Arçelik
Encyclopedia
Arçelik A.Ş. is a household appliances manufacturer in Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

. The Company engages in the production and marketing of durable goods, components, consumer electronics and after-sale services. Its products include white goods, electronic products, small home appliances and kitchen accessories, such as refrigerators, freezers, washing machines, dishwashers, aspirators, vacuum cleaners, coffee makers and blenders.

Arçelik A.Ş. is active in more than 100 countries, including China and the United States through its 13 international subsidiaries and over 4,500 branches in Turkey. The Company operates 10 production plants in Turkey, Romania and Russia, including refrigerator, washing machine, dishwasher, cooking appliances and components plants. It offers products under its own ten brand names, including Arçelik, Beko
Beko
Beko is a domestic appliance and electronics brand of Arçelik A.Ş., owned by Koç Holding of Turkey.The company's products include washing machines, TV sets and laptop computers...

, Grundig
Grundig
Grundig AG is a German manufacturer of consumer electronics for home entertainment which transferred to Turkish control in 2004-2007. Established in 1945 in Nuremberg by Max Grundig, the company changed hands several times before becoming part of the Turkish Koç Holding group...

, Altus, Blomberg, Arctic, Leisure, Arstil, Elektra Bregenz and Flavel.

The company is controlled by Koç Holding
Koç Holding
Koç Holding A.Ş. is the top industrial conglomeratein Turkey. The Koç family, one of Turkey's wealthiest families, controls the company with its headquarter in Nakkaştepe, Istanbul...

, Turkey’s largest industrial and services group with USD43 billion in consolidated revenues in 2008, and is the market leader in Turkey’s appliance sector with its Arçelik and Beko brands. It is also the third largest household appliances company in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

 after Electrolux
Electrolux
The Electrolux Group is a Swedish appliance maker.As of 2010 the 2nd largest home appliance manufacturer in the world after Whirlpool, its products sell under a variety of brand names including its own and are primarily major appliances and vacuum cleaners...

 being first and Indesit
Indesit
Indesit Company, an Italian multinational company based in Fabriano, Ancona province, Italy, a leading appliance manufacturer in Europe.- History :...

 being second. Its top executives are Aka Gündüz Özdemir, Durable Goods President of the Koç Group
Koç Holding
Koç Holding A.Ş. is the top industrial conglomeratein Turkey. The Koç family, one of Turkey's wealthiest families, controls the company with its headquarter in Nakkaştepe, Istanbul...

, and General Manager Levent Çakıroğlu. Arçelik has been ranked "Number One in the Private Sector" for the 14th time in 19 years in "Turkey’s Top 500 Industrial Corporations" survey that was carried out by the Istanbul Chamber of Industry.

History

Arçelik was founded in 1955 and entered the Turkish white goods sector by producing its first washing machine
Washing machine
A washing machine is a machine designed to wash laundry, such as clothing, towels and sheets...

 in 1959 and its first refrigerator
Refrigerator
A refrigerator is a common household appliance that consists of a thermally insulated compartment and a heat pump that transfers heat from the inside of the fridge to its external environment so that the inside of the fridge is cooled to a temperature below the ambient temperature of the room...

 in 1960. In 1968, Arçelik moved to its Çayırova facilities near Istanbul
Istanbul
Istanbul , historically known as Byzantium and Constantinople , is the largest city of Turkey. Istanbul metropolitan province had 13.26 million people living in it as of December, 2010, which is 18% of Turkey's population and the 3rd largest metropolitan area in Europe after London and...

. In the 1970s and 1980s, the company expanded its product range and opened its Eskişehir
Eskisehir
Eskişehir is a city in northwestern Turkey and the capital of the Eskişehir Province. According to the 2009 census, the population of the city is 631,905. The city is located on the banks of the Porsuk River, 792 m above sea level, where it overlooks the fertile Phrygian Valley. In the nearby...

 refrigerator plant in 1975, İzmir
Izmir
Izmir is a large metropolis in the western extremity of Anatolia. The metropolitan area in the entire Izmir Province had a population of 3.35 million as of 2010, making the city third most populous in Turkey...

 vacuum cleaner
Vacuum cleaner
A vacuum cleaner, commonly referred to as a "vacuum," is a device that uses an air pump to create a partial vacuum to suck up dust and dirt, usually from floors, and optionally from other surfaces as well. The dirt is collected by either a dustbag or a cyclone for later disposal...

 plant in 1979 and Ankara
Ankara
Ankara is the capital of Turkey and the country's second largest city after Istanbul. The city has a mean elevation of , and as of 2010 the metropolitan area in the entire Ankara Province had a population of 4.4 million....

 dishwasher
Dishwasher
A dishwasher is a mechanical device for cleaning dishes and eating utensils. Dishwashers can be found in restaurants and private homes.Unlike manual dishwashing, which relies largely on physical scrubbing to remove soiling, the mechanical dishwasher cleans by spraying hot water, typically between ...

 plant in 1993.

