raporturkish ready-wear industry (2)

7/30/2019 RAPORTurkish Ready-Wear Industry (2)

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Running head: Turksh Ready-Wear Industry

TURKISH READY-WEAR INDUSTRY

Eda Savran 2008432080

Sinem Dilara Haimolu 2008432050

Emel Kazan 2009432051

Hilal Topuz 1012432122

Dokuz Eylul University

MRK 3001 Marketing Strategies

Assoc.Prof Dr.Burcu lter

Fall 2012


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Turksh Ready-Wear Industry

Table of Contents

List of Figures...2

Abstract ...............3

Turkish Apparel Industry.4

Historical Development............4

Porters Fve Forces For Compettve Strategy....5

SWOT Analysis of Apparel Industry9

Competitive Dimensions of The Industry...11

Industry Dynamcs...14

Compettor Analyss For Each Key Player..23

References28


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Abstract

The history of clothing industry is almost old as much as history of humanity. In every century

and every country it had a important share in market. But it is a fact that the real market description of

textile is rest upon Industry Revolution. Industry Revolution is started by textile and varied by other

products. By mass production textile is expanded and classified internally. Home textile, textile of car

accessories and clothing are some of them. When we say clothing the first thing comes from our mindsare ready-to-wear industry. Although the leading countries in this industry are Italy, France, England and

U.S. Turkey is also has an important place in the world. Both local and international market Turkeys

market share is getting higher. In this study we will analyze the ready to wear industry in Turkey and its

economic impact.


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Turkish Apparel Industry

Turkey is one of the most important apparel producers and is ranked as the third largest exporter of

apparel in the world. In addition to the international position, the apparel industry is one of the locomotive

sectors of Turkish economy in terms of industrial production, employment and export earnings.The

industry incorporates over 35.000 textile and clothing companies, where 83 of these are among the 500

largest companies in the world.

Historical Development

Starting from 1920s until the 1950s, the primary focus of the sector was to satisfy the domestic demand

of ready-wear. The industry had very poor exports and limited growth and development until the 1970s.

The industry had a great leap towards exports and growth after 1980s. The objectives changes with the

reform and Turkish economy started to integrate with the world economic system. Turkish apparel

industry is experienced very strongly a globalization process after the abolishment of the Multi-Fiber

Agreement (MFA) in 2005. Since this year, Turkey started to compete with countries of low cost

production.

The process of globalization and liberalization in trade is both offering opportunities and creating

obstacles for apparel indutry. Firstly, Turkeys export performance is negatively affected from competition

with abroad but today, apparel (16%) and textile(7%) industry is responsible for about 23 percent of total

Turkish export earnings.The most important market for this sale is the European Union (EU) market

which is responsible for 74 percentages of total apparel exports.


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Figure 1:

Turkish Textile & Apparel Exports (ITKIB, 2007)

Porters Fve Forces For Compettve Strategy

Porter anaysis depends on five basic forces in an industry. These forces determine the potential

profitability for the industry. The strategy can be divided in two general segments; the horizontal and

vertical environments. Horizontal forces consist of competition from threat of substitute products, threat

of new entrants and competitive rivalry within an industry. The vertical competition considers bargaining

power of suppliers and customers.

Figure 2: Michael Porter's Five Forces Competition Theory Model


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Bargaining Power Of Customers

Developing technology offers customers easy to reach all the alternatives of products and prices. The

customer group so flexible in finding alternative apparel manufacturers. This forces the apparel

manufacturers to learn their customers purchaing habits and try to adopt this situation by differentiating

their production.It can be towards quality, service or design according to customer expectations.

Apparel manufacturers wants customers become less price sensitive and loyal but the customer groups

want and like to have a strong bargaining power. Such behavior tends to drive prices down and make

prices similar. We can understand from that, the bargaining power of customers is strong. For that reason,it is importance for a producer of apparel to differentiate their products, production, quality or service.

The producer can make this by follwing a low cost strategy or value added product. So that, they can

increase usefulness of product to decrease bargeining power of customers.The high quality products and

utility leads to customers being less price sensitive and make them more dependent to the producer.

