Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

Turkish clothing-makers expect $2 billion worth of orders shifting from coronavirus-hit China

by

ISTANBUL Feb 08, 2020 - 12:39 am GMT+3
AA Photo
|AA Photo
by Feb 08, 2020 12:39 am

Several fashion retailers that manufacture clothing in coronavirus-hit China are in talks with Turkish firms about shifting production to Turkey, two sector officials told Reuters, with one predicting new orders worth up to $2 billion.

An outbreak of the newly identified coronavirus has killed 637 people in mainland China, where it is believed to have started, prompting many factories to suspend operations until next week or later as authorities try to contain its spread.

Polish fashion retailer LPP has said it is in talks with factories in Turkey, Bangladesh and Vietnam as a backup plan if Chinese production delays continue.

Turkish manufacturers have in recent years shifted their clothing production upmarket as China's dominance grew globally. But the outbreak has sent some European companies back to Turkey, the officials said.

"Purchasing managers and designers can't go to China due to coronavirus worries and travel restrictions. So several well-known brands started discussions for production of new seasonal items in Turkey," said Hadi Karasu, head of Turkish Clothing Manufacturers' Association (TGSD).

Rising Chinese manufacturing costs and a 36% slide in the value of the Turkish lira in the last two years, on the back of a currency crisis in 2018, has already made Turkey an affordable option, Karasu added.

"As manufacturing costs leveled between China and Turkey, some European firms were (already) considering shifting orders toward here," Karasu said.

"China has some $170 billion ready-to-wear exports," he added. "According to our calculations, some 1% of orders will (now) be shifting to Turkey initially which could amount to $2 billion."

Turkey exported some $17.7 billion ready-to-wear products last year. Any rise could help the import-heavy economy keep a lid on its current account deficit and hit the government's ambitious 5% economic growth forecast this year.

Mustafa Gultepe, head of the Istanbul Apparel Exporters' Association (IHKIB), said the sector has the capacity to take on additional orders as both new and existing clients increasingly contact Turkish factories.

"There are clothing retailers asking around for prices and products in Turkey after the coronavirus outbreak," Gultepe said.

"I think the impact of the outbreak will continue for five to six months ... and I think there will be a major shift from China that we will see after May," he added.

About the author
Research Associate at Center for Islam and Global Affairs (CIGA) at Istanbul Sabahattin Zaim University
  • shortlink copied
  • RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    homepage
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    Elvises, Zel-egg-skyy and Carnival: Weekly top photos
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021