Turkish lira crisis for fashion manufacturingOver the past few decades Turkey has become a powerhouse in fashion manufacturing. Thanks to cheap and plentiful labour, quality producers and its geographical location, at the heart of the world, Turkey is, now, the 6th largest fashion supplier in the world and the 3rd largest supplier to the EU, according to World Trade Organization (WTO) data 2016.

The Turkish lira has been failing this year due, in part, to its high levels of government debt and, in August, thanks to Donald Trump’s clumsy rhetoric over the detention of US pastor Andrew Brunson - he has since been released - and his disagreements over defence policy, the Turkish lira plunged even further.

Trump announced his plans to hike tariffs on Turkish steel and aluminum to 50 percent and 20 percent, respectively. 

The Turkish president, Erdogan, at the time, repeated calls for Turks to sell their dollars and euros to shore up the national currency. “Together with our people, we will stand decisively against the dollar, forex prices, inflation and interest rates. We will protect our economic independence by being tight-knit together,” he said.

“We will impose a boycott on U.S. electronic products. If they have iPhones, there is Samsung on the other side, and we have our own Vestel here,” he naively said.

After vehicles, clothing is Turkeys’ most successful export product, earning 9.4% of the country’s total exports. Of them, knitwear amounted to US$ 8.8bn (5.6% of total export), while exports of woven clothing reached US$6.0bn (3.8% of the total) in 2017. The Turkish lira (TL) is the world’s worst-performing major currency, losing more than 40 percent for the year to date. Five years ago a dollar bought TL2. It is now around TL7.

This clearly makes manufacturing much cheaper for foreign companies if paying in the local currency and an opportunity for Turkey to boost exports. Dollars, euros and pounds are all going further. A source, who didn’t want to be named, said, “I just returned from a trip to Turkey. It's been sad for the Turkish economy, but great for UK companies.

“I've seen the devastating results for some of our own teams working in Turkey, but purchasing and manufacturing becomes even more cost effective and we have seen factories willing to reduce their minimums,” they said.

Data from September 2018 showed inflation surged to 17.9 percent year-on-year in August, its highest level since late 2003. The central bank reacted by sharply increasing its benchmark lending rate from 17.75 percent to 24 percent last month. Turkish companies buying and selling in foreign currencies are less affected. The boon is when they pay their workers in the local currency.

Mukesh Desai, works with companies such as Hackett and French Connection, connecting foreign brands with fabric and manufacturing in Turkey, says, “Local factories buy in pounds and euros so there’s not much difference. It just matters when paying wages in lira and is better by around 5-10%”.

Imports become more expensive, but with Turkey being such a huge domestic fabric producer this will limit its impact on buying the raw material and fabrics.

“Some manufacturers are passing it on, some are not.” says Desai. “Everybody from the British high-street is increasing production and the fabric side is all increasing in Turkey.” he says.

One thing to note, though. “Brands are buying less quantities and are not carrying too much inventory, but they are not going to the Far East as much with Turkey being quicker to market.”

Oguz Yucel of MPY Textile Manufacturing, who produce thousands of woven and knitted pieces daily, says, “We are a Turkish company and produce in Turkey, Bulgaria and China.

“Our customers, from Europe, Benelux, Russia, USA, Canada regions, work in euros and dollars, therefore, we do not produce in Turkish, but purchase in euros and dollars and sell in euros and dollars, therefore we have no problem with production,” he says.

“2019, we are going to be 6% bigger”. says Yucel enthusiastically.

With cheaper labour costs, Turkish apparel manufacturers operating in USD will be the main beneficiaries of the change in the exchange rate, but they will be able to become more competitive and reduce their prices to their wholesale customers. Foreign brands and operators will also be able to negotiate harder and drive better deals.

The one place the Turkish currency crisis is affecting negatively is the domestic economy and local fashion industry. Another source, who didn’t want to be named, works for an pastedGraphic.pngIstanbul based, international retailer specialising in men’s and women’s contemporary casual wear. They make everything in Turkey, except the outerwear and produce all sorts of jersey tops, knits, light weight woven tops and dresses, shirts, jeans and non denim bottoms.

