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Fast Moving Consumer Goods: Competitive Conditions and Policies

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Author Info

  • Aydin Celen

    ()
    (Competition Authority, Turkey)

  • Tarkan Erdogan

    ()
    (Competition Authority, Turkey)

  • Tarkan Erdogan

    ()
    (Department of Economics, METU)

Abstract

Fast moving consumer goods (FMCGs) constitute a large part of consumers' budget in all countries. The retail sector for FMCGs in Turkey is in the process of a drastic transformation. New, "modern" retail formats, like chain stores and hyper/supermarkets, have rapidly diffused in almost all major urban areas, and increased their market share at the expense of traditional formats (grocery shops, green groceries, etc.) in the last couple of decades. This rapid transformation has raised concerns about competitive conditions in the sector. This study is aimed at to shed light on competitive conditions prevailing in the FMCGs retail trade sector in Turkey. We analyze how the structure of the market is being transformed in recent years by new retail formats. The study is focused on the analysis of competitive dynamics (inter-firm rivalry, pricing and non-price policies, barriers to entry, regulatory conditions, etc.) within the sector, and draws lessons for competition policy.

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File URL: http://www.erc.metu.edu.tr/menu/series05/0503.pdf
File Function: First version, 2005
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Bibliographic Info

Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 0503.

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Length: 53 pages
Date of creation: Jun 2005
Date of revision: Jun 2005
Handle: RePEc:met:wpaper:0503

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Related research

Keywords: FMCG; competition policy; Turkey;

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References

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  1. Serdar Sayman & Jagmohan S. Raju, 2004. "Investigating the Cross-Category Effects of Store Brands," Review of Industrial Organization, Springer, vol. 24(2), pages 129-141, 03.
  2. Olivier Boylaud, 2000. "Regulatory Reform in Road Freight and Retail Distribution," OECD Economics Department Working Papers 255, OECD Publishing.
  3. Olivier Boylaud & Giuseppe Nicoletti, 2001. "Regulatory reform in retail distribution," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 253-274.
  4. Fiona Scott Morton & Florian Zettelmeyer, 2004. "The Strategic Positioning of Store Brands in Retailer--Manufacturer Negotiations," Review of Industrial Organization, Springer, vol. 24(2), pages 161-194, 03.
  5. Cotterill, Ronald W & Putsis, William P, Jr & Dhar, Ravi, 2000. "Assessing the Competitive Interaction between Private Labels and National Brands," The Journal of Business, University of Chicago Press, vol. 73(1), pages 109-37, January.
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Cited by:
  1. Tekguc, Hasan, 2010. "Oligopoly and price transmission in Turkey’s fluid milk market," 114th Seminar, April 15-16, 2010, Berlin, Germany 61087, European Association of Agricultural Economists.
  2. Ismail Erol & Nigar Cakar & Derya Erel & Ramazan Sari, 2009. "Sustainability in the Turkish retailing industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(1), pages 49-67.

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