Amazon holding talks to enter Turkey
Amazon, the US based online retail giant, is holding talks to penetrate Turkey, sources said. The company is in negotiation with the government in Ankara and could either conduct a greenfield investment or enter the country through an acquisition, which is more probable, according to those sources. The giant retailer has already hold talks with domestic players but haven’t yet decided on a deal.
Amazon had acquired United Arab Emirates based Souq.com for USD 650m in March and in a recent move acquired upscale U.S. grocer Whole Foods Market Inc for 13.7 billion $. So the company isn’t only interested in online retailers but also is in an effort to transform successful fresh produce retailer brands into online retailers with its proprietary technology. Amazon is already in touch with Turkish retailers and could follow the same route and acquire a retailer both on the online segment or offline chains with less online exposure to exploit larger growth opportunities, a retail expert said.
There are 46 million internet users in Turkey and it has a 58% penetration rate, which is below the emerging markets but higher than the BRICS’. E-commerce has a total volume of 17.5 billion Turkish lira.