Mustafa Küçük0:02
Okay my dear, good morning brother, hello.
Thank you for the invitation. Let me also congratulate all participants and the Islamic world on the blessed Ramadan Bayram. By the way, how's our time, Mustafa abi?
Okay then, let's continue. As you mentioned, my past is quite parallel to most textile businessmen's backgrounds. As I've mentioned before, my village was cleared, children were sent off, winters were spent in school, summers were spent as a shepherd and on the farm. If you ask what my profession is, I'd say I'm a cotton grower, self-made, I know these businesses very well. Until about age 20, I spent all my summers working in the fields, vineyards, and gardens. Let me tell you how this benefited me — when I entered business life, I realized how much that farming background contributed. I benefit from it in 37 different ways. The resilience, the problem-solving, the discipline — all of these came from those early days of shepherding and farming. Perhaps education-wise I was less fortunate, but in terms of practical experience I was quite lucky. I started primary school and from fifth grade onward — we weren't actually born in a village but in a small settlement. The local teacher had converted a barn next door into a classroom and opened the school that year. The teacher took my hand and led me to that barn-turned-classroom. But there was no proper school system — five-year-olds and eighteen-year-olds were in the same class, all together, one teacher for fifty students. But I should say, I was a very successful student in primary school. In fourth grade, when they wanted to move us to the district, I was held back a grade. The teacher said he couldn't let such a student go. My education before that was affected by left-right conflicts, teacher shortages, schools being closed for weeks at a time. I'll say this: I never completed primary and high school properly. People often say early education is the foundation, but perhaps my early successes were short-lived and not based on formal education. The real education came later, lifelong. I'll share how that developed shortly. During this period, the first thing I did — when I reached high school age, my family sent me to a prep school in Malatya. I told them I wouldn't go to school. They were shocked — what do you mean, they said. I said if it's going to be like this, I won't go. My father said if that's the case, he'd bring me an atlas and I could study in a hotel room. So I studied the final year alone in a hotel room with my classmates. I had made a promise — I would win and get in. Eventually I went to Konya, but I didn't get into the academy. Actually, at university I was a good student. After finishing in 2003, I started looking for work and took various exams — machinery, chemistry — nothing worked. I told my family they were sending me to the wrong place, nobody would hire me. I said I need to study at Selçuk University in Konya. I started developing myself. I attended Technical University during summer breaks. I worked at an acquaintance's export company. Then in the trade business, I showed determination — I realized my engineering background wasn't enough. I needed to learn marketing, accounting, business management and organization. I enrolled in evening classes for business administration and worked during the day. This pushed me toward the right path. The companies that offered me jobs — when I arrived, management had changed and they told me there was no job. So I thought, what do I do now? I kept taking exams, banks and such, nothing worked. Then one day in business administration class, I sat next to a classmate. Today I visited him in Bayrampaşa Emintaş Industrial Zone — his name was Mehmet from Adana, Ali Kadioglu Ates. I went to him and said, what are you doing? He said, I'm looking for work. I said I've learned the business. I learned everything — ready-made garment exports, fabric production. I said let's do this. We started in Bayrampaşa with a family business. I started in a field I knew nothing about — the confection sector, textile. It was an unknown world to me. No personnel, what do I do? We need to do marketing, find customers. I took addresses from trade directories. We wrote to companies in America, Europe. This was 1986-87, just starting out. I shared a driver with someone. I learned everything — dyeing, accessories, all of it. In Zeytinburnu and Bayrampaşa, we started doing this work. That was important too — when orders came in, they started trusting us with more work.
