White goods are big business, and it's easy to see why. They're among the most important products for any person who cooks and does laundry, making life easier across a wide range of household functions. Therefore, it is unsurprising that as a manufactured product category – that includes refrigerators and freezers, dishwashing machines, washing (and drying) machines, and stoves – global exports hit almost $90 billion in 2015.
Some countries that will leap to mind when thinking about white goods – because of the prominent consumer brands that emanate from them – are Germany (with such household names as Bosch or Miele) and the United States (Whirlpool). As with all manufactured goods, China is also a big exporter. However, among the world’s top exporters for home appliances is a county that not everyone would immediately guess: Turkey.
Turkey is in the top ten global exporters of fridges and freezers, washing machines and stoves, only just missing the top ten for dishwashers – but with growth averaging 15 percent a year over the past ten years, it's only a matter of a few years before Turkey is among the top-ranked exporters for this product too.
Growing steadily, then going global
Among Turkey’s better-known white-goods manufacturers is the firm Arçelik, a part of the industrial conglomerate Koç Holdings. Founded in 1955, Arçelik started off making office and metal furniture, producing its first washing machine in 1959, its first refrigerator in 1960, and launching a vacuum cleaner plant in 1979 and a dishwasher plant in 1993.
However, among the firm’s various accomplishments, one stands out, both to outside observers and for the company itself: when Arçelik broke out of Turkey to go global, first in the markets Arçelik sold to and then in its production locations.
This expansion has occurred both through organic growth and through strategic acquisitions. For example, aside from the Arçelik brand itself, among the firm’s flagship brands is Beko, initially a home-grown brand that in the 1990s was assigned to drive Arçelik’s expansion outside of Turkey. The Beko team was tasked with the goal of “being a world brand”: Today a Beko-branded product is sold, worldwide, every two seconds.
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