13.09.2023 İstanbul
The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) President M. Rifat Hisarcıklıoğlu attended the Local Chains Meet 2023 Conference and Fair.
In his speech, TOBB
President Hisarcıklıoğlu said that the retail sector, which is the last pillar
of production, supply and logistics, is a very large organization that brings
products together with customers, the barometer of the country's economy, the
employment factory and the insurance and guarantee of the food sector.
Hisarcıklıoğlu stated
that even more importantly, this sector is the leading indicator of the economy
and said, “For this reason, retail data is used as a critical economic
indicator all over the world. The development of the retail sector has a great
share and contribution to Türkiye's growth. This is because the retail sector
not only grows the local economy and increases production, but also ensures
that local resources are processed by local SMEs and offered to the markets.
Local chains are the locomotive of this sector. Local chain markets are
strategically important for strengthening the local economy, boosting local
employment and enabling small businesses to participate directly in the
economy. Our sector increased the number of employment and continued to
contribute to employment even during the period when the pandemic was intense.”
Hisarcıklıoğlu said,
“As a brother who knows our sector closely, I am in constant dialog with our
federation. Because the local market chains gathered under the umbrella of the
Turkish Retailers Federation act as an important bridge between the producer
and the consumer. They contribute significantly to the development of the
country's economy, both nationally and locally. With a total of 5,500 stores,
local supermarkets play a very important role in modernizing the traditional
food retailing channel. Local chains also support the participation of women
and young people in the labor force through the job opportunities they provide.
So every step that strengthens our sector essentially spills over into the
economy as a whole. This conference is a great opportunity to give us ideas on
how to improve our business.”
Stating that he is
aware of the problems faced by the sector, the TOBB President said, “First of
all, the slowdown in cash flow in the market, high inflation and cost increases
are challenging us all. On the other hand, there are practices that lead to
unfair competition in our sector. ‘Private label’ branded products prevent both
the growth and branding of our SMEs. It also disrupts the competition within
the sector itself. On the one hand, we say branding. But we are also grabbing
the branded ones by the scruff of the neck. If this is not prevented, we will
not have a national industry. Our industrialists and producers become
subcontractors. Another important issue is low-weight products. The same
product is presented in the same packaging, but with a lower weight and the
consumer is deceived. This is actually a problem experienced by the entire
sector. In order to prevent this, we should talk about introducing a ‘standard
weight application’ for products offered for retail sale.”
Hisarcıklıoğlu said,
“While demanding from the public, we will also look to ourselves. In the past,
shopping used to be done from a single point. Now, there are discount markets,
markets at gas stations, sales at the market, Agricultural Credit Cooperatives,
e-commerce sites and fast delivery companies. Where there are so many
alternatives, as local markets, we need to find an answer to the question of
how we can differentiate from them.
On the other hand, the
old consumer profile does not exist. Life is rapidly evolving towards digital.
The consumer is digital. They also carry their shopping to digital. Product
reviews, product comparisons, what, where, how queries, brand experience,
experience sharing, all are on the internet. Whoever can answer these more
easily will have more chances. Those who cannot keep up with technology will
fall behind.
The future is in
e-commerce and mobile applications. You can adapt to these the fastest. For
this reason, user-friendly digital media designs, mobile compatibility, on-line
sales strategies, digital visibility should be on our agenda.”
Hisarcıklıoğlu said
that another issue being followed in the world is data mining, that is,
transforming raw data into information and using it, “You all know and use
barcodes. Today, 99 percent of the products on the shelves of any market or
shop have barcodes. Every day, barcodes are scanned millions of times at the
cash registers. The organization that delivers these barcodes to you and
ensures the operation of this system in our country is Global Standards 1, or
GS1 Türkiye for short, which operates under the roof of TOBB. That beep sound
you hear at the checkout shows that the GS1 system is working in the
background. These barcodes not only allow the product to pass through the cash
register quickly. They also allow us to manage stock, order and shipment
processes more effectively. It shows you where trade has evolved and changing
consumer behavior. In addition, thanks to each barcode used, the goods sold are
deducted from the stock, and when the stock falls below a certain level, they
are automatically ordered. Consumers also shop more reliably thanks to
barcodes. Because the product can be tracked at every stage. Whatever
information is needed, such as who the product belongs to, when it was
produced, how long it has been in cold storage, can be accessed. The World
Trade Organization and the World Health Organization also refer us to GS1 for
product and supply chain issues. By closely following and using GS1
applications, you can establish a more efficient and effective working order
and respond faster to consumer expectations.”
Hisarcıklıoğlu said
that the future of the sector is bright and that Türkiye is urbanizing very
rapidly. Hisarcıklıoğlu noted: “We have a large population that is more
urbanized, more mobile, and wants to consume faster and easier. We are the
sector that fits their consumption patterns the most and responds to their
demands the fastest. So let's protect our sector. Let's protect our companies.
I have some suggestions
at this point. Mobile applications provide great convenience to consumers.
Whether companies or products can be reached through mobile applications has
become much more important in consumer preferences. For this reason, your
company or product will either have a mobile application or be included in a
mobile application developed.
I said it last time and
I’ll say it again. The most valuable land in the world is now the cell phone
screen. You need to take your place on this screen. The passage of time has
shown how right we were. This trend will continue and become even more
important in the future, let’s not miss it.
Secondly, we need to
learn the culture of partnership and joint action. In this era, if you want to
earn more, you need to buy more and sell more, in other words, you need to
achieve economies of scale.
Third, cooperate with
local brands in the provinces. Build local producer brands as your common
stakeholders. Grow together. Take ownership of geomarked products. Look, these
were not known in the past. 20 years ago, do you know how many products we had
with geomarkers? Only 31. Today we have exceeded 1,400. TOBB and our Chambers
and Commodity Exchanges have embraced this work. We have given geomarkers to
our local products and local values, we have protected them. We have protected
this work not only at home but also abroad. We provided geomarker registration
for our products in the European Union. The number of registered geomarkers that
have the right to protection in the Union has increased to 14. Now no one will
be able to use them without our knowledge and permission. With its 12,000 years
of history, our Anatolia, home to dozens of civilizations, has thousands of
local products. But if we cannot promote and market these values, if we cannot
bring them to the economy, they are worth nothing. Look, people now prefer
local and natural products. They pay more money for this. Geomarked products
offer us this opportunity. It opens new opportunities for our producers and
entrepreneurs. Let's use these opportunities”.
Hisarcıklıoğlu stated
that he believes that there is no burden that they cannot overcome when they
join hands and said, “You have already determined a very beautiful theme as the
main theme of this year's Conference. “When we are one, blessings are ours”. It
is actually a theme that I always mention in my speeches and messages to our
community. ‘There is grace and prosperity in unity and anguish in dissent.’
Saying ‘we’ instead of ‘I’ will bring success and unity.