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THE TURKISH LEATHER INDUSTRY

March 2012 Istanbul Leather & Leather Products Exporters Association

The history of Leather is as old as mens history; By learning how to hunt, first men also learned to use the skin When the Turks surrounded Istanbul in the year 1453, the place where Fatih Sultan Mehmet stayed, contained plenty of good water suitable for leather tanning, therefore after the conquer of Istanbul, the Sultan reserved this zone for the leather industry, Just outside of the Topkapi citywalls, called Kazleme, the first leather industrial zone was established and lived for about 500 years.

16 years ago, this zone moved from there to Tuzla Industrial Leather Zone, where we can proudly say that the biggest industrial leather zone in Europe where inside ecological production is made. Today there are about 13 Industrial Leather Zones in Turkey which enables us to use modern technology and to produce environment friendly high quality products.

TURKISH STRONG LEATHER PROCESSING


TURKEY HAS A STRONG TRADITION OF PROCESSING LEATHER WHICH COMES FROM ITS HISTORICAL PAST. IN THE MEANS OF THIS TRADITION, TODAY, TURKEY IS ONE OF THE MOST ASSERTIVE COUNTRIES IN PRODUCING HIGH QUALITY LEATHER PRODUCTS IN THE WORLD.

THE UNIQUE FEATURES OF TURKISH LEATHER BRANDS


TURKISH LEATHER BRANDS, WITH CENTURIES OF EXPERTISE AND HIGH SKILLED WORKFORCE, TURNS THE LEATHER INTO ITS MOST PRECIOUS FORM. THE SIGNIFICANT DIFFERENCE OF TURKISH LEATHER IS CLEARLY APPARENT IN EACH AND EVERY STAGE OF THE MANUFACTURING PROCESS. THE VALUE CREATED BY TURKISH CRAFTSMANSHIP; THE PERFECT CUT OR SEAMING IS THE PROOF OF QUALITY LIES IN DETAILS.

THE TURKISH LEATHER INDUSTRY IS ONE OF THE MOST SIGNIFICANT INDUSTRIES WITHIN THE TURKISH ECONOMY

Accounting for;
1 % of Manufacturing Industries Output, 1.7 % of Manufacturing Industries Labor Force, 1 % of Total Turkish Exports Earnings.

TURKISH LEATHER INDUSTRY IS ONE OF THE BIGGEST PRODUCERS IN THE WORLD


FOR THE SHEEP/GOAT LEATHER PRODUCTION, TURKEY IS THE SECOND BIGGEST PRODUCER IN EUROPE AFTER ITALY AND 4TH BIGGEST PRODUCER IN THE WORLD AFTER ITALY, CHINA AND INDIA. TURKEY HAS THE BIGGEST PRODUCTION CAPACITY OF DOUBLE FACE SHEEPSKIN LEATHER IN THE WORLD WITH 80 MILLION PCS./YEAR.

ON THE OTHER HAND, TURKISH LEATHER INDUSTRY DEPENDS ON MODERN PRODUCTION INFRASTRUCTURE IN TANNING AND LEATHER PRODUCTION REALIZED AT ECOLOGICAL CONDITIONS. THE QUALITY OF TURKISH LEATHER GARMENTS AND LEATHER PRODUCTS CAN BE COMPARED WITH ITALY.

THE EXPORT PERFORMANCE OF THE INDUSTRY

THE TOTAL EXPORT OF TURKISH LEATHER INDUSTRY WAS ABOUT 1,5 BILLION $ IN 2011 ACCORDING TO OFFICIAL FIGURES.

THE TURKISH LEATHER INDUSTRY IS A NET EXPORTER IN THE FINISHED GOODS WHILE IT IS A NET IMPORTER IN RAW MATERIALS.

THE TURKISH LEATHER EXPORT AMOUNTED AS 1,5 BILLION $ IN 2011 IS COMPOSED OF FOOTWEAR WITH A SHARE OF 31 %, DOUBLE FACE GARMENT WITH 19 %, LEATHER GARMENTS WITH 16 %, LEATHER GOODS WITH 16 %; RAW HIDES/SKINS AND FINISHED LEATHER TOGETHER HAVE A SHARE OF 16 % IN TOTAL TURKISH LEATHER EXPORT. ON THE OTHER HAND, THE RAW HIDES/SKINS AND FINISHED LEATHER TOGETHER HAVE A SHARE OF 37,2 % IN TOTAL TURKISH LEATHER IMPORT.

