Turkish Leather Sector

                        Turkish Leather Sector

        Humans want to wear clothes from first centuries to nowadays. People need to  different kind of textile products ( cotton, polyester, wool… )or  they prefer to leather clothes. Because, leather is  suitable to healty and regular to body temperature (keep from cold) In addition, leather  is showing  spectacular  life stlyes, prestige and status of people with accesorises.

Therefore , for produce  leather need  to animal. Livestock is common income  among  the turkish people.so that livestock and animals products come into proinence in turkey.

Turkey has been processing  leather for a long time ago.Turkey has enough experience with trained manpower.We can seperate to 5  leather  sectors in turkey.

1-     Leather processing factories

2-     Leather chemicals

3-     Leather confection

4-     Footwear 

5-     Leathergoods

According to researchs , there are 1462  leather processing factories in 13 different region.But nowadays %60  percent of companies  don’t working. Because 2000 and 2005 crises  effect  to leather market areas which tend to develop China. Small compaies have closed  but big and multinational companies stil working.

The Turkish leather and fur apparel exportsheaded today the largest markets in Russia with 22.4%, 21.7% and Germany, and France13.1%, 8.7% and 5.1% in the U.S. and Spain

Leather goods industry in turkey

Today ,this sub-sector ,Leather goods industry has the most assortment of leather produscts. School and travel bags, belts,wallets, carrring cases, Office supplies,tools and similar products  are in tleather good group 4,500 firms in the sector of activity, and is estimated about 20,000 people employed in this sector. 127 million of $ 29% of exports, waist belts,25% of handbags, briefcases, and constitute16% of the school.

Footwear  industry in turkey

Turkey footwear industry 2.3 billion of $ 380 thousand with internal and external trade volume, andabout 40,000 businesses that create jobs in a sector of activity.
Annual production capacity of about 400 millionfarm and ranch production of approximately175-200 million, with the production of the 9thWorld contains time.

The industry consists of businesses mainlysmall and medium-sized companies. 60 percent of small businesses, 20 percent ofthe 20 percent of medium and largecompanies. As a result of the weight of the SME sector that provides the advantage offlexible production. Manpower and skills in the field of leather confection  sector plays a very important role in the other big advantage to have a skilled workforce. %70 of demestic  production inputs and %30 of imported. In the past years about 90% of production in the domestic market, selling footwear sector in recent years has started to focus more on exportation. Turkey  is 9 th  ranking in world footwear production. And after itally second ranking  in Europe. Turkish footwear sector, which stands forexports in world markets, can not influence the expected rate.

Footwear exports to major markets, 10.8%share of Germany, and Saudi Arabia 9.6%,7.2% and Greece, and Bulgaria 6.4%, 5.8%and the Netherlands, and Russia 5.4%, 5.3%and France 4.9%, and Iraq, 4.7% with 4.4% in Romania and Israel.

Leather Industry Cost Survey

Cost	Leather processing	Leather confection	Leather goods	Footwear	Average
The main material %	61	69	42	51	56
Secondary materials  and accesorises %	18	5	14	13	12
Direct workmanship	11	15	26	22	19
financing and depreciation expenses	3	4	7	5	5
Other cost elements	6	8	11	9	8
Total	100	100	100	100	100

Countries on the Basis of Production Quantityand Value of the World Shoe

Country	The amount of production
ABD	90 million
JAPAN	125 million
GERMANY	30 million
ENGLAND	65 million
ITALY	350 million
RUSSİA	50 million
POLAND	50 million
NETHERLAND	4.5 million
SPAİN	200 million
TURKEY	190 million
CHINA	7.5 BİLLİON

SWOT analysis of the leather  industry

1-Strenghts

Trained employers- there are leather engineering faculity in turkey. And they have experience from university.

The presence of a growingdomestic market – companies developing marketing techniques

Ability to sell goods in the world-knownbrands and most of the brand's collections aremade ​​in Turkey

Better management - Turkey's leather history effects to it. There  are expert managers in turkey

Made small order and produce rapidly - according to differences inthe demand from the very rapid changes in production lines have been established in accordance with ability and infrastructure that and Leathergoods, confections, footwear manufacturer's organization to have a sufficient number of sub-sectors

2- Weaknesses

Financial crisis- turkey has  2 big  financial crisis  from 2000 to nowadays .and still under the influence of crisis. Small companies closed only big companies still stand.

Changing market- market has tand to china. Customers prefer to  most cheapest product. They  dont want to  quality.

Non competitive price – there aren’t competitive environment. Each companies  each particular marketing

Not follow fashion-  changing people’s needed.

High cost labour-    not common automatical processing  it means too much salary fot emplayers.

3- Opportunities

Geographical position – turkey middle of the asia and europe  so that customers dont want to high cost  for transportation . for example  if they choose china  more spend Money than turkey

Experience – Turkish leather sector has too much experience about leatner because  they process  leather for very long time ago.

Conductive industry policy- goverment  to allow for  new industry regions,low taxation, banks give  credits for leather companies, discount water bills prices and electric bills prices.

4- Threats

Conductive industry policy- goverment  to allow for  new industry regions. For  avoid  wastewater and waste chemicals.

response to animal protectors- if company process fur,wool or special animal’s skins.

Dangerous chemical effluents-  acids alkalies and too much chemicals and tanning materials and chromium or methalic compounds plants or fishes may die with waste water. And  chromium 6  carcinogenic. Need organised industry regions  for that

Lack of raw hides – turkeys stocks  decreasing rapidly.