The summer season arrived with an increase of 40 percent
Although the earthquake experienced in the cities, which are among the important production areas of the shoe industry, especially Hatay and Gaziantep, disrupted the production processes for a while, the price increase continues although the pace slows down. . Produce this summer season hit store shelves with price increases of 40 percent, which again saw increases of 100 percent due to producer inflation exceeding 100 percent in previous seasons and rising costs.
Noting that even though the inflation rate slows, costs, especially labor, continue to rise, Derimod Vice President Murat Zaim said: “We are trying to reflect these costs in relatively lower prices. There is a 40 percent price difference from winter to summer for new season products. The price increase goes in parallel with producer prices,” he said.
Murad Zaim
MACHINE AND CONTROL SUPPORT
Noting that there were no major problems with its suppliers in cities such as Gaziantep and Adana, which were affected by the earthquake, but there were destroyed production facilities in Hatay, Zaim claimed that there were 20 suppliers in the disaster area and 1/3 of the products came from here. “Hatay will not be able to return to production. They will probably move to different regions. We provide machine support for them. We will support suppliers whose facilities have been demolished with investment so that they can continue production by moving to another location. We left work at the time of the earthquake. Zaim said: “We took post-dated checks from vendors in the region and offered early payment.” Expressing that people are coming back to buy again, Zaim stated that sales stopped before the earthquake.
It is claimed that although growers try to reflect less cost increases in prices, there will be a 40 percent price difference in the summer season.
Tourism sales plummet
Noting that sales in tourist-focused regions, especially Istanbul, were affected after the earthquake, Murat Zaim said that sales to tourists, which were 8 to 10 percent, had dropped to 4 percent. . Stating that his goal is to break even here and that they do not expect quantitative growth in the last quarter of the year depending on the economic course, Zaim said: “We grew more than 100 percent in the first quarter. We have grown 10 percent in terms of quantity. In 2022, we had a turnover close to 2 billion. Our target is a turnover of TL 3.8 billion this year,” he said.