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Highlighting the significant contribution of public support to the ready-to-wear sector, which achieved a total of $406 billion in exports during the first 100 years of the Republic, Kaya continued as follows: “We believe that the ready-to-wear sector, both globally and in our country, will not be able to experience the bright years of 2021 and 2022, which were shaped by post-pandemic conditions, again. Therefore, contractions will continue in the last quarter of this year and the first quarter of 2024. However, if we can enter a transformation process, we can talk about a much more positive outlook, especially from the second half of 2024, and especially from 2025 onwards. Public support remains critically important in this new transformation process.
” Kaya listed TGSD’s demands from the government as follows:
- The minimum wage should be increased once in 2024 to match the inflation target. The government should raise the minimum wage support to 2,000 TL in 2024.
- Non-repayable 3-year term business loans should be provided to overcome difficulties, prepare for and manage the transformation process.
- The connection between Eximbank interest rates and the Central Bank rediscount interest rates should be severed, and lower-interest export loans should be provided.
- The sector has used a significant amount of credit between 2020 and June 2023 as a result of the policies and regulations of the period. Foreign currency loans should be converted to Turkish Lira, and an opportunity for restructuring should be provided for all credit debts.
- The premium payment at the stage of converting export revenues to the Central Bank should be increased by 5 points.
Sanem Dikmen: “We will connect hundreds of foreign brands with our local producers”
Sanem Dikmen, President of TGSD, provided information about the 16th Istanbul Ready-to-Wear Conference, which will be held on October 12-13. Dikmen announced that this year’s conference will be held under the theme of “Transformative Journey” and said, “We will discuss the upcoming transformation process, the habits we need to gain, and changes in the way we do business with our stakeholders from Turkey and abroad. The first day of our event will address the most important topics in our sector, such as traceability, transparency, circular economy, wearable technology. The second day, as always, will be designated as ‘B2B Matchmaking Day,’ where we will bring together buying groups representing hundreds of brands from many countries, especially Europe, with our local producers and create a commercial platform for them to establish new markets and business connections.”
About TGSD:
Founded in 1976, the Turkish Clothing Manufacturers’ Association (TGSD) is one of Turkey’s oldest sectoral associations, gaining nonprofit association status in 2003 by a Council of Ministers decision. With over 450 members who account for 60% of Turkey’s ready-to-wear exports, TGSD represents the entire value chain of the sector and is the sector’s highest-inclusivity NGO. The Association aims to lead the sector in institutionalization, commitment to innovation and sustainability, renewal of all processes with product and service quality, and large-scale investments, as well as increasing the competitiveness of the sector with the TGSD Development Academy. TGSD also keeps a pulse on the sector with the Istanbul Ready-to-Wear Conference, which it has organized continuously since 2008 and is included in international calendars. For more information, visit: www.tgsd.org.tr.