Textiles&Garments export to Turkey

Asian supplier want to know What Turkey will import in 2018. Turkey in the last period in which anti-dumping duties on the agenda did we come to an end?  We will explain What we expect Turkey imports trends. When we check Turkey indicators, We can understand Why goverment increased import tax rates.

Although goverment increased import taxes, But also Turkey’s trade deficit jumped  to USD 9.21 billion in December 2017 from USD 5.63 billion in the same month a year ago. It was the largest trade gap since December 2013. Now Total balance of Trade -76,7 billion USD. Importing looks getting more.(Trade deficit means value of difference between importing and exporting)

What Textiles importing

Lets have a look fabric/yarn side first.You can see value of 9 months changes like for like.

Although Goverments has increased fabric/yarn import taxes  but also importing has still increased %13,3. Main part of imports are USA cotton and Chinese greige fabrics. What will be in future?  Let’s have a look local textile manufacturer prices index below (source:Turkstat)Annual changes %18,42 and higher than current inflation rate %11,92. We can say that yarn&fabric is getting expensive in locally. Fabric and garment suppliers want to use cheaper source in  Asia .We expect increasing of import yarn&greige fabrics. By the way USD to Local curreny(Lira) exchange rate is not change in last one year. Currency looks stable for importing.

What about garment business

Lets have a look garmentside .You can see the year 2016-2017 comparison on the current table below

It looks garment imports have decreased 16,1% in 9 months period. Especially China/Bangladesh have lost %27 of value compare to last year exporting.

Will it be worse?

We don’t think It will be worse. Firstly lets have a look Turkish retailer market size below;

Non-food inclueded many things but trend is more important. It looks 2017 is lowest sales value. After 2017, Every year increase about %10 .We expect apparel retailers will have increased their sales(USD) about %10 in locally.

Secondly, Turkish apparel retailers a getting  bigger in abroad. So they need cheaper source for their international stores.We know that They will open at least 500 store more in 2018.So their import goods demand will  never end. They have to use China and Bangladesh garment source for their international operations. Local garment cost is so high to compare their competitor in abroad. Big retailers will have to use low cost countries like Bangladeh.So It looks garment importing will increasing after 2018.