Garment and Ready to Wear Industry Hopeful for the Second Half of 2024
As of August 2024, Turkey’s ready-to-wear and garment industry is witnessing significant changes and developments. Ready-to-wear and garment exports, which increased by 0.2% compared to the same period of the previous year and reached 1.67 billion dollars, are considered a sign of improvement in the sector.
Ready-to-wear and garment exports accounted for 7.6% of Turkey’s total exports in August. In this period, the ready-to-wear and garment sector maintained its position as the third sector after the automotive industry, which had a share of 13.8% in general exports, and the chemicals sector, which had a share of 12.3%. While the sector’s exports in January-August decreased by 8.9% compared to the same period last year and amounted to approximately 12 billion dollars, it took a 7% share of Turkey’s total exports. A decrease of 8.9% compared to the previous year reveals that the overall export trend remains negative. High costs, global recession, political uncertainties in target countries, and the ongoing war environment cause the industry to continue its difficult days.
Most Exported Product Group: Women’s Outerwear
As of August, when the distribution of the sector’s exports based on product groups is examined; Women’s outerwear products rank first with a share of 50%, followed by men’s outerwear with 23% and clothing accessories with 8%.
In the January-August period, when the exports of the Ready-to-Wear and Garment sector in Turkey are examined according to product groups; It is seen that the women’s outerwear product group ranks first with a share of 47%, men’s outerwear ranks second with 20%, and the clothing accessories product group ranks third with 7%.
Germany is Turkey’s Largest Export Market in Ready-to-Wear
Germany maintains its position as Turkey’s largest export market and has a market share of 17%. The Netherlands and Spain, on the other hand, are among the important markets with shares of 12% and 10%, respectively. However, the overall loss of exports in the sector is exacerbated by political uncertainties in destination countries and global economic challenges.
Istanbul is the Leader in Ready-to-Wear Exports
In August, when exports were examined based on sectors based on provinces; Istanbul ranked first with $1.2 billion. Istanbul is followed by Izmir with 121 million dollars and Denizli with 100 million dollars. In January-August, Istanbul’s total exports reached 8.1 billion dollars, followed by Izmir with 924 million dollars and Denizli with 708 million dollars.
12% Decline in Garment Manufacturing
The loss of employment in the sector has become a significant concern. As of June 2024, there was a decrease of 77,835 people in the ready-to-wear sector, and total employment fell below 1 million. This situation shows that company closures and layoffs in the sector continue. In addition, according to data from the Turkish Statistical Institute (TUIK), there was a 12% decrease in ready-to-wear manufacturing.
The Way Out in Ready-to-Wear: Transformation and Value-Added Production
Industry experts state that fluctuations in the exchange rate prevent the expected increase in exports. Although the demand for orders to target countries is increasing, orders are shifting to competing countries due to the price difference. It is emphasized that focusing on transformation and value-added production is a critical path for the revival of the sector. Turkey has important advantages such as security of supply, efforts in the field of sustainability, digital product passport, preparation for carbon border regulation, and integrated production structure.
Industry Experts Expect Recovery in the Second Half
As a result, although Turkey’s ready-to-wear and garment industry is going through a challenging period, industry experts believe that there will be a recovery in the second half. Focusing on transformation and innovation is critical for the sustainability of the sector to receive positive signals for the future. Experts; think that Turkey’s advantages such as security of supply, sustainability, and integrated production structure will help the industry overcome the difficult period.
