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Fast Moving Consumer Goods: Competitive Conditions and Policies

Author

Listed:
  • 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.

Suggested Citation

  • Aydin Celen & Tarkan Erdogan & Tarkan Erdogan, 2005. "Fast Moving Consumer Goods: Competitive Conditions and Policies," ERC Working Papers 0503, ERC - Economic Research Center, Middle East Technical University, revised Jun 2005.
  • Handle: RePEc:met:wpaper:0503
    as

    Download full text from publisher

    File URL: http://www.erc.metu.edu.tr/menu/series05/0503.pdf
    File Function: First version, 2005
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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 109-137, January.
    2. Fiona Scott Morton & Florian Zettelmeyer, 2004. "The Strategic Positioning of Store Brands in Retailer--Manufacturer Negotiations," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 161-194, March.
    3. Olivier Boylaud & Giuseppe Nicoletti, 2003. "Regulatory reform in retail distribution," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 253-274.
    4. Olivier Boylaud, 2000. "Regulatory Reform in Road Freight and Retail Distribution," OECD Economics Department Working Papers 255, OECD Publishing.
    5. Serdar Sayman & Jagmohan S. Raju, 2004. "Investigating the Cross-Category Effects of Store Brands," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 129-141, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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.
    2. 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.

    More about this item

    Keywords

    FMCG; competition policy; Turkey;

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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