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ISTITUTO NAZIONALE PER IL COMMERCIO ESTERO
Jewellery in Turkey
Prepared for
ICE-Ufficio di Istanbul
Istanbul
March 16, 2007
Ağa Hamamı Cad. Ağa Han No:1/6 Cihangir, Beyoğlu 34433, Istanbul
Tel: (212) 252 2460 Fax: (212) 252 2430; E-Mail: [email protected]
Web Site http://www.IBSResearch.com
Registered in Istanbul, No. 214984/162536
TABLE OF CONTENTS
1
II
Introduction ................................................................................................................. 1
Economic & Social Factors ........................................................................................ 2
2.1
GDP..................................................................................................................... 2
2.2
Inflation ............................................................................................................... 3
2.3
Unemployment .................................................................................................... 3
2.4
External Trade Balance ....................................................................................... 4
2.5
Political & Economic Topics .............................................................................. 4
III
Economic Trends in Jewellery ................................................................................ 6
IV
Foreign Trade .......................................................................................................... 8
V Cooperation Opportunities between Italian and Turkish Companies ....................... 11
VI
Legal Framework .................................................................................................. 13
VII
Imitation and Brand Counterfeiting ...................................................................... 14
VIII Contacts................................................................................................................. 15
THE JEWELLERY SECTOR IN TURKEY
An Introductory Market Analysis
March 16, 2007
1
Introduction
L’UFFICIO DI ISTANBUL DELL’ ISTITUTO NAZIONALE PER IL COMMERCIO
ESTERO (ICE) is interested in developing economic relations between Turkey and Italy
and encouraging joint ventures and trade opportunities between Italian and Turkish
companies.
In February 2007, ICE commissioned IBS Research and Consultancy (hereafter referred
to as IBS) to carry out an introductory market analysis on the jewellery sector in Turkey.
The aim of the research is to give Italian companies an up-to-date overview on the
Turkish market for jewellery with the aim of supporting Italian exporters and importers
as well as those companies wishing to invest locally.
IBS is a leading Istanbul consultancy and has been working with ICE since 1990,
covering different sectors, including textiles, packaging, food, printing and publishing,
furniture, agricultural machinery and equipment, franchising and shipyards.
IBS carried out detailed research and conducted interviews with sector experts,
associations and players to understand recent development and the opportunities for
Italian companies involved with jewellery in Turkey. The research was carried out
between March 1 and 22, 2007.
IBS
1
II
Economic & Social Factors
2.1
GDP
In the first three quarters of 2006 Turkey’s GDP growth was 5.6% compared with 6.7%
growth in the first three quarter of 2005. In 2006, the GDP is estimated to reach $390.4
Bn at current prices, 6% up in volume terms on 2005. The CAGR (compound annual
growth rate) between 1991 and 2006 was 4.2%, one of the highest in the OECD area.
Declines were seen in GDP in 1994 and 2001 due to the financial crises in those two
years. Another decline was in 1999 when a major earthquake hit the Marmara region,
Turkey’s industrial heartland.
GDP IN TURKEY, 1991-2007**
At Current Prices
GDP, Bn $
GDP, Growth
450.0
10.0%
400.0
8.0%
350.0
6.0%
4.0%
300.0
2.0%
250.0
0.0%
200.0
-2.0%
150.0
-4.0%
* SPO estimate
** Government program
GDP, Bn US$
GDP Growth (1998 fix prices)
2007**
2006*
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
-10.0%
1995
0.0
1994
-8.0%
1993
50.0
1992
-6.0%
1991
100.0
Source: SPO
Major contributors to real GDP growth in the first three quarters of 2006 were private
fixed investment (with a growth rate of 18.8%) and exports of goods and services
(growth rate 4.1%).
In 2007, Government foresees 5% annual growth; IBS expects medium-term growth to
be between 4.5% and 6%. Inflation may stay closer to 10% than earlier hopes of 5%.
There has been a major improvement in public finances, leading to lower absolute
interest rates, though Turkish real interest rates remain among the higher in the world,
one of the key factors contributing to the strength of the Turkish lira.
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In 2005, Turkey was the 17th largest economy in the world on purchasing power parity
basis (PPP basis) with a GDP of $552 billion, and 20th on a normal value basis with a
GDP of around $350 billion. It comes behind Korea and Mexico, both of whose
economies are about twice as large as Turkey’s, but well ahead of Poland, Greece and
Ireland. If the country’s large unofficial economy is allowed for, it would rank higher.
