No Crisis for Turks; They Like to Borrow
Judging on figures recorded within the last 6 months it is obvious that Turks indeed like to spend.
Accordingly, the number of people and volume of loans used in all product groups have made serious jumps as compare to a short while ago.
Consumer loans and Credit Cards
Consumer loans of deposit banks and usage of credit cards have gone up by 19,3 percent, from 168,2 to 200,7 billion Turkish liras, since end of 2010.
The increase in home borrowing within the same period has become 17,1 percent. Home loans which were 57,3 billion liras at the end of 2010 amounted to 67 billion as of 15th July 2011.
Vehicle loans have gone up from 5,4 to 6,2 billion Turkish liras with an increase of 16,4 percent, during the same period.
Need to Spend
Turkish consumers are exposed to the power of advertising in a very strong manner and cannot overcome the need (hunger) for every little source of expenditure on the way to making their lives more comfortable. This is even moreso for bigger crowds of lower income groups with a lower level of education.
It could be said Turkey is a paradise for consumer good manufacturers as well as producers of electronic goods and motor vehicles etc. The critical point to consider would be the consumers are very much price oriented as well, and not quality.
BUSINESS TURKEY TODAY
24 July 2011