Turkey's leather and leather products exports have decreased by $530 million in the last 3 years from $2 billion 56 million to $1 billion 526 million, while leather and leather products imports have increased from $1 billion 810 million to $2 billion 420 million. Turkey, which revealed foreign trade surplus of $245 million in the leather and leather products sector in 2022, has lost its position as a country by running a foreign trade deficit of $895 million by the end of 2024.
Erkan Zandar, President of the Aegean Leather and Leather Products Exporters' Association, stated that the leather and leather products sector almost fallen to its export figures which was recorded 7 years ago and emphasized on their loss of share in all of the sub-sectors of footwear, saddlery, finished leather and furs, and leather apparel in Turkey's export figures in 2024.
18 Percent Decrease in 2024
Zandar, who held a press conference at the Aegean Exporters' Association, said, “While Turkey's leather and leather products exports were 1 billion 858 million dollars in 2023, this figure dropped to 18 percent to 1 billion 526 million dollars in 2024. Our shoe exports lost its market share by 22 percent and fell from 1.1 billion dollars to 877 million dollars. In the shoe sub-industry, a 38 percent export loss recorded in Turkey overall which also recorded as 44 percent in the Aegean Region. This outlook clearly indicates that our sector is facing a serious challenge under economic pressure and in the face of international competition conditions. While our loss in leather and fur apparel was 18 percent, our exports decreased from 236 million dollars to 193 million dollars. While our saddlery exports decreased from 273 million dollars to 239 million dollars, the decrease in our saddlery exports was 12 percent. Our finished leather and fur exports decreased by 3 percent from 221 million dollars to 214 million dollars. Our employment figures fell by 25 percent in the last quarter of 2024."
While giving information on the inflation figures of Turkey which have risen to 65 percent in 2022 as a consequence of the process underlying the decision on interest rate cut in 2021 September in comparison to the increase in foreign exchange rates remained at 41.7 percent, Zandar continued as follows; “In 2023, the increase in inflation was 64.7 percent, while the increase in the dollar exchange rate was 57 percent. In 2024, while inflation was 45 percent, the dollar exchange rate increased by 20 percent. Overall, in the last three years, the exchange rate has lost its power tremendously by 48 percent in the face of inflation. Currently, we are in a position around 50 percent more expensive than our competitors. This is clearly evident in our export figures. If the foreign exchange rate had increased as much as inflation since January 1, 2022, the dollar exchange rate should have been around 52.3 TL today. This exchange rate would have enabled us to maintain our export figures. This policy decreases our exports while increasing our imports. It contributes to the manpower in other countries.”
The Decline in the Aegean Region Remained More Limited
President Zandar, who informed that the decline of the leather and leather products sector in the Aegean Region remained more limited at 9 percent in 2024, said, “While our Aegean Leather and Leather Products Exporters' Association members exported 182 million dollars in 2023, a foreign currency of 165 million dollars brought into our country in 2024. Our shoe exports decreased from 112 million dollars to 95 million dollars with a 15 percent loss. While the decrease in our leather and fur apparel exports was 22 percent, our export figure decreased from 27 million dollars to 21 million dollars. While export figures in our 4 sub-sectors in Turkey decreased, our finished leather and fur exports in the Aegean Region increased by 15 percent and our saddlery goods exports increased by 4 percent” while summarizing the export figures of the Aegean Region.
''The Applied Measures Are Plausible''
Zandar, whom underlined their support on 10 percent additional customs duty imposed on shoe imports on December 31, 2024, noted that this increase is an opportunity for shoe manufacturers. Zandar, who also regarded employment-focused incentives for labor-intensive sectors of the public as the necessary measures, said, “This support is of great importance for our sector’s 2025 plans. In particular, the 2500 TL support per employee is vital for reducing labor costs in the sector and increasing production. We hope that the political uncertainty in our largest export markets, in Russia-Ukraine hot line, will be eliminated, and we see 2025 as a year of recovery, considering that the easing of the global crisis environment will trigger increases in demand in our target markets.”
''We Will Strive to Increase Productivity''
Recalling that many companies in the ready-to-wear and textile sectors have shifted their production to other countries, especially to Egypt, Zandar said the following; “We are the only sector that has not moved its production to another country. We are not a sector that can produce in different places. We will continue until the end of the road with our own capabilities, then either we shift our core industry or search for other solution. By increasing our productivity, we will first reduce our costs, which have reached 62 percent today excluding raw materials, to around 50-55 percent and next to 40 percent, and then we will look for ways to survive. We will enter 2025 and 2026 in preparation by exporting based on more efficient and sustainable production.”
Gündoğdu: ''Saddlery Sector Rises from Last to Second''
Aegean Leather and Leather Products Exporters’ Association Vice President Halil Gündoğdu, who informed that the saddlery sector, one of the leather sub-sectors, is a high value-added product group with an export figure of $14.7 per kg, noted that the saddlery sector, which had the least exports among leather products in 2013, will become the second largest leather and leather products group with the highest exports after shoes with an export volume of $239.5 million by the end of 2024.
Gündoğdu, who said, “Luxury bag and accessory brands in the world and in Europe have directed their purchases to Turkey” said, “Branding and overseas promotion activities in the sector have accelerated. Turkey only has a share of 0.27 out of the total export of $90 billion worldwide. If the sector is supported, it can reach a share of 1 percent.”
İzmir Demands a Leather Organized Industrial Zone
Gündoğdu, whom underlined their will on an organized industrial zone where the leather and leather products sector will be clustered in İzmir in order to protect the developing industrial and export potential of the leather sector in İzmir and to continue its leading role in competitiveness and sustainability, continued as follows; “It is indisputable that the clustering of our leather sector in İzmir, which is the third largest city in Turkey, will contribute to the increase in employment, the continuity of qualified intermediate staff and the development of the infrastructure of the sector regarding sustainability. In order for the sub-industry to develop in labor-intensive sectors, all elements of the sector need to act together. It is evaluated that awareness will be raised in İzmir’s sustainability image studies with the establishment of İzmir Footwear, Saddlery, Leather Garment, Leather Products Organized Industrial Zone. The fact that a new organized industrial zone, which is relatively close to the city, where our personnel can easily reach and within the framework of the European Green Deal, can meet the needs of our sectors is welcomed positively by all our sector stakeholders.”
Arıoğul: ''We Increased Prices for the last 3 Years''
While stating that the average export price of leather apparel products exceeds 70 dollars and while producing value-added products, Aegean Leather and Leather Products Exporters’ Association Board Member Mustafa Arıoğul emphasized their drawback on prices which continuously placed on their customers in the last 3 years, and mentioned about their current efforts on keeping their clients with stable rates despite the increase in their costs and highlighted that 2025 will be a very challenging year for the leather apparel sector.
Turkish Leather Sector Participated in Garda with 92 Companies
Aegean Leather and Leather Products Exporters’ Association organized the Turkish National Participation Organization for the Expo Riva Schuh & Garda Bags Fair held in Italy on January 11-14, 2025. While 32 companies participated in the fair with the Turkish national participation organization, Turkey became one of the countries with the highest participation in the fair with 92 companies.
Erkan Zandar, President of the Aegean Leather and Leather Products Exporters' Association, shared that in the survey conducted after the fair, in which 29 shoe and 2 saddlery companies participated, the companies received feedback regarding productive bilateral meetings with importers from the United States, Czech Republic and Spain.
