Textile and apparel industries: the two sectors that provide the most important employment and export values of the Turkish economy. However, in recent years, these sectors do not reflect the value-based textile export increases on value basis. The figures for the first 10 months of 2018 reveal this picture once again.

After the currency fluctuations marking Turkey’s summer period, markets are going back to their normal values, and export figures are a positive contribution in this process. Turkey has increased total exports by 13.1% in October and has obtained 15.7 billion dollars worth. According to the data of İTKİB and İTHİB, the export increases of the textile and apparel industries were below the overall average.

In October, textiles and raw materials exports increased by 1.9% to 939 million dollars. In the first 10 months of the year, exports of the industry increased by 5.4% to reach 8.8 billion dollars. Garment and apparel industries recorded an increase of 4.6% in exports in the January-October 2018 period and amounted to 14.8 billion dollars. Exports of the industry in October alone increased by 2.4% to 1,568 dollars. In the first 10 months of 2018, the share of textile industry in total exports was 6.3%, while the share of garment and apparel industry was 10.7%.

More than the half of textile export was to European market

The main market for the exports of textiles and raw materials in October were the 28 member countries of the EU. Exports to these countries, which attracted more than half of Turkish textile exports, decreased by 1.8% to 477 million dollars. African countries formed the second largest export market of the industry. In October, exports to these countries increased by 19% to 92 million dollars. Exports to the Turkic Republics increased by 35.8% in October, while exports to other European countries decreased by 18.2%.

Italy was the country with the most textile exports for the first 10 months of the year and in October alone. Exports to this country in October increased by 1.7% to 75 million dollars. Italy was followed by Germany with 80 million dollars, the United States with about 57 million dollars and the United Kingdom with 48 million dollars.

Amount increase surpassed the value increase in textile exports

In the January-October period of 2018, the increase in the amount for textiles and raw materials industry was higher than the value increase. In this period, the industry increased its exports by 6.4% to 1.9 million tons. The increase in exports in October alone was realized as 11.6%. Experts report that Turkey still draws a high amounts with low-cost exporting country profile with basic items. This will change with the closure of the gap between the export value and the quantity.

The main export item of the Turkish textile industry on the basis of product groups is woven fabrics with a share of 24%. In the first 10 months of the year, exports of woven fabrics increased by 4.3% to 2.1 billion dollars. In October this amount was 221 million dollars, with a 4.5% decrease. Exports of the second important product group yarns with a share of 18.3% increased by 9.8% in October to 181 million dollars. Exports of home textile products, which constitutes the third major product group, decreased by 8.8% in October to 140 million dollars. Our exports of fiber, which increased by 22.7% to 602 million dollars in January-October period of 2018, increased by 22.5% in October to approximately 70 million dollars.

The share of garment export in total exports diminishes

The garment and apparel industry; which is one of the most important business branches of the Turkish economy with its employment figures; has achieved significant figures in exports for many years. However, the share of the industry in total exports has been declining for the last three years. In the January-October period of 2015; the share of the sector decreased from 11.8% to 12.3% in the same period of 2016; and from 11% in the first 10 months of 2017 to 10.7% in 2018.

In the January-October period of 2018, the first three countries with the most garment and apparel export were; Germany, Spain and England. In this period, exports to Germany increased by 1.3% to 2.7 billion dollars; exports to Spain increased by 17.2% to  2.1 billion dollars; and exports to the UK increased by 3.6% to 1.7 billion dollars. Compared to the first 10 months of 2017, the most remarkable increase in 2018 occurred in the Russian market. Exports to Russia increased by 47.8% to 232 million dollars. While exports to Romania increased by 28% to 159 million dollars.

Exports of the most important product group knitted garments in the industry’s exports for the first 10 months of 2018 increased by 3.5% to 7.6 billion dollars. The second largest product line was woven clothing and accessories. Exports of these products increased by 57 percent to 5.4 billion dollars. The third important product group of the sector was the other ready-to-wear products including home textile products. Exports of this group increased by 2.2 percent to 1.7 billion dollars.

Increases in exports seem to be based on quantity increases. In the January-October period of 2018; the unit price for the garment and apparel industry decreased by 2.2% to 14.7 dollars / kg. Experts underline that serious steps should be taken in order to remain competitive.