Posted at 10.05.2018
Under the Economic Change Program (ETP), Pensonic Positioning Bhd will establish a developing hub and international distribution network of electrical power home appliances. On top of that, Malaysia market will boost up due to the increasing export volume of local product. In order to achieve target of Pensonic Group that become worldwide well known household appliances brands, the company has followed a multi-brand to cater different product categories and market section in various country. The Republic of Turkey is a transcontinental country that provides opportunities to Pensonic Group to grow its business to South-eastern European countries and South-western Asia. In '09 2009, Turkish electronic digital sector is continuing to grow dramatically, achieving a production quantity worthy of USD9. 5 billion. Regarding to Economist Intellect Unit (EIU), the market demand for electronic goods is likely to growth in Turkey between 2009-2013 as the result of the growing human population and disposable income. Turkish electronic sector is constantly attempting to produce impressive, high quality and internationally competitive products.
The society of Turkey is approximated to be 78. 7 million with a growth rate of just one 1. 23% per annum. The mature population that range between 15 to 64 years old is approximate 67. 1%, that may form the majority of the Pensonic marketplace. Turkey's young people is larger than the total society of many Europe and half Turkey's human population, is below age group of 28 years old. In recent years, the growing volume of youth with higher levels of education eventually resulted in a strong and stable economical growth. As the training level heightens, Turkey's middle income society is flourishing and growing sound with a series of changes in sociable and economic dynamic. Therefore the quality lifestyle and purchasing power of the country more than doubled. With this statistics, Pensonic can expose more high-tech digital product to accommodate the Turkish young society as the majority of them are tech- savvy.
Demand for electrical product in Turkey are quickly growing, therefore it attract many trader throughout the world to invest in the united states. The amounts of players in the market are definitely more than 2000 companies that register under electric equipment and equipment. The largest competition is Arcelik Company that has market show more than 50 percent in Turkey. Moreover, other main players in Turkey house machine and consumer electric industries are Vextel Elektronik, Casper Bilgisayar, Philips and many. Those company already operate in the united states for an extended period of time, for Pensonic to enter and gain large market it acquire long period of time and effective advertising must be done. Furthermore, Turkish-made television pieces have excellent reputation among European consumers.
The increased of young generations in Turkey created demand for kept up to date digital good such as LCD tv, home theater system, among others. As expected, Turkish consumers embraced the new concept of attractive, portable devices, and fair prices. This boosted the demand for lightweight DVD player, air purifier, and more. The development of high adoption towards new product to boost standard living was the key drivers of the demand for lightweight products in Turkey. Also, the decrease in unit prices motivated consumers to acquire portable products alternatively than choose traditional electronic products as lightweight versions are far more convenient and easy to consume. Thus, this has provided a gold possibility to Pensonic Group to develop their business for the reason that country.
Prior to the global recession, the retail sales were highly declines in '09 2009. However, most categories are expected to own positive growth shows in the forecast period. The restoration of the industry is expected to start out in 2010 2010, boosted by the taxes reduction measures applied in the third quarter of 2009 by Turkey authorities. While using strong and secure economic growth, the Pensonic Group is expected a healthy growth in future, for categories that are strong in terms of services, such as paraffin wax spa, instant coffee maker and others. Additionally, the purchasing power of consumers is likely to begin increasing in 2010 2010 and 2011, which is expected to raise sales of Pensonic Company. Together with the increasing of disposable income, it raise the chance of folks spend more of on luxury good.
By become member of company such as World Trade Corporation, Company of the Islamic Conference and under FTA, the trade romantic relationship between Malaysia and Turkey are guarded. Moreover, both countries were benefited by checking out to larger market. Example, Turkey would serve as Malaysia's entrance to European market while Malaysia would be Turkey entryway to provide the Asian market. Therefore, this may allow Pensonic to increase the business enterprise to Western country better. This ensures that Pensonic may gain more market show not only in Turkey but from other European countries. With FTA, it permits Malaysia developing company benefited from duty reduction that reduces the price tag on export the company product.
Given that the competitive environment of the Turkish consumer electronics industry is very fragmented and offering various brands in all price sections, therefore products with lower unit prices became popular due to the economic problems. The track record of the Turkish electro-mechanical industry was better than expected. There had been an increase in the amount of local suppliers and dealer around European countries. Beside physical store, online dealer in more famous because of the convenience and the purchase price is cheaper. Production increased stably and therefore of increasing demand the industry broadened its production capacity. Hence, Pensonic acquired to develop a strategy wherein the hard facts of corporate life have to be consider before increase the business enterprise to Turkey.