Foreign direct investment, which
had trebled in 2005, doubled
again to $19.8 billion, stimulated
by successful privatisation of
state-owned assets and improved
economic fundamentals.
Turkish inflation – largely tamed
End-year Change
100%
Financial crisis
90%
80%
70%
2.2
Inflation
60%
50%
CPI
WPI
40%
30%
Introduction of
New Turkish Lira
20%
IMF Stand-by
Agreement
10%
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
0%
1995
During the 1980s and 1990s,
Turkey combined one of the
highest long-term inflation rates
in the world with continuing
growth. In the past five years,
inflation has largely been brought
under control.
Source: State Institute of Statistics
In 2006, the inflation rate started to increase mainly due to the high depreciation of the
Turkish New Lira and also due to high petroleum product prices. The consumer price
index increased by 9.7% in 2006. The Central Bank forecasts a rate of 5.1% for end2007, though most private sector economists expect a rate of 7-8%.
INFLATION (End Year CPI and PPI, %)
1993-2001
2002
2003
2004
2005
2006
2007*
Consumer Price Index
77.5
29.7
18.4
9.3
7.7
9.7
5.1
Producer Price Index
76.6
30.8
13.9
13.8
2.7
11.6
n.a.
* Central Bank forecast
Source: SPO
2.3
Unemployment
Turkey is known for the hard work and motivation of its labour force. The difficult
economic conditions of recent years have led to higher unemployment and lower real
wages. The unemployment rate in Turkey has been increasing gradually, from 6.4% in
1998 to 9.6% in 2006, despite the recovery of the Turkish economy in the last five years.
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LABOUR FORCE STATISTICS OF TURKEY 2004-2006*
Civil Population 15+ Years Old ('000)
Labour Force Supply** ('000)
Unemployed People ('000)
Unemployment Rate (%)
2004
49,906
24,290
2,498
10.3
2005
50,825
24,566
2,520
10.3
2006*
52,000
25,056
2415
9.6
Change
2004-06
4%
3%
-3%
* 2006 4th Quarter
** Labour force = employed + unemployed
Source: SIS
With Turkey’s current unemployment rate one of the highest in the OECD, the Turkish
government has made combating unemployment a prime target. The government seeks
both to curb the underground economy and to boost employment.
2.4
External Trade Balance
Both exports and imports continued to grow in 2006 when exports grew 15.9% to $85.1
billion, while imports grew 17.3% to $137.1 billion compared to 2005. The trade deficit
was $51.9 billion, compared to $43.3 billion the previous year. The overall current
account deficit in 2006 was $31.3 billion, compared to $22.8 billion in 2005.
The main factors behind Turkey’s high current account deficit can be summarized as
follows:





Increasing imports due to high GDP growth rates; 87.5% of total imports consist
of investment and intermediate goods
Appreciation of the Turkish Lira.
Increasing imports from China
Changing composition of exports, in addition to textile and ready-wear exports,
automotive and machinery exports are becoming important.
Increases in oil prices
In 2006, automotive and spare parts led exports, earning Turkey $15.5 billion and
recording a 22.9% growth compared to 2005. They were followed by the ready-wear
sector at $13.9 billion, a 2.1% growth compared to 2005. Textiles and raw materials
were the sixth biggest sector in exports, earn ing $5.6 billion in exports, up 14.7%
compared to 2005. Textiles and ready-wear together accounted for 22.8% of exports in
2006.
2.5
Political & Economic Topics
Turkey is a parliamentary democracy. The Grand National Assembly, the country’s
parliament, is elected for five years, with the last elections held in 2002 giving the Ak
Party of Recep Tayyip Erdogan two-thirds of the seats in the Assembly, with only onethird of the popular vote. The only other party elected to the Grand National Assembly is
the CHP, the Republican People’s Party, although the True Path Party (DYP) has since
become represented through transfers. The CHP is led by the 68-year old Deniz Baykal,
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a veteran socialist who many believe has outstayed his welcome. The other parties all
failed to win the 10% of votes required to enter the Assembly.
The next elections are due by November 2007. In May 2007, President Sezer’s term ends
and the Assembly has to re-elect him, or, far more likely, choose his successor.
