The Aegean Leather and Leather Products Exporters’ Association (EDMİB) evaluated the performance of the industry across sub-sectors for the 2018–2025 period ahead of its general assembly to be held in April. The assessment, including statements from EDMİB President Erkan Zandar and Vice President Halil Gündoğdu, outlined both current challenges and the roadmap for 2026 and beyond.
In EDMİB’s 2018–2025 analysis, changes in export unit prices, inflation-exchange rate pressures, rising production costs, and the effects of global competition on the industry were examined. Zandar emphasized that leather goods remains one of the industry’s most value-added segments, noting that despite the decline in export prices per kilogram from $21 to $18, exports have not seen a sharp drop. However, he pointed out the limited number of high-capacity companies: “There are only seven companies exporting over $250,000 in leather goods. We need to increase the number of strong and scalable firms.”
Although leather garments is a value-added segment, Zandar noted that it faces serious structural issues, including difficulty in finding qualified labour, high production costs, and growing challenges in maintaining export prices. He reported that prices per kilogram in raw leather and fur exports fell from $8 to $5, attributing this mainly to the global decline in leather prices.
“Exporters’ key expectation: a predictable exchange rate policy aligned with inflation”
One of the highlights of Erkan Zandar’s remarks was the discrepancy between the exchange rate and inflation. “Even if the export price per kilogram of the product has increased, the price of raw materials has fallen. Since the exchange rate lags behind the rise in inflation, we struggle to maintain prices in international markets,” he said, emphasizing that labour and general production costs, tied to inflation, form the main components of production expenses in Türkiye. He recalled that the average export price per kilogram in the footwear sector was $27.5 in 2018 and fell to $20 during 2021–2022. “Even a $4 difference today illustrates the entire imbalance in the sector. Exporters’ fundamental expectation is a predictable exchange rate policy aligned with inflation. Today, we are a relatively expensive country in terms of pricing.”
“To stay competitive, we must invest in technology and automation”
Looking ahead, Erkan Zandar stated that the industry will undergo significant consolidation, noting, “Only strong brands will survive.” He highlighted that consumer behaviors have fundamentally changed, hybrid shopping models are becoming widespread, and investments in artificial intelligence and automation will determine the future of the industry. “To stay competitive, we must invest in technology and automation,” he said, stressing that Türkiye can compete not with low-cost countries, but with boutique production, design capabilities, and value-added products.
“Who are we protecting by imposing taxes on imports of materials not produced in Türkiye?”
EDMİB Vice Chairman Halil Gündoğdu drew attention to challenges in accessing raw and intermediate materials. “Who are we protecting by imposing taxes on imports of materials not produced in Türkiye?” he asked, noting that this situation does not protect domestic producers but rather makes it difficult for exporters to compete. He added that European competitors have easier access to the same intermediate materials, putting Türkiye at a disadvantage both in terms of cost and quality.
The Turkish leather sector aims to reach a 1% share in the U.S. market
Regarding access to finance, Gündoğdu highlighted two main demands: pre-financing for fair participation in trade fairs and shorter payment periods for state incentives. Reflecting on the U.S. market, he noted that Türkiye currently holds only 0.26% of U.S. leather imports, with the goal of reaching 1% market share.
Another critical issue Gündoğdu raised was the need for clustering. He emphasized the significant gap in the absence of a Leather Products Organized Industrial Zone in İzmir, stating that the industry’s fragmented structure is unsustainable. “Our target is clear: the establishment of the İzmir Leather Products Organized Industrial Zone,” he said.