Also, all manufacturers agree on that, the business has changed over the last ten years. A major change is

the fast-fashion manufacturing. Fast fashion is a descriptive term used for both the quick changes in

fashion-trends and the fast production and delivery. This trend brought awareness and knowledge to

Turkish apparel manufacturers as customers started to require better service.

Bargaining Power Of Suppliers

The large number of available suppliers gives a weak bargaining position for the supplier group in

Turkey. Suppliers may engage in relationships by using activities such as R&D and try for better

bargaining position to the apparel manufacturer. Additionally, lack of switching costs among the

suppliers and having a low level of product differentiation decrease the suppliers power. This leads to

great possibilities for apparel manufacturers to switch the supplier group for best quality and prices for

production. As a result, apparel manufacturers can contact a large number of suppliers and play suppliers


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against each other. Such behavior weakens the bargaining power for suppliers and as a result pushes

prices down and makes prices similar among suppliers.

In order to achieve a better bargaining position towards the manufacturers is integrate forward in value

added chain. Companies in the textile and apparel sector have established forward to create vertically

integrated company groups. Establishing forward is usually conducted in a different name and can help

the bargeining pewer of suppliers.

On the other hand, deep and long term relationships between manufacturers and suppliers can increase

power of suppliers. For example suppliers and manufactures can interact in activities such as research anddevelopment (R&D). By this process the supplier obtains knowledge on what customers expectation in

the value added chain demands. So, a good relationship provides mutual benefit for both supplier and

apparel manufacturer.

Threat Of New Entrants

Since apparel manufacturing is very dependent on personal contacts and experience, new actors would

have to bring some kind of client along with the new establishment.So , it is very difficult entering the

market without clients or hard contacts. It could be understood that, forward integration is very benefical

in terms of bringing contacts, know-how and clients along.

The manifacturers sure about the greatest costs of manufacturers are: quality labor and fabric. If more

capacity would be needed, only variable costs such as employees and equipment need to be increased.

The costs increase proportionally with them. For that reason, a new establishment will not suffer from

increased costs because of low production.It can be an advantage in the beginning for them.

Product differentiation may be a barrier of entry as manufacturers are heavily dependent on references

and word of mouth. Without any established client portfolio, it is difficult to attract customers and build

customer loyalty. Therefore new establishments have to endure increased costs in creating sample


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collections to show potential customers. So, introduction costs are not only associated with the

manufacturing but also the costs for designers and creating sample collections.

Aslo, the team work between customer and manufacturer is very important. New entries do not know

what customers require or what service is needed in the production. Not to experienced indistribution

channels may constitute a barrier of entry as well. All these factors can be reasons of barriers for entering

the apparel manufacturing industry.

Threat Of Substitute Products

There are no really substitute products to such a wide category which is ready-wearl. But, there are

variations in types of clothing and material. Variations of apparel can also be identified as trends in

fashion and styles. For example jeans could go down in popularity while flax is increasing.The only

change is the fabric so it would not cause any major changes for the manufacturers.

Products within the apparel segment can act as substitutes but in general, theres no substitute to apparel.

Competitive Rivalry Within The Industry

Since apparel production is flexible and switching costs is low,in general customers are not attached to its

manufacturers very strongly. The low switching costs increases the risk of manufacturers to loose theirr

customers to competitors. Additionally, apparel is a perishable product group, so if the demand decreases

manufacturers need to cut prices. For example, when there are recessions in the economy apparel product

prices will drop.These factors indicate that, the rivalry between manufacturers is high.

Flexibility to adapt in different production levels when demanded is also important. If extra capacity is

required, a major issue for the apparel manufacturer is to recruit new labor. However, capacity can not be

increased together with demand so it results price cutting.


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Strategies among apparel manufacturers seem to be similar. Turkish companies tend to look on their

neighbor and do the same thing. This imitating behavior tends to lessen the rivalry between apparel

manufacturers.

An external issue that has often been as a problem is the high valued Turkish lira. The appreciation of the

lira becomes an issue in competing for exports. As Turkish apparel manufacturers are pressured to lower

prices in order to stay competitive with companies abroad, the overall rivalry within the industry gets

affected. When profit margins drop it creates incentives for domestic companies to expand their customer

base in order to keep profits up. It is therefore reasonable to believe that such expansions may occur on

the behalf of competitors if possible, and thereby increase the rivalry in the industry.

