While the exports of the leather and leather products sector in the January-February period of 2024 remained at 263.5 million dollars in total, with a decrease of 24.5 percent, the exports of Leather and Fur Apparel remained at 17.3 million dollars, with a decrease of 28 percent compared to the same period last year.
Leather&Fur Fair, organized by the Turkish Leather Garment Manufacturers Association (TDKD), brings together representatives of Turkish companies in the sector with representatives of the foreign counterparts. The fair, where a significant part of the sector's exports are achieved, is preparing to open its doors for the 12th time with participation from more than 20 countries and with over 1300 participants. In the January-February period of 2024, Turkey's leather and leather products exports decreased by 24.5 percent to 263.5 million dollars, while the leather and fur apparel group decreased by 28 percent to 17.3 million dollars in the January-February period of 2024 compared to the same months of the previous year and received a 7 percent share of leather and leather products exports. Noting that there were decreases in exports in the first two months of 2024, TDKD Chairman of the Board of Directors Cengiz Sarıgül stated that Korea, America and Brazil are amongst the target markets. Sarıgül said, "We are pushing all possible markets in terms of their effectiveness in marketing. We need to increase market diversity. Our main markets are the northern countries, the cold parts of Europe, Russia, Ukraine. The only country that can fill the empty areas in Russia is America. We are pushing the American market very hard."
Intense Interest from Russia to the Fair
Sharing the information that the participant demand for the fair is very high despite the embargoes imposed in Russia, the major market of the sector, Sarıgül said, "We are experiencing serious decreases in our exports with Russia due to the effect of the war. There has been a huge obstacle in the inflow of official currency due to the embargo. This situation caused our exports to decrease. There has been an oversized interest from russia to the fair and an intense demand. We are eliminating customers from Russia. We will be more selective there. We will bring in specified buyers with the innovations we will make at the fair this year. However, we welcome the demands from Europe and will accept everyone who is a buyer."
Cost Increase Brake on Exports
Noting that there have been serious increases in all item costs, especially in labor costs, Sarıgül stated that since it is a labor-intensive sector, competing in the current markets is not possible for them and that as a consequence, losing markets under reach slowly is their current situation. Sarıgül stated that access to finance has been the prevalent obstacles faced by the sector and said, "Interest rates have increased very much. It is not possible for the loans to be used with current interest rates to be amortized and for the entrepreneur to turn them into a profit." While sharing the information on their exports weighing 83 tons in January 2023 which decreased by 37.7 percent to 52 tons in the same month of 2024, Sarıgül said that on the other hand, due to the cost increases, export unit prices exceeded 130 dollars with an increase of 12.5 percent compared to the same month of the previous year.
Stating that the sector currently only produces for holiday spots, especially for Antalya, Sarıgül said, "The slowdown in exports has put the sector in a difficult situation. We are currently undergoing a stagnant period for our members which is spesifically a reality for workforce whom are working around areas as we call the Former Soviet Union. We think that exports will increase again with the orders that will be placed on with the fair. Especially the Ukrainian market used to have an important regard for our industry. It was our gateway to Europe. We have increased our product diversity. Now we produce leathers that can be worn in all seasons. Europeans, Turks, Russians also wear our products, and even Arab countries buy them."
World Brands Are Produced in Turkey
Underlining that giving direction to the leather fashion in the world, Sarıgül said, "We are able to produce everything from leather now, we have no competitors in the world in leather. Countries such as India, Pakistan and Bangladesh are price-oriented, but we produce fashion. Today, we are a country that produces very good carriages and shoes. The leather of the biggest brands are produced in Turkey. We will accelerate our efforts to compensate for the decline in exports by increasing market diversity."
