Türkiye apparel industry remains resilient despite global challenges

During the opening ceremony of the sixth Istanbul Fashion Connection (IFCO) in Istanbul, Türkiye industry leaders and ministers reaffirmed their commitment to boosting garment exports despite ongoing global challenges.

he Istanbul Apparel Exporters’ Association (IKHIB) vice president Mustafa Paşahan told Just Style and fellow attendees that if global fashion brand buyers come together it can create a new synergy of huge exports.

He highlighted there is a ripple effect from the current global challenges, which includes two simultaneous wars and the socio-economic strain caused by inflation that means Türkiye’s industry is handicapped by prices. He said this translates to higher costs, including on raw materials and manufacturing, which has left the industry struggling.

As a result, Türkiye has experienced a slight decline in its global customer base.

Despite this, he remains confident that purchasing and trade will continue as the industry continues to thrive with IHKIB and the Türkiye government’s ongoing trade plans and support.

The president of the Istanbul Chamber of Commerce (ITO), Şekip Avdaviç shared his confidence in the Turkish economy and quoted Donatella Versace: “Fashion is about dreaming and making other people dream.”

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His ambition is to make Türkiye more than a fashion and manufacturing hub, and urged people to dream, highlighting that events like August’s IFCO — which received more than 30,000 guests and featured more 600 global exhibitors on 7 to 9 August — are meant to support these dreams and make them come true.

Avdaviç declared that Türkiye’s only competition is the country itself: “Our competition is us so we are trying to outshine the bar we set every time. That’s the aim.” Explainer: Impact of fragmented BGMEA on Bangladesh apparel sourcing

He also expects inflation in the country and currency rates to be more balanced soon thanks to increasing export volumes.

Chairman of Türkiye Exporters Assembly (TIM) and IHKIB, Mustafa Gültepe hinted the ready-to-wear industry is shrinking.

However, he shared that last July the sector grew by 11% with more than $30m worth of exports, which he added still accounted for a “great share” in Türkiye’s trade.

He expressed hope in the industry and shared a long- term target of 10% for the ready-to-wear industry:

“3.5% of global trade volume of ready-to-wear. Türkiye can do better. We have manufacturing, production and if we are determined nothing can stop us.” Türkiye’s minister of trade, Professor Dr Ömer Bolat, outlined the country’s strategic trade location on the world map but reminded the audience at IFCO of the challenges weighing the industry which are pulling trade numbers, causing exports and imports to decline.

He highlighted the targets set by the government to push the industry with budgets and other laws in place to support these goals. Dr Bolat shared that approximately 38bn Turkish Lira ($1.13bn), which is more than half the budget, was used to grant subsidies to exporters.

He plans to adapt Türkiye’s industry according to the changing trade landscape in Europe. He believes that a decrease in interest rates in Europe and the US will impact the global economy and things will stabilise soon.