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Turkish Apparel Industry

Strengths of the Turkish Clothing Industry

Turkey is a very important cotton country, which is an advantage  in raw materials, for the clothing industry.

The monetary policies and the banking systems are uniform throughout the country.

Work discipline, techniques, rules and regulations are also uniform in every region.

The clothing industry has achieved international integration with free market rules.

 With the integrated textile firms, who retain high capacity and new technology, the clothing industry is also in an advantageous position with its inputs such as yarn-fabric.

 The Turkish clothing industry enjoys the advantage of low labour costs, while maintaining best quality, compared to developed countries.

 The Turkish clothing industry has made the transition from producing basic products with low added value to producing high quality products with high added value. The share of subcontracting in exports is 5%.

 The established production centres – the Marmara region, mainly around Istanbul - are at present specializing in the production of quality products leaving the production of basic products to Anatolia, thus cretaing opportunities for the clothing industry throughout the country.

 Buyers coming to Turkey have the opportunity of selecting from a wide range of products.

The Turkish clothing industry is one of the sectors that takes full advantage of the Customs Union with the EU.

Turkey’s location is a great advantage. There is a population of 600 million people living in the surroundings of Turkey, at a distance of only two hours. Buyers coming from Europe are able to do their business in only one day.

Why Turkish Textile ?   

Turkey is home to some of the most beautiful, luxurious and  innovative fabrics and textiles available today.

 Inspiration for style is everywhere – the unusual designs of  Turkish ceramics, the beautiful architecture of mosques and palaces, the fine oriental rugs, the fabulous robes of the sultans. All of these have contributed to the creation of one of the most dynamic and vibrant industries in Europe today – Turkish textiles.

With a modern outlook and skilled workforce, the Turkish  textile industry has quietly been producing the highest quality goods at competitive prices for European and U.S. markets. Many companies prefer doing business with Turkey for its reliable business practices and design capability. Others are drawn to its competitive prices and proximity to world markets. Whatever brings you to Turkish textiles, be prepared for an adventure in style and elegance…

Turkish textile manufacturers have been a major partner and a critical source for major U.S. labels and manufacturers, ranging from the high-end to countless popular manufacturing houses and designers. Last year, Turkey’s textile exports to the U.S. were $1.4  billion. Much of this was through our partners in New York’s Garment   District. Moving forward in 2002, Turkish textile industry is eager and ready to continue this partnership and provide top-quality products at competitive range for the American marketplace.

 

TURKISH TEXTILE AND CLOTHING INDUSTRY

SIZE OF THE TURKISH TEXTILE AND CLOTHING INDUSTRY

Textile and clothing industry has a great contribution to the Turkish economy. This contribution can be observed easily when some statistical ratios and aggregates are considered. For example, textile and clothing industry accounts for;

  • About 10 % of GDP,
  • 17,5 % of industrial production,
  • About of 20 % of manufacturing labour force
  • 32,2 % of total Turkish export earnings.(2003)

With these high ratios, the industry has been denominated as the locomotive of the Turkish Economy for years.

The export amount of the industry has reached to the level of USD 15 billion.

But the country is not only an exporter in the world, but also it is a reliable importer. Total import of the industry reached USD 5 billion in 2003. Most of the imports are textile commodities such as fibres, yarns, fabrics, etc.

Turkey is among the leading importers of textile and clothing machinery, spare parts and chemical agents. Average import figure of these items exceeds 1,7 billion USD per year.

HISTORICAL BACKGROUND

Turkey had a closed economy until 1980s. As a result, both production and export level were quite low. For example;

  • Total export of Turkey was USD 3 billion and the export amount of textile and clothing industry was only USD 777 million in 1980.

Since the beginning of 1980s, with the export orientation of Turkish Economy, both production and export have increased:

  • In 2003, total export reached USD 47 billion, and the amount of USD 15 billion has been realised by the textile and clothing industry.

During early years of export orientation policy, most of the industry’s export items were raw materials or intermediary goods such as fibres and yarns. In the course of time, this situation has changed. For example,

  • Percentage distribution of exports among clothing and textile industry was 13% and 87% respectively in 1980. The share of clothing has increased since then. In 2003, it reached to 76% of the total. Apparently, the share of textiles dropped to 24%. Within twentythree years up to 2003, the industry has both grown rapidly and shifted from low value added commodities to high value added manufacturing items.

  
WHAT IS THE RANK IN THE WORLD

According to the WTO statistics, Turkey is

4th biggest clothing supplier and

10th textile commodity supplier in the world. (as of 2002)

2nd clothing supplier and 2st textile commodity supplier in the EU region (as of 2003).

The EU countries are the main traditional markets for the Turkish textile and clothing industry. The share of the EU (15) in total export of the industry is about 63%.

Leading Suppliers of Clothing in the World – (2002)

Share Of Turkey in the World Textile and Clothing Trade -2002

Clothing: World Export: 200,85 Billion USD.

Turkey’s Export: 8,06 Billion USD.

Turkey’s share: % 4

Textile: World Export: 152,15 Billion USD.

Turkey’s Export: 4,24 Billion USD.

Turkey’s share: %2.8

ADVANTAGES OF TURKISH TEXTILE AND CLOTHING INDUSTRY

Rich in Raw Materials

Turkey is the 6th biggest cotton growing country in the world, with its production capacity around 900 thousands tons .

