The North Face, the world-renowned outdoor clothing and gear brand, has shifted much of its production from Türkiye to Vietnam and Bangladesh due to rising prices. According to a report by Yener Karadeniz of Ekonomim, the U.S.-based company has decided to cut back orders by 80% from Gelişim Tekstil, which has been a supplier for around 10–12 years. Consequently, Gelişim Tekstil—The North Face’s second-largest manufacturer worldwide and its largest in the EU—will see orders shrink from 30 million euros to just 4–5 million euros.
Gelişim Tekstil Chairman of the Board Mustafa Akçay stated that The North Face began moving production to Bangladesh and Vietnam last year, adding: “Out of 4 million units, only 400,000–500,000 will remain with us. The rest is leaving due to high costs.”
Gelişim Tekstil expects a 50 percent downsizing next year without new partnerships
Akçay also emphasized the severe job losses caused by rising costs: “This year we will close with 50–60 million dollars in exports, but next year, unless we secure additional partnerships, we expect a 50 percent contraction,” he said.
He further noted that not only the Far East but also Africa has emerged as a major competitor. “A product we quote at 5.10 euros is produced in Kenya for 2.80 euros, and brands often outsource production there under the umbrella of social responsibility projects,” he explained. While China is often in the spotlight, he stressed that Bangladesh, Sri Lanka, Cambodia and Vietnam are even more formidable rivals.
Highlighting the need to balance exchange rates and inflation, Akçay underlined that they do not seek a higher exchange rate, but when it lags behind inflation, production becomes unsustainable. He warned that if the USD/TRY rate reaches 80, they could return to their business levels from three years ago; otherwise, further production withdrawals are inevitable.