“On the retail side, all international brands in Turkey raised their sale prices as a quick response,” he says. “Local brands (like us) kept prices to an affordable point. It helps to keep the customer loyalty and bring new customers in. On the other hand it sums up to a profit loss”.

“On the manufacturers' side all exporting factories had the advantage,” he says. “But, there are difficulties with their local customers pricing the new collections and receiving payments".

"All products' costs were dramatically raised up due to fabrics, yarns and accessories prices all being in USD. The payment terms between local brands and suppliers are another case that sourcing and finance teams have to deal with,” he says.

The local Turkish consumers will feel the squeeze and any ambitions that foreign brands or retailers had for growth in Turkey will have to be rejigged to recognise this.

“It will definitely make customers to buy less fashion products in the short term.” he says. “They (consumers) will target more affordable products and retailers. The volumes will slide from better brands to budget retailers. So, the better brands will grow their entry price point product groups to keep their customers.” he says.

While Turkey has become a more attractive place to manufacture and buy fabric from for international brands, in the short term, those retailers or brands may be restricted in their fabric and hardware choices if their suppliers work in Turkish lira and imports become much more expensive.

While the currency has bounced back slightly, it’s still volatile and this makes investors uneasy. While this lira boon may increase demand and production, lower investment, due to the high interest rates and overall caution within the Turkish manufacturing business and economy, may stall growth in production capacity and restrict businesses from reaping the full benefits. 

The domestic market will move further towards lower end, homemade product and will definitely dent the luxury international brands unless they can be replaced by tourists with more liras in their pockets. While you’ll probably be seeing an increase in ‘Made in Turkey’ labels in your clothes soon, it will be to the detriment of the local economy.

Published in Fashion
Wednesday, 21 June 2017 12:47

London Menswear Trends Scrapbook SS18

Large Orange Bag Menswear LFWMLarge Yellow Bag Menswear LFWMBig Coloured Bags

If you're a man carry man-sized stuff around, you need a man-sized bag, obvs. Matching it with your hair is up to you.

From Far Left - Tourne de Transmission, Berthold

LOVE & PEACE

Who was it that once sang, ‘All you need is love’? Well, whomever it was, London needs a bit of a cuddle right now.

Below - Oliver Spencer, Bodybound

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWM

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMCanary Yellow

Just as orange has become a menswear staple colour, it's now time for primary yellow.

From Far Left - Kiko Kostadinov, Berthold

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMAndrogynous ‘Non Binary’ Club Kids

Men’s and women’s fashion collections are merging so they may as well make it all androgynous, unisex and non-binary. They’ll save a fortune!

Anything goes? Yep! Read more here

From Far Left - Charles Jeffrey Loverboy, Art School

 

 

 

 

 

 

 

 

  

String Vests

Alf Garnett becomes the style icon for SS18.

From Below Left - Per Götesson, Nicholas Daley, Bodybound, Katie Eary

 Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWM 

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMName Badges

Networking, fashionably so.

Far Left - Miharayasuhiro, Blood Brother

Logo Tape

Selvedge tape continues to proclaim you allegiance.

Below - Bobby Abley, Christopher Raeburn

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWM

Striped Rowing Jackets

Keep putting your oar in? Don't stop. Discover the new brand Rowing Blazers - here

From Below Left - Topman Design, Songzio, Hackett, Kent & Curwen, Kent & Curwen

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWM

Large Yellow Bag Menswear LFWMBrexit Breakup

Border control. Who needs the eye scanner when you can wear this?

Left - Bobby Abley

Characters

The first rule of fashion week - always end your show on a high.

Below - Bobby Abley, Liam Hodges

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWM

 

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMCycling Shorts

Fashion gets streamlined. Bike optional.

From Far Left - Martine Rose, Daniel W Fletcher, Wan Hung

Tie Fasteners

Fashion loves a few pointless dangly bits.

