{"id":63589,"date":"2026-01-22T15:18:47","date_gmt":"2026-01-22T12:18:47","guid":{"rendered":"https:\/\/www.textilegence.com\/?p=63589"},"modified":"2026-01-22T15:20:16","modified_gmt":"2026-01-22T12:20:16","slug":"turkish-leather-industry-aims-for-domestic-consolidation-and-u-s-market-growth","status":"publish","type":"post","link":"https:\/\/www.textilegence.com\/en\/turkish-leather-industry-aims-for-domestic-consolidation-and-u-s-market-growth\/","title":{"rendered":"Turkish leather industry aims for domestic consolidation and U.S. market growth"},"content":{"rendered":"\n<p>The Aegean Leather and Leather Products Exporters\u2019 Association (<a href=\"https:\/\/en.eib.org.tr\" target=\"_blank\" rel=\"noreferrer noopener\">EDM\u0130B<\/a>) evaluated the performance of the industry across sub-sectors for the 2018\u20132025 period ahead of its general assembly to be held in April. The assessment, including statements from EDM\u0130B President Erkan Zandar and Vice President Halil G\u00fcndo\u011fdu, outlined both current challenges and the roadmap for 2026 and beyond.<\/p>\n\n\n\n<p>In EDM\u0130B\u2019s 2018\u20132025 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\u2019s 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: \u201cThere are only seven companies exporting over $250,000 in leather goods. We need to increase the number of strong and scalable firms.\u201d<\/p>\n\n\n\n<p>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 <a href=\"https:\/\/www.textilegence.com\/en\/category\/topical\/\" target=\"_blank\" rel=\"noreferrer noopener\">export<\/a> 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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-exporters-key-expectation-a-predictable-exchange-rate-policy-aligned-with-inflation\">\u201cExporters\u2019 key expectation: a predictable exchange rate policy aligned with inflation\u201d<\/h2>\n\n\n\n<p>One of the highlights of Erkan Zandar\u2019s remarks was the discrepancy between the exchange rate and inflation. \u201cEven 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,\u201d he said, emphasizing that labour and general production costs, tied to inflation, form the main components of production expenses in T\u00fcrkiye. He recalled that the average export price per kilogram in the footwear sector was $27.5 in 2018 and fell to $20 during 2021\u20132022. \u201cEven a $4 difference today illustrates the entire imbalance in the sector. Exporters\u2019 fundamental expectation is a predictable exchange rate policy aligned with inflation. Today, we are a relatively expensive country in terms of pricing.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-to-stay-competitive-we-must-invest-in-technology-and-automation\">\u201cTo stay competitive, we must invest in technology and automation\u201d<\/h2>\n\n\n\n<p>Looking ahead, Erkan Zandar stated that the industry will undergo significant consolidation, noting, \u201cOnly strong brands will survive.\u201d 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. \u201cTo stay competitive, we must invest in technology and automation,\u201d he said, stressing that T\u00fcrkiye can compete not with low-cost countries, but with boutique production, design capabilities, and value-added products.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-are-we-protecting-by-imposing-taxes-on-imports-of-materials-not-produced-in-turkiye\">\u201cWho are we protecting by imposing taxes on imports of materials not produced in T\u00fcrkiye?\u201d<\/h2>\n\n\n\n<p>EDM\u0130B Vice Chairman Halil G\u00fcndo\u011fdu drew attention to challenges in accessing raw and intermediate materials. \u201cWho are we protecting by imposing taxes on imports of materials not produced in T\u00fcrkiye?\u201d 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 T\u00fcrkiye at a disadvantage both in terms of cost and quality.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-turkish-leather-sector-aims-to-reach-a-1-share-in-the-u-s-market\">The Turkish leather sector aims to reach a 1% share in the U.S. market<\/h2>\n\n\n\n<p>Regarding access to finance, G\u00fcndo\u011fdu 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 T\u00fcrkiye currently holds only 0.26% of U.S. leather imports, with the goal of reaching 1% market share.<\/p>\n\n\n\n<p>Another critical issue G\u00fcndo\u011fdu raised was the need for clustering. He emphasized the significant gap in the absence of a Leather Products Organized Industrial Zone in \u0130zmir, stating that the industry\u2019s fragmented structure is unsustainable. \u201cOur target is clear: the establishment of the \u0130zmir Leather Products Organized Industrial Zone,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Aegean Leather and Leather Products Exporters\u2019 Association (EDM\u0130B) evaluated the performance of the industry across sub-sectors for the 2018\u20132025 period ahead of its general assembly to be held in April. The assessment, including statements from EDM\u0130B President Erkan Zandar and Vice President Halil G\u00fcndo\u011fdu, outlined both current challenges and the roadmap for 2026 and [&hellip;]<\/p>\n","protected":false},"author":26,"featured_media":63588,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9859],"tags":[14918,11799,10369,12450],"class_list":{"0":"post-63589","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-topical","8":"tag-aegean-exporters-association","9":"tag-exports-en","10":"tag-textile-news-en","11":"tag-topical"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Turkish leather industry aims for domestic consolidation and U.S. market growth - Textilegence<\/title>\n<meta name=\"description\" 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