1999 was a year of growth and reorganization. Arçelik founded Ardem to manufacture cooking appliances and brought under its roof Türk Elektrik Endüstrisi A.Ş. and Atılım ve Gelişim Pazarlama A.Ş. as a single legal entity. In 2001, Arçelik took over the marketing and sales activities of Beko products that used to be marketed and sold by Beko Ticaret. The new organization model enabled the company to manage production and sales/marketing activities centrally and to increase productivity.

Most recently, the merger plan between Arçelik A.Ş. and Grundig Elektronik A.Ş.
Grundig
Grundig AG is a German manufacturer of consumer electronics for home entertainment which transferred to Turkish control in 2004-2007. Established in 1945 in Nuremberg by Max Grundig, the company changed hands several times before becoming part of the Turkish Koç Holding group...

 was declared on February 27, 2009.

Strategy

The company's recent goal is "to possess one of the ten most preferred global brands in its sector by the year 2010". To reach this goal brands like Grundig, Elektra Bregenz, Blomberg, Arctic, Leisure, Flavel, and Troila have been incorporated in addition to existing Arçelik, Beko, and Altus brands. In accordance with international expansion strategies, the company seeks to maintain its competitive edge through continuous development.

Arçelik has focused investments on developing markets and as such, opened Beko LLC Refrigerator and Washing Machine Facility on October 13, 2006, which is the first plant constructed by Koç Holding
Koç Holding
Koç Holding A.Ş. is the top industrial conglomeratein Turkey. The Koç family, one of Turkey's wealthiest families, controls the company with its headquarter in Nakkaştepe, Istanbul...

 outside Turkey .

As for the marketing and advertising strategy of the company in the UK, Beko launched an advertising campaign with the slogan: "Beko: Buy it before it becomes famous". It was widely seen on LED advertising boards used at Premier League football grounds in England. This has now changed to "Beko: Home appliances". The company used to sponsor Watford FC, who play in the Football League Championship
Football League Championship
The Football League Championship is the highest division of The Football League and second-highest division overall in the English football league system after the Premier League...

, during the 2007-2008 and the 2008-2009 seasons. Moreover, Beko was the main sponsor of Eurobasket 2009 and the presenting (main) sponsor of 2010 World Men's Basketball championship. In addition to these, Beko is the main sponsor of Turkish Basketball League since 2007-2008 season and German Basketball Bundesliga since 2009–2010 season.

Current position

According to company data, Arçelik/Beko holds a 7 per cent share of the European free-standing appliances market and 5 per cent of the OBM
Original brand manufacturer
An original brand manufacturer, or OBM, is typically a company that sells an entire product made by a second company or including a component thereof from a second company sources as its own branded product. Selling the product of the second company under its own brand just adds a virtual extrinsic...

 market. Beko products account for approximately ⅔ of Arçelik international sales and are among the top brands in many markets – including the UK (14 per cent share in refrigerators and 7 per cent share in washing machines) and Poland (5 per cent share).

In the last four years Arçelik has doubled its turnover, and in 2004 has registered a growth of 29% over the previous year. By the end of 2004, a total production figure of 7.4 million units has been achieved in four major production groups. Compared to last year a growth of 30% has been realized.

The 2004 turnover for the company stands at 2.7 billion euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

s. The sales revenue achieved through foreign sales now accounts for 44% of the total turnover. The foreign sales volume has mushroomed from 472 million euros to 1.2 billion euros in the last four years.

In Turkey, 15 million households are believed to use Arçelik products. These indicators regarding the performance are supported by the many international quality and technology awards, and other prizes Arçelik have received. In the last four years, it has continuously been selected the most admired Turkish company in all sectors.

In the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, one in five kitchen appliances sold is made by Beko
Beko
Beko is a domestic appliance and electronics brand of Arçelik A.Ş., owned by Koç Holding of Turkey.The company's products include washing machines, TV sets and laptop computers...

.

Brands

  • Arçelik
  • Beko
    Beko
    Beko is a domestic appliance and electronics brand of Arçelik A.Ş., owned by Koç Holding of Turkey.The company's products include washing machines, TV sets and laptop computers...

  • Grundig
    Grundig
    Grundig AG is a German manufacturer of consumer electronics for home entertainment which transferred to Turkish control in 2004-2007. Established in 1945 in Nuremberg by Max Grundig, the company changed hands several times before becoming part of the Turkish Koç Holding group...

     (purchased by Beko)
  • Altus
    Altus
    Altus is a Latin adjective meaning "high, deep, noble or profound", and may refer to:*Alto, a musical term* Altus, Arkansas, United States* Altus, Oklahoma, United States* Altus Skyscraper in Katowice, Silesia, Poland...

