AHKİB Chairman of the Board Makes Statements

AHKİB Chair Gürkan Tekin Issues Statement Mediterranean Ready-Made Garment and Apparel Exporters Association (AHKİB) Chair Gürkan Tekin stated that in August they achieved USD 36.2 million in exports, representing a 21.9% increase compared to the same period last year, while noting that large-value orders in European Union (EU) countries, the sector's main market, are shifting to China and Far Eastern countries that offer prices below cost.

AHKİB Chair Gürkan Tekin, noting the negative trajectory in the global economy and deepening recession concerns, as well as rising energy and labor costs alongside increased yarn and fabric prices, continued his remarks as follows:

"European fashion giants' orders are declining day by day. We are concerned that the Turkish ready-made garment and apparel sector is entering a period of losses in exports, production and employment." Noting that the Turkish ready-made garment sector, which recorded USD 1.84 billion in exports with a 6.1% increase in August, is attempting to maintain its gains in contracting markets, but that the chance to compete against rising input costs and the aggressive pricing strategy of Far Eastern countries is weakening with each passing day, Chair Gürkan Tekin continued: "We expect the state to apply positive discrimination to the ready-made garment and apparel sector in support measures aimed at reducing energy, labor and raw material costs. Support on the scale provided during the pandemic period is vital for the survival of our sector in terms of preserving employment and facilitating access to financing." [caption id="attachment_144856" align="aligncenter"] AHKİB Chair Gürkan Tekin[/caption]

We are struggling to maintain prices

"In the January-August period of 2022, our sector achieved USD 14.24 billion in ready-made garment and apparel exports, reaching USD 8.82 billion in value in the European Union market. We export to the European Union, our largest market, in euros. A large portion of our inputs are purchased in dollars. Due to the dollar's recent gains against the euro, our sector has lost its parity advantage and we are struggling to maintain prices."

We achieved the highest values in Spain, Netherlands and Germany markets

"As AHKİB, among the product groups we exported most in August, women's outerwear ranked first with a 28% increase and USD 17.8 million in value. This was followed by men's outerwear with a 44% increase and USD 9 million in value, and other ready-made goods, tents, sacks and similar items with a 17% increase and USD 4.5 million in value. When we break down our August regional exports by country, we achieved the highest values in Spain, Netherlands and Germany markets. We exported USD 9.1 million to Spain with a 9% increase, USD 7.3 million to the Netherlands with an 8% increase, and USD 4.4 million to Germany with a 27% increase. In the said month, we achieved the strongest export volume performance in the United Kingdom, Poland and Saudi Arabia markets." he concluded his remarks.