JEANS IN TURKEY

TURKEY & COUNTRY ANALYSIS


Turkey is still today a kep player in the fashion jeans and clothing industry. Its geographical proximity to EU and good labor force makes it still an attractive place to manufacture and sell jeans. Many local companies do produce jeans in Turkey for domestic market and export. Although labor costs have siginificantly rise during the last decade, Turkey is still a good hub for fashion jeans production and development centers.



Turkey´s population is of around 75 million and with per capita income of around 17,499 USD per year. Obviously labor costs are high compared to competitors in other countries.

Turkey is a cotton and denim producer. Companies such as Bosa and Orta are important players in the developments of good quality fabrics.  For jeans production in Turkey, the main production areas are located near Istanbul. Many domestic brands such as Collins, Vigos, Cross Jeans, Valka, Mavi, etc are just few of top denim local brands.


Many small companies work as development centers for European and international brands interested in developing top fashion products in Turkey. Washing quality is Turkey is also quite good compared to some other places as Turkey has benefited over the years of the "know how" of western brands and managers working in Turkey for their brands. This is definetely a key asset for Turkey´s fashion jeans production and its abaility to capture new jeans production programs,.


Turkey has taken advantage of the European Union – Turkey Customs Union, signed in 1995, to increase its industrial production destined for exports, while at the same time benefiting from EU-origin foreign investment into the country. Turkey now has also opportunity of a free trade agreement with the European Union (EU) – without full membership – that allows it to manufacture for tarif-free sale throughout the EU market.

Turkey is a quite stable country and will keep being a key player in the jeans industry in near future. Important companies such as Diesel, Gstar, Levis, Zara, Mango, H&M, Jack&Jones, etc are currently doing bulk productions. The real challenge for jeans manufacturers in Turkey is to speed up the delivery process so garments can be dispatches faster. Today, Turkey can supply garments in 2-3 weeks provided that fabric is in stock. This is very attractive but the constraint of higher garment prices makes it sometime unaffordable for some brands. While you can get a bulkbasic  jean in Asia for as low as 4 USD, Turkey jeans prices can hike from 10 USD and above depending on quality and lead time. Brands are very concerned about prices, specially for their basic programs, therefore Turkey must focus on Value added jeans with very special effects or fabrics. It is already doing so from last decade.

If you are a EU brand looking for quick deliveries, top fashion products and moderate-high pricing, Turkey is the place for you. Turkish people are used to work and deal with Europeans as they hold many of european values and lyfestyle as well.

There are also some trade shows in Turkey worthy to assist in Tuyab area. Istanbul fashion week in October is a good scenario to check the latest trends in the market. http://www.turkishtextiles.com/instanbul-fashion-week.html

Raw materials such as fabric are available in Turkey from local production. Turkey also offers electricity costs quite competitive compared to neighbouring EU. Gas is available at good quality and stable supply, and factories can rely on that. If Turkey can keep labor wages stable teh following years and inflation under control, the potential for expansion of the jeans export business is overwhelming due to its obvious advantadges. Also we must consider that there is stong demand of denim products within the country which gives a way to manufacturers whenever the export situation becomes tuff or not desirable. Turkey still operates with its own currency, turkish lira. Keeping the lira relatively depreciated can help the jeans export industry significantly.

The local lira has had a depreciating trend these last 5 years, see graph below. This is a helping factor for exporters. If keeps depreciating, or gets into a point of equilibrium between inflation and depreciation, the export business will keep coming for Turkey. However, inflation has been high this last month of March to 7,3%. 







Turkey does not require to EU citizens to issue a visa at port origin but one can get visas upon arrival. This makes it also very attractive and convenient to EU company to travel to Turkey as often as needed. Turkish fabric companies have also invested in garment manufacturing units in some Asian countries or North african countries. Denim is produced in Turkey and ship to the country for garment manufacturing. The turkish staff is shifted as expats to work in their developments centers and laundries in foreign countries. Please feel free to ask more details about Turkey if you require or you have any doubts.