Demand for apparel recovers, says business association

ISTANBUL

Foreign demand for Turkish apparel, which had slowed in the first half of 2024, began to recover in the third and fourth quarters, according to Ramazan Kaya from the Turkish Clothing Manufacturers’ Association (TGSD).

Demand from foreign countries was weak due to conflicts and economic troubles in Europe earlier this year, he explained.

“Demand in the third quarter somehow normalized and increased as inflation stabilized in Europe which boosted consumers’ appetite,” Kaya said.

The EU absorbs around 60 percent of the industry’s exports, while around 4 to 5 percent goes to the U.S. and the rest to Russia, the Middle East and other European countries, according to Kaya.

The Turkish clothing industry enjoys certain advantages such as its geographical proximity to Europe, logistics and supply security; however, when it comes to costs, the picture is different, Kaya said.

“Despite those advantages, potential buyers do not rush to Türkiye in droves… Vietnam, Cambodia, Bangladesh and recently India, have much lower costs than us. We have no chance to compete with them in terms of cost,” Kaya noted.

The annual value of the industry’s production is around $33.6 billion and Türkiye is the fifth largest producer in the ready-wear sector in the world, according to Kaya.

The sector reached a total sales size of $ 85.2 billion in 2023, including exports, domestic market sales, tourist spending and what is known as “luggage trade,” he said.

In the first 11 months of 2024, total sales amounted to $82 billion, Kaya noted.

He, however, predicts that the industry’s turnover is likely to shrink by 4 to 5 percent by the end of 2024 in line with the decline in the global ready-wear exports.