GLOBAL AUTOMOTIVE SECTOR
We are going through a period of international trade wars in which we witness the changing of all the balances in the world. Markets have difficulty with regards to understanding the change in trade and acting accordingly.
Productivity has become the most important indicator in a world where competition has increased, access to financial resources has become difficult, doing business has gone global, and therefore competition has gone global. Productivity is one of the most important factors that ensure profitability, and companies are accelerating their work in this regard by taking this fact into account.
In a recent study conducted by TÜSIAD in Turkey together with Samsung, Deloitte and GFK, when we look at the reasons that encourage digital change in whether or not companies will invest in technology and for what reason, the most important reasons are to increase productivity (21%), to ensure competitive advantage (19%), to respond quickly to customer needs (19%) and profitability (12%). Research describes digital exchange as a transition process to new ways of doing business and thinking that will create value for customers and the ecosystem, improve business processes and improve the competencies of the entire company by using digital, social, mobile and new technologies.
A report by the German research company Wolk GmbH also predicts that by 2023 global online spare parts sales will grow by 6% each year. Although this trend is taking place more slowly in our country, the sector will be shaped in this direction with mobile and web-based approaches in line with the increasing use of digital.
AUTOMOTIVE AND AFTER SALES SERVICES SECTOR IN TURKEY
In the automotive sector, we have left behind a very different year in terms of productivity. Stocks created against comments made earlier in the year about the sector's contraction slowed the sector's momentum.
The sector gained a very different momentum in the last quarter with non-fluctuating exchange rate movements, the balancing of loan interest rates and the added scrap incentives, and the year ended with approximately 479.050 vehicle sales.
With the expectation that interest rates will continue on this course, in line with the growth in the automotive sector in 2020, we can say that growth will be slightly more upward than in 2019.
In our studies on automotive aftermarket and vehicle sales, it is observed that the purchases of non-authorized services and parts for vehicles of 5 years and older have increased. In this context, given the record-breaking years of new vehicle sales in 2015, 2016 and 2017, we can talk about the prospect of strong customer demand for the aftermarket over the next 3-year period. Otherwise; although we think that the contraction in new vehicle sales that we have experienced for the last 2 years will re-enter the upward trend until 2023, it will not be wrong to say that growth will slow after 2023.
WHAT WE DID IN 2019 AND OUR VISION FOR THE FUTURE
In Basbug Group, we are pleased to see above the sector average growth in 2019 and to see the return on our investments in terms of both labor force and infrastructure. In this period, we are directing all our efforts to make our increased performance sustainable in 2020.
In line with our growth strategies, in the last quarter of 2019, we have started the role of DISTRIGO's new strategy for spare parts distribution in Istanbul (European side and Thrace region) and Izmir (Aegean region) as authorized sales of spare parts. In this context, we will be working to realize a significant portion of PSA Group's spare parts sales in Turkey.
We opened our new logistics center, which serves in an area of 24.000 m2, and now we have started to manage all our stocks from this center. We have introduced new technologies to our lives both in the process of accepting goods and collecting products. We are planning applications that will make technological and digital developments even more significant in this center.
While we are happy to strengthen our stock structure with our new logistics center and maintain our ability to be one of the quarterback companies of the sector once again, we are aware that this responsibility increases the burden on all of us one more time.
In 2019, we gave 14 graduates and employed 8 of our alumni as part of the student training program we conducted abroad and in Turkey, the first of which was realized in 2018.
In order to increase the qualifications and service quality of our employees, We attach great importance to training of our employees in Basbug Group. In this context, we have started our Digital trainings by establishing BB academic platform where our employees can receive training in electronic environment and we have carried out 125 trainings in this year.
We are aware of our duties in terms of Social Responsibility and our friends carry out activities in a very altruistic way. This year we have continued to support those who have kept pace with change and have been alongside the UMAKIT group, which has successfully represented our country abroad. We have collaborated with many non-governmental entities in the organizations that we perform within the company and we will continue our work in this context in 2020.
2020 will be a year for us in which we invest in digital technologies, we will focus on applications that take care of efficiency, quality and cost. It will be the most important issue for us in 2020 to carry out works in which we will take all these facts into consideration and shape our focus in our logistics systems as well as our purchasing and sales processes, and to design our outputs in a way that will generate added value.
ADAPTATION TO CHANGES
Change is possible with people making committed and creative contributions to organizational success at all levels. We are at a time when we need to take on a more active role by paying more attention to our work together, from our colleagues in the warehouse to our friends in management, and we are aware of our responsibilities to our stakeholders.
We will adopt an approach where, without being uncomfortable with change, without resistance to change, everyone is struggling as one in a teamwork, rather than individuality. This method of approach is one of the tasks that we must undertake in order to guide the change that we have experienced.
We will plan for the future using the experiences we have gained in 2019 for our development in 2020. With our faith, experience and stability in success, we will continue to carry Basbug Group into the future with our hard work as it has been for 45 years, with the support of our valued business partners.
I would like to point out that we wish to have a good year together with our valuable stakeholders, who have sweat over the field of after sales services, and to do the best for our business with a high determination. As of 2020 as we leave our 45th anniversary behind, we always act together and in solidarity with the belief that we will achieve the goals we desire.
Chief Executive Officer