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Earthquake Jolts Turkiye, Impact on Fashion & Apparel Industry Evident

Earthquake Jolts Turkiye, Impact on Fashion & Apparel Industry Evident

Turkiye experienced the strongest earthquake in more than 100 years this week; of magnitude 7.8 on the Richter scale.

The death toll has already surpassed 20,000 in Turkiye (including neighbouring Syria), and Turkish President Recep Tayyip Erdogan has declared a three-month state of emergency in the 10 provinces that are most severely affected.

As per Turkish authorities, over 13.5 million citizens have been affected in an area covering about 280 miles from Adana in the west to Diyarbakir in the east, and 180 miles from Malatya in the north to Hatay in the south.

Turkiye’s textile and apparel sector will also face the impact of this calamity as it is among the largest revenue-generating sectors of the Turkish economy, accounting for an average of 7% of GDP over the years and had a 16% share in total export volume in 2021.

Besides, Turkiye is one of the world’s major textile and apparel production and sourcing destinations, and the second largest source of textile and apparel exports to European Union countries. Turkiye’s textile and apparel exports in 2022 were valued at $35.25 billion.

Turkiye has strong competitiveness in the global market in the apparel and home textiles segment. The Turkish clothing industry, with a share of 3.7 per cent, is the sixth largest supplier in the world.

Since the port of Iskenderun in southern Turkiye has been subjected to severe structural damages operations have been temporarily stopped there after the earthquakes.

Roads have also been heavily affected, disrupting the movement of any trucks in and around the area.

Turkiye has remained a crucial sourcing destination for brands and retailers that represent the entire value chain of the textile and apparel industry with superior quality products and technical know-how. Retail Chains and manufacturers might have to look for alternate options for sourcing.

Tukiye’s share in the EU, the UK, and the US can also get encroached upon by textile and apparel suppliers from China, India, Vietnam, and Bangladesh.

Also, China, Vietnam and Bangladesh enjoy duty-free trade with the EU. So, the current situation in Turkiye may shift the trade pattern and increase these countries’ market share in the EU.

Turkiye exports more than 50% of total textile and apparel exports to the EU countries. In 2022, it exported $20.64 billion worth of textiles and apparel to the EU, 25.60% up from $16.44 billion in 2020.

In contrast, China’s export share of textiles and apparel to the EU declined by over 14%. This decline was majorly due to China’s zero COVID-19 policy.

But now with China’s market opening up and the current condition in Turkiye, China is likely to recapture its market share in EU countries.

Turkiye has been already facing an economic decline driven by a combination of high global energy prices, the COVID-19 pandemic and the Russia-Ukraine conflict, and, largely, by government economic policies that have reduced interest rates despite skyrocketing inflation, pushing the Turkish lira to a record low against the dollar.

One of the production partners of denim brand Kuyichi, for example, is also located in the affected area, according to a statement from the brand. Kuyichi works with fabric supplier Bossa, which is located in Adana, near the epicentre of several quakes.

“We are saddened by the devastating earthquake that was felt in Turkey and Syria. Our hearts and thoughts go out to the victims and their families who are feeling the impact of this tragedy. We stand with the people of Turkey and Syria during this difficult time and will do everything we can to help them recover. We are especially committed to our long-term partner and fabric supplier, Bossa, which is based in Adana, Turkey and is an integral part of our business.”

Various clothing and textile organisations from Turkey shared similar sentiments through their online channels.

The Puma Group has also issued a statement in English and Turkish expressing condolences to the families of the earthquake victims and wishing the injured a speedy recovery. It is expected that more (fashion) brands will also speak out and/or set up campaigns in due course.

Marketplace giant Amazon said in a statement that it would immediately take action. “To assist the affected communities, Amazon has activated disaster relief capabilities and is responding by assisting The Red Cross and other relief organisations with their urgent needs.”

Donated items will be sent by Amazon to its distribution centre in Istanbul and then distributed further.

Amazon stressed that this action is just the beginning of the help it intends to provide.

Amazon further revealed that it has over 2,000 employees in Turkey, but has no locations in the disaster areas.

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