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Turkey gains momentum as sourcing hub

turkeyWith Bangladesh in the news for all the wrong reasons, many fashion brands and retailers are exploring alternate sourcing destinations. And Turkey is emerging as a good option for them. Over the last decade, the country has emerged as the fourth largest supplier of clothing in the world and a leading sourcing destination for Europe.

The textiles and garments industry is one of the most important driver of Turkey’s economic success and contributes about 8 per cent to the country’s GDP and $30 billion in production value. After attracting global attention as the next sourcing hub, Turkish Clothing Manufacturers Association has set out an ambitious target of reaching an export figure of $100 billion by 2023. However, studies point out that to reach the target, Turkey needs to perk up and invest in technology, sustainable supply chain and workforce.

Measures to achieve the target
To achieve its long-term goal, Turkey has started developing its own international turkeybrands and clothing chains, such as LC Waikiki, which has over 400 stores. However, after the Rana Plaza disaster in Bangladesh a year ago, experts say that to further leverage its geographic position between the 
European Union and the Middle East and its strong industrial base, Turkey must invest in R&D for product innovation, sustainable supply chains to attain its high growth plan.

Rana Plaza collapse drew world’s attention to the poor working conditions in emerging export destinations. Several research groups and labour organisations have now undertaken a survey responsibility to figure out and improve factory conditions in such regions. Leading players are now contemplating over how they can make supply chains compliant and transparent while remaining efficient.

Impact Economy report on compliance

Impact Economy too carried out a survey to find out whether it is possible to take the Turkish industry to a much higher level of social and environmental performance, while keeping it competitive. Over eight months, the company spoke to over 730 stakeholders and screened more than 200 reports apart from conducting expert interviews, studying several sourcing countries and consumer markets. The resulting report ‘Creating Sustainable Apparel Value Chains’ argued that greater total resource productivity and transparency, upgrading industry infrastructure by (impact) investing, improving working conditions with a new level of ambition, and replicating best practices of leading players can together unlock the next level of viability and sustainability.

The report suggests tackling working conditions in emerging market sourcing locations as the first priority. The key, it says is redefining labour as an asset, rather than just a cost. Next is lean manufacturing or achieving greater total resource productivity and transparency across the supply chain via front-of-pipe process design, and energy efficient infrastructure. Third is building sustainable supply chain and fourth measure suggested by the survey says that sustainable sourcing will become a necessity to compete, as it already has in other industries.

 

www.impacteconomy.com

 
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