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Textile industry in Turkey
Turkey is an important country in the worldwide textile sector, with a long history of textile manufacture extending back to the Ottoman Empire. The textile industry in Turkey, in 2019, was the world’s fifth-largest exporter of textiles, accounting for about 4% of total exports. Exports of textiles and apparel have more than doubled in value since 2000, indicating that the sector is continually growing.[1]
Possibly Turkey is the only country where foreign tourists shop for carpets, rugs and that’s not a recent trend. Back in the 14th century, Marko Polo remarked on the quality of Turkish carpets from then to now. Turkish carpets, rugs are the most popular products among tourists. But what tourists discover after reaching Turkey is the textile sector and boutique wares of Turkey.
A substantial percentage of textile exports from Turkey end up in Europe, with Germany, the United Kingdom, Spain, and Italy topping the list of top five destinations. In 2018, the exports of these four countries totaled more than ten billion dollars. Textile manufacture is a successful sector for Turkey’s leading players. In all, Turkey has about 20 thousand textile producers and 52 thousand clothing manufacturers, with annual sales of around 30 billion euros.[1]
Turkey’s textile retail industry is robust, in addition to its successful production and trading industries. Consumer expenditure on such products has grown significantly since 2002, with families spending an average of 4.68 million Turkish Lira per month on clothes and 605.3 million Turkish Lira on domestic textiles in 2019. The retail industry is also a major area for employment, with over 30 thousand businesses specializing in selling textiles and over 55 thousand stores selling clothing in the country. In 2018, these stores employed 55 and 260 thousand employees.[1]
Turkey Is The 5th Largest Exporter of The Textile Industry in The World
Turkish fashion always received a great appraisal, but only from 2007, the textile industry in Turkey has seen a surge of both direct and indirect exports. Since then, the Turkish textile industry has always seen great growth. That’s why for years Turkey is among the top global producers in the world of the textile and apparel industry.[2]
In fact, Turkey is presently the 5th largest exporter of textile and the 8th largest exporter of ready-to-wear apparel in the world. Countries like the Netherlands, the USA, Poland, and also European countries like Germany, Spain, France, UK, etc. are the main importers of Turkish fashion, textile, and clothing. Before the pandemic, the growth in export of the textile and apparel industry was 5.8% per year. Every year the textile and clothing industry in Turkey produces products worth $30 billion, out of which $23 billion is exported worldwide.[2]
Present Situation of Turkey’s Textile Industry
Pandemic opened a new door for the textile industry of Turkey with an estimated growth of a minimum of 10% every year, as due to pandemic and trade ware issues, China is losing the market and Turkey’s textile industry has a great potential to capture this market. Due to the worldwide lockdown, presently like every other business, the textile industry in Turkey is also in a down position. But as we all know, this will not last forever and when the world will start operations, everything will be back in a normal position.
Opportunities for Foreign Investors in Turkey’s Textile Industry
Due to this instability because of the pandemic, the Turkish Lira has shown its greatest fall, and this can be an opportunity for any foreign investor looking for an investment in Turkey. The Corona Virus (Covid-19) pandemic has given all foreign investors a rare opportunity to flourish in the textile industry of Turkey. But how?
Turkish textile industry already has a great reputation in the global market. Turkey already possesses all the necessary raw materials and infrastructures to be the number one globally in the textile industry. 7th largest cotton producer in the globe, Turkey has the biggest machinery park in the world.
Turkey, with its state-of-the-art technology, flexibility in production, delivery, customized design, and fashion, and highest quality workforce is full of potential. Again, when worldwide people are more interested in eco-friendly natural products, Turkey’s textile industry with its material and technology stood first in it.
As for now, it’s mostly predicted that due to the Covid-19 pandemic, the textile sector in Turkey will gain the most benefit in the coming months or years. So once the pandemic is over and the world will start its operations like before (back to normal), the demands will increase again and the foreign investors from various countries who will invest in Turkey in the upcoming months will gain the maximum profit, as just after the food and hospital, textile and apparel is also an essential commodity.
If you want to invest and establish a company in Turkey, be sure to get help from an experienced law firm in Turkey to handle your legal affairs.
The main advantages of the Turkish Textile Industry
Based on the following factors, Turkey has significant advantages in textile production and raw material supply:
- In terms of logistics, the country is in a highly advantageous position because it’s the entrance to the European Union’s markets,
- The county is a source of manufacturing raw materials. Turkey is the seventh-largest producer of cotton in the world,
- Turkish organic textile manufacturers are also one of the world’s largest exporters of organic cotton,
- The country has a highly developed industry capable of manufacturing high-quality items thanks to its liberal trade rules and highly trained labor force,
- The country has free trade agreements with other countries and a customs union with the EU,
- Turkey is likewise recognized for prioritizing and emphasizing the importance of its workforce’s working conditions,
- Turkey continues to invest in new technology in order to grow its economy,
- Human resources in Turkish firms are qualified and educated,
- Turkish businesses are improving their design capabilities,
- Accumulation of technical know-how is perfectly well.
References
- Shahbandeh, M. (2020b, December 2). Textiles and clothing industry in Turkey – Statistics & Facts. Statista. <https://www.statista.com/topics/4844/textiles-and-clothing-industry-in-turkey/>
- Anadolu Agency. (2020, February 17). Turkey’s apparel sector sets a $19B export target in 2020. <https://www.aa.com.tr/en/economy/turkeys-apparel-sector-sets-19b-export-target-in-2020/1736301>