SWOT ANALYSIS OF APPAREL INDUSTRY

Strenghts

Geographical location

Technical, social, administrative know-how

Organized and efficient building

Full integration of production chain / packet service (full package)

Young population / skilled labor

Human and environmentally-friendly production and standardization (apparel)

EU Customs Union,

FTA preferential trade agreements, market access

Fast delivery

Flexible production

Logistics

Have developed a textile finishing good industry


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The hi-tech mechanized

Organized retailing is developing

Weaknesess

The failure of sustainable cooperation, coordination between bureaucracy and the private sector

Not to have an inventory map

The adequate coordination and cooperation is not achieved between sector and sub-sectors ,

High cost of the production process like energy, social security premiums, funding

costs, employment, taxes, etc. Decrease in using the capacity utilization and increase in fixed costs

Technology, R & D, education policy deficiency and lack of quality

Dependency textile machinery and chemicals to foreign

Dependency on the EU market

Llackof branding activities

Failure of promotion and marketing activities

Cotton production is not supported

Opportunities

Industry consolidation, strategic alliances, and increase in acting together with the globalization

Including fashion, brand and retailing activities differentiate the products and services are increasing

in high competition

The advantage ofsupply chain management will provide development of models

Using the geographical and logistical advantages, experience and know- how

Differentiation of the development of consciousness (fashion-

brand,value creation, differentiation capability)

Efficient supply chain management (sectoral consolidation, fast delivery, cargo trade) is a global


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changes and trends in the retail sector

The advantage of stability in the short term economic / political activities and the potential increase

for trade (Especially in neighboring countries, Islamic countries, the Turkish Republics ...)

Threats

Against the liberalization increase in the non-tariff trade

Negotiations Out of Agriculture Products Market Access which is carried out by WTO

China and the Far East

Threats from the EU caused by Customs Union Agreement and could not been Turkey in the EUsdeciding committees mechanisms

Increase in import of intermediate goods (yarn, fabric).As a result of this decrease in the value added

taxes

The increase of imported products in domestic market

As a result of regional economic integration narrowing to enter the potential markets

In 2009, the Basel II criteria is applied and as a result of this some difficulties for the possibility of

using an international credit

Sanctions related to the environment caused by EU legislation

COMPETTVE DIMENSIONS OF THE INDUSTRY

Brand dentification

In Turkey branding had started in 90s. Over 90s companies had advantage with brand management

system. But importance of branding was understood by 2000s. The countries of the world who discovered

the power of marketing got the boot of several approaf for branding management by 25 years. But also in

Turkey this situation was on the front burner by 15 years. After the crisis section local brands have also


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started to being brand. Turkish companies have achieved to prove quality by exporting. So Turkey will

make a distinguished brand for oneself. But now occuring brand will be high costly and time consuming.

The cause of underdevelopment branding and marketing is lack of competition. For example Beymen and

Vakkos success factor is not advertisement. Their success was provided with pulling together. In global

sector of Turkey the most known brand is Mavi. Mavi Jeans is example for companies that be aim of

branding.

Specialization

Turkey companies should specialize about nich productions. Clothes should save healh of body.

Productions must have different specialities.

In Turkey one of importand brand Mavi has shown technologic power with new differentiated products.

Pricing Strategy

Research and study your competitor's pricing structure. It is important to take this into consideration when

working on your sales cost. For example, if you are offering t-shirts as part of your collection, know what

your competition's retail price is for their t-shirts category. Offer your customer base a competitive price

while branding your apparel collection. If your cost is high in relation to your competitor, take note of

new design elements you incorporated such as using a better quality fabric or adding a new design

feature.

Quality

Another main factor is quality. When it comes to garment industry,their main operation is producing

garments. So the quality of garments is essential and through quality company can differentiate from its

competitors. For improve the quality of products organization can implement quality control

divisions,maintain quality standards,frequent quality checks and other strategies. The factor quality that is

mentioned here, is not only the quality of products, the idea is wider than that. Organization has to


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maintain quality in every aspect. For example organization have to maintain quality of

management,employees and etc. To maintain quality at whole organizational level company can

implement technique like Total Quality Management (TQM) .

