As part of Fashion Prime and Fashion Tech, which bring together the ready-to-wear and textile technologies industries, a panel organized by the Aegean Clothing Manufacturers Association (EGSD) addressed “Türkiye’s Role in the Global Ready-to-Wear Industry.”
Hosted by İzmir Metropolitan Municipality, Fashion Prime – Textile, Ready-to-Wear Suppliers and Technologies Expo, organized by İZFAŞ, and Fashion Tech – Ready-to-Wear, Garment and Textile Machinery, Textile Printing Technologies Expo, organized in cooperation with İZFAŞ and İzgi Fuarcılık, featured exhibitions, fashion shows and panels covering a wide range of industry topics.
The panel, titled “Türkiye’s Role in the Global Ready-to-Wear Industry,” was organized by EGSD and moderated by Toygar Narbay, Chairman of the Board of Narkonteks. The speakers included Şeref Fayat, Chairman of the Garment and Ready-to-Wear Industry Council of the Union of Chambers and Commodity Exchanges of Türkiye (TOBB); Burak Sertbaş, Chairman of the Board of the Aegean Ready-to-Wear and Apparel Exporters’ Association (EHKİB); Kaya Aşcı, Vice Chairman of the Board of Astaş Juki; and Yaşar Murat Eren, Deputy General Manager of TETAŞ AŞ.
Fayat: “We expect to close the year with 5 per cent growth”
Şeref Fayat stated that the industry went through a challenging period during the pandemic, but subsequently faced very strong demand and raised its targets from the second half of 2020 onwards. He added that the negative developments in the global economy later began to affect the sector as well.
“We began to feel a slowdown from May onwards. The sector contracted by 4 per cent in July, and there has been a period of stagnation since September,” Fayat said.
Fayat noted that they expected to close the year with growth of 5 per cent.
“I believe the slowdown we experience in the final quarter will continue into the first quarter of 2023. Due to the risk of recession in Europe, sourcing from nearby regions has become increasingly important. Türkiye has an advantage in this respect; however, high inflation and pressure on the exchange rate make it difficult for us to meet our cost targets,” he said.
Sertbaş: “The possibility of a recession in Europe will affect us”
Burak Sertbaş stated that companies were struggling to maintain competitive costs.
“We are having difficulty providing customers with prices. The increase in the minimum wage needs to keep pace with inflation, but it must also be accompanied by an adjustment in exchange rates so that we can meet our cost targets. Changes in the euro-dollar exchange rate are also affecting us negatively,” he said.
Sertbaş added that a recession in Europe would affect the sector and that there were two different views regarding its potential impact on Türkiye.
“Consumers in Europe may increasingly turn to lower-priced products and move away from luxury and high value-added goods. However, sourcing difficulties from the Far East continue, and Europe therefore lacks a clear outlook. For this reason, I believe Europe will eventually return to Türkiye, which offers high-quality products and the advantage of geographical proximity,” he said.
Aşcı: “The first three quarters were successful, but the final quarter is more challenging”
Kaya Aşcı stated that they had been operating in the industry for nearly 40 years and aimed to be part of the sector’s digital transformation by continuing to invest in this area.
Aşcı said that the first three quarters of 2022 had been successful for the industry.
“However, the final quarter has been somewhat challenging. Looking at the production that Europe commissions in the Far East, prices there have also increased. I believe Türkiye has a major advantage at this point. The latest technologies are available in Türkiye, and Europe is aware of this. For this reason, I do not expect the machinery industry to experience a major downturn. I believe major European brands will choose Türkiye rather than moving production elsewhere,” he said.
Eren: “Strong poplar trees grow in stormy weather”
Yaşar Murat Eren stated that they had always embraced the principle that “strong poplar trees grow in stormy weather.”
“We have reached this point by overcoming every kind of difficulty throughout the years. We experienced several changes after the pandemic. Because Türkiye’s ready-to-wear and textile industry comes from a highly competitive culture, it continued operating throughout the pandemic despite all the challenges. We always talk about sustainability, and we needed to achieve it both in industry and in production. We did so,” he said.
Eren noted that Türkiye’s competitors, including China, Bangladesh and India, had suffered significant losses in market share.
“Thanks to our geographical proximity to Europe and our stronger infrastructure, the sector has recorded substantial growth since last year. The same applies to the machinery industry. I believe this growth will continue in 2023,” he said.