Turkey has long been recognized as a country of potential. Realising this potential
depends on economic and political stability and continued reform. The crises in the past
two decades were primarily due to political instability, weak regulation, poor macromanagement, or a combination of these factors.
STABILITY IN TURKEY
Factor
Situation
International
Good relations with EU, USA, and Russia. Reasonable
dialogue with Iran. Concerns over growing role of Kurds in
Iraq. No appetite for an active role in Middle East where it is
‘front-line’ state. Problems with Greece now mature, but
issue of Cyprus threatens Turkey’s EU progress. Growing
role as a transit country for natural gas and oil.
4
Political
Strong, single-party government, wary relations between
civilians and armed forces.
3
Economic
Growth resumed, with inflation largely tamed.
3
Social
Unemployment 10%, but strong social and family
coherence.
3
Role of Islam
Secular state, with constitutional checks on use of Islam and
armed forces playing watch-dog role
3
Terrorism
Kurdish terrorism in slight revival. Bomb attacks on Jewish
and British targets in November 2003. Otherwise, high level
of personal safety.
3
Risk Rating
1, low, to 10, high
Source: IBS, March 2007
IBS
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III
Economic Trends in Jewellery
Turkey's jewellery production has been growing for the last 15 years after the
government privatised gold imports, authorised the establishment of a gold exchange, and
permitted gold banking. Prior to this, the industry had been living in a state of semilegality and virtual siege.
Turkey’s jewellers produced 222 tonnes fine gold equivalent of jewellery in 2006. This
production is equivalent to 296 tonnes of jewellery gold. Additionally, over $500 million
of precious stones were imported in 2006, according to the deputy chairman of the
Istanbul Chamber of Jewellery: mostly of these imports were unregistered due to the high
special consumption tax applicable on precious stones.
Approximately 37% of jewellery demand is accounted for by domestic consumers, 18%
is exported directly and 23% is exported indirectly. The majority of the remaining 22% is
used in minting and hoarding and a small part is exported as bullion.
FINE GOLD BALANCE, 2003-06
Fine gold tonnes
Bullion Imports
Temporary Bullion Imports
Jewellery Imports
Scrap
Total Supply
2003
214
12
6
55
287
2004
251
13
7
60
331
2005
269
12
12
62
355
2006
193
10
13
86
302
Jewellery Exports
Luggage Trade & Tourists
Jewellery Sales to Locals
New Coin Minting & Hoarding
Bullion Exports
Total Demand
53
70
99
48
17
287
60
73
130
49
20
332
68
77
138
54
20
355
53
69
113
61
6
302
Jewellery Fabrication
Total Fabrication
Jewellery Offtake
New Coin/bar Offtake
Total Offtake
Source: World Gold Council
217
264
152
47
199
256
304
191
48
239
271
324
200
53
253
222
283
167
61
228
On the development of the sector, Selami Ozel, CEO of Favori, a leader jewellery
producer, says:
“The sector made its greatest move forward in early 1990s, since then
experiencing significant changes in production, wholesale and retail structures.
Having resolved its infrastructural problems including gold exchange, gold
banking and inflationary accounting, the sector now faces the challenges of being
a global player. We have to upgrade our sector-specific training standards and
shift from family managed companies to professionally managed corporate
structures.”
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Emphasizing that Turkey has realized significant developments in both domestic and
export markets in the gold sector since the early 1990s, Murat Akman from the World
Gold Council, sets the reasons for the success achieved as the liberalisation of gold
imports and the permission given to gold banking.
"Following the liberalization of the gold market, production quality increased in
the first instance and later imitation products were replaced by the works of our
designers. In recent years, following jewellery trends abroad has begun to be
replaced by activities to create and lead the fashion in the jewellery world."
The main developments in the last decade are as follows:
 Shift from very small manufacturing workshops to industrial plants:
Now, there are two manufacturers with more than 1,000 workers and around
100 manufacturers with more than 100 workers. A decade ago, the biggest
manufacturers were with around 100 workers.
 Branded jewellery: The larger producers have created their own brands and
established retail chains. In addition to some 30,000 independent jewellery
stores, franchise stores have begun to be established. Now, around two
hundred jewellery stores have begun to try to create a brand name.
However, at the consumer level in export markets, Turkey has not been able
to create its own brand/s..