Channel Selection

A garment factory should maintain a effective and efficient distribution channel. Most of the time

distribution of a garment factory is done by a large fleet. Distribution channel to be effective and efficient

it should be able to deliver right product to right place at right time in a cost effective manner. Delays and

faults in delivery will effect the smooth functioning of the organization. So for a garment factory efficientdistribution channel is very important.

Technological Leadership

In the world communication technology is developing. Specially everyone can reach to everywhere

through internet. This factor is become factor that extends. Even though it was too late Turkey clutch at

technological advencements. Turkey should develop its product machines.

Government

Government factor is indirect factor of national competitive power. Government is important about

policy, regulations, protective measures. In the expand of governments role is tax and incentive. In

Turkey government service social security payments and incentive system.

In Turket social security and tax payments are too high so especially in garment sector, undeclared works

are prevalent. Therefore long work term is not occurred.

The incentive system remain limited local, greenfield. Actually incentives should do to general industry.


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INDUSTRY DYNAMICS

Origin of the textile industry is rest upon the beginning of the Industry Revolution. Textile was the first

industry which began to serial production with using engines. From 18

th

century it had a lot of changes

in terms of both technical, economical and socio-cultural. This changes goes along from the thread and

needle of the machines, new production techniques, new machinery structures to market trends, economic

trends, social trends, government regulations and other innovations.

A.Technical ChangesTechnical stage of the textile includes the phases of

1. design,2. cutting,3. embroidery,4. sewing,5. quality control,6. washing and drying,7. ironing, packaging.

If we are not using the ready fabric we can add the fabric production into this phases.

There is an important development about the thread and needle technology which makes clothes more

stylish. New sewing techniques provide less sewing trace, and more qualified products. Backstitch,

Herringbone Stitch, Serging, Interrupted Suture are some of this techniques.

Design, cutting and embroidery are changes according the trends. Actually they determined by the

leading fashion brands. But some social impacts are also important. For example before approximately

ten years the size of clothes were classified as generally 36 or Small, 38 or Medium, 40-42 or Large.

Increasing diseases like obesity and anorexia affected the size of clothes. Nowadays when we enter a


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ready-to-wear shop we met a more size classification which includes XXXS(32), XS(34), XXL(44), and

XXXL(46).

Washing and drying is a very different scope from ready to wear production, but also has an significant

effect on quality of product because it is applied on the finished products. The new technological

improvements help producers to protect the color of the thread and quality of fabric. But the reason why

washing and drying is the last phrase of production before this phases the producers should careful about

type and quality of the dye. And also sharing the important information about features and warnings about

the dye and fabric with the washing department is also important and prevents the quality losses. New

cationic and ionic softening are very useful about this subject. Also the new drying machines makes

products dry without damaging them.

Innovations

1. Ecological Textile, Organic Cotton and Dye

The ecology of the textile sector can be classified as:

a) Ecology of Humanb) Ecology of Productionc) Ecology of Waste

Being careful about environmental issues are very important for a firm in terms of a lot of aspect. One of

them is of course about protection of nature. On the other hand this kind of sensitivity will increase the

goodwill of the company.

There is an increasing awareness about the health issues in the society. Most of people are very careful

while they are sopping. They do not only focus on the design and beauty of the clothes, they also

emphasis on the fabric, dye and other components of the clothes. The ingredients has a bad affect on

human health are pronouncing by media and other mass communication canals. Awareness about this


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subject is increasing day by day. Synthetic thread is not preferred too much because of its known

carcinogen effect. Thats why organic ingredients are in demand nowadays. While growing such kind of

ingredients any synthetic fertilizer and agricultural pesticide is not used. The most common type of such

ingredients are organic cotton and dye. Even the organic cotton can be grew as colored. But the reason

why it is an expensive and difficult process it is not common.

2. NanotechnologyNanotechnology is an emerging interdisciplinary technology that has been booming in many areas during

the recent decade including the materials science, mechanics, electronics, optics, medicine, plastics,energy electronics and aerospace. . As nanotechnology techniques and applications become more

sophisticated, we are likely to see a whole new variety of textiles with integrated electronics, special self-

cleaning abilities, resistance to fire, protection from ultraviolet light, and a range of other features. Nano

Textiles can be produced by a variety of methods and textiles are changing thanks to nanotechnology.

