| Market Overview | | | | supplier of USA with a 1.9% and 2.9% share |
| Textile and Apparel industry has a great contribution | | | | respectively. Beside the EU and the US market, new |
| to the Turkish economy. The industry has been | | | | markets are North African countries namely, Tunisia, |
| denominated as the locomotive of the Turkish | | | | Egypt and Algeria; Middle East countries namely Syria, |
| Economy for years. Turkey's textile and apparel | | | | Israel and Saudi Arabia; Eastern European countries |
| exports continued rising recently after began falling in | | | | namely Romania, Bulgaria, Poland and Hungary; and |
| January, with elimination of EU and US quotas. | | | | CIS countries. The sector faces quotas only in the |
| | | | USA and Canada. The Russian Federation was also a |
| Turkey's textile and clothing manufacturers began | | | | big market for the Turkish textile and apparel sector |
| relocating production in Eastern Europe and Central | | | | till the financial crisis of August 1998. It was the 3rd |
| Asia. In the last three years, Turkish textile and | | | | biggest market for apparel and 9th for textile |
| apparel companies faced raising difficulties, after | | | | products in 1997. Russia is still a promising market for |
| having substantially succeeded in the eighties and the | | | | textile and apparel sectors with its high consumption |
| first part of the nineties. | | | | potential that will come out in the following years |
| Chinese textile exports after a decades-old quota | | | | especially after developments towards better |
| system limits ends on January 1, 2005 and the World | | | | integration to the world economy and WTO |
| Trade Organization believes that within three years | | | | membership prospects. |
| the Asian giant could be producing over half of the | | | | Cotton market |
| world s textiles, up from 17% in 2003. | | | | Turkey is a very important cotton country, which is |
| The end of the quota regime has spawned fears of | | | | an advantage in raw materials, for the clothing |
| widespread job losses around the world, including in | | | | industry. Turkey is a traditional cotton producer and |
| Turkey, whose own textiles and apparel exports | | | | uses this advantage in the textile and apparel sector. |
| stand at around $20 billion a year. | | | | Turkey ranks 1st in Europe and 6th in the world |
| Thus, it is necessary to understand the Turkish | | | | cotton production with an average production of |
| textile and apparel sector, the weakness and the | | | | 800,000-900,000 tons peryear. Moreover, with the |
| strength it has in the World market. | | | | completion of irrigation projects within Southeastern |
| Current scenario of Textiles and Apparels in Turkey | | | | Anatolian Project (GAP), Turkey's most |
| The textile and apparel sector has been the | | | | comprehensive development program, current cotton |
| backbone of the Turkish economy with a vital role to | | | | production is expected to double by the year 2005. |
| play in the industrialisation process and market | | | | During 2003-04 season Turkey produced 893,000 |
| orientation of the economy in the last two decades. | | | | tons of cotton. About 30% of the cotton production |
| In the 1980s, it was the leading sector related to the | | | | is high quality long staple cotton and the rest is of |
| global economy and the export revenues of this hard | | | | medium quality. The cotton industry provides a |
| currency earning sector contributed substantially to | | | | competitive edge to the textiles industry, which |
| the overall economy. The textile sector continued to | | | | utilizes cotton as its essential raw material. |
| be one of the major contributors to the Turkish | | | | Cotton Market Trends |
| economy, being one of the fastest growing sectors | | | | Main destinations for cotton yarn exports are Italy, |
| in the 1990s with an average 12.2% annual growth, | | | | Portugal, Greece and Belgium and for cotton fabric |
| while the Turkish economy had an average growth | | | | the UK, Italy, USA and Belgium. Whilst Turkey used |
| of 5.2% per year. Total investment in the sector | | | | to be a net exporter of cotton, the trade balance |
| exceeded US$ 150 billion, of which more than US$ 50 | | | | reversed in 1992 and since then Turkey has been a |
| billion was invested in the last 5-10 years. | | | | net importer of cotton since domestic demand has |
| Textile industry started out in the 1960s in small | | | | persistently exceeded available stocks. Beside cotton, |
| workshops, have rapidly developed and transformed | | | | Turkey has a strong standing in synthetic fiber, wool |
| Turkey into a global competitor. | | | | and mohair productions. Turkey ranks ninth in |
| The total number of firms in the sector, dominated | | | | synthetic fiber, eighth in wool and third in mohair |
| (95%) by the private sector, number around 44,000 | | | | production in the world. |
| and 25% of them are active exporters. The apparel | | | | Home Textile Industry |
| industry is constituted mainly (80%) of small and | | | | Besides the Turkish textile industry Turkish home |
| medium sized firms whereas the technology-intensive | | | | textile industry has also shown a growth in terms of |
| textile production has been undertaken by large-scale | | | | production and exports. In recent years the |
| companies. Today, around 20% of Turkey's 500 | | | | production of home textiles has shown a stable |
| largest companies are involved in the textiles and | | | | increase due to the rise in domestic and external |
| apparel sector. | | | | demand for home textiles. Turkish home textile |
| Low labor costs, a qualified workforce, relatively | | | | industry has recorded growth in terms of production |
