Discover insights on the Turkish apparel sector’s struggles in 2023 and its potential for recovery in 2024, with expectations for improved exports and market conditions.
Turkish Apparel Sector Faces Tough Year Ahead, But 2024 May Bring Recovery
The Turkish apparel sector faced significant challenges in 2023, with substantial declines in export figures. According to Hayati Ertuğrul, Chairman of the Aegean Clothing Manufacturers Association (EGSD), the sector endured a difficult year, characterized by job losses, downsizing, and business closures. As a result, 2023 is being referred to as a ‘lost year’ for the industry.
2023’s Export Challenges
Ertuğrul highlighted that the export performance of the sector was negatively impacted by the foreign exchange rate lagging behind inflation, which led to a $19.253 billion export figure for 2023. This represents a 9% decrease compared to the previous year. The Turkish apparel sector struggled with high costs in the EU market, leading to a loss of competitiveness and customer base amid intense global competition.
Hope for Recovery in 2024
Looking ahead, Ertuğrul is hopeful for a rebound in the latter half of 2024. He pointed out that if the EU market shows signs of improvement, the sector might experience a recovery. Ertuğrul also noted that companies focusing on niche products and value-added production have been expanding their capacities. He believes that increasing the number of firms engaged in value-added production could help the sector find new markets and achieve higher profitability.
Domestic Market Concerns
Ertuğrul expressed concerns about the domestic market as well, citing that the economic policies aimed at cooling down the economy have reduced consumers’ purchasing power. This has led to a decline in sales within the apparel sector, as clothing is considered a secondary expense after essential needs such as housing, food, and education.
Focus on Female Employment
On a positive note, Ertuğrul highlighted ongoing efforts to boost female employment in the sector. The EGSD has been successfully running vocational training courses for women over the past two years. With a sector workforce comprising 60% women, Ertuğrul emphasized the importance of creating special projects to support female employment and continuing educational initiatives in 2024.
