Textile & Apparel Business in Turkey

Textile & Apparel Business in Turkey

Market place Overview

Textile and Clothing sector has a good contribution to the Turkish overall economy. The business has been denominated as the locomotive of the Turkish Financial system for several years. Turkey’s textile and attire exports ongoing increasing lately soon after began slipping in January, with elimination of EU and US quotas.

The industrialisation initiatives of the 60’s and 70’s gave birth to the fashionable textile market in Turkey. At the starting, this sector was working as modest workshops. But the sector confirmed fast enhancement and all through the 1970’s commenced exporting. Right now, Turkey is a person of the essential textile and apparel producers and exporters in the globe.

Turkey’s textile and outfits makers commenced relocating generation in Japanese Europe and Central Asia. In the previous a few years, Turkish textile and attire businesses confronted raising complications, after having significantly succeeded in the eighties and the initially portion of the nineties.

Chinese textile exports after a many years-previous quota program limits ends on January 1, 2005 and the Globe Trade Corporation thinks that within 3 decades the Asian big could be creating over fifty percent of the environment s textiles, up from 17% in 2003.

The stop of the quota regime has spawned fears of popular career losses all around the environment, like in Turkey, whose possess textiles and apparel exports stand at all around $20 billion a yr.

Hence, it is essential to understand the Turkish textile and apparel sector, the weak spot and the energy it has in the Entire world sector.

Existing state of affairs of Textiles and Apparels in Turkey

The textile and apparel sector has been the spine of the Turkish financial state with a very important role to enjoy in the industrialisation approach and industry orientation of the overall economy in the last two many years. In the 1980s, it was the major sector linked to the world-wide financial system and the export revenues of this challenging forex earning sector contributed substantially to the over-all economic climate. The textile sector continued to be 1 of the significant contributors to the Turkish economic climate, staying a person of the swiftest growing sectors in the 1990s with an average 12.2% annual expansion, though the Turkish economic system had an common expansion of 5.2% for every 12 months. Complete expenditure in the sector exceeded US$ 150 billion, of which far more than US$ 50 billion was invested in the past 5-10 a long time.

Textile business commenced out in the 1960s in compact workshops, have rapidly designed and reworked Turkey into a world competitor.

The whole quantity of companies in the sector, dominated (95%) by the private sector, quantity about 44,000 and 25% of them are energetic exporters. The clothing industry is constituted mostly (80%) of modest and medium sized firms whereas the know-how-intensive textile generation has been carried out by substantial-scale organizations. Currently, close to 20% of Turkey’s 500 premier firms are included in the textiles and attire sector.

Very low labor prices, a competent workforce, reasonably low-priced uncooked elements have performed an vital part in the significant progress of the sector as well as a liberalized economic surroundings and export-led procedures in the final two a long time.

The creation worth of the sector is around US$ 20 billion. Work in the sector is estimated to be about 4 million persons (2.5 million utilized instantly and a additional 1.5 million indirectly by means of the sub-sectors). Official data also reveals that around 500,000 employees in the sector thanks to unregistered labor force.

The clothing sector exports somewhere around 60% of its generation. Capability utilization premiums are around 75% specially among the exporting suppliers.

Turkey ranks also among the the top rated ten global producers of wool cloth, carpets, synthetic filament and fiber, polyester and polyamide filament. While Europe’s 3rd major polyester producer is a Turkish-US joint venture, Turkey’s synthetics output mounts to 15% of Western Europe’s potential.

Financial Contribution

Textile and clothes industry has a excellent contribution to the Turkish financial system. For example, textile and apparel market accounts for:

. 10% in GNP

. 40 % in industrial manufacturing

. 30% producing labor pressure

. 35% of exports earning

The textile and attire sector contributes above 20 billion USD to the Gross National Product. The sector is largely essential for its export earnings its share in the country’s whole exports has been concerning 33-39% considering the fact that 1990.

The important export market place for Turkish textile and attire merchandise is the EU countries, which account for about 65% of complete textile and apparel exports. Turkey ranks 2nd in clothing and textile imports to the EU acquiring an 8.2% and 4.8% share in the EU’s total textile and apparel imports respectively as of 2003.

Export situation

Textile and attire exports improved by 14.6% on ordinary for every year throughout 1980-2003. Especially until eventually the 2nd half of 1990s, the sector’s exports amplified at a price previously mentioned the enhance in complete exports of Turkey as nicely as the boost in worldwide textile and clothing exports. In 2003, the sector’s exports totaled US$ 15.1 billion, possessing a share of 32.6% of the overall exports. Exports rose to 23% in 2003, phrases of benefit to 2002. The expanding share of apparels in exports considering that 1986 signifies the endeavours to develop extra price added products and solutions.