Yes, naturally. When good orders started coming in, the same problem arose the next year. Let me be honest — we had a serious issue: production was done, but the customer didn't take the goods, rejected them for poor quality. We went through this repeatedly. We had to answer to our bosses. But we didn't give up. We kept going. Fortunately, the bosses showed patience. They had given me a small amount. In 1988, we encountered LC Waikiki, an intermediary brand. At that time, LC Waikiki was famous for their monkey shirts and there was huge demand. They would fill a wholesale warehouse every week, and it would empty by evening. Production was happening, they were having them made in India and Greece. They came to us asking if we could do it. We said of course. I jumped at it, came to the songs, and we did it. As we were parting ways, he said let me tell you something — I play poker. He said I'll put up your money if you don't have it. That's how we started the orders. With God's help, we worked day and night. After that, we eventually set up our own place. We got really experienced in production. The customer had a daughter who became a supplier — she's still one of our most important sources today. During those days, we felt the pain of the industry — we'd go to a printer and they wouldn't have enough capacity. We'd go to a dyer and they couldn't deliver in a week. We'd go for a label, and nobody in Turkey could produce the type of labels we needed. So we set up our own facilities — a small dyeing unit, a labeling machine. Maybe it was a bit excessive, but we did it for customer satisfaction. After doing all this, a friend said let's set up a small company. That's how companies like Ebru Nakış were founded — all under one apartment building, starting with 12 machines and one or two embroidery machines. By the '90s, they had become large enterprises. After that, God granted us wealth. When a partner separated and struggled, another partner joined. Someone from France said to us, take this on as a trust. Before that, we had also gotten into wholesale. We entered the wholesale market in Turkey with İsmail Akpınar. Let me check something here. As I mentioned, I was trying to close the education chapter — school, university, the gap years. During that time, I was a shy, introverted person. When it came to leadership qualities — when I was being hired, they'd say why didn't you call us? Very soon they'd do tests on you. Business leaders couldn't see my potential. So now when I talk to consultants, I tell everyone — come, visit, so people can see me. Someone once told me, after consulting without asking me, that I didn't seem extraordinary. But what was behind this was my diligence and work ethic. That's what drove everything. Someone said when looking for a successor, who could it be — someone successful in trade. I had no interest in that whatsoever. I couldn't handle five things at once, five thoughts at the same time. In one room, we'd agree — my classmate was there. Back in the '80s, there were calculators and other things, but no computers. I said I don't know how to do this, but somehow I got into it. For someone with no interest, once I got into it, I discovered myself — this profession is perfect for me. That's when I moved into software. I got programs 2 and 3. One of the most important reasons for my current success is that in 1985, I wrote a program for copy-paste and heating projects. As I was coming here, I need to connect this — Mustafa abi, your real success came when LC Waikiki surpassed you, meaning after you acquired the brand rights. The management success of that period — can you describe that? The store expansion, sales, production policies — did you get technical support, did you follow someone's example? I'd like to hear about that process.
Yes, if we set aside our development phase, we started producing ourselves. The second phase was our growth phase through franchising. After getting the LC Waikiki brand name, we tried to grow through a franchise system and wholesale sales system. That growth from '92 to '96 was entirely based on the franchise system. Around '96-'97, we started transitioning. We were aware that the wholesale model had limits, and globally the trend was toward brand-owned retail chains. When God permits, we wanted to have our own store chain like the big brands. We made that transition, though it was a bit slow. When the 2001 crisis hit — that was actually the year we transformed. You know, overnight interest rates hit thousands of percent, the dollar went from 600 to 1700. Banks were calling, our situation was dire. When debt triples overnight in a situation like that, you spend sleepless days. We even tried selling company shares, sold some factories, tried to exit certain areas. But thank God, we didn't lose a single contract. However, we were saying — if these debts aren't paid, Yapı Kredi and others are in trouble. Where is this headed? So we said this can't go on. The radical decision we made that day is behind the growth that followed. It was about destruction and rebuilding — I learned this word later. We had to break down and rebuild what we'd spent 10 years building. The franchise agreements we'd painstakingly created — we had to let them go. We sent a single message: we will work on cash basis only. Naturally, everyone resisted. But when we arrived, 180 franchisees had already stopped working with us. I thought about it — roughly 100 million dollars in revenue, 15 million left due to the penalty. But we said we'd move forward. The plan behind this was to focus on our own stores. Why? Because what a franchisee wants and what the consumer wants are different. The franchisee might want more basic items, but the consumer wants more fashionable, innovative, different products. The franchisee wants lower-cost, tried-and-true products and won't take risks, wants to order at the last minute. There was a 50-60% disconnect between what the franchisee wanted and what the consumer wanted. So we said we'd go with our own stores. Our own stores had been so neglected because they weren't the priority. The factories were in a way blocking our growth — how? Because our own factory managers and general directors wouldn't listen to us, they were loyal to their own operations. But when we invested and were about to give up the factories, they pushed back. So we said we'd go into export production, which was the right direction for Turkey. We created a subsidiary company, handed over production, focused on contract manufacturing, and tried to find ways to cut production costs by 20-30%. That was important too. Additionally, with their support, LC Waikiki had been targeting a slightly higher segment. But we realized that while the upper segment has many players, the real driver is the mass market. So we decided to bring in a French brand and make it affordable — that's where this came from. The second priority was also important — let me explain. I personally switched to the holding company side. I left production completely. I still see the production companies maybe once a year at an iftar dinner, that's it. That's how I separated — just 10 minutes after sending the message. Another key decision was that we would become a retailer now, focus on retail and wholesale, forget the producer identity. We'd