About 30% of this production are high quality long staple cotton, the remaining is medium quality.

Capacity of artificial and synthetics is also noteworthy.

Qualified Human Sources

Turkey has a well-educated young population.

Both governmental and non-governmental organisations (NGO's) have given a great importance to education.

Besides the governmental schools, there have been a lot of private and NGO initiatives. One of the most important of these initiatives is Istanbul Textile and Apparel Exporters’ Associations (ITKIB). ITKIB has been giving assistance to Vocational Education by arranging short time courses and seminars and by arranging training for the young in companies.

Close to the Main Markets (Europe)

Shipments can be delivered within 6-11 days to European destinations, by road.

Reaching to West European coasts takes only 10-11 days, by linear shipping.

Needless to say about the speed of air.

First orders can be delivered within 6 weeks; repeated orders can be delivered within 3 weeks (by road).

Existence of a Developed Finishing Industry for Textile Industry

For high quality goods, finishing operations of textile commodities have a crucial importance. Turkey has a developed finishing industry equipped with modern facilities. Most of them are independent finishing companies.

Existence of a Developed Sub Industry for Clothing Sector

The importance of production accessories for clothing industry can not be ignored. Although the values of production accessories are quite small, the added value they create is estimated between 10%-25%. Accessories such as zippers, narrow woven, buttons, hangings, labels, quilted materials, stiffening materials, etc. are produced in Turkey by a qualified sub-industry.

Product Diversification

The industry has gained the ability to produce all types of style, design, and fashion for all markets

Flexibility among Production Sites

Turkish businessmen are aware of globalisation. They can move production to regions or countries where the conditions are more suitable for market requirements. Eastern and Central European Countries and Turkic Republics in Central Asia are among the regions to where the Turkish entrepreneurs can easily shift.

Sensitivity about Quality, Environment, Health

The industry is sensitive about total quality.

Most of the textile, clothing and textile chemical companies have ISO 9001 or ISO 9002 certificate.

Usage of aril amines that may cause cancer (Azo Dyes) has been prohibited since 1995.

There are 12 well-equipped independent testing laboratories, capable of doing all kind of tests.

Compliance with the EU’s Technical Regulation

Turkey has completed its studies on the adoption of Technical Legislation of the EU on the following fields:

Approximation of the Laws Relating to Textile Names (Council Directive 71/307/EEC)

Approximation of the Laws Relating to certain Methods for the quantitative Analysis of Binary Textile Fibre Mixtures (Council Directive 73/44EEC)

Approximation of the Laws Relating to the Tertiary Fibre Mixtures (Council Directive 73/44/EEC)

Customs Union with the EU and Free Trade Agreements with a lot of Countries

Turkey has Customs Union with the EU. Within the framework of the Customs Union, industrial goods can move freely within the EU and Turkish borders, without paying any customs tariff and encountering any quantitative restriction.

Turkey has Free Trade Agreements with the following countries:

ISRAEL
ROMANIA
EFTA
BULGARIA
MACEDONIA
BOSNIA & HERZEGOVINA
CROATIA

These agreements also enable Turkish textile and clothing goods to enter into these countries without any duty and restrictions.

Sensitivity about Workers’ Social Conditions

We know that there is sensitivity among consumers and consumer organisations in the OECD countries about social and health conditions of the workers who employed in production processes. The same sensitivity has grown up in Turkey as well. European retailers have made great contribution to this sensitivity in Turkey through a feed-back mechanism.

This sensitivity has been carried out into our Social Security Law.

Other Points

Liberal Trade Policies

Turkey has adopted a market oriented trade strategy since 1980s. This strategy has strengthened with the establishment of Customs Union in 1996 between Turkey and the EU and free trade agreements with various countries. Turkey's membership of almost all international organisations is another pressure for further liberalisation.

Existence Of Free Zones

As a tool of market orientation, Turkey has given importance to establishment of Free Trade Zones and Industrial Free Zones. Readily, there are 19 Free Zones in operation. The most prominent of them are located in Mersin, three in Ýstanbul ( AHL, Tuzla, Çatalca), Antalya, Ýzmir (Aliađa), Adana (Yumurtalýk) and Çorlu.

Incentives given in Free Zones:

- 100 per cent income and corporate tax free,

- Exemption from VAT, unless importation to Turkey,

- 100 per cent exemption from banking and credit charges,

- 100 per cent exemption from customs tariff during importation into the Zones.

Equal Treatment against Foreign Investment:

Foreign companies are treated equally with Turkish companies, in terms of investment in Turkey, transfer of profit and capital and access to incentives.

WHAT CAN TURKISH TEXTILE AND CLOTHING INDUSTRY OFFER FOR THE WORLD MARKET

UNCOUNTABLE VARIETY, DESIGNS, COLOURS, ETC. THE BEST QUALITY
FINE WORKSMANSHIP
WORKING WITH MINIMUM STOCK
GOOD PACKING AND EFFICIENT DELIVERY
GREAT PROFIT, LESS RISK.
COOPERATION ON DISTRIBUTION,
COOPERATION ON PRODUCTION IN SUITABLE REGIONS

Copyright© 2004, ITKIB