 Manufacturing technology and design: The bigger manufacturers were able
to upgrade technology by importing up to date machinery and employing
metallurgical, mechanical and industrial engineers. The machine park of the
industry has been upgraded and a good level of technology has been reached.
 Exports: The sector has progressed remarkably in the two decades and
Turkey has entered the list of countries with annual exports of over 100
tonnes.
 Diamonds have been gaining popularity. With inflation declining in the
last couple of years, jewellery companies, just like their counterparts in other
sectors, have been forced to focus on operating profits and to start to diversify
their product ranges. The share of jewellery with precious stones and, in
particular, diamonds, is estimated to have risen from around 7% to over 15%
in recent years.
 Tendency to import: The deputy chairman of the Istanbul Chamber of
Jewellery states that there is a tendency, which accelerated in 2006, towards
importing and selling in Turkey, rather than producing here. He believes that
the main driver triggering this tendency is the increasing per capita income.
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IV
Foreign Trade
There are three types of exports. One is the export often referred to as official,
comprising shipments abroad by jewellery producers and traders. There is also the
‘luggage trade’, sales to freelance exporters, often made in the Laleli district of Istanbul.
The third element are products that tourists buy for themselves and take home with them.
No official figures are available for either luggage trade or tourists’purchases, but
combined they are generally assumed to be slightly over official exports.
Official exports totalled $1.32 billion in 2005 and $1.75 billion in 2006, according to the
Turkish Statistical Institution (Turkstat). The statistics of the Istanbul Precious Minerals
and Jewellery Exporters’ Association differ from the Turkstat data: they calculate
jewellery exports as $1.07 billion in 2005 and $1.17 billion in 2006. The difference is
mainly attributable to the gold (tariff code no 7108): Turkstat gold export figures are
$135 million for 2005 and $632 million for 2006, while the Association gold export
figures are $19 million for 2005 and $108 million for 2006.
In terms of the volume exported, the EU was Turkey’s biggest client. In terms of price,
the North American market purchased the most jewellery from Turkey. Turkey exports
jewellery to 136 countries. Gold-made jewellery exports comprise over 90% of all
jewellery exports. The major destination countries for jewellery exports were the USA,
the United Arab Emirates, Italy, and Germany.
Turkey imported fine gold varying in between 193 and 269 tonnes in the last four years.
In jewellery, Italy ranks first with $151 million while in imitation products China and
India lead the market.
JEWELLERY FOREIGN TRADE, 2004-06
$ ‘000
2004
2005
2006
IMPORTS
Pearls and Precious Stones
Precious Metals
Jewellery
Gold
Others
Total
24,479
52,535
178,907
3,484,521
28,428
3,740,441
34,927
58,365
238,847
3,894,736
37,105
4,226,875
31,613
67,540
292,178
3,980,301
109,141
4,371,631
EXPORTS
Pearls and Precious Stones
Precious Metals
Jewellery
Gold
Total
989
7,977
964,573
90,407
1,063,946
2,743
17,358
1,170,304
135,357
1,325,763
1,724
32,628
1,084,127
632,939
1,751,418
Source: Turkstat
IBS
8
2004
Countries
$ (‘000)
JEWELLERY IMPORTS, 2004-2006
2005
Countries
$ (‘000)
Countries
2006
$ (‘000)
NATURAL OR CULTURED PEARLS AND PRECIOUS STONES (7101-7105)
Belgium
10.730
Belgium
13.121
U.A.E
India
2.311
India
7.823
Belgium
USA
2.232
Hong Kong
2.424
India
Thailand
1.629
Switzerland
2.237
Hong Kong
Switzerland
1.389
Thailand
1.736
Thailand
Israel
1.055
Ireland
1.699
China
Hong Kong
1.047
U.A.E
1.411
South Korea
Ireland
988
USA
1.242
USA
China
609
China
1.041
Israel
Others
2.490
Others
2.193
Others
Total
24,479
Total
34,927
Total
8.909
7.286
3.290
2.092
1.924
1.825
605
426
371
4.884
31,613
PRECIOUS METALS (7113 to 7117)
Belgium
19.123
Germany
Germany
11.237
Australia
South Africa
6.962
Switzerland
Polond
6.327
South Africa
Sweden
3.393
Belgium
Israel
1.423
Sweden
Switzerland
1.266
France
Italy
1.003
Poland
France
523
Israel
South Korea
434
Italy
Others
846
Others
Total
52,535
Total
Switzerland
Germany
South Africa
Italy
USA
Austria
France
Spain
U.K.
