Top Online Stores in Turkey: Trendyol, Hepsiburada & LC Waikiki
Turkey's online shopping scene is booming, thanks to big local names like Trendyol and Hepsiburada, who are giving tough competition to giants like Amazon and Apple. Dive into what makes them stand out with our analysis.Article by Cihan Uzunoglu | February 09, 2024
Top Online Stores in Turkey: Key Insights
Strategic Growth: As Turkey's top eCommerce site and a fashion industry leader, Trendyol.com has reached Decacorn status. This achievement stems from its strategic alliance with Alibaba Group and substantial investments, boosting Turkey's eCommerce sector and eExport levels. Trendyol.com promotes Turkish products on Alibaba's platforms, contributing significantly to the country's eCommerce expansion.
Resilient Expansion: Ranking as Turkey's second-largest online store, Hepsiburada.com has effectively navigated economic challenges. The company's growth in Q1 2023, marked by increased revenue and order volumes, is attributed to its customer loyalty strategies and a versatile eCommerce platform.
Balanced Retail Approach: Lcwaikiki.com, the third-largest online store in Turkey, focuses primarily on the domestic market and has achieved notable success in the fashion industry. The brand is pioneering in the metaverse with a new shopping platform, while also maintaining a strong physical retail presence. This strategy reflects a well-rounded approach to enhancing customer experiences across both online and offline channels.
The narrative of Turkey's thriving eCommerce industry is one of domestic dominance, with local platforms occupying the top positions.
In the dynamic landscape of Turkish eCommerce, keeping track of the top performers is an evolving challenge. Our country ranking, a comprehensive study of nearly 1,000 online stores operating in Turkey, sheds light on this market. With the addition of approximately 550 new stores last year, the rankings – taking into consideration only the revenue generated within Turkey – now encompass a broad spectrum of retailers, from local businesses catering solely to the domestic market to global enterprises with a local presence.
After an in-depth analysis of the eCommerce market in Turkey, now it's time to have a closer look at the top players in the country.
Alongside the familiar faces in the top 10, such as Amazon, Apple and MediaMarkt, three domestic players are emerging at the forefront: Trendyol, Hepsiburada and LC Waikiki. Let's dive deeper to understand what sets these platforms apart in Turkey's growing eCommerce scene.
#1 - Trendyol
Trendyol.com stands, by far, as the leading player in the Turkish eCommerce market, generating US$3.86 billion in revenue in 2022. Primarily serving the domestic market, it's a diversified online store offering a range of products from Fashion to Electronics. In 2022, trendyol.com, holding the #1 position in Turkey's fashion market, accounted for 41.1% of eCommerce net sales in this category with US$1.83 billion.
In 2018, Alibaba Group secured a significant stake in Trendyol, offering technological aid and proficiency to the Turkish platform. Thanks to funding from Alibaba and other investors, Trendyol distinguished itself as the inaugural Turkish tech firm to achieve Decacorn status, a designation reserved for startups surpassing a valuation of US$10 billion.
The strategic partnership between Trendyol and Alibaba Group aims to boost Turkey's eExports. Trendyol is enhancing Turkish product visibility on Alibaba's platforms, investing in technology and logistics to enable Turkish SMEs (Small and Medium-sized Enterprises) to export their goods. This collaboration offers Trendyol technological insights from Alibaba, whose global network will foster Turkey's eCommerce growth and elevate its eExport levels.
#2 - Hepsiburada
Hepsiburada.com, the second biggest online store in Turkey and the first Turkish company to be listed on the Nasdaq stock exchange, was launched in 1998 and primarily focuses on domestic sales. Generating its eCommerce net sales almost exclusively within the country, the platform offers a diverse product range including Fashion, Electronics and Hobby & Leisure.
Apart from being an online store, hepsiburada.com also hosts a marketplace, operates its own delivery system and provides door-to-door grocery delivery. In addition, the platform also offers travel booking, handling online payments, and managing deliveries from abroad.
As we covered before, under rising cost pressures, businesses are shifting from costly customer acquisition to encouraging existing customers to reorder. By utilizing strategies like tailored product ranges for specific target groups, they can stimulate customer loyalty and repeat purchases. Hepsiburada is following this trend, too.
Inflation in Turkey soared to an unprecedented 85.5% in October 2022, a 24-year high, intensifying consumer scrutiny on expenses. Consequently, more individuals are resorting to loans or credit cards to afford costlier commodities. According to Hepsiburada CEO Nilhan Önal Gökçetekin, a company loyalty program is key on the path to improved profitability and retaining customers. Quicker payment and new lending options are other steps the company has taken in this direction.
Despite challenging economic circumstances, Hepsiburada demonstrated resilience in the first quarter of 2023, marked by a 15.1% annual increase in its gross merchandise value (GMV), which refers to the total value of goods sold through their platform. The platform also reported a revenue increase of 15.8% from the previous year. Furthermore, Hepsiburada experienced a significant 61% year-on-year growth in order volumes, rising to 24.1 million orders, while maintaining a stable active customer base of 11.9 million, as of March 2023.
Learn More About the ECDB Store Rankings
#3 - LC Waikiki
The third biggest online store in Turkey, lcwaikiki.com, operates as an online store focused primarily on the Turkish market. Its primary strength lies in the Fashion category, which contributes the largest share of its eCommerce net sales. In addition to this, the store also offers products in the Furniture & Homeware category.
Within the fashion market in Turkey, lcwaikiki.com has made a significant mark by ranking as the second top store behind trendyol.com, with earnings of US$515.1 million in 2022, which amounts to 11.6% of the total eCommerce net sales in this category.
In 2022, embracing the future of digital retail, LC Waikiki introduced a metaverse shopping platform that merges gaming and shopping experiences and showcases over 120 products in three-dimensional models. This initiative, highlighted by Chief Digital Officer Şerafettin Özer, reflects LC Waikiki's vision of the metaverse becoming a significant part of daily retail life and the brand's commitment to enhancing customer experiences. Additionally, LC Waikiki bolsters its prominent online presence with a strong brick-and-mortar network, recently celebrating the opening of its 4th store in Oman, contributing to a total of 44 stores across the Gulf Cooperation Council (GCC).