Better healthcare systems, protective clothing and integrated electronics are just some of the applications.

All those new textiles that advertise that theyre bacteria and odor free also they are even claimed to

prevent colds and flu and never need washing. In textile sector usage of this self cleaning and non

bacterial clothes are increasing . Perhaps the most widely recognized application today is in the shark-

skin suit worn by world-record breaking Olympic swimming champion Michael Phelps. The suit, which

includes a plasma layer enhanced by nanotechnology to repel water molecules, is designed to help the

swimmer glide through the water and has become a common feature of major swimming events as all

competitors attempt to enhance their chances of winning.

Other interesting nonotechnologic textile examples are comes from the R&D Project Market

Competition in Bursa. 144 projects competed and the most interesting ones are :

Non sting cigarette tuxedo Hat against hair loss


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Anti-aging towel Smart pillow Wound healing fabric

A. Societal TrendsGlobalization is surrounding the world day by day. A society in a country is not affected only internal

subjects in the country, but also affected by the international trends. A hair style of an actor or a cue in a

movie can have a mass effect. For Turkey, the ready to wear industry is affected both national and

international trends.

Fashion is mostly is directed by the Italian, French and American ready to wear companies. The fashion

weeks and shows arranged by that companies are determining the trend color, cutting and models of ready

wear industry. For example in recent years there was an low cut pans trend. Even the doctors are warning

the public about their harm on health there was an huge demand on them. Last year the high-waisted pans

which were the trend of 80s came back and market demand turned on this pan style.

The other example of social trends are Uggs. They were the used by the Australian surfers and became a

trend in all aver the world in 2008. In Turkey even now almost every girl has one pair of Ugg.

The social trends in Turkey affected by the tv series at most. The accessories used by the Hrrem

character in Muhteem Yzyl are the most popular one nowadays. Hrrem crown, ring, necklace are very

popular among society.

B. Economic TrendsTextiles and clothing are among the most important sectors of the Turkish economy and foreign trade.

Accounting for about 6-7% of the GDP together, these two sectors are the core of Turkish economy in

terms of GDP contribution, share in manufacturing, employment, investments and macroeconomic


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indicators. These sectors had a 18,5% share in total export volume in 2011. There are more than 40,000

textile and clothing companies in Turkey with an estimated workforce of 750,000 employees. Turkey is

one of the main actors in the world clothing industry. Turkey ranks 8th in world cotton production and 4th

in world cotton consumption. Turkey also ranks 3rd in organic cotton production after India and Syria.

The Turkish clothing industry is the 7th largest supplier in the world, and the 2nd largest supplier to the

EU. It has a share of 4% in knitted clothing exports and it ranks 5th among the exporting countries. With

a share of 2,6%, Turkey ranks 10th among the woven clothing exporters in the world. The Turkish textile

industry, which is listed in the worlds top ten exporters, is also the second largest supplier to the EU.

The Turkish textile and clothing industry has a significant role in world trade with the capability to meet

high standards, and can compete in international markets in terms of high quality and a wide range of

products. The established capacity of woven production in Turkey is estimated to be around 1.350.000

tons while that of knitted products is around 2.250.000 tons. In recent years, pantyhose, tights, stockings,

socks and other hosiery production in Turkey shows a faster growth and with the new investments it is

estimated to have reached a production capacity of 200 million dozens per annum.

Istanbul: City of Fashion

Istanbul is proud of its designers, fashion and shopping centers where it has kept its unique Occidental-

Oriental, old-meets-new, and East-meets-West characteristics. Istanbul is becoming a leading fashion and

shopping center due to both foreign and local investments recently. The worlds largest shopping centers

are opening in Istanbul. Many tourists have added Istanbul to their itinerary for shopping. As a global

sourcing hub for both Asia and Europe, Istanbul attracts a number of international buying offices, trading

houses, major retailers and department stores. Istanbul Fashion Week is organized twice a year to gain

recognition for Turkish designers and brands in national and international tribunes where they present

their latest collections. Since Istanbul is becoming a fashion and shopping center, most of the companies

have shifted their production facilities to the inner provinces. Izmir, Bursa, Ankara, Denizli, Gaziantep,


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Kayseri, Tekirdag, Adiyaman, Kahramanmara and Adana are now major cities for textile and clothing

production.