From Below - Tourne de Transmission, D.GNAK 

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWM

 

Large Yellow Bag Menswear LFWMLarge Yellow Bag Menswear LFWMBig Zips

Who knew big zips could be so slimming?

Both - Miharayasuhiro

Published in The Fashion Archives
Wednesday, 21 June 2017 09:33

Hot List The Henley Hackett Tie

Hackett Henley Regatta Club Tie RowersIt seems we need an occasion to wear a tie, today. So, what better an occasion then, than watching tall posh boys grunt and strain while pushing along the River Thames?

Hackett has teamed up with Henley Regatta for their first clothing tie-up in their long history. Featuring striped rowing blazers - which I’m all about ATM - here - and branded tops, it’s this tie which really caught my eye. The design is fun yet still firmly in the club mould and is a great price for a Made in England tie.


Left & Below - Hackett - Henley Royal Regatta Man Row Stripe Tie - £65

Hackett Henley Regatta Club Tie Rowers

Published in The Fashion Archives
Monday, 08 August 2016 13:54

#OOTD 85 Olympic Geek 2/5

running geek soar sportswear olympicsKeep on running, but no hiding! Getting games fit, TheChicGeek, is doing work on his sprints. Always stretch before you style, that's his advice, and keep things loose and light.

Move over Usain! TheChicGeek means business in his Olympic preparation in a simple vest top and dark shorts. Add matching accessories in everything from navy to electric blue. On your marks, get set, GO!!!

Credits - Trainers - Puma, Water - Smartwater, Sunglasses - Oakley, Socks - Huez, Watch - AVI-8, Shorts - Soar, Blue Hooded Top - Hackett Sport, Sleeveless Navy Top - Soar, Rucksack - UTC00, Self-Tan - EQ Evoa, Face Scrub - Clinique For Men, SPF 30 - Clinique

More images & video below

See OLYMPIC GEEK 1

OLYMPIC GEEK 3

OLYMPIC GEEK 4

OLYMPIC GEEK 5

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Published in Outfit of the Day

bmw i3 electric car the chic geek ootdHave electric car, will travel. Continuing his series of #FutureIcons in association with BMW i3, TheChicGeek drove East to see the first of London's new Elizabeth Line which opens in 2018. Dressed to travel in style, TheChicGeek is wearing a navy suit from MRPORTER.COM and silk shirt for when he arrives in warmer climes.

TRAVEL - The only visible Elizabeth Line station, at the moment, is at Canary Wharf in London's Docklands. Designed by Lord Foster, the new station has been built in the dock and features tropical roof gardens and a leisure complex above the new Underground line.

Credits - Suit - Hackett, Watch - Uniform Wares Both from MRPORTER.COM, Checked Shirt - Thomas Pink, Shoes - Russell & Bromley, Wallet - Tumi, Passport Holder - Tumi, Suitcase - Tumi, Hair Clay - Mojo Hair

See ART

See SCIENCE

See DIPLOMACY

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Published in Outfit of the Day

the francis crick institute london bmw i3Continuing his #FutureIcons series, in association with the BMW i3 MRPORTER.COM limited-edition, TheChicGeek wanted to be the first to see the future design icons of London popping up all over town.

Quietly, it's electric don't you know, he drove to The Francis Crick Institute just behind The British Library. TheChicGeek has his science head on in this OOTD in a JW Anderson space shirt and Cutler & Gross spectacles. Somebody pass me the plug!

SCIENCE - Named after the man who co-discovered the DNA molecule, The Francis Crick Institute is a biomedical discovery institute, next to St. Pancras station, dedicated to understanding the scientific mechanisms of living things. Its work will help to understand why disease develops and to find new ways to treat, diagnose and prevent illnesses such as cancer, heart disease, stroke, infections, and neurodegenerative diseases.

