Cotton Plant Bulb
Cotton Plant Bulb
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Economic Integration

Nov 07

Prospects Improving for Turkish Clothing/Textile Sectors

By Keth Henley

Industrial Capacity

A detailed report from Mr. Paul Cochrane at just-style.com (subscription required), suggests an impressive recovery for Turkey’s clothing and textile industries this year.

The following is an excerpt from Mr. Cochrane’s report:

Turkey's clothing and textile sector has rebounded this year on the back of strong sales to Europe and emerging markets, with clothing exports up 11% to US$9.5bn as of August 2010, and textile exports reaching US$4.1bn, up 23% on 2009.

"Last year was a disastrous year, with clothing exports down 23%. This year we're recovering, exports are up, but 17% below 2008 and 10% below 2007," said Mehmet Kumbaraci, director general of the Turkish Clothing Manufacturers Association (TGSD).

Current export figures suggest the TGSD's forecasts for 2010 were relatively solid, with ready-to-wear exports projected at around US$14bn and textile exports at US$6bn. Their predictions, however, had looked rather rose-tinted in the spring.

"We were rather pessimistic at the beginning of the year, but textile exports in August were US$480m, up 10% on the previous month, and US$1.1bn in clothing exports, up 6% on July. I expect for the end of the year exports will be more than US$14bn for clothing, and about US$6bn for textiles.

"All plants are fully occupied, including high quality orders from suppliers in Pakistan, Bangladesh and China," said Kumbaraci. Demand ranges across the industry for all types of garments, he added, with no notably higher demand for any specific items.

Turkey was the only 'top 20' exporter to the European Union (EU) to record gains in the first five months of 2010, up 18.5% in Euro earnings between January and May. The other 19 main exporting countries - including China and India - have seen exports fall, stressed Zafer Çaglayan, Turkey's state minister for foreign commerce, at the launch of Istanbul Fashion Week 2010 in late August. 

The TGSD's long-term goal is for Turkey to account for 5% of global clothing exports - as in 2005 - at some US$22.5bn to US$25.3bn by 2014, and US$60bn by 2023.

Questions:  Should Turkey be considered on the path of long-term recovery in its clothing and textile sectors?

What are some positive factors that will help ensure steady improvement?

Are there any foreseeable impediments to recovery?

Sep 16

India Sees Large Potential to Benefit from Global Textile/Apparel Changes

By Keth Henley

Industrial Capacity
 

As textile and apparel production continues to transition from the western hemisphere into Asia, chances are good for India to see substantial benefit during the next 10 years, according to a new study issued by Technopak Advisors.

At a leadership forum in Mumbai earlier this month, the Indian management consulting firm headquartered in Gurgaon, National Capitol Region, suggested India has the potential to raise the value of its domestic and export trade from US$70 billion posted in 2009 to as many as US$220 billion by 2020.  The more than three-fold increase in value compares with the company's projection that world  trade will almost double during the same period, from US$510 billion to US$1 trillion.

The principal ‘drivers' of domestic growth include the country's increasing population, rising levels of disposable income, rapid growth of urbanization and the greater penetration of retailers into smaller cities.

However, a substantial investment will be required for India to realize its potential.  The Technopak report suggests an input of US$68 billion will be needed across the textile supply chain by 2020 "to tap the potential market created due to growth of the industry."  A US$14 billion investment will be required in the garment sector and US$19 billion for processing.

The presentation made Chairman Arvind Singhal at the leadership forum can be found here.

The complete study itself is here.

 Questions:  Is there agreement that the value of Indian textile and apparel goods will triple over the next 10 years?

What are the potential barriers to growth in the industry?

Jun 17

India Promoting Textile Industry Growth

By Keth Henley

Industrial Capacity
In the face of global economic stress, a well-defined effort to expand India's textile industry is under way adn already bearing fruit, according to the nation's textile minister.  In a June 11 article posted at just-style.com, Mr. Dayanidhi Maran said development plans for the industry already have helped the volume of annual textile exports climb from 10.82 percent of the country's total shipments in 2008/09 to 12.05 percent a year later. 

Plans to update the weaving, knitting and processing sectors are being aided by an infusion of US$543.7 million from the Technology Upgradation Fund Scheme.  Government grants also have been made for the development of 17 integrated textile parks, and new markets apart from the United States and European Union are being targeted under a "Look East Policy".  Additionally, the government is working to attract foreign investment in textile machinery, garment manufacturing and synthetics, among other sectors.

Questions:  Which sectors will benefit most from the government's efforts?

Are there internal or external factors that will eithe rhelp ensure the success of the program, or contribute to a less than satisfactory result?
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