Exports

Turkish clothing exports have continued to increase even after the expiration of the global textile quota

system at the end 2004, as agreed under the World Trade Organization Agreement on Textiles and

Clothing (ATC). The sector continues to maintain and enhance its competitiveness. In 2011 the total

value of clothing exports was US$ 13.5 billion. The sector exports about 65% of its production.

Approximately 80% of the clothing exported is cotton clothing. Knitted clothing and accessories, with an

export value of US$ 8.4 billion, had a share of 62,1% in total clothing exports, and woven clothing had a

share of 37,9% with a value of US$ 5.1 billion in 2011. T-shirts and pullovers are the most important

export products in knitted clothing sector. Exports of t-shirts and pullovers were US$ 3 billion and US$

1.3 billion respectively in 2011. In addition, as the second largest manufacturer in the world, Turkeys

socks exports amounted US$ 1 billion in 2011.


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Trade Fairs In Turkey

Many Turkish clothing companies have expanded their marketing and distribution

channels in global markets by opening stores and chain stores all over the world. To

increase awareness of Turkish fashion in international markets, they participate in many fashion shows

and international fairs in abroad. In addition, the Turkish clothing products are exhibited in international

and national fairs organized in Turkey. Major fairs which will be organized in 2012 are:

Collection Premiere Istanbul 2012-I, Istanbul, February 2012 (Mens, Womens and ChildrensReady-to-Wear, Knitwear, Lingerie & Swimwear and Accessories) www.cnrexpo.com/

IF Wedding Fashion, Izmir, February 2012 (Wedding Dresses, Suits and Evening Gowns andAccessories) wedding.izfas.com.tr/

Islamic Fashion Show 2012- 4th Islamic Clothes Fashion and Accessories Fair, Istanbul, March2012, (Bridal Veil, Evening Dresses, Wedding Dress, Swimming Dress, Scarf, Special Scarf

Designs and Accessories) www.demosfuar.com.tr

IFEXPO 2012 10th International Istanbul Ready to Wear Fair, Istanbul, June 2012(Womenswear, Menswear, Kidswear, Sportswear, Lingerie, Hosiery, Accessories And Related

Industry) www.tuyap.com.tr

Bursa Baby and Kidswear and Necessities Fair, Bursa, June 2012 www.tuyap.com.tr Collection Premiere Istanbul 2012-II, Istanbul, September 2012 (Mens, Womens and Childrens

Ready-to-Wear, Knitwear, Lingerie & Swimwear and Accessories) www.cnrexpo.com/

C. Market TrendsOnline Shopping

As a result of technologies development reflection of marketing, new application area, alternative

methods and new competitive forces began to appear. Not only internets development maked up new


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competitive area for business but also maked new shopping area for consumers. Some of consumers,

prefer that new shopping area which is called as online shopping to traditional shopping. Consumers

preference of online shopping differ relative to demographic characteristic. Main reason of tending to

online shopping is saving money and time. However, it is easy to compare brands.

Trendyol, Markafoni Vipdukkan, Limango, 1V1Y are the online shopping sites which are commonly

used in Turkey. Their address are :

www.markafoni.com

www.vipdukkan.com

www.trendyol.com www.limango.com.tr www.1v1y.com

D. Government RegulationAfter the labor cost there are two important issue about the financial cost that are enegy and tax rates.

Because of costly entries such as heavy taxes,energy, employment leads to reductions in capacity of

domestic sub-industrialists.

Tax Rates

Additional custom duty which is going to be implemented from July 2011, has been brought on 20 % of

importation of textile products and 30 % of importation of readymade products. In order to protect

domestic producers, 20-30 % additional custom duty on imports of readymade and textile products has

been decided to implement. While that decision provides advantages for manufacturers, on the other side

it drew reactions of the retailers. Sales prices of the leading retail companies in the sector are expected to

rise %20-30 since July.
http://www.markafoni.com/http://www.vipdukkan.com/http://www.trendyol.com/http://www.limango.com.tr/http://www.1v1y.com/http://www.1v1y.com/http://www.limango.com.tr/http://www.trendyol.com/http://www.vipdukkan.com/http://www.markafoni.com/


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Encouragements

In September 2008, the production capacity of the countrys western regions is directed to the eastern

parts with the Textile, Readymade and Leather sector strategy. This strategy is supported by the recent

stimilus plan. This plan encourages the firms that establish new facilities or transport their production to

less developed regions, especially the Southest Region. Competitive conditions in the western part of the

country, including Istanbul and Bursa pushes slowly the sector to the east. In the last 10 years, public

policies caused to occur textile cluster including Kahramanmara, Adyaman, Gaziantep triangle. The last

stop of this wave which is Batman, is learning process of the sector.

