Economic And Trade Relations Between Turkey Garment Industry And EU

Turkey does not own a large domestic market like China. Turkey manufacturers have to focus on product quality and delivery speed to maintain their status in Europe, and look forward to expanding sales to neighboring countries, because factories can quickly return to nearby orders.

According to the Aegean Clothing Manufacturers Association (EGSD) of Turkey, the garment industry in Turkey was negatively affected by the global financial crisis. In 2009, demand for garments and textiles in Europe and the United States dropped by 15.5% in 2009 compared with the previous year.

Although Turkey's high priced products can not compete with low-cost products from Bangladesh, China or Southeast Asian countries, only to strengthen exports, Turkey manufacturers have been focusing on geographic convenience.

According to EGSD, on the whole, garment exports in Turkey fell in 2009, while denim clothing declined by 19.9% compared with 2008, while T-shirts and sportswear dropped by 17.4%.

However, according to Zuhal Bilek, President of Istanbul Textile and Apparel Exporter Association (ITKIB), several garment items such as knitted men's suits, jackets, trousers, swimsuits and woven scarves are not affected by the recession, showing a decline in exports.

Competitiveness of Turkey

Since the World Trade Organization (WTO) agreement on textiles and clothing (ATC) stipulates that WTO member states have lifted the quota of textiles and clothing completely since 2005, the European Union has become an increasingly important market in Turkey after the application of the ATC agreement to lift most of the quota restrictions on textiles and clothing in China.

Bilek said, "Turkey's competitiveness has brought opportunities to the European market. In the US market, the market share is losing due to Turkey's difficulty in competing with China and other low-cost producers.

The main reason behind this is that the EU and US markets have different characteristics in distribution channels, consumer demand and buyer characteristics.

According to EGSD, although Turkey's total exports to Europe fell by 15.1% in 2008, exports to the US, Canada, Mexico, Norway and Switzerland declined by 29.7%.

Bilek said, "because of the geographical advantage, Turkey

"However, geographic convenience can not be a major competitive factor in a market. The competitiveness of Turkey in the EU market is based on its flexible and flexible production environment, the ability to respond quickly to small orders, and the trend that manufacturers have adapted to" fast fashion ". This means that the garment industry in Turkey can respond to orders in any season of the year.

On average, it takes 4 months for Turkey manufacturers to ship goods to the European market, but they can also shorten the delivery time according to the customers' notice: they can design, manufacture and deliver products within 1~3 months, and their ability to respond quickly is much better than that of manufacturers such as Bangladesh and China.

Bilek said, "from the beginning of design to production and delivery, the preparation period can be reduced to 4 weeks. If the manufacturer is using the finished fabric to make ready-made garments, the preparation period may even be reduced to 3 weeks."

"Through investment in design and innovation, Turkey is continuing and expanding its competitive edge. Its apparel industry has long been a supplier of full package from raw materials to finished products for a long time.

In the past 10 years, the garment industry in Turkey has taken effective measures to develop a fashion concept with design, brand and popular products. These advantages enable Turkey garment industry to take the lead in its competition.

Turkey's advanced product design capabilities, as well as its technology in printing, dyeing, washing and making accessories, enable its clothing industry to comply with the needs of European retailers who are too worried about too much inventory in the current economic situation and unwilling to order too many commodities.

In addition, the goods produced in Turkey conform to the EU standards, and can cater for more needs for sustainable development, moral production and environmental protection products.

emerging market

However, with the decline in exports to the EU and the US, Turkey garment exporters expect the revival of emerging markets to make up for export slump, especially in Africa, Central Asia and the Middle East, and make full use of the free trade agreements in these regions, as well as strong brands in Turkey, especially denim, in the eastern Mediterranean.

Nedim Orun, chairman of the EGSD board, said, "compared with 2008, the garment exports to African countries and the Middle East countries have grown up in 2009."

Manufacturers are optimistic that demand will increase this year.

Orun said, "exports will appear to increase in 2010, and Europe and the United States have recovered from the global economic crisis. We believe that this will surely bring us more orders."

Looking ahead, the exchange rate of Turkey's lira will become an increasingly important factor for exporters.