Arçelik Company

History

Arçelik was founded in 1955 and entered the Turkish household appliances sector by producing its first washing machine in 1959 and its first refrigerator in 1960. In 1968, Arçelik moved to its Çayırova facilities near Istanbul. In the 1970s and 1980s, the company expanded its product range and opened its Eskişehir refrigerator plant in 1975, Izmir vacuum cleaner plant in 1979 and Ankara dishwasher plant in 1993.

1999 was a year of growth and reorganization. Arçelik founded Ardem to manufacture cooking appliances and brought under its roof Türk Elektrik Endüstrisi A.Ş. and Atılım ve Gelişim Pazarlama A.Ş. as a single legal entity. In 2001, Arçelik took over the marketing and sales activities of Beko products that used to be marketed and sold by Beko Ticaret. The new organization model enabled the company to manage production and sales/marketing activities centrally and to increase productivity.

Strategy

Company’s strategy is to maintain its competitive edge through continuous development, and secure its future greatness. In addition to existing Arçelik, Beko, and Altus brands, brand names like Elektra Bregenz, Blomberg, Arctic, Leisure, Flavel, and Troila, which have incorporated in accordance with international expansion strategies, form a product spectrum that satisfy all customer segments in international markets.

Aiming the top of the world league, Arçelik focused its investments on developing markets and laid the foundations of a plant to be established in Russia.

Current position

In the last four years Arçelik, one of Europe's leading household appliance companies has doubled its turnover, and in 2004 has registered a growth of 29% over the previous year. By the end of 2004, a total production figure of 7.4 million units has been achieved in four major production groups. Compared to last year a growth of 30% has been realized.

The 2004 turnover for the company, whose products reach consumers in more than one hundred countries, stands at 2.7 billion Euros. The sales revenue achieved through foreign sales now accounts for 44% of the total turnover. The foreign sales volume has mushroomed from 472 million Euros to 1.2 billion Euros in the last four years.

In Turkey, 15 million households are using Arçelik products. These indicators regarding the performance are supported by the many international quality and technology awards, and other prizes Arçelik have received. In the last four years, the it has continuously been selected the most admired Turkish company in all sectors.

Brands, Technology and innovations

Arçelik, Beko, Altus, Blomberg, Arctic, Elektra Bregenz, Leisure, Flavel, Arstil

Arçelik, with its innovative approach, is creating its own technology, and from a technological perspective, an impressive number of ideas developed in its R & D department are listed amongst the firsts in the world.

With about 300 successful patent applications, Arçelik accounts for 10% of all the patent applications in Turkey, since 1996. Moreover, in the European durable consumer goods sector Arçelik is one of the first four companies with the highest number of patents to its name.

Arçelik, which in conformity to European standards earmarks approximately 1.5% of its total annual turnover to R & D, employs 450 researchers in its central and operational R & D departments. Working towards the goal of acquiring technological leadership in its sector, the company has won some very prestigious awards in the international arena in 2004, through the products it has developed.

Market share

Arçelik’s market share in European countries has been increasing significantly. In Great Britain, one of the leading markets of Europe, it has a 14% share in the refrigerator, and a 7% share in the washing machine sectors. Similarly, in Belgium Arçelik enjoys a 14% share in the free-standing household appliances, and a 43% share in the cooking appliances sectors. It also has a 5% share in the total household appliances sector in Poland, and a 20% share of the same sector in Lithuania. Considering the total European market, the share of Arçelik brand name goods has reached 5% and free-standing goods has reached 7%.

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