Turkey textile hubs face revenue collapse amid rising costs

The textile and ready-to-wear hubs of Laleli, Merter, and Osmanbey in Turkey are facing a severe economic downturn. According to Gıyasettin Eyüpkoca, President of the Laleli Industrialists and Businessmen Association, revenues from these districts have plummeted by 70 percent from a peak of $16 billion.

Several factors are driving this decline. The ongoing Russia-Ukraine war has eroded purchasing power in key markets, while rising domestic production costs in Turkey have created a 40 percent price gap compared to competing manufacturing nations. Additionally, the shift in consumer interest toward China following visa changes has further impacted the region.

Wholesalers report significant operational struggles, including large-scale layoffs and the need to offer credit or even travel incentives to retain foreign buyers. The loss of market share in Central Asia and the Balkans is also contributing to the contraction of the sector.