AHKİB Exports USD 27.6 Million in February

Gürkan Tekin, Chairman of the Mediterranean Ready-to-Wear and Apparel Exporters Association (AHKİB), announced that the association achieved USD 27.6 million in exports in February, representing an 11.6% increase compared to the same month of the previous year, while noting that the Russia-Ukraine war has caused major concern in the sector. Chairman Tekin noted that Turkey realized USD 286 million in ready-to-wear and apparel exports to Russia and USD 173 million to Ukraine in 2021, while in the first two months of 2022 these figures reached USD 53.6 million in Russia with a 27% increase and USD 21.1 million in Ukraine with a 30% decrease. Tekin stated, "As part of economic sanctions against Russia, which began its invasion of Ukraine on 24 February, Inditex, the international fashion conglomerate headquartered in Spain, has closed its stores in that country. Due to the ensuing uncertainty, Inditex has closed 800 stores, including those in Ukraine, Moldova, Georgia and other countries in this region. Swedish-based apparel brand H&M, as well as French and US-based brands are also exiting the Russian market. The Laleli, Merter and Osmanbey markets, which sell to merchants from Ukraine and Russia, have been seriously affected. Consequently, Turkish ready-to-wear and apparel firms are currently experiencing cancellations at around 20% in agreements and orders they have made. We are concerned that these rates may increase further," he said. Noting a slowdown in exports to countries in the geography close to active conflict, Chairman Tekin said they were concerned about rising order cancellations from Poland, Romania and Moldova. Hoping for an end to the war causing bloodshed, tears and destruction, Chairman Tekin noted that if the conflict does not last long, they will be able to offset the negative effects on exports during the year.

"Limits in support packages need to be raised significantly"

AHKİB Chairman Gürkan Tekin stated that the Turkish ready-to-wear and apparel sector, which is making efforts to best benefit from opportunities arising from near-shoring trends during a period when raw materials, freight and energy costs are increasing exponentially worldwide, and which is driving export figures upward, has also been negatively affected recently by rising inflation in European Union countries. Noting that the Turkish ready-to-wear and apparel sector, which is the strongest solution partner of the European fashion industry in environmentally friendly sustainable production and recycled product procurement, must make design and branding investments in sustainable production in line with global trends correctly and in a timely manner, Chairman Tekin stated, "Our companies have experienced serious erosion in working capital due to rising input costs and shrinking markets. In order to be more effective in the international arena, we urgently and seriously need to increase the limits in support packages provided through the Credit Guarantee Fund (KGF), Eximbank and the Export Development A.Ş. (İGE A.Ş.)," he said.

"The Netherlands, Spain and Germany are our largest export markets"

Evaluating AHKİB's February exports by product groups and countries, the Chairman stated, "In February, our association marketed 3,288 tons of products in international markets, exporting primarily women's outerwear, men's outerwear and other ready-made goods. We achieved USD 12.1 million in women's outerwear with a 23% increase, USD 4.9 million in men's outerwear with a 42% increase, and USD 4.5 million in other ready-made goods with a 10% increase. Among countries reaching the highest export values during this period, the Netherlands ranked first with a 300% increase and USD 5.9 million in value, Spain ranked second with a 3% decrease and USD 5.3 million in value, and Germany ranked third with a 1% increase and USD 4.4 million in value. In export volume in February, we recorded the highest value in the United Arab Emirates market with a 677% increase and USD 541 thousand. France and Poland were also among the countries where we achieved significant increases this month."   Source