Others
n.a.
Total
24.070
8.650
5.460
2.016
604
278
261
106
3
26.091
n.a.
67,540
JEWELERY, GOLDSMITHS' AND SILVERSMITHS' (7113 to 7117)
Italy
79.365
Italy
102.134
Italy
U.A.E.
20.042
U.A.E.
33.867
China
China
16.867
China
24.394
U.A.E
Thailand
15.573
Thailand
20.956
Thailand
USA
14.530
USA
14.860
USA
South Korea
8.245
South Korea
11.496
South Korea
India
4.113
India
6.942
India
U.K.
3.751
Hong Kong
5.104
Hong Kong
Hong Kong
3.088
Germany
3.846
Germany
Others
13,333
Others
15,250
Others
Total
178,907
Total
238,847
Total
150.852
29.888
25.488
21.766
12.980
8.460
8.117
7.263
5.673
21,691
292,178
GOLD (7108)
Switzerland
2.052.761
South Africa
699.916
Luxemburg
443.042
U.K.
141.755
U.A.E.
48.437
Australia
31.088
USA
24.084
Others
43,436
Total
3,484,521
Source: Turkstat
IBS
Switzerland
South Africa
Australia
U.A.E.
Germany
Sweden
USA
Others
Total
18.557
8.271
6.311
5.989
5.659
4.702
2.455
1.832
1.320
1.061
2.208
58,365
2.750.736
936.970
76.084
46.292
14.978
14.250
11.661
43,793
3,894,736
Switzerland
South Africa
U.A.E
USA
Russia
Germany
Italy
Others
Total
2.486.535
1.308.404
40.258
37.988
16.716
10.156
9.192
71,051
3,980,301
9
JEWELLERY EXPORTS, 2004-2006
2004
2005
$ (‘000)
2006
Countries
$ (‘000)
NATURAL OR CULTURED PEARLS AND PRECIOUS STONES (7101-7105)
U.S.A.
655
U.S.A.
1.806
Greece
Thailand
96
Thailand
437
Romania
Russia
77
Australia
121
n.a.
Ataturk FTZ
52
Belgium
96
n.a.
Australia
32
India
70
n.a.
Hong Kong
25
Greece
57
n.a.
China
18
Ukraine
24
n.a.
U.K.
11
Ataturk FTZ
17
n.a.
Others
23
Others
115
Others
Total
989
Total
2,743
Total
11
5
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.708
1,724
Countries
Countries
PRECIOUS METALS (7106 to 7112, excluding 7108)
U.K.
5,198
U.K.
Germany
2,006
Switzerland
Switzerland
282
Germany
Norway
149
U.A.E.
Romania
90
Thailand
Italy
62
Italy
Cyprus
48
U.S.A
Iran
34
Belgium
Others
108
Others
Total
7,977
Total
$ (‘000)
U.S.A
Romania
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Others
Total
18
8
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
32,603
32,628
JEWELERY, GOLDSMITHS' AND SILVERSMITHS (7113 to 7117)
U.S.A.
351,578
U.S.A.
371,277
USA
U.A.E.
135,558
U.A.E.
196,292
U.A.E
Germany
48,435
Italy
57,211
Italy
Italy
47,740
Germany
49,961
Germany
Israel
38,531
Russia
47,614
Russia
Russia
31,733
Spain
43,782
Spain
Libya
30,172
Israel
38,098
Israel
Spain
28,132
Lithuania
34,797
Poland
U.K.
26,218
Lebanon
33,032
Lithuania
Lithuania
24,910
Libya
32,523
U.K.
Others
201,566
Others
265,718
Others
Total
964,573
Total
1,170,304
Total
294,253
179,396
63,476
59,254
46,069
43,469
38,024
30,753
25,402
24,094
279,937
1,084,127
GOLD (7108)
Switzerland
U.A.E.
Ataturk FTZ
Germany
South Korea
Italy
Lebanon
Others
Total
44.377
43.830
797
471
327
247
163
194
90,407
U.A.E.
Switzerland
Ataturk FTZ
South Korea
Germany
Lebanon
Hong Kong
Others
Total
7,366
2,570
2,439
2,364
1,611
252
170
161
425
17,358
70.745
60.432
1.802
1.102
414
328
242
292
135,357
Switzerland
U.A.E
Italy
n.a.
n.a.
n.a.
n.a.
