Once the Fastest-Growing E-Platform in Europe, Morhipo, is Shutting Down!
Hatice Nur Arslan, Sıla Ustaoğlu
Morhipo, the e-commerce platform established in 2011 as part of the Boyner Group, has ceased its operations after 12 years. It will now continue its activities through boyner.com.tr. Boyner Group is Turkey's leading department store and fashion retail group, with six group companies, more than 250 stores, e-commerce sites, and mobile applications.
Morhipo first offered various brands and campaign shopping opportunities on clothing and continued to grow by expanding into household goods, cosmetics and many other categories. In 2014, it was recognised as the fastest growing e-commerce company in Europe. However, in 2020, after merging with Boyner Büyük Mağazacılık A.Ş., while Morhipo retained its individual branding and website, no significant updates were made to the platform. As a result, it was unable to keep up with the developments of other online e-commerce platforms. Although no specific reasons were provided for its closure, Boyner announced its strategic decision to consolidate and strengthen its online presence by focusing on boyner.com.tr, and thus a separate website for the Morhipo platform will no longer exist.
Morhipo informed its users via message that it would terminate operations on 17 October. The closing will not negatively affect Morhipo users. While no new purchases can be made on the Morhipo platform, past orders can be accessed under "my account" until 1 December 2023. Users will be able to send their questions and requests to the Morhipo call centre until 1 January 1, after which they should contact the Boyner Call Centre.
Flashback to 2022
Closure of GittiGidiyor
GittiGidiyor, established in 2001, stands as one of Turkey’s earliest e-commerce platforms. After a series of consistent and successful commercial years, it was acquired by the US-based e-commerce giant, eBay, in 2016. Nonetheless, despite its operations spanning over two decades, eBay announced on 20 June 2022 its decision to terminate GittiGidiyor’s operations.
eBay stated market competition as the driving force behind GittiGidiyor’s closure. Eventually, all operations in Turkey were completely terminated.
A similar story from Southeast Asia and Latin America: Closure of Shopee
Shopee was established on 5 February 2015 and rapidly grew to become Southeast Asia's largest online marketplace by 2020. However, Shopee faced challenges that led to the closure of operations in certain regions.
Six months after its launch in India, on 29 March 2022 Shopee shut down its Indian operations due to global market uncertainties and India's decision to ban e-commerce companies from selling products from affiliated companies on their platforms, which contributed to a loss of over $15 billion in Shopee's market cap.
Additionally, Shopee closed operations in four Latin American countries, including Argentina, Chile, Colombia, and Mexico, although the specific reasons for this closure were not detailed.
Closing of E-Platforms vs. the Booming E-Commerce Sector: What Lies Ahead?
Market conditions and competitive dynamics play a significant role in maintaining a balance for e-commerce platforms. In this era of rapid e-commerce growth, it is evident that the dynamics of the sector are changing rapidly. Competition, consumer trends, technological advancements, and regulatory compliance can trigger operational changes, corporate mergers and/or acquisitions, or even closures for e-commerce platforms.
The possibility of a market-tipping situation together with innovations being offered through existing big-tech companies should be pointed out. Without doubt, regulatory movements such as the Digital Markets Act in Europe and the anticipated amendment proposal to the Law on the Protection of Competition in Turkey, stand to influence the growth and dynamics of e-commerce markets.
In addition to regulatory shifts, when examining the reasons for closures or rapid changes in the e-platform ecosystem, particularly in Turkey, one should consider: is the core issue economic or competition-driven?