Zorlu Franchises 100 Linen Retail Stores in 11 Countries
April 20, 2004
BURSA - Zorlu Holding Company, a Turkish conglomerate headquartered in Istanbul, has launched 100 Linen franchises in 11 eastern countries, including Turkey.
''This is a strategy for a service license, giving all kinds of service as far as home textiles are concerned in bedding towels, windows and confection,'' said Vedat Aydin, CEO of the Zorlu Textiles division. ''Franchises don't have to sell Zorlu products...[but] we can guarantee the buyer a lower price than if they bought it through another vendor.'' Zorlu stocks its franchises with an eclectic collection of goods, such as stock blankets from South Africa and Greece, down quilts form China and Germany and upholstery fabrics from Spain.
Zorlu Holding Company is one of the largest conglomerates in Turkey, comprising textile, financial services, electronics and energy firms, as well as 100 Linen franchises. Seventy-seven are based in Turkey; the other 24 are scattered throughout Ukraine, Russia, Bulgaria, Romania, Macedonia, Albania, Kazakhstan, Azerbaijan, Cyprus and Saudi Arabia. Zorlu is planning to open more stores in these countries at the rate of three per month, and may establish franchises in China and Pakistan.
''All franchised stores must have a good location,'' Aydin said. ''A franchise owner must be somebody experienced in window furnishings and [have] a $100,000 bank guarantee for the agreement.'' Zorlu's new retail business has had a $30 million turnover; Aydin said he expects sales to double by 2006.
Aydin said ready-mades are popular in Europe and the U.S., but customers in and around Turkey don't purchase them because windows there are unusual sizes.
''I don't think ready-made curtains will start in Turkey. So if you make the service available on a reliable basis and are a well-known brand like TAC, it is highly accepted,'' Aydin said.
Linen franchises carry TAC collections, a leading name in home textiles in Turkey, and it is gaining popularity other countries. ''For the local market, the TAC name is the benchmark in curtains, window covers and bedding,'' Aydin said. ''In fact, the TAC bed sheet brand in Russia is chosen first by five out of 10 women.''
TAC is premiering a towel line at Evteks 2004, Aydin said. Zorlu will finish the towels, which will be offered in 18 colors in yarn-dyed and jacquard to domestic customers only. TAC is planning to export towels to the U.S. in 2005 through Zorlu's Atlanta, Georgia facility and Bed, Bath and Beyond, Zorlu's biggest customer in the U.S.
''Branded articles outside of Turkey will have different collections that will be determined by the needs of the local market,'' Aydin said. ''Right now, we're putting all our energy into towels and bathrobes. Before Evteks opens we have already sold all of our towel production in Turkey, about $20 million worth.''
Zorlu is competing with China's steady gains in the textile market by franchising the Linen stores and moving looms out of Turkey to exploit cheap labor. Zorlu will focus on finishing rather than weaving for the next five years.
Zorlu produces $700 million in textiles and $2 billion in electronics and television sets, and nets annual sales of nearly $3 billion. Its new acquisition, Tupras, a petrochemical company, will add $15 billion in sales yearly to the company.
''This is a strategy for a service license, giving all kinds of service as far as home textiles are concerned in bedding towels, windows and confection,'' said Vedat Aydin, CEO of the Zorlu Textiles division. ''Franchises don't have to sell Zorlu products...[but] we can guarantee the buyer a lower price than if they bought it through another vendor.'' Zorlu stocks its franchises with an eclectic collection of goods, such as stock blankets from South Africa and Greece, down quilts form China and Germany and upholstery fabrics from Spain.
Zorlu Holding Company is one of the largest conglomerates in Turkey, comprising textile, financial services, electronics and energy firms, as well as 100 Linen franchises. Seventy-seven are based in Turkey; the other 24 are scattered throughout Ukraine, Russia, Bulgaria, Romania, Macedonia, Albania, Kazakhstan, Azerbaijan, Cyprus and Saudi Arabia. Zorlu is planning to open more stores in these countries at the rate of three per month, and may establish franchises in China and Pakistan.
''All franchised stores must have a good location,'' Aydin said. ''A franchise owner must be somebody experienced in window furnishings and [have] a $100,000 bank guarantee for the agreement.'' Zorlu's new retail business has had a $30 million turnover; Aydin said he expects sales to double by 2006.
Aydin said ready-mades are popular in Europe and the U.S., but customers in and around Turkey don't purchase them because windows there are unusual sizes.
''I don't think ready-made curtains will start in Turkey. So if you make the service available on a reliable basis and are a well-known brand like TAC, it is highly accepted,'' Aydin said.
Linen franchises carry TAC collections, a leading name in home textiles in Turkey, and it is gaining popularity other countries. ''For the local market, the TAC name is the benchmark in curtains, window covers and bedding,'' Aydin said. ''In fact, the TAC bed sheet brand in Russia is chosen first by five out of 10 women.''
TAC is premiering a towel line at Evteks 2004, Aydin said. Zorlu will finish the towels, which will be offered in 18 colors in yarn-dyed and jacquard to domestic customers only. TAC is planning to export towels to the U.S. in 2005 through Zorlu's Atlanta, Georgia facility and Bed, Bath and Beyond, Zorlu's biggest customer in the U.S.
''Branded articles outside of Turkey will have different collections that will be determined by the needs of the local market,'' Aydin said. ''Right now, we're putting all our energy into towels and bathrobes. Before Evteks opens we have already sold all of our towel production in Turkey, about $20 million worth.''
Zorlu is competing with China's steady gains in the textile market by franchising the Linen stores and moving looms out of Turkey to exploit cheap labor. Zorlu will focus on finishing rather than weaving for the next five years.
Zorlu produces $700 million in textiles and $2 billion in electronics and television sets, and nets annual sales of nearly $3 billion. Its new acquisition, Tupras, a petrochemical company, will add $15 billion in sales yearly to the company.
