25 percent drop saves lost markets

First While Turkey, which is considered one of the most expensive countries in the world for ready-made clothing with increasing production costs, especially energy, competes on prices with Portugal, it was highlighted that a 25 percent price reduction is needed to increase the price again. demand. . Cem Altan, president of the International Ready-to-Wear Federation, stated that the 20 percent decline in the global clothing market, in this period in which the price difference with rival countries has reached up to 50 percent, has also risked a strain on manufacturing companies, saying: “The price difference between Turkey and competitors has now reached 50 percent.” This price difference must be reduced to at least 20 percent so that we can regain the markets we lost. If Bangladesh currently makes a basic t-shirt for 2-2.5 dollars, we make it for 4.5-5 dollars. “To increase the appetite for purchases from Turkey, it is necessary for prices to be at least 20 to 25 percent cheaper than current prices,” he said. The sector, which began the year with an export target of $23 billion, reduced its targets. to $19.5 billion due to contraction in demand and markets.
Altan stated that buyer groups are satisfied with Turkey and that the only problem is the price:

PRODUCTION AT COST

“Türkiye has now become more expensive than Portugal. Türkiye is one of the most expensive producers. We try to keep the job at no profit and give the lowest price so we don’t lose the job. The one who bears the cost does not say ‘no’. The industry is trying to recoup its losses. It depends on how long they can last. “Even if they can’t resist, unfortunately the sector will gradually shrink and become smaller.”

The best factory is at 60% of its capacity.

TürkiyeCem Altan stated that purchasing power in Turkey should increase and producers should control costs, adding that Turkey has not yet attracted value-added companies. Altan said the most important problem is inflation: “Of course, if inflation falls and the dollar rises, our chances will increase even more, but the rise of the dollar alone will not affect our competence. Inflation is more critical. The dollar has risen 50 percent in the last year, but on the other hand, jobs have risen 120 percent and energy more than 200 percent. These balances must be established and the DNA corrected. Economic management has a very difficult task. “Right now, even the factory you know best is running at 60 percent capacity,” he said.

The credits go to production.

Green Cem Altan stated that the garment industry does not have resources for transformation and continued: “Currently, investment in green factories in Turkey is at a minimum level. He doesn’t invest because he doesn’t see a future, even if he wants to there is no money. The loans received are sufficient to restart production. What will you invest with a 6-month loan? We need long-term loans of 5 to 10 years to be able to make these investments. These are big investments and big costs. “Our work is hard.”