Following the EU, the United states is a major and impending sector. Turkey is the 19th clothing provider and ninth textile provider of United states of america with a 1.9% and 2.9% share respectively. Beside the EU and the US market place, new marketplaces are North African nations particularly, Tunisia, Egypt and Algeria Middle East nations particularly Syria, Israel and Saudi Arabia Jap European nations around the world particularly Romania, Bulgaria, Poland and Hungary and CIS nations. The sector faces quotas only in the United states of america and Canada. The Russian Federation was also a large industry for the Turkish textile and apparel sector until the money disaster of August 1998. It was the 3rd major marketplace for clothing and 9th for textile items in 1997. Russia is still a promising market for textile and clothing sectors with its high use possible that will occur out in the subsequent years especially following developments to much better integration to the environment overall economy and WTO membership potential clients.

Cotton industry

Turkey is a really essential cotton nation, which is an benefit in raw components, for the apparel industry. Turkey is a traditional cotton producer and employs this edge in the textile and clothing sector. Turkey ranks 1st in Europe and 6th in the globe cotton production with an ordinary output of 800,000-900,000 tons for every
12 months. Also, with the completion of irrigation jobs within just Southeastern Anatolian Undertaking (Gap), Turkey’s most extensive development system, present cotton creation is predicted to double by the calendar year 2005.

All through 2003-04 year Turkey created 893,000 tons of cotton. About 30% of the cotton creation is significant quality prolonged staple cotton and the rest is of medium good quality. The cotton market presents a aggressive edge to the textiles business, which makes use of cotton as its important raw substance.

Cotton Market Traits
Main places for cotton yarn exports are Italy, Portugal, Greece and Belgium and for cotton material the British isles, Italy, United states and Belgium. Whilst Turkey made use of to be a web exporter of cotton, the trade equilibrium reversed in 1992 and given that then Turkey has been a web importer of cotton due to the fact domestic desire has persistently exceeded accessible shares. Beside cotton, Turkey has a sturdy standing in artificial fiber, wool and mohair productions. Turkey ranks ninth in synthetic fiber, eighth in wool and third in mohair creation in the world.

Household Textile Business

Moreover the Turkish textile sector Turkish residence textile marketplace has also revealed a expansion in terms of generation and exports. In recent yrs the generation of dwelling textiles has demonstrated a secure maximize thanks to the increase in domestic and external demand from customers for property textiles. Turkish home textile sector has recorded development in conditions of output and exports in the latest many years. Pretty much all kinds of home textiles are generated in Turkey. These may be mentioned as follows in purchase of their export values: bed linens, bedspreads, desk linens, towels, bathrobes, voiles, curtains, lace, inside blinds, curtain or bed valances, blankets, cushions, pillows, quilts, eiderdowns.

In property textile sector, apart from large scale companies there are several tiny and medium sized firms scattered all all-around the country. As a division of the textile sector, the residence textiles sector accounts for 3.2% share in Turkey’s whole exports and have been an vital sub-sector for the Turkish economic system. European international locations are the most critical markets for Turkey s household textile exports. At existing Germany, the United kingdom, France, the United states of america, Netherlands and Russian Federation are the big markets for Turkey s home textile exports. New marketplaces these types of as Poland, Hungary, Romania and CIS nations around the world are attaining much more and far more worth.

International Investments in the Sector

The merchandise of the Turkish textile and attire sector have a fantastic status in overseas marketplaces as a final result of the availability of superior high-quality cotton in Turkey, wide use of CAD (Computer system Aided Style and design) and CAM (Pc Aided Manufacturing) and the increase in the amount of qualified staff.


The sector is informed of the craze in intercontinental marketplaces towards escalating demand from customers for healthier and more environmentally welcoming products and solutions and attempts to adapt itself to these developments by authorized and specialized regulations.

However, it is tough to hold its competitive position in the entire world market place whole of rising players. Therefore, makers have shifted their operations to value-included solutions and generation of manufacturer names. At the moment, 30% of Turkish suppliers have their individual designs and makes in global marketplaces.

As recent reports reveal, developed international locations will have a lowering share in world-wide textile output though the acquiring international locations will increase their manufacturing capacity to satisfy the raising calls for. It is also estimated that by 2005, the acquiring international locations will improve their self-sufficiency in textile output. The US with an estimate of 200% raise in textile intake is also believed to have a 32% lessen in self-sufficiency by the 12 months 2005.

Turkey, with its adaptability to European requirements and laws linked to atmosphere, wellness, high-quality, and protection is aiming to transfer into the creation of far more and much more benefit added items, into an era in which the Turkish textile sector will be known for its high-quality trademarks and will be pricing a product or service for the Manufactured in Turkey signal.