Others
Total
348.747
160.332
2.980
n.a.
n.a.
n.a.
n.a.
120.879
632,939
Source: Turkstat
IBS
10
V
Cooperation Opportunities between Italian and Turkish Companies
Turkey’s jewellery industry has become increasingly self confident. It believes that its
larger companies are efficient, low-cost producers who, deprived of international renown,
have compensated for this by becoming extremely effective at marketing abroad. That
said, many believe there are considerable advantaged of cooperating with Italian
companies so as to take advantage of the cachet of the “Made in Italy” label. The
companies interviewed by IBS differentiated between the opportunities for and value of
cooperation for large companies and for small and medium enterprises (SME). Most
interviewees focused on Turkey’s capability of producing quality products at lower cost
compared to Italy as a basis of collaboration between the two companies. Level of
technology and advanced marketing networks of Turkish companies were also cited as
factors contributing to a potential collaboration.
Below are some quotations from the interviewees:
Alper Hazar, the Deputy Chairman of the Istanbul Chamber of Jewellery
“Turkish companies first tried to penetrate export markets via a strategy of cheap
labor and low prices, while Italy left the lower-end markets and transferred part of
its production to Romania.
“The larger Turkish companies have technology and capital, so why should they
cooperate with Italians? Cooperation between the SMEs in both countries seems
more feasible. Even smaller companies in Italy have the power to set trends. We
can work as subcontractors and lower prices further through transferring
production from Istanbul to other parts of the country. The competitive
advantages of Turkey include its fast delivery capability, ease of communications
and level of production quality.
“It should be difficult for small-scale Italian companies to produce/import from
China as they cannot maintain a permanent presence in China to control the
process, while larger companies can afford this. Therefore, it is more feasible for
Italian SMEs to cooperate with Turkey.
“We export hand-made jewellery, sometimes semi finished, to Italian companies
and they add this to their product portfolio and export under the Made in Italy
label. And we buy finished, trendy and technological products from them.”
Murat Akman, the World Gold Council's General Director in Turkey
“Turkish companies are able to produce quality products at a lower cost compared
to Italians, meeting the design and quality requirements of global clients in a fast
and flexible manner. Turkish companies can deliver at the highest speed and
quality standard. Moreover, in recent years, they have reached the stage where
they can launch trends, lines and colors at the same time as Italians through
working together with international designers and cooperating with fashion
setters, while previously they used to learn such things from the Vicenza fair.
“On the other hand, Italians, although they are not flexible and customer-oriented,
benefit from the fact that the Made in Italy label is superior to Made in Turkey in
export markets and there are Italian companies which have established their brand
IBS
11
names among the final consumers in these markets. I believe very successful
partnerships can be established combining the production capacity, customeroriented approach and drive for success of Turkish companies with the high brand
value and image of Italian goods.”
Haluk Sarıaltın, Export Director of Goldas
According to Mr Sarıaltın, the two countries can cooperate mainly on three areas:

Design: Turkey obtains services of independent design houses in Italy

Technology: Turkey obtains production technology from Italy. This
should cover production of custom-made machinery together with transfer of
production process and knowhow as well as related consultancy services.

Subcontracting: Both medium scale and large Turkish companies,
including Goldas, should be open to serve as subcontractors to Italian
companies. Currently, Turkish companies prepare their collections and send
these as “no-name” products to their counterparts in Italy. Exclusive
subcontracting is not widespread. He added that: “Turkish companies have
not been able to establish themselves as a brand name. As Goldas, we have
been focusing on this issue since 1995, creating a couple of brands and
opening up stores abroad. Yet we are not a brand.”
According to Mr Sarıaltın, the advantages of subcontracting to both parties are as
follows: “Turkey has the experienced workforce in this area and Italy can use this,
at least for the products directed to competitive markets, i.e. products addressing
to the middle group. In general, Turkey needs to create employment for its large
workforce, while large companies, including Goldas, need to do mass production,
producing commodity products in great volumes since they, like others of our first
100 jewellery companies, employ between 100-2,000 people.” On the dilemma
that Turkish textile manufacturers face that subcontracting and brand creation do
not go hand-in-hand, Mr Sarıaltun says: “Textile and jewellery differ from each
other to a great extent. Branding is of utmost importance in textiles, while in
jewellery maybe only 10% of the total market has a brand name.” He added that
Turkey is ahead of Italy in marketing: ”Italians sell their products almost while
they sit at their houses. Even the smallest Italian jewellery companies are able to
sell to the whole world taking advantage of the “Made in Italy” umbrella. As
such they can afford to stay as family companies, without bothering themselves
with marketing and expansion problems. On the other hand, as Turkish
companies, we are all over the world with our marketing people and we can help
Italians to grow through our wide marketing network abroad and high production
capacity at home. In sum, Turks with their marketing and financing capacity and
Italians with their production technology and design skills make a good
combination.”