| cheap raw materials have played an important role in | | | | and exports in recent years. Almost all kinds of home |
| the significant growth of the sector; as well as a | | | | textiles are produced in Turkey. These may be listed |
| liberalized economic environment and export-led | | | | as follows in order of their export values: bed linens, |
| policies in the last two decades. | | | | bedspreads, table linens, towels, bathrobes, voiles, |
| The production value of the sector is over US$ 20 | | | | curtains, lace, interior blinds, curtain or bed valances, |
| billion. Employment in the sector is estimated to be | | | | blankets, cushions, pillows, quilts, eiderdowns. |
| about 4 million people (2.5 million employed directly | | | | In home textile sector, besides large scale firms there |
| and a further 1.5 million indirectly through the | | | | are many small and medium sized firms scattered all |
| sub-sectors). Official statistics also reveals that | | | | around the country. As a division of the textile |
| around 500,000 employees in the sector due to | | | | industry, the home textiles sector accounts for 3.2% |
| unregistered labor force. | | | | share in Turkey's total exports and have been an |
| The apparel sector exports approximately 60% of its | | | | important sub-sector for the Turkish economy. |
| production. Capacity utilization rates are | | | | European countries are the most important markets |
| approximately 75% especially among exporting | | | | for Turkey s home textile exports. At present |
| manufacturers. | | | | Germany, the UK, France, the USA, Netherlands and |
| Turkey ranks also among the top ten global | | | | Russian Federation are the major markets for |
| producers of wool cloth, carpets, synthetic filament | | | | Turkey s home textile exports. New markets such as |
| and fiber, polyester and polyamide filament. While | | | | Poland, Hungary, Romania and CIS countries are |
| Europe's 3rd largest polyester producer is a | | | | gaining more and more importance. |
| Turkish-US joint venture, Turkey's synthetics | | | | Foreign Investments in the Sector |
| production mounts to 15% of Western Europe's | | | | The products of the Turkish textile and apparel |
| capacity. | | | | sector have a good reputation in foreign markets as |
| Economic Contribution | | | | a result of the availability of high quality cotton in |
| Textile and clothing industry has a great contribution | | | | Turkey, wide usage of CAD (Computer Aided |
| to the Turkish economy. For example, textile and | | | | Design) and CAM (Computer Aided Manufacturing) |
| clothing industry accounts for: | | | | and the increase in the number of qualified personnel. |
| . 10% in GNP | | | | Conclusion |
| . 40 % in industrial production | | | | The sector is aware of the trend in international |
| . 30% manufacturing labor force | | | | markets towards increasing demand for healthier and |
| . 35% of exports earning | | | | more environmentally friendly products and tries to |
| The textile and apparel sector contributes over 20 | | | | adapt itself to these developments by legal and |
| billion USD to the Gross National Product. The sector | | | | technical regulations. |
| is mostly important for its export earnings; its share | | | | Nevertheless, it is hard to keep its competitive |
| in the country's total exports has been between | | | | position in the world market full of emerging players. |
| 33-39% since 1990. | | | | Thus, manufacturers have shifted their operations to |
| The major export market for Turkish textile and | | | | value-added products and creation of brand names. |
| apparel goods is the EU countries, which account for | | | | Currently, 30% of Turkish manufacturers have their |
| about 65% of total textile and apparel exports. | | | | own designs and brands in international markets. |
| Turkey ranks 2nd in apparel and textile imports to | | | | As current studies reveal, developed countries will |
| the EU having an 8.2% and 4.8% share in the EU's | | | | have a decreasing share in global textile production |
| total textile and apparel imports respectively as of | | | | while the developing countries will increase their |
| 2003. | | | | manufacturing capacity to meet the increasing |
| Export scenario | | | | demands. It is also estimated that by 2005, the |
| Textile and apparel exports increased by 14.6% on | | | | developing countries will increase their self-sufficiency |
| average per year during 1980-2003. Especially until the | | | | in textile production. The US with an estimate of |
| second half of 1990s, the sector's exports increased | | | | 200% increase in textile consumption is also |
| at a rate above the increase in total exports of | | | | estimated to have a 32% decrease in self-sufficiency |
| Turkey as well as the increase in global textile and | | | | by the year 2005. |
| apparel exports. In 2003, the sector's exports totaled | | | | Turkey, with its adaptability to European standards |
| US$ 15.1 billion, having a share of 32.6% of the total | | | | and regulations related to environment, health, quality, |
| exports. Exports rose to 23% in 2003, terms of | | | | and safety is aiming to move into the production of |
| value to 2002. The increasing share of apparels in | | | | more and more value added products, into an era in |
| exports since 1986 signifies the efforts to produce | | | | which the Turkish textile industry will be known for |
| more value added products. | | | | its quality trademarks and will be pricing a product for |
| After the EU, the USA is a big and impending market. | | | | the Made in Turkey sign. |
| Turkey is the 19th apparel supplier and ninth textile | | | | |