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The Importance of the Textile, Clothing, Fiber and Yarn Sector in Turkey - Thesis Example

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This paper "The Importance of the Textile, Clothing, Fiber and Yarn Sector in Turkey" focuses on the fact that apparel manufacturing is one of the most globalized industries in the world. The world production is fragmented and dispersed around the world. …
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The Importance of the Textile, Clothing, Fiber and Yarn Sector in Turkey
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Increased demand has given rise to increased opportunities for several countries but each country has its own advantages and disadvantages. Several global players are trying to capture the major market share in the global market place. Pakistan, Vietnam, Cambodia and Bangladesh are trying to capture share in the market based on their low manufacturing costs due to cheap labour in these countries. The costs in the Eastern European countries have increased causing a setback for these countries. They are hence trying to refocus and reposition in higher market segments.

Western countries focus on imports which take care of almost 85-90% of their consumption. Italy continues to lead in the luxury segment and Turkey is closely connected to Italy. Turkey is emerging as a critical regional player. They have been creating new regional brand players by providing them “Turquality” accreditation. This serves to strengthen the brand and enhance the recognition and awareness of Turkish brands.With the abolition of quotas from 2005, a number of changes have taken place in the sector including shifting of the supply base, the decline in the sourcing prices, and re-orientation of the buyer-seller relationship (Intexfair, 2008).

The phase-out of quotas has seen the emergence of China and other Asian countries gain in market share. Major restructuring is taking place in the sector due to intense competition from low-cost products from China in the European Union and the US, both of which are the principal markets for Turkey’s textile sector. Turkish ready-made manufactures have been hard hit because of the declining markets and shrinking profits (Turkey-now, 2008). Rising domestic labour and energy costs have also made the ready-made producers uncompetitive.

The sector in Turley also uses more expensive energy and financing that is used in the US and Europe. The industry is expected to lose 30 per cent of the market share in the EU as cheaper apparel flood the markets. 

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