Bloomberg-Nurettin Eroğlu Konuşması

Thank you. Before getting into that, I want to emphasize the importance of the awards. Receiving such an award, gathering the sector together, creates a competition and motivation. It makes people think, 'We were here this year; next year, let's surpass that.' Without competition, even awards create a kind of competition. You say, 'We were third; how can we become first?' It makes you more disciplined. I thank our Chairman for that. The ready-to-wear sector has a very serious history in Turkey, about 50 years, but it gained significant momentum in the last 30 years. It is Turkey's number one export sector. Although the automotive sector appears to be first, I'm not saying that to diminish it, but every product in ready-to-wear is produced and exported from Turkey, while automotive has more assembly. In terms of employment and spreading across Turkey, it has a huge advantage, and its domestic input ratio is very high. Looking at the years, production was once more concentrated in the Marmara region. Between the early 2000s and 2008, we were significantly affected by exchange rates. Seizing that opportunity, we moved production to Anatolia. For example, our factory was in Çorlu and Avcılar. Now we can't produce in Avcılar at all. I say this to emphasize that the sector is moving in the right direction. We had a factory in Çorlu, and without downsizing it, we made a major investment in our hometown Aksaray, where we currently employ 1,500 and will reach 2,500. Other players did the same; some went to Şanlıurfa, some to Malatya, spreading across Anatolia and increasing employment there. The sector brings in foreign currency, and there is a serious population in Anatolia waiting for jobs. The biggest advantage of ready-to-wear is that it is labor-intensive and provides substantial employment to people in Anatolia. In Aksaray, we have 1,500 employees. When you add services like transportation and meals, you create significant added value. This will develop further in the coming years; production will spread from Marmara to Anatolia. We have serious projects. For example, Aksaray is right in the middle of Turkey. From there, we coordinate logistics, cutting, and operations, and we are expanding eastward with our workshop partners. Additionally, ready-to-wear has another added value for Turkey. Besides producing for international brands, we now have our own brands. We are an important group in that regard. We currently have three brands: Colins, L, and our new brand Max. There are others like us. We are both producers and brand owners, representing our brands abroad with our own stores.

There is no such thing anymore where we just wait for orders. Large brands come with their styles, and we prepare collections. They place orders based on our collections, shaping them to their brand identity. You end up following global fashion trends because you are designing for your own brands. This chicken-and-egg cycle is actually a win-win formula. Doesn't this also show the level Turkish design has reached?

Let's divide this in two. As Turkey, we produce for high-value brands. The foreign brands in Turkey are mostly buyers. To strengthen this, we are moving to Anatolia to reduce unemployment and lower costs. The government is providing serious support. This is a clear sign of the sector's current and future growth. Our move to Anatolia is providing major added value to address unemployment there. Second, we already do this and produce for global brands. And with our own names and brands, we are present in all countries. As you said, we have 26 own stores in Russia and 100 in Ukraine. Currently, about 30% of our KİS and Max stores are outside Turkey. We have nearly 1,000 stores. How is the trade process going? Any problems? Of course, there were political issues stemming from Syria, but trade relations continue despite some tension. However, in the last three months, there have been no issues. We can send our goods and sell them. I don't think it's right to mix trade and politics. Our government is following a proper policy. The Russians were disturbed by the downing of their plane and mixed politics with trade, creating some anger, but it's calming down. We have no serious problems now; we can send our products freely. I believe the tension stemmed from external dynamics, not internal ones. Turkey needs Russia, and Russia needs Turkey. We have neighborly relations, and I am confident it will improve.

Now, I am saying something very important. Just as 20-30 years ago we were compared with other countries in ready-to-wear, now those countries don't even produce anymore. We produce and supply to world brands. In the next 20 years, our brands will be prominent in ready-to-wear. Even opening a brand in Europe, paying for central offices and rents, is costly, as we know from Max in Holland. As Turkey, we are now a fashion center creating brands, and the government is seriously supporting this. I believe in the next 20 years we will have very important global brands, and we are at the forefront of this branding process. The contribution to ready-to-wear will be: with both production and branding together, things become easier. When an American or European brand looks at price, if it's not suitable, they can easily go to another country. But with your own brand and production, you have a great advantage. This creates good synergy.