Only the material cost of a pair of shoes is about 30 yuan more than the opponent! The shoe factory here is in crisis

When we calculate the materials used in a pair of sneakers, the price difference between China and Turkey is $3.90 (about 28 yuan).

A joint meeting of the Turkish ready-to-wear and footwear industry recently said that the products they produce are more expensive than AVRUPALI and Asian competitors.

Compared with China

Materials for a pair of shoes cost $4 more

TASD Chairman Iten said:

"As the gap between input costs and the exchange rate is widening, we cannot maintain prices. As a result, our costs are still very high compared to our competitors. For example, when we calculate the materials used in a pair of sports shoes, the price difference between China and Turkey is $3.90.

"When we add in labor and other cost items, the difference gets bigger," he said.

Stressing that the situation affects not only exports but also foreign investors who want to start production in Turkey, Isse said that they recently made efforts for a global sports brand to produce in Turkey, but they have not yet received results.

If tax reduction

The price will be reduced by 25%

According to Eases, the $5,000 of raw materials needed to produce the shoes increased to $12000,245 after taxes.

"We buy raw materials for $12,000, China buys raw materials for $5,000, and then starts cutting and sewing. The gap continues to widen.

Source: Multiple media

Photo: Soil media screenshot

"We don't have a chance to compete," Mr ITO said.

He noted that if the tax burden is reduced, this will also lower consumer prices, adding:

"We believe that reducing the high protection of material and raw material prices to a reasonable level will ensure a price differential of at least 25% for finished products."

It affected 110,000 employees in one year

Difficulties faced by entrepreneurs in domestic and foreign markets have also accelerated the loss of factory capacity and employment.

Capacity utilization in the leather footwear industry decreased from 69.1% in July 2022 and 67.5% in July 2023 to 61.7% in July 2024. The number of jobs provided by the sector has fallen from 350,000 in 2023 to 240,000 this year.

Mr. Kaya, TGSD's president, also said that 65,000 jobs had been lost in the apparel industry last year; He revealed that the number had reached a total of 110,000 in two years.

Six common requirements

"We are facing an unprofitable situation," Kaya said. Falling demand, an imbalance between rising inflation and rising exchange rates, rising raw materials... We should not forget that our capital is limited. "

Kaya divides the common expectations of the public into the following areas:

"Implementation of regional minimum wage standards," "Provision of minimum wage support," "Provision of medium-term loans on favorable terms so that the sector can finance the transition for four to five years" process, "" special exchange rate for exports," "implementation," "gradual reduction and elimination of high import protection measures affecting our industry," and easing SSI's burden on labor costs.

BMD: Asking for a four-fold increase in rent

BMD President Sinan Oncel said rent, common area charges and raw materials and labor were the most important cost items for BRANDS, adding: "We are facing exorbitant rent increase requests."

"We've had requests for rent increases of four to five times in 10-year contracts," Oncel said.

"We are hearing requests for things like raising the rent from about 400,000 lira to 1.6 million lira," he added.

Oncel said that rents increased 32.11% in dollar terms last year and that adjustments should not be made based on the current value of the stores to which revolving rents apply, he continued:

"Because all costs will increase, especially exorbitant rent increase requirements and high taxes on raw material imports, sooner or later" will be reflected in later prices and have a negative impact on the fight against inflation."

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