Turkey is One of the Three Countries with Growth Potential in Ready-to-Wear
Turkey is facing great opportunities in the ready-to-wear industry. BEGOS President Toygar Narbay said, “Turkey has a very high growth potential in ready-to-wear.”
Toygar Narbay, Chairman of the Board of Directors of Buca Aegean Organized Industrial Zone (BEGOS) and Vice President of the Turkish Clothing Manufacturers’ Association, stated that the Turkish ready-to-wear industry has a high growth potential. Stating that this sector will face various opportunities in the next 10 years, Narbay emphasized that Turkey is one of the three countries with the greatest growth potential in the field of ready-to-wear.
“A Great Opportunity Awaits Us”
Stating that China is likely to have problems with NATO in the next 10 years with NATO’s definition of China as a threat country in 2022, Narbay stated that this situation may cause global buyers to shift their purchases to other producer countries such as Turkey to reduce their risks. Narbay also emphasized that costs must be brought under control in order for the sector to remain competitive.
“China’s Production Capacity May Shift to Turkey”
Stating that China’s ready-to-wear exports in 2023 accounted for approximately 30% of the world’s ready-to-wear exports with 165 billion dollars, Narbay stated that Turkey is an important player in this market. “One of the most important players that can partially meet a 15-20% exit from China in terms of capacity is the Turkish textile and apparel industry,” Narbay said.
“We can make fast and high quality production with our strong textile industry”
Narbay said that companies in the Turkish ready-to-wear sector produce value-added products, unlike their competitors who produce cheap and high volumes. “With our strong textile industry, we are able to produce fast and high quality. Our geographical proximity to Europe makes us indispensable for our customers.” he added.
While predicting that the sector will enter the recovery process in the second half of 2025, Narbay stated that long-term loans and Eximbank supports should be increased. “Necessary arrangements should be made to increase competitiveness. High inflation and interest rates are eroding working capital.” he said.
“Suppression of the Exchange Rate Affects”
Narbay stated that the price difference of Turkish exporters compared to their Far Eastern competitors has reached 50%, and this situation has caused Turkish producers to experience difficulties. “While our global buyers are willing to pay additional fees for the quality of Turkish products, the high financing costs and inflation faced by our industry make this situation difficult,” he said.
Finally, Narbay said that high commercial interest rates and exchange rate mismatch have significantly eroded profitability in the sector. “If the exchange rate had increased by the official inflation, our sector could have been in a more solid position,” he said, drawing attention to the current state of the market.