Credits - Jacket - Hackett, Shirt - JW Anderson, Watch - Uniform Wares, Spectacles - Cutler & Gross all from MRPORTER.COM, Shoes - Russell & Bromley, Jeans - Paul Smith Bespoke, Yellow Candle - Cyrnos Cire Trudon, White Fragrance - Mont Blanc Legend Spirit, Gold Fragrance - Dunhill Icon Absolute, Blanket - Hackett

See ART

See TRAVEL

the chic geek bmw i3 cutler gross spectaclesSee DIPLOMACY

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Published in Outfit of the Day

BMW i3 Mr Porter limited edition chic geekTheChicGeek was given the privilege of experiencing BMW’s new limited-edition MRPORTER.COM i3 electric car for his latest series of OOTD. Looking sleek in its navy/black colourway with white highlights, the new BMW i3 X MRPORTER.COM is the city car equivalent of a classic tuxedo.

TheChicGeek thought he’d take a spin around the city and take a first look at the latest crop of buildings springing up in London. Much like the new BMW i3, these buildings will become the future design icons of London.

ART - The first stop was Tate Modern’s new extension, opening this year, housing its video and performance art collection.

Get involved #FutureIcons #BMWi3

Credits - Suit - Acne Studios, Shirt - Paul Smith, Watch - Uniform Wares all from MRPORTER.COM Shoes - Russell & Bromley, Change Tray - Typo, Vetiver Insolent - Miller Harris, La Promeneuse Scented Cameos - Cire Trudon, Blanket (background) - Hackett

Shot by Robin Forster on Olympus PEN

Watch the video below

See SCIENCE

BMW i3 london the chic geek ootdSee TRAVEL

See DIPLOMACY

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Published in Outfit of the Day
Tuesday, 30 December 2014 11:36

#OOTD 25 Happy New Geek!

the chic geek menswear j crew velvet jacketTheChicGeek always ends the year the same way he started it, in style! Going old school for New Year's Eve, TheChicGeek has opted for a classic velvet tuxedo jacket, in plush claret, teamed with black dinner trousers, white shirt and oversized tartan bow-tie.

Happy New Year and see all you ChicGeeks over in 2015!!!!!

Credits - Velvet Jacket - J. Crew at MRPORTER.com, Shirt - Hackett, Bow-Tie - Thomas Pink, Watch - Links of London, Trousers - Hackett, Socks - Pringle @sockshopuk, Shoes - Louis Leeman

Shot by Robin Forster using #Olympus PENthe chic geek thomas pink bow tie hackett dress shirtthe chic geek happy new year 2015links of london watch the chic geek louis leeman shoes the chic geekthe chic geek happy new year bloggernew year eve menswear geek

Published in Outfit of the Day
Tuesday, 09 December 2014 09:56

#OOTD 22 – Pinstripe Day 4/4

the chic geek pin stripe suits menswear styleIt’s the end of the day, literally, and after a long day blogging, TheChicGeek likes nothing better than a good book – TheChicGeek’s Fashion, Grooming & Style For Men – to be precise!

Kicking off his shoes, he still looks the part in his double breasted pinstripe suit and, thankfully, his geeking for the day is done.

Credits – Suit – Atelier Scotch, Shirt - Evocha, Tie – Drake’s, Watch – Maurice Lacroix, Briefcase – Swaine, Adeney Brigg at MR PORTER.COM, Bowler Hat – Hackett, Socks – Stance

Shot by Robin Forster on #OlympusPEN

With thanks to Rocket Gallery

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Published in Outfit of the Day
Monday, 01 December 2014 17:20

#OOTD 21 – Pinstripe Day 3/4

the chic geek ootd men's style fashion bloggerThe only thing predictable about the British weather is its unpredictability. Teaming a warming roll-neck with his double-breasted pinstripe, TheChicGeek is always prepared, whatever the weather. The geek means business and never leaves home without a stylish umbrella to ward off those raindrops and stop his ginger paint from running!

Credits – Suit – Marks & Spencer ‘Best of British’, Roll-neck - GAP, Watch – Maurice Lacroix, Umbrella – London Undercover at MR PORTER.COM, Bowler Hat – Hackett, Shoes –Church’s, Socks – Thomas Pink

Shot by Robin Forster

With thanks to Rocket Gallery

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Published in Outfit of the Day
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