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12
VI
Legal Framework
Turkey has a well established legislative base for the protection of intellectual property,
harmonizing its legislation on industrial property rights with that in the EU prior to its
customs union with EU countries in 1996. It has enacted laws on protection of
trademarks, industrial designs, patents/utility models and geographic indications. The
Turkish Patent Institute has been established for the purpose of registration and protection
of such industrial property rights. The main system concerning the protection of
industrial rights is based on registration, which is similar to that of the European Union
and the other countries that are party to the Paris Convention.
Turkey has ratified and acceded to the European Patent Convention and established
specialized courts in intellectual property matters. It is party to over ten international
agreements, including the Brands Law Agreement and the Hague Agreement on
International Registration of Industrial Designs (Geneva Text). By acquiring a sound set
of IPR rules and a transparent and reliable monitoring system, Turkey creates better
opportunities for strengthening foreign investment. Despite these positive steps,
however, implementation remains an area for concern and piracy and counterfeit remain
serious problems in the country.
Diamond, pearl and coloured precious stones which are imported in order to be used in
jewellery production are subject to a 20% special consumption tax.
In retail sales, diamond, gold, pearl and coloured precious stones are free from value
added tax.
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13
VII
Imitation and Brand Counterfeiting
Turkey has always been a trend follower, selling to export markets at lower prices,
according to the experts and practitioners interviewed by IBS. Mr Hazar argues that this
trend is now turning around, with exact copying of foreign brands being replaced by
producing products similar to the best sellers. He believes this too will decline over time.
The single most imitated brand in Turkey is Bulgari; this is sold by almost 30% of the
jewellery stores, according to Mr Hazar.
Murat Akman, the World Gold Council's general director in Turkey, comments: "In
recent years, the act of following the jewellery trends abroad has begun to be replaced
by activities to create and lead the fashion in the jewellery world. Previously Turkish
companies learned the trends, lines and colors in jewellery from the Vicenza fair. In
recent years, they are working together with international designers and cooperating
with fashion setters, launching the similar products to the market concurrently with the
Italian companies.”
On this issue Haluk Sarıaltın, Export Director of Goldas said: “Our companies used to
imitate the foreign brands one-to-one. But as export activities and tourism develop,
jewellery companies have attached increasing importance to creating their own designs.
Today, the first 100 companies employ their own teams of designers. In Goldas, we have
20 people solely engaged in design work. There are also some free-lance designers in
the market place. This imitation and counterfeiting business is something to disappear
as time goes by.”
The Turkish jewellery industry has brought the imitation/counterfeiting issue on to its
agenda starting from 2003. The Chamber of Jewellery Manufacturers has been
organizing meetings and seminars to promote the concept of design since 2004. In
Goldnews a section is allocated to design. The Chamber of Jewellery Manufacturers has
been supporting design schools at the secondary and tertiary levels and helping graduates
in their employment.
Cases alleging imitation have become more frequent since 2005. In 2006, with the aim
of combating counterfeiting, the Chamber of Jewellery founded the Committee to
Combat Against Imitation Design as a facilitating mechanism.
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14
VIII
Contacts
 Sector Journals:
 Altın Dünyası (Turkish) : Monthly newspaper. By Yayın Dunyası Gazetecilik.
Website : www.yayindunyasi.com
 Gold News (English-Turkish) : Bi-monthly.
Jewellery. Website : www.goldnews.com.tr
 RFJ World (English):
www.rotaforte.com.tr
Quarterly.
 Safir Dergisi (English – Turkish).
Website : www.girisimyayincilik.com
By Istanbul Chamber of
By
Bi-monthly.
Rotaforte.
Website :
By Girisim Yayıncılık.