It is obvious labor costs which is important in developed cities for this sector, bring the company more

financial burden in the long run. Impact of the sector is really high to the social structure. At one time, the

high ratio of female suicide occured. Ant textile sector had been the most important tool that allows

women find place in society. Creating employment provides income for the first stage. But people

especially women, is given the chance to become individual, to create strong personalities.

E. Entry and ExitEntry Barriers

There are some barriers to entry the textile industry that reluctance pushing and blocking factor about

entering. It can be divided into sections such as physical barriers to entry, the psychological barriers and

economic barriers to entry. Outlines barriers to entry, are sectoral profit margin is lower, sectoral structure

of demand existing of the intense competition in the sector, high initial capital investment or technology

for entry, economies of scale, cost disadvantages independent of scale and not easily reach to distribution

channels


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Exit Barriers

Exit barriers cause to formation of reluctance and an increase in the current competition by providing to

level the business sector that has no benefit from maintaining. Businesses which cannot exit from sector,

have to fight as a mandatory and this make an increase in competition. The main factors that prevent a

branch of industry output are:

Having no alternative, sale is difficult or impossible presence of the building and equipmentinvestment.

Large amount of money out that to be paid to employees in the case of existing.

Does not want to leave with non-national reasons from the sector that business operates theindustry for a long time.

Absolute dependence on the sector as economically.

COMPETITOR ANALYSIS FOR EACH KEY PLAYER

VAKKO

In the years Vakko was established, Vakko, which chose its target market as modern Turkish women,

both expands product and service range and adds modern Turkish men to its target market. During all

these developments , however it did not carry his brand to abroad and it was seen as a deficiency but

Vakko determined the foreign brands as competitpr and it standed pat on its style by becoming life style

and the inifiaor a fashion.

Vakko over the years has tried to create a brand level.that has high quality, capturing the fashion of the

day, competitivenes with most important brand of Europe. Vakko has made no compromises their

positioning strategy. They have provided Vakko image through continuous and sustainable


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communication strategy. Vakko did not suffer in the face of foreign brands entering the location to

Turkey.

KILI

Main strategy of KILI is transforming the power of change in mens retail fashion to sustainable

success in domestic and foreign markets through qualified people, modern technology, and fast logistics

services, without compromising the quality of KILI.

Kil have foreign branches in Cyprus, Azerbaijan, Egypt, Georgia, Turkmenistan, Kyrgyzstan, and

Kazakhstan. KILI family continues in global markets with new store projects most notably in

Germany, China, and the Mid-Eastern countries. At KILI where the brand identity and character are

firmly entrenched, being able to innovate and being open to change are very important. KILI can

attribute the most important processes that have been instrumental in the fact that KILI which owned

100% percent by Turkish capital can tread safely.

Their actions in this department worked out in three ways:

First of all, they have particular custome fitting service by altering the cottons for your own taste within

the cooperation of their shops all around Turkey. Sewing is prepared appropriate to the desired model

with the desired colours and fabrics according to your own preferences. Their stores can be able to direct

you about this subject matter, and also they can present you several alternatives.

Secondly, within the framework of the prices that are agreed with the firm, shopping by gift voucher with

benefiting from the ready-made clothes in all our stores is provided for the firm staff members having the

aim to simplify choosing products with more alternatives. They have our stores in every district of

Turkey.

They also have service as providing gift packages (with also exchange cards) or gift vouchers again on

Christmas, holiday and special occasions as a third option.