LEATHER & LEATHER GOODS EXPORT OF TURKEY 2011


FINISHED LEATHER & FUR 16,7% FOOTWEAR 31,5%

SADDLERY 16,5%

TOTAL LEATHER AND LEATHER GOODS EXPORTS : 1,5 bln $

LEATHER GARMENTS 16,5%

DOUBLE FACE GARMENT 18,7%

LEATHER & LEATHER GOODS EXPORTS 19952011


1.600.000

2011 Total Leather & Leather Goods Exports 1,5 bl $

1.400.000

1.200.000

1.000.000

Million USD

800.000

600.000

400.000

200.000

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2011

LEATHER & LEATHER GOODS IMPORTS 19952011


2.500.000

2011 Total Leather & Leather Goods Imports 2,2 bl $

2.000.000

M illio n USD

1.500.000

1.000.000

500.000

0 1995

1996

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2011

WORLD LEADING LEATHER &LEATHER GOODS EXPORTERS 2010


Turkey has a share of 1 % in world total export.
CHINA 31%

OTHERS 36%

TOTAL LEATHER EXPORT OF THE WORLD: 190 BLN $

TURKEY 1% GERMANY FRANCE 4% 4% VIETNAM 5% HONG KONG 8%

ITALY 11%

WORLD LEADING LEATHER GARMENTS EXPORTERS 2010


Turkey is the 5th biggest exporter with a share of 7 % in the world leather garment export
OTHERS 28% CHINA 24%

TOTAL LEATHER GARMENT EXPORT OF WORLD: 6.6 BLN $

GERMANY 7% TURKEY 7% INDIA 10% PAKISTAN 10%

ITALY 14%

WORLD LEADING DOUBLE FACE GARMENT EXPORTERS 2010


Turkey is the 4th biggest exporter with a share of 8 % in the world double face garment export
ITALY 8% TURKEY 8% OTHERS 9%

TOTAL DOUBLE FACE GARMENT EXPORT OF WORLD: 2.9 BLN $

GREECE 9% HONG KONG 9%

CHINA 57%

WORLD LEADING FOOTWEAR EXPORTERS 2010

OTHERS 36%
TOTAL FOOTWEAR EXPORT OF WORLD: 99.3 BLN $

CHINA 36%

TURKEY 0,4% GERMANY 4% HONG KONG 6%

VIETNAM 8%

ITALY 10%

WORLD LEADING LEATHER GOODS EXPORTERS


2010

OTHERS 23% TURKEY 0,4% GERMANY 3% CHINA 43%

TOTAL LEATHER GOODS OF WORLD: 44 BLN $

ITALY 9% FRANCE 10% HONG KONG 12%

THE LEADING MARKETS FOR TURKISH LEATHER EXPORTS


TURKISH LEATHER EXPORTS HAVE BEEN DIRECTED TO FIVE MAIN MARKETS IN 2011. THESE MARKETS ARE RUSSIA WITH A SHARE OF 21,2 %, ITALY WITH 9,7 %, GERMANY WITH 8,8 %, FRANCE WITH 6,3 % AND UK WITH 4,6 %. THE TOTAL SHARE OF THESE FIVE BIGGEST MARKET IN TOTAL LEATHER EXPORT IS 50,6 %.

