D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) Q4 2022 Earnings Call Transcript

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Hanzade Kilickiran : I just want to ask a few more actually. I also wonder what are the main changes in the competitive environment since we last met. I think Amazon also increased the prime days in 2022. Have you seen some sort of impact on your general customer acquisition? I mean, numbers suggest no, but I want to understand if peers are offering something different in the market this year? And also, you have highlighted that you want to focus improving the non-electronics category. So which category will be your priority, particularly is it fashion or some other categories?

Nilhan Onal Gökçetekin : Thank you so much. So in terms of other competitors — competitive environment, of course, Turkey is vibrant, fast-growing e-commerce category. We are seeing a lot of merchants trying to improve their online offering post-COVID environment. Actually, this is a great advantage for externalizing our services. So our intention is to grow with that. In terms of specifically Amazon in Turkey, naturally I had some experience with last eight years spent in the company, I believe that Hepsiburada has strong advantages being a local player with high agility and local resources. As you know, we have a strong retail business and developed marketplace business. Amazon operating with retail business and they also announced, which is a public information that they will focus on developing countries over emerging economies.

And taking prioritization in this global road map is challenging based on their — what we understand from the public announcement. So we don’t think that they are offering new and different than the market. We believe that we have a very strong position, and we have local engineering forces with high agility that can add up, can understand the local needs. And we believe we will stay quite strong for our customers. In terms of improving non-electronics, non-electronics is quite strategic for us. It’s — as you know, it’s higher-margin business and our premium — Hepsi Premium customers, functional shoppers have strong propensity to come back to us for non-electronic shopping. Home FMCG, especially in basic section per our survey is gaining more and more traction.

We are also seeing an acceleration in do it yourself robust platform to be specific. These are all quite strong profitable businesses where we will be intentional.

Operator: At this time, there are no further questions. I will now turn the conference over to Ms. Nilhan Onal Gökçetekin any closing comments. Thank you.

Nilhan Onal Gökçetekin : Thank you so much for listening us. My closing remarks are Turkey has huge potential with young mobile population. And the country has still relatively low e-commerce penetration. That’s a great opportunity for us. The second important remark I want to do is we are going to deliver sustainable profitability in the company. This is showed in Q4, and we provided you an indication for Q1 2023. Thirdly, we will digitize Turkish e-commerce. We will deliver best-in-class fintech and logistics capabilities to grow online retailers. So not only we will grow over core but we will also act as an enabler for B2B partners. And finally, we will be ruthless in our prioritization. With this, I want to conclude for today. Thanks a lot for your patience and support to us.

Operator: Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling, and have a good afternoon.

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