bring in international expertise. But I believe the real secret behind the success was something else — a characteristic I have. Once I set my mind on something, I have an insatiable curiosity to learn it as well as possible. When I took over management, I brought in consultants from America. But the first thing I did was sit down and learn myself — planning, operations, I even wrote the manual. I explained it from my own perspective. Supply chain systems, logistics — I worked with consultants on all of this. Then we realized it wasn't enough and brought in foreign experts for design, planning, and sourcing. One of them is retiring this year — he's been with us since '97, thirteen years. In the 2000s, we just kept bringing in personnel, kept working, kept learning. We endured their demands because we wanted to learn. The second thing was total quality management, which was very popular in the '90s. Process creation, system management, software development — I got deeply into this. I said let's work with outsiders to see if we can do it, but it wasn't possible. So I studied how to write a project, how to create processes, how to develop software. There were no ready-made software packages or systems back then — everything had to be built from scratch. I wrote code myself. In one year, I wrote about 1,500 programs. It was incredibly difficult — you have to think through every scenario, every possibility. For a company to become institutionalized, processes need to be documented, systems need to be created, procedures established. These are the fundamental building blocks. The third pillar was strategic planning — making everything measurable, not just qualitative. I approached the company like an architect — I learned the system and worked within it. This motivation has continued for 25-30 years without fatigue. Where do you get this energy? When asked, I say it comes from the country's need. When I was 22-23, I visited a foreign trade marketing firm. Thank God, I witnessed the opening up during the Özal era. One thing bothered me deeply — this idea that our country is backward, that nothing good can come from us. I was bothered by the problems of the era: the weak social state, inequality of opportunity, injustices in trade. I wanted to address all of this. In the 1990s, we decided to build LC Waikiki's mission and vision around this. We said we would create a company that addresses inequality. Good clothing is everyone's right — we said we'd dress the child of a minimum wage worker just as well as our own children. That was our mission. We wanted to help people look good within their budgets at affordable prices. The second goal was to contribute to the country's development. Turkey needed exports most — we set ourselves a target for 2023, the Republic's centennial. We said we'd aim high. The third thing we established was customer satisfaction. If a customer buys from us and says thank you, we've done our job. We put quality and the most suitable price at the top. The second value was supplier satisfaction. I was very disturbed by the practice in the market where suppliers waited 60, 90, even 120 days for payment — broken promises, opportunism. We said we'd pay cash so both sides are satisfied. We also said we wouldn't engage in unfair deductions or false claims. I had been hurt by European brands doing this to me in the past — I swore I'd never accept a claim without my own approval. The fourth value was employee satisfaction and loyalty. And fifth — during a time of quite divisive politics — we said there would be no headscarf or no-headscarf divisions, no such distinctions. We wanted to create a truly democratic company where people of all backgrounds, ethnicities, and languages could work together. We established all these values, and the energy to keep going comes from this mission. We also established social responsibility from the very beginning — we said students, the poor, the needy would benefit. Over time, this grew — what we distribute, the same amount goes to social causes. Now, some will say what's behind this success — we did good work, made efforts, had good intentions. But we also made mistakes. What I believe is that behind this, there are prayers. There's divine help. When we give, He gives back. I have no hesitation sharing this. Perhaps we worked hard, did our best, had good intentions, but we had shortcomings. We tried very carefully but sent wrong shipments, had delays, other issues. But ultimately, through prayers and blessings, we reached this point. We shouldn't look only at ourselves.
What I've said isn't a rule, it's not necessarily correct. Let me share my experience. It's one of the things I've done, and it's worked well. But of course, looking at other companies, especially in family businesses, when family harmony gets strained and partners — particularly relatives — the partnerships that started sweetly end badly. When family members get involved, children grow up, and after a while, the dynamics change. In companies where the transition isn't handled properly, and different problems arise between partners — I looked at this and decided it was the right approach. I started from zero. Let me tell you — I have nine siblings from Malatya, Doğanşehir. Some educated, some not. They came to me to work. In the early years, we needed that trust — it was natural. Family should be there. But problems started emerging. One, a brother-in-law — very capable — but expectations kept growing. There was a situation in Konya. Another one was working as an assistant, but felt overshadowed, felt like the owner's underling. These things can sometimes be felt but not easily discussed. The second problem was that no matter how you treat family members — even if you treat them very well — you can't treat a brother-in-law the same as a stranger. That's a major problem because you can't be fully open with them, can't give direct feedback. Weaknesses start showing. Thirdly, professionals don't want to work under family members. If you assign a capable person under a relative, they feel uncomfortable. There are many such problems. Fourth, very important positions in the company get occupied by family, and when other family members come — sisters, brothers, nieces — family peace is disrupted, family relationships suffer. Fifth, certain positions get pre-occupied and no new talent can come in. So what did we do? We made a decision. We said we'd help our family members set up their own businesses. We provided projects and startup support for all the younger siblings. They returned the support to the other partners. Within about a year and a half, all of them were on their own feet. Today, thank God, each one of them has their own business, their own employees. They're their own bosses. Our family has no issues, no conflicts about where they belong. This way, the next generation also understands that LC Waikiki is a professional company. My brother's children and my children also work here, but they all entered professionally. The reason is that. Thank you Mustafa abi. Another important topic from a previous interview — you said our internet store exists, and we should have a thousand factories. There are many textile friends here. Can you elaborate on both your future plans and what you mean by a thousand factories?