LEATHER & LEATHER GOODS EXPORT MARKETS; 2011

Others 38,5%

Russia 21,2%

Leather & Leather Goods Exports: 1,5


Italy 9,7% Germany 8,8%

Hong Kong 3,2% Ukraine 3,3%

Iraq 4,4%

UK 4,6%

France 6,3%

FINISHED LEATHER & FUR MARKETS OF TURKEY2011

RUSSIA 10,3%

UKRAINE 9,5%

ITALY 9,1%

TOTAL FINISHED LEATHER & FUR EXPORTS: 239 Million $

CHINA 15,7% HONG KONG 15,8% OTHERS 39,6%

LEATHER GARMENT MARKETS OF TURKEY2011


OTHERS 30,6%

RUSSIA 18,6%

TOTAL LEATHER GARMENT EXPORTS : 236 Million $

AUSTRIA 3,6% SPAIN 6,7% GERMANY 16,7%

ITALY 8,8%

FRANCE 15,0%

DOUBLE FACE GARMENT MARKETS OF TURKEY-2011

OTHERS 22% ITALY 6%

RUSSIA 47%

TOTAL DOUBLE FACE GARMENT EXPORTS: 268 Million $

KAZAKHSTAN 7%

FRANCE 8%

GERMANY 10%

LEATHER GOODS MARKETS OF TURKEY 2011

OTHERS 31%

ITALY 30%

TOTAL LEATHER GOODS EXPORTS : 236 Million $

DENMARK 5%

RUSSIA 6%

UK 17% GERMANY 11%

FOOTWEAR MARKETS OF TURKEY 2011


RUSSIA 22%

OTHERS 47%

TOTAL FOOTWEAR EXPORTS : 450 Million $

IRAQ 13% S. ARABIA 7% GERMANY BULGARIA 5% 3%

UK 3%

TURKISH LEATHER AND LEATHER GOODS SUPPLIERS


THE BIGGEST SUPPLIERS FOR TURKISH LEATHER & LEATHER GOODS PRODUCTS ARE CHINA, ITALY, SPAIN, VIETNAM, INDONESIA, PAKISTAN AND INDIA. THEIR SHARES WITHIN THE TURKISH LEATHER & LEATHER GOODS PRODUCTS ARE AS FOLLOWS: CHINA WITH 36,5 %, ITALY WITH 11,6 %, SPAIN WITH 6,2 %, VIETNAM WITH 5,3 %, INDONESIA WITH 4,2 %, PAKISTAN WITH 3,7 % AND INDIA WITH 2,8 %.

TOTAL LEATHER & LEATHER GOODS SUPPLIERS OF TURKEY 2011

OTHERS 29,7%

CHINA 36,5%

TOTAL LEATHER AND LEATHER GOODS IMPORTS : 2,2

INDIA 2,8% PAKISTAN 3,7% INDONESIA VIETNAM 4,2% 5,3%

SPAIN 6,2%

ITALY 11,6%

TURKEYS LEATHER AND LEATHER GOODS IMPORT

TURKEYS LEATHER & LEATHER GOODS IMPORT CALCULATED AS 2,2 BILLION $ IN 2011 IS COMPOSED OF FOOTWEAR WITH A SHARE OF 40 %, RAW HIDES/SKINS WITH A SHARE OF 18,8 %, FINISHED LEATHER AND FUR WITH 18,4 %, LEATHER GOODS WITH 18,1 %; LEATHER GARMENTS WITH 3,9 %, READYWEAR OF FUR SKINS WITH 0,8 % IN TOTAL TURKISH LEATHER IMPORT.

LEATHER & LEATHER GOODS IMPORT OF TURKEY 2011


LEATHER GOODS 18,1%
LEATHER DOUBLE FACE GARMENTS GARMENTS 0,8% 4,7%

FOOTWEAR 40,0%

TOTAL LEATHER AND LEATHER GOODS IMPORTS : 2,2 bln $

FINISHED LEATHER & FUR 18,4%

RAW HIDES & SKIN 18,8%

FUTURE VISION OF THE TURKISH LEATHER INDUSTRY


THE TURKISH LEATHER INDUSTRY HAS ADOPTED A NEW STRATEGY IN ORDER TO GET MORE MARKET SHARE IN INTERNATIONAL MARKETS. THE ELEMENTS OF THIS STRATEGY ARE; FASHION AND DESIGN ORIENTED MARKET DEVELOPMENT MARKET DIFFERENTIATION BY PROMOTIONAL ACTIVITIES AND FAIRS, STRONG PLACEMENT OF THE TURKISH LEATHER BRANDS IN WORLD MARKETS. PRODUCT DIFFERENTIATION BY RESEARCH & DEVELOPMENT STUDIES AND COOPERATIVE ACTION WITH FOREIGN COMPANIES.