The sector’s real agenda after a challenging year How did 2025 unfold for the textile and apparel sector? What were the most common issues and expectations raised by your members?
“From the perspective of our textile and apparel sector, 2025 was a year in which global and domestic dynamics were simultaneously challenging. The contraction in global demand, the slowdown in consumption across our main export markets particularly Europe and ongoing geopolitical uncertainties placed significant pressure on our sector. Domestically, rising labor costs, difficulties in accessing finance, and the exchange rate lagging behind inflation substantially weakened the competitiveness of our companies.
The most frequent feedback we received from our members centered on the increasing difficulty of price competition due to rising costs, deteriorating cash flow, and financing conditions becoming unsustainable. Despite this, many companies continued production and exports with very low margins— sometimes even below cost—in order to avoid losing customers and markets. The most fundamental expectation was the implementation of support mechanisms that would facilitate access to finance, restore competitive balance, and protect employment during this transition period.”
Structural steps are essential for competitiveness What structural reforms are needed to enhance the sector’s global competitiveness? What kind of arrangements should be made regarding export incentives, Eximbank loans, and Credit Guarantee Fund (KGF) support?
“In order for the Turkish textile and apparel sector to sustainably strengthen its global competitiveness, comprehensive structural reforms are needed alongside short-term support measures. First and foremost, an effective support mechanism must be established to offset exporters’ cost burdens, ease exchange rate pressure, and improve access to finance. In this context, increasing the foreign exchange conversion support on a sector-specific basis in line with the losses experienced, extending repayment maturities for Eximbank loans, and granting companies additional time for loan closures are of critical importance.
In textile and apparel segments where economic indicators are signaling distress, the foreign exchange conversion support should be raised to levels of around 10%, and the eligibility criteria for benefiting from this support should be eased. At the same time, statements made by President Recep Tayyip Erdoğan regarding higher support amounts under the Employment Protection Support Program and enabling all companies—regardless of SME status—to benefit from these supports have served as a significant source of motivation for our sector.
If employment support is provided at a level equivalent to one quarter of the minimum wage and employment protection conditions are made more flexible, our sector will experience considerable relief. In the long term, investments focused on branding, design, technical textiles, digitalization, and green transformation should be more strongly supported within the incentive system. Initiatives that accelerate the sector’s branding journey—such as support for brand acquisitions—should also be implemented. This approach will help shift competitiveness away from a price-focused structure toward a value-added model.”
Cost structure, exchange rates, and financing remain decisive How do cost structures, exchange rate policy, and access to finance affect the sector?
“One of the most fundamental challenges our sector has faced recently is the imbalance between rising costs and exchange rate policy. While labor and financing costs have increased rapidly, the exchange rate trailing behind inflation has created a serious competitive disadvantage for exporters. This situation not only erodes profitability but also negatively affects production, investment, and employment decisions. At the same time, the high-interest-rate environment and difficulties in accessing credit further intensify the pressure, particularly for the textile and apparel sector, which has high working capital requirements. Limited access to finance can trigger a chain reaction that threatens the entire supply chain. For this reason, restructuring financing conditions in a way that supports production and exports is of critical importance for the sector’s sustainability.”
A strong infrastructure is the sector’s greatest long-term advantage Where do you see the Turkish textile and apparel sector in the coming years?
“Despite all the challenges experienced, the Turkish textile and apparel sector has strong potential in the medium and long term. Our sector has weathered many difficulties, but it existed yesterday, exists today, and will continue to exist tomorrow. We are among the few countries in the world capable of carrying out all stages of textile and apparel production in an integrated manner. Our geographical proximity to Europe, fast delivery capabilities, flexible production structure, and high-quality manufacturing infrastructure are among our key advantages.
In the coming years, our goal is for the sector to strengthen not only its production capacity but also its position in branding, design, technical textiles, and sustainability. If supported by the right policies, the Turkish textile sector will evolve from a structure that competes on price to one that differentiates itself through value added and brand strength. With the recovery trend expected to gain momentum from the second half of 2026, we foresee our sector entering a new phase of positive momentum.”