Yes, when I took over, it was a dream of mine. Everything starts small. In the 2000s, I didn't go back to production — I wanted to learn fashion, digitalization, e-commerce. But along the way, we encountered a new need. In the world of fast fashion, to produce innovative products that the customer wants at the last moment, you need a rapid response system. You need small batch production. This also needs to be done with quality and to standards. When we grew big — when volumes passed 300-500 million units — the error rate, which was acceptable before, became a serious problem. In this new world of social media, one defective product on Instagram or Twitter can damage your reputation. So we now need to build this capability.
Birbirini mutsuz bir müşteri bizi rezil etmeye yeter geliyor. İstatistiklere göre, 100 bin adette bir adet bile milyonda bir sorun kaynağıdır. Böyle bir ürüne kaliteli yapılması çok önemli, hedefi çok önemli. Bu fiyata bu işi nasıl yapabilirse...
Bir dönem bir arkadaş dedi ki, sağ olsun, satılık üreticilerin izine gelenlerin kalitesinde standardını tamamlayabiliyor ama tam tutturamıyor. O da bize dedi ki, biraz sinirlendim ben. Starbucks modeli, McDonald's modeli gibi, dünyanın her tarafında mağazası açıyor, bir standardı var. Ama o standardı tutturamıyor.
Üretim tekniklerine kafayı taktım. İşte bu iş için iyi örnekler var. Otomotiv sektörü modelleri, sıfırdan başlayıp çalışıyor. Toyota'yı incelemeye başladılar. Zaten insanlar başladı bunu yapabilir miyiz diye.
Bu geçebilmek ve bunu Türkiye'deki yatırımcıların önünü açmak için, birlikte çalışan personel alımından eğitimine kadar, orada kullanılan araçlar, teknikler, ölçüm sistemleri, hepsini bir standart haline getirelim, kitapçık hazırlayalım, videolarını çekelim diye düşündük.
Arkadaşlar, bayrak işte bazıları içinde tekstil sektörünü nasıl kazandırabiliriz? İçinde kimya mühendisliğini, tekstili gelmiyorlar çünkü şirketleri bankalar başka bir motivasyon yapabilir. Bu değişimin sahip olabilir mi? Bir operasyon modeli bulabilirsek...
Biz bu gençlere davranmak için, erken yatalım, bu işi öğren. Tabii ki oturacaksın, dikeceksin, bu işi zaten öğreneceksin. Öğrenirsen artık ben sana fabrika nokta olacağım, bir daha sonra çalışma diyebilirsin. Böyle bir model olabilir mi?
İkincisi de uygun olan bu büyümenin arkasındaki neden de maalesef, 2000'li yıllardaki haberleşme, küreselleşme, serbestleşme. Şu anda dünyada bambaşka bir yere evrilmeye başladı. Bu da yeni anlaşmalar, karayollarının engellemeden çıkması.
Bu sürecin başladığını biliyorsunuz. Önümüzü bizim şu anda açtığımız ülkeler bizi zorlamaya başladılar. Bizim ülkemizde üretim yok, nasıl bir ülkemizde almasanız size engelleriz dediler. Aslında Türkiye'nin 2013'te yaptığını yapmaya başladılar, zaten başladı.
Bu da satıyorum, güzel etmesine izin vermem dedi. Daha sonradan başka problemler çıktı. Muhtemelen konfeksiyon üretiminde yeniden ağırlık vermeye başlayacaklar. Geçememek durumunda karşı bizim dünyada büyüyebilmemiz için belli ülkelerde bu tedarik zincirini kullanmamız gerekecek. Bulabilmek için de yeni standarda ihtiyacımız var.