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Turkish garment firms scoring over rivals
06
Jan '11
Several popular fashion brands of the world like GAP, Adidas and Nike are planning to shift a substantial part of their manufacturing to Turkey from China owing to the price uncertainties that have hit the market in China.

Some of these business magnates faced serious challenges in China as the Chinese suppliers failed to deliver finished products and asked for more money under the pretext of rising prices. This had aggravated the purchasers. Because of the fluctuations in the prices of cotton in the Chinese market, several major western buyers had taken the decision to place their orders to Turkish firms.

Majority of the Italian as well as French retail giants are placing their orders on Turkey and the disparity in the production cost between both the countries is reducing as the Turkish firms are able to manufacture apparels rapidly and also in small volumes. Production costs in China have escalated by 20 to 30 percent in the past few years, mostly because of the domestic market which is witnessing fast growth.

In spite of the drawbacks that are caused by the high exchange rate of Turkish Lira, Turkey is expected to emerge once again into eminence as a manufacturer of apparels. As far as Turkey is concerned, it has an added advantage over China in terms of low raw material charges.

Fashion giants such as Adidas and Nike have already told their Turkish suppliers that they will further enhance their purchasing. GAP had earlier purchased goods worth $600 million from Turkey and then selected China for the purpose of production. But the fashion brand again decided to shift its production from China to Turkey and had inked several significant deals with Turkish companies which are engaged in manufacturing fabrics.

The new orders that the Turkish firms have received are likely to boost the country's textile export up to 30 percent. Brands like Adidas and Nike are further planning to offer 25 to 30 percent more production orders to Turkish firms. However, the major challenges which are faced by these firms are the shortage of skilled employees as well as provisions to fulfill their requirements.

Fibre2fashion News Desk - India

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