Chinese Textile Enterprises Shrink Profit Margins In Turkey

Tea and silk were once important items for the pportation of silk road. With the deepening of economic and trade contacts, tea and silk were gradually replaced by clothing, electronics and other products. Recently, reporters learned from the local market in Turkey that Chinese clothing seems to have encountered some problems in Turkey.

During an interview in Turkey, reporters found that every evening, on the streets of downtown Istanbul, Akasary, there were numerous hawkers selling all kinds of clothing on both sides of the streets of the city of Turkey.

They are either carrying clothes shelves or putting up stalls, shouting loudly to attract pedestrians.

Flip over, from T-shirt,

It can be said that everything is available, and the feel is quite comfortable. The price is only 5~20 lira (about 10~40 multi RMB (6.2092, -0.0004, -0.00%)).

The English speaking hawker told reporters that the costumes were mostly from Bursa, Bursa, northwest of Turkey, and made by local family workshops. "Bursa is the silk Center for centuries in Turkey".

Nowadays, when China's textile industry enjoys a good reputation in the international market, Turkey has become the world's fifth largest exporter of textiles and clothing after China, the European Union, the United States and South Korea, thanks to its unique geographical location and outstanding quality.

China and Turkey, a big textile country, are both trading partners and competitors in the international market.

Chinese enterprises still have profit margins

In the early June, a large number of China's own brands gathered.

It is held at the International Convention and Exhibition Center in Istanbul.

Although this is the first large-scale exhibition of Chinese household brands in Turkey, although it is the first large-scale exhibition in Turkey by the Chinese Consul in Istanbul consulate, Huang Songfeng, but in the 4 world, the volume of 12076 exhibitors participating in the exhibition is 1 million 50 thousand dollars, and only 10% of the enterprises have on-site orders.

Some exhibitors from Wenzhou, China and Shaoxing told reporters that in fact, they knew that the Turkey home textile market's industrial chain was relatively perfect. Therefore, this trip is mainly to investigate the latest trend of the market, and the volume is not expected to be high.

The textile industry is one of the pillars of Turkey's economy.

China's Ministry of commerce data show that textiles and raw materials, mechanical and electrical products and base metals and products are the main export commodities of Turkey.

Among them, textile exports accounted for 18.6% of Turkey's total exports in 2014, accounting for 29 billion 370 million US dollars, an increase of 5.8%.

"The location of Turkey is very good."

Han Chunfeng, manager of Shaoxing cloth Co. Ltd, told the first Financial Daily reporter.

In his view, this across the Eurasian market, the scope of sales of products can be radiated to Europe, Central Asia, North Africa and other regions.

"The local wholesale merchants seek China's finished products or fabrics, and resell them in Europe after processing locally."

Han Chunfeng said.

The unique geographical location gives the Turkey market more intimate contact with Europe than China.

Kulchard Tuzmen, former trade minister of Turkey, once said: "China needs 6 weeks from delivery to delivery, and Turkey only needs 1 weeks."

Han Chunfeng told reporters that the profits of their enterprises in the Turkey market were good, and the quotations were made to local customers and exported to Europe. The tariff was still lower than the overall price of the local raw materials purchased.

"For example, to sell local customers 5~6 dollars / meters of embroidered cloth (about 30~40 yuan), made locally made garments, and then resale to Europe, the price is 500 euros / pieces (more than 3000 yuan)."

Therefore, in Han Chunfeng's view, it can still maintain the profit margin of 20%~30%.

China's textile advantages narrowed

For Chinese entrepreneurs in the Turkey textile market, although the profit margins are still there, the most important thing to guard against is the Turkey government's trade protection for local enterprises.

At present, the import tariffs of the Turkish government on textiles have increased substantially compared to the past few years.

Only one silk variety, local tariffs have been raised to 115%.

Murat, chairman of Turkey - China Association of industry and Commerce (TUCSIAD), is also a businessman who imports clothing products from China to Turkey. (MuratSungurlu)

In an interview with the first Financial Daily reporter, Murat stressed that because the Turkish government increased the import tariff of textiles and the appreciation of RMB in recent years, it greatly weakened the competitive advantage of Chinese textiles in the Turkey market. "A few years ago, I could still get some profit. My price had competitive advantages compared with the local market, but now the customers in the local market are not interested in the products I import from China."

Murat also pointed out that the rising labor costs in China in recent years have eroded the advantages of importing textiles from China.

"In China's Guangdong and other eastern regions, as far as I know, textile workers' monthly income per capita 7000~8000 yuan has become a common phenomenon."

Murat said, "this is almost the same as the monthly average labor cost of 800~1000 dollars in Turkey."

In addition, Han Chun Feng has also pointed out a key reason for some Chinese textile enterprises to "run into the wall" in Turkey: Turkey customers attach importance to design and intellectual property rights.

"China's

Most of the time, the flowers were copied from Turkey, Korea and other regions, then processed simply and then sold to the Turkey market.

Han Chunfeng said, "only by this way, Turkey's big companies with R & D capability are still very resistant to China."

In order to promote the development of home textile industry in Turkey, many home textile exhibitions will be held every year in different parts of the country.

Han Chun Feng told reporters frankly that "some exhibitions are simply not open to Chinese enterprises, especially home textile exhibitions. They are worried about Chinese plagiarism and plagiarism."

Murat also told reporters politely that Turkey's home textile products were well received internationally because "always keep up with the trend of the times".

Therefore, if China's textile industry wants to develop its market in Turkey, it needs further upgrading its technological innovation, reducing its cost and keeping abreast of the trend of the times.