  • Blomberg
    Blomberg
    Blomberg is a town in the Lippe district of North Rhine-Westphalia, Germany, with c. 17,000 inhabitants.-External links:*...

  • Arctic
    Arctic S.A.
    Arctic S.A. is the largest Romanian household appliances producer and one of the largest refrigerators producer in Europe and it is located in Găeşti, Dâmboviţa County. The company was bought in 2002 by the largest household appliances manufacturer in Turkey, Arçelik. The company has a production...

  • Elektra Bregenz
  • Leisure
  • Flavel
  • Arstil

Naming

Outside Turkey all Arçelik products are sold under the brand name BEKO. The reason for this is the difficult pronunciation and obvious comedic nature of the brand name Arçelik for English speakers.

Technology and innovations

With about 300 successful patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....

 applications, Arçelik accounts for 10% of all the patent applications in Turkey, since 1996. Moreover, in the European durable consumer goods sector Arçelik is one of the top four companies with the highest number of patents to its name.

Arçelik, which in conformity to European standards earmarks approximately 1.5% of its total annual turnover to R & D, employs 450 researchers in its central and operational R & D departments. Working towards the goal of acquiring technological leadership in its sector, the company has won some very prestigious awards in the international arena in 2004, through the products it has developed.

In Turkey

  • Refrigerator Plant – Eskişehir
    Eskisehir
    Eskişehir is a city in northwestern Turkey and the capital of the Eskişehir Province. According to the 2009 census, the population of the city is 631,905. The city is located on the banks of the Porsuk River, 792 m above sea level, where it overlooks the fertile Phrygian Valley. In the nearby...

  • Washing Machine Plant – Çayırova, Istanbul
    Istanbul
    Istanbul , historically known as Byzantium and Constantinople , is the largest city of Turkey. Istanbul metropolitan province had 13.26 million people living in it as of December, 2010, which is 18% of Turkey's population and the 3rd largest metropolitan area in Europe after London and...

  • Cooking Appliances Plant – Bolu
    Bolu
    - Places of interest :The countryside around Bolu offers excellent walking and other outdoor pursuits. There are hotels in the town for visitors. Sights near the town include:* The 14th century mosque, Ulu Camii...

  • Dishwasher Plant – Ankara
    Ankara
    Ankara is the capital of Turkey and the country's second largest city after Istanbul. The city has a mean elevation of , and as of 2010 the metropolitan area in the entire Ankara Province had a population of 4.4 million....

  • Drying Machine and Multi-Purpose Motor Plant – Çerkezköy
    Çerkezköy
    Çerkezköy is a town and district of Tekirdağ Province in the Marmara Region of Turkey.-Facts:The district is located in inland Thrace just to the west of the outlying Istanbul districts of Çatalca and Silivri. Çerkezköy is an industrial area. It is from Tekirdağ and from Istanbul but in many ways...

    , Tekirdağ
    Tekirdag
    Tekirdağ , the ancient Bisanthi , is a city in Eastern Thrace, in the European part of Turkey. Tekirdağ is the capital of Tekirdağ Province, felt by the local people to be a quieter and more pleasant town than the industrial centre of Çorlu, which it administers. The city population as of 2009 was...

  • Compressor plant – Eskişehir
    Eskisehir
    Eskişehir is a city in northwestern Turkey and the capital of the Eskişehir Province. According to the 2009 census, the population of the city is 631,905. The city is located on the banks of the Porsuk River, 792 m above sea level, where it overlooks the fertile Phrygian Valley. In the nearby...

  • Electronical Goods plant – Beylikdüzü, Istanbul
    Istanbul
    Istanbul , historically known as Byzantium and Constantinople , is the largest city of Turkey. Istanbul metropolitan province had 13.26 million people living in it as of December, 2010, which is 18% of Turkey's population and the 3rd largest metropolitan area in Europe after London and...


Abroad

  • Cooling Appliances plant / Arctic – Găeşti
    Gaesti
    Găești is a town in Dâmbovița county, Romania with a population of 16,598.- History :The name of the town comes from a family of nobles who owned most of the lands on which the town is now situated...

    , Romania
    Romania
    Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...

  • Refrigerator, Washing Machine and Electronic Appliances plants - Kirzhach
    Kirzhach
    Kirzhach is a town on the Kirzhach River in Vladimir Oblast, Russia, located in the western of the oblast, west of Vladimir and south of Alexandrov. Population: -History:...

    , Russia
    Russia
    Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

  • Washing Machine plant - Changzhou
    Changzhou
    Changzhou is a prefecture-level city in southern Jiangsu province of the People's Republic of China. It was previously known as Yanling, Lanling, Jinling, and Wujin. Located on the southern bank of the Yangtze River, Changzhou borders the provincial capital of Nanjing to the west, Zhenjiang to the...

    , China
    China
    Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...


External links

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