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MAV

Turkey's first fashion brand to become global, Mavi has been the leading jeans brand in Turkey. The

global operation is run by Mavi Turkey, with legal entities in the USA, Canada, Germany, Holland,

Russia and Australia. Mavi's philosophy is to build a brand around perfect fitting jeans that convey a

Mediterranean feeling in terms of fashion and detail. Maviterranean is exotic and inspirational,

contemporary and accessible. Mavi, which means blue in Turkish, is known for high quality, great fitting

and fashion-forward premium denim. Mavi's brand strategy is 'perfect fit': Mavi fits my worldmy

lifestyle, my body, and my wallet.

Mavi cooperates with designers and consultants from all over the world and has a multi-cultural designer

team from various cities like stanbul, New York, Vancouver and Sydney. Most famous and successful

jean designer Adriano Goldschmied, queen of best-fits Venucia de Russi and Rfat zbek who designed

his first jeans collection for Mavi are some of the world famous designers that Mavi already worked with.

LC WAKK

LC Waikiki is the leader of Turkey in the ready-made clothing sector. This giant retail company sources

the products that are offered for sales in its stores through a global supply chain. LC Waikiki retail

company is one of the leading companies of the Turkish ready-to-wear industry with its production

history starting from Taha Group and with its achievements as LC Waikiki in the ready-to-wear retail

industry.

The Taha Holding has made LC Waikiki a Turkish brand with its strong partnership structure and its

determination and the group continues to take rapid and confident steps in its effort to make LC Waikiki a

world brand.

From their point of Everybody deserves to dress well, they, as LC Waikiki Retail Company, act in

accordance with the mission of making people dress according to their styles and budgets and continue


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their studies with the vision of being one of the most successful three clothing retailers in Europe before

2023.

Lc Waikiki try to present quality to their customers with affordable prices. They offer quality to their

customers both with product and retailing service.

ALTINYILDIZ

Altinyildiz has a lot of strategies in this sector. It makes many innovations like making controls of the

fabrics od the clothes. The factory has a health control place for the fabrics. Apart from fabric quality, the

shops give people different opportunities as price. People can find every style of cloth and quality.

Altinyildiz is really big in this sector. It has more than 2 thousand points of place around the world. It has

the biggest rates on trade sector around the world. Also Altinyildiz makes some strategies on making the

promotions of the clothes. It has both rahtional prices and high qualities.

Foreign Export Barriers

Reasons for some firms not developing export-trade strategies could for example be: distinctive foreign

consumer preferences; unfamiliar business protocols and practices; difficulty in sourcing competent

distributor/agent representation lack of export market distribution channel structure and development;

lack of finance; lack of information; domestic market focus; the imposition of tariff barriers and

regulatory import controls by overseas governments; competitive intensity; and exchange rate fluctuations

and limited hard currency for international trade(Morgan, 1997).

Problems During Expansion Abroad

When retailers make the decision to expand internationally, they typically start by performing customer,

market, and product analyses. They explore hot regions, concept alterations and various go-to-market

platforms. Even when arming themselves with all of this information, many retailers still have problems

when they expand into new markets.


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Why? Often, they have over-emphasized external market facing factors (i.e., population growth,

competitive landscape) and under-emphasized the importance of anchoring core elements of the

expansion strategy to existing internal capabilities. Retailer expansion strategies can be an execution

challenge because the organization does not possess the internal capabilities needed to operate in the new

environment. Such key internal capabilities include the logistical infrastructure, the local merchandising

talent, strong supplier relationships, and the knowledge of government regulation. Retailers

underestimating these crucial internal capabilities can pay a steep price, including expansion delays

and/or financial overruns.


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References

Yilmaz, Necla. 2007. Turkish Daily News. [Online] December 10, 2007. [Cited: December 14, 2007.]

http://www.turkishdailynews.com.tr/article.php?enewsid=90834.

sipkek, Professor Dr. Blent. 2004. A rising value: Turkish Textile. Turkish Time. [Online]

November 2004. [Cited: October 12, 2007.] http://www.turkishtime.org/sector_6/224.asp.

B2B Turkish Textile. Textile industry in Turkey. B2B Turkish Textile. [Online] [Cited: December 3,

2007.] http://www.b2bturkishtextile.com/turk_textile/textile_ind_turkey.htm.

http://ec.europa.eu/enterprise/enterprise_policy/sme_definition/index_en.htm.

WTO. The Agreement on Textiles and Clothing. WTO | Trade Topics - Textiles Monitoring Body.

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