The textile and apparel industries play an important role in Turkey’s economic figures in terms of gross domestic product, employment, and exports. They have important contributions to the Turkish industry. The main factors in the development of the textile industry in Turkey are the large domestic market, abundant raw materials, and the presence of a qualified workforce. They provide an advantage for the competitiveness of the national economy.
The Turkish textile industry continues to be one of the leading sectors of the Turkish economy, providing 17.5 percent of total exports in 2021. A total of 53,000 companies operate in the sector, providing employment for approximately 0.4 million people only in ready-made clothing production. The increase in exports resulted from the easing of economic difficulties in the EU market and Turkey’s efforts to diversify its exports in new markets.
Competitiveness of Turkish Textile and Apparel Industries
The global textile and apparel industries are a very important and highly competitive part of the global market. The competitive nature of working with a separate firm is therefore very important to formulate company strategy and carefully plan the steps to be taken. Major factors shaping the nature of competition in both national and international markets are currency policies, costs, employment, installed capacity and machine pool, incentive policies, marketing opportunities and branding, and geographic location and prompt delivery.
Exchange Rate Policies
Turkey is highly affected by exchange rates, especially since most of the European countries, which are its main importers, use the euro as their currency. The Turkish textile and apparel industry is successful in using Turkish goods while producing and exporting more than half of the goods they produce.
Costs
Raw materials and direct materials make up the majority of production costs. The textile and apparel industries offer a wide variety of products and therefore have a wide range of production costs. The main cost sources of the industry are raw material procurement, financing costs, transportation costs, communication costs, directlaborcostst,s and energy costs.
Employment
Considering the unregistered workers, there are around 450,000 workers in the textile industry and around 1,500,000 in the ready-made clothing industry, adding up to two million jobs created by the industry.
Established Capacity and Machine Pool
Until 1990, the global competitiveness of the Turkish textile and ready-made clothing industries was on the rise. With this competitive power, many foreign and domestic investors joined the sector and enabled the development of more advanced technologies.
Quality of Machine Pool
Compared to other developing countries, Turkey has a higher capacity and utilization rate. The quality of the machine pool is as important as its utilization rate, as technology plays an important role in the textile and apparel industries and is constantly evolving. Newer, more technological machines provide a competitive advantage.
Marketing Opportunities and Branding
Turkish textile and apparel industries generally consist of small and medium-sized companies. Small and medium-sized companies often do not have the necessary knowledge and competitiveness to participate in the global market and therefore have been quite unnecessary in their export ventures.
Geolocation and Fast Delivery
Geographical proximity, cultupropr, mity and trade history are important determining factors of foreign trade capacity between the two countries. Geographical proximity is particularly important as it manages transportation costs. Turkey’s proximity to the EU market results in favorable transport and insurance rates compared to its biggest competitor, China. Turkey’s continued export to the EU, even before joining CU, is due to its geographical proximity.
If you are looking for a manufacturer or wholesaler that your brand needs, you can contact us immediately.