process. Therefore international companies have big competitors with a better reputation in Turkey which concluded distribution contracts much more easily. Keep your promises and respect deadlines, and everything should be fine between you and your business partner in Turkey.

MEET SEVERAL TIMES:

See this engagement as a marriage. Before signing anything, meet your business partner in Turkey several times in order to know him better and to avoid any bad surprises once the agreement is signed. It will also allow you to forge stronger bonds that can only be positive when this “common life” is put in place.

Do not hesitate to contact ERAI Turkey for support in finding your ideal business partner in Turkey. Send us an email at [email protected] or via this form.

The French version of the article: http://eraiturquie.com/2016/11/02/trouver-le-partenaire-professionnel-ideal-en-turquie/

Umbrella Company Services in Turkey: what is it?

By ERAI Turkey services No Comments

The Umbrella Company Services, a new uncommon employment status abroad, appears as a simple and effective springboard to test its economic activity in a new market without risk, before undertaking missions of implantation or development of more activities. It also serves to test the relevance of the market and the feasibility and success of an idea or product.

The Umbrella Company Services in Turkey involve three actors:

  • The client company which uses a workforce which has the capacity to carry out missions on the Turkish territory and which signs a contract of performance with the company of Umbrella Services.
  • The payroll company, here it’s us, ERAI Turkey, which intervenes by having the employee sign an employment contract and by guaranteeing the client company a good performance of their activities on the spot.
  • The employee who has signed a contract with the payroll company, and who becomes his employer (through an employment contract).

The benefits of the Umbrella services in Turkey are multiple:

FLEXIBILITY

  • Recruit more effectively by adapting the workforce according to the needs of the company
  • Outsourcing non-core tasks to the core of the market …
  • Respond to a temporary need or a peak of activity
  • Hire qualified personnel (sales expert, engineer, area manager …)

EASY MANAGEMENT

  • Security in the management to the employee
  • Takeover of the administrative tasks by the payroll company (expenses, car rental …)

MORE CONTROL

  • Small financial investment and minimized risks
  • To benefit from a single interlocutor (here the payroll company ERAI Turkey) for your activities in Turkey

Every year, ERAI Turkey hosts nearly ten employees in its structure. They are recruited by ERAI Turkey in Europe or locally and then placed on the premises of ERAI Turkey. They are then physically and administratively supported and trained to the Turkish market and the client company’s sector if needed.

umbrella-company-sketch

If you would like more information about Umbrella Company Services in Turkey, please do not hesitate to contact us.

For the French version of this article, click here.

Written by Pelin YILDIZ.
French