 Sector Associations:
 Turkish Association of Jewellers (Istanbul Precious Minerals and Jewellery
Exporters’ Association)
Address: Dıs Ticaret Kompleksi, A-Blok Çobançeşme Mevkii, Sanayi Cad.,
34530 Yenibosna, Bahçelievler, Istanbul
Tel:212-4540000 Fax:212-4540001
Website: www.taj.org.tr
e-mail: [email protected]

Istanbul Chamber of Jewellery
Address: Piyerloti Cad. Saka İş hanı No: 11-13 Kat:3, Cemberlitas, Istanbul
Tel: 212-5162757 Fax: 212-5161278
Website: www.iko.org.tr
e-mail: [email protected]

World Gold Council Turkey Office
Address : Mim Kemal Öke St. , 8/4 Dost Apt. , Nişantaşı, Istanbul
Tel: 212 225 29 63
Fax: 212 225 1913
Website : www.gold.org
E-mail : [email protected]
IBS
15
Major Turkish Producers, Importers and Distributors
Altınbas
Aris
Arpas
Atasay
Bag Jewellery
Baymonte
Favori
Goldas
Golden Line
Gulaylar
Kozan
Kuyumculuk
Regold
Roberto Bravo
Sade Is
Sezgin Jewellery
Zen Turizm
IBS
Address
Tel
Fax
Web site
Divanyolu Caddesi No:80 Sultanahmet , Istanbul
Nuruosmaniye, Şeref efendi Sok. No: 53/1 Eminönü,
Istanbul
Fatih Cad. Gülsever Sok. No:26 Merter 34010 Istanbul
Merkez Mah. Sedir Sok. No: 7, Yenibosna, Istanbul
62 West 47th Street, Suite 1607, New York, NY 10036,
USA
Nuruosmaniye Cad., Orient Centre, Kat 7, No:707,
Nuruosmaniye, Istanbul
Yalçın Koreş Caddesi No:48 Güneşli / İstanbul
Tel:
24. Kayalar Sok., Merter, Istanbul
Merkez Mh. 29 Ekim Cd. No: 6, Yenibosna,Istanbul
Nuruosmaniye Cad. No 63, Cagaloglu, Istanbul
Nuruosmaniye Cad., Serefefendi Sok., Ipek Han
Kat 1 No: 32/4-5 Cagaloglu, Istanbul
Vezirhan Cad. No.72-74 , Çemberlitaş, Istanbul
Vezirhan Cad. No: 101 Çemberlitas, Istanbul
Serefefendi Sok. No : 20, Cagaloglu, Istanbul
Gümüşpala Mah. Şükrü Bey Durağı
E-5 Yanyol No: 140/A Sezgin İş Merkezi Kat 4
Avcılar, Istanbul
Molla Fenari Mah. Şerefefendi Sok. No:35
Eminönü,İstanbul
212-520 57 91
212 518 13 74
212-520 57 94
212-5181376
www.altinbas.com
www.e-aris.com
212-5579120
212-6523366
212-382-2232
212- 5048167
212-382-2562
www.arpas.com.tr
www.atasay.com
www.bagkuyum.com
212-5220200
212-5220205
www.baymonte.com
212-410 26 26
212-4102727
www.favori.com.tr
212-6374000
212-639 72 05
212-5192828
212-520 7800
212-6374007
212-693 70 94
212-5280227
212-5207781
www.goldas.com
www.goldenlinejew.com
www.gulaylar.com
www.kozan.com.tr
212-520 23 85
212 520 03 87
212-5267969
212 694 84 39
212-526 42
212 513 50 63
212-5264074
212 694 84 35
www.regold.com.tr
www.robertobravo.com
www.sadeis.com.tr
www.sezgin.com.tr
212-520 00 44
212-520 04 46
www.zenpirlanta.com
16
 Sector fairs
Sector Fairs in 2007
Fair
İstanbul Jewellery Show I
Gold Antalya 2007
3. Çukurova Altın ve Mücevherat
İstanbul Jewellery Show II
GOLD ANKARA 2007
IBS
Date
21-25 March
12-15 April
20-22 April
30 August-2 September
22-25 November
City
Istanbul
Antalya
Adana
Istanbul
Ankara
Organizer
Rotaforte Reklam Fuar
Sereks Fuarcılık
Start Fuarcılık
Rotaforte Reklam
Sereks Fuarcılık
17
IBS
18