The Turkish apparel industry is rapidly losing its strong position in global trade. Despite being one of the world's largest supply chains, Türkiye was the only country whose apparel exports contracted in H1, FY25 while global trade was growing.
This historical decline was highlighted at a press conference held by the Turkish Clothing Manufacturers’ Association (TGSD) before the 18th Istanbul Apparel Conference in October. During the meeting, attended by Toygar Narbay, President, TGSD and Dr. Ümit Özüren, Co-Chair; Dr Can Fuat Gurlesel, Economic Advisor, TGSD and Servet Karaalioğlu, Vice President, TGSD, they emphasized the steps needed to regain competitiveness.
According to Narbay, the Turkish apparel industry - the world's second-largest supply chain and fifth-largest manufacturer - has entered a historical decline after losing competitiveness since 2022. Narbay stated, the sector has reached a breaking point, with its share in global apparel trade falling below 3 per cent for the first time in 35 years and its share in the European Union (its main market) lowering by over 5 per cent for the first time in 30 years.
Turkiye is in a period where importing is cheaper than producing domestically, employment losses cannot be stopped, and companies have almost completely lost their equity capital. If the industry's demands for recovery are not met, companies will increasingly relocate to countries with more favorable production and competition conditions, he warned.
Narbay noted, while the global apparel sector has been recovering since a sharp decline in 2023, the opposite has happened in Türkiye. Especially the rising costs caused by the high-interest–suppressed exchange rate policy implemented to fight inflation led the country to lose competitiveness, he explained. On top of this, Turkiye’s significant losses in war zones accelerated the decline.
In H1, FY25, global apparel exports rose by 6 per cent, and competitors like Bangladesh and Vietnam increased their shares by more than 10 per cent. In contrast, Türkiye's exports fell by 6.5 per cent. The country's share in global apparel trade, which first exceeded 3 per cent in 1990, has now fallen to 2.96 per cent as of June 2025. Narbay expects a positive outlook for the sector to return in 2027.
Dr Özüren stressed, the data is not encouraging and that the sector has negatively diverged from global trends over the last two years. He emphasized that the industry needs short-term support to recover.
