Orders For Garment Production Of $2 Billion Will Flow From China To Turkey.

 

Hadi Karasu, head of Turkish Clothing Manufacturers' Association (Turkey clothing manufacturers association), said Hadi. "Purchasing managers and designers are unable to travel to China because of concerns about the epidemic and traffic restrictions. Therefore, many famous brands have begun to discuss the transfer of their new products to Turkey.

 

He said that in the past few years, the global dominance of Chinese manufacturing industry has been increasing, so manufacturers in Turkey are constantly shifting their production lines to the production of high-end clothing. But the epidemic has led many European and American brands to consider turning their production back to Turkey.

 

Due to the currency crisis in 2018, lira in Turkey has depreciated by 36% in the past two years, which has greatly reduced Turkey's production costs. At the same time, China's production costs are increasing, the gap between the two is shrinking, coupled with the outbreak of the new coronavirus, the attractiveness of Turkey makes further growth. Hadi Karasu said: "with the narrowing of the manufacturing cost gap between China and Turkey, some European companies (before the outbreak) are considering moving the production line to Turkey."

 

 

 

LPP, a fashion retailer in Poland, said earlier that it was negotiating with factories in Turkey, Bangladesh and Vietnam as a backup plan to deal with further delays in China's production.

 

"In 2019, China's clothing exports amounted to about $170 billion." Hadi Karasu added: "according to our calculations, about 1% of the orders will be transferred to Turkey, and the total value is expected to be around $2 billion."

 

In 2019, the total exports of garments in Turkey amounted to US $17 billion 700 million. As an export oriented economy, any promotion of its export growth will improve its current fiscal deficit and greatly push the government of Turkey to achieve the preset 5% economic growth target.

 

Mustafa Gultepe, director of the Istanbul Apparel Exporters' Association (Istanbul apparel exporters association), said that more and more existing and new customers are communicating with Turkey's factories, and Turkey's manufacturing industry has the ability to undertake these additional orders. Gultepe said: "since the outbreak of the new coronavirus, clothing retailers have been asking about the price and output of the Turkey plant. I think if the impact of the epidemic lasts for five to six months, there will be a massive order out of China from May. "