The Turkish Leather Industry 2012 Report by Istanbul Leather & Leather Products Exporters' Association

1. THE TURKISH
LEATHER INDUSTRY
Istanbul Leather & Leather Products
Exporters’ Association
March 2012

2. • The history of Leather is as
old as men’s 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 Kazlıçeşme,
the first leather industrial
zone was established and
lived for about 500 years.

3. • 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.

4. • 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.
TURKISH STRONG LEATHER
PROCESSING

5. • 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 UNIQUE FEATURES OF TURKISH
LEATHER BRANDS

6. 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.

7. 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.

8. • 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.

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

10. 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.

11. LEATHER & LEATHER
GOODS EXPORT OF TURKEY
2011
FOOTWEAR
31,5%
LEATHER
GARMENTS
16,5%
SADDLERY
16,5%
FINISHED
LEATHER &
FUR
16,7%
DOUBLE FACE
GARMENT
18,7%
TOTAL LEATHER AND LEATHER GOODS EXPORTS : 1,5 bln $

12. 0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
MillionUSD
2011 Total Leather & Leather Goods Exports
1,5 bl $
LEATHER & LEATHER GOODS EXPORTS 1995-
2011

13. 0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
MillionUSD
2011 Total Leather & Leather Goods Imports
2,2 bl $
LEATHER & LEATHER GOODS IMPORTS 1995-
2011

14. ITALY
11%
CHINA
31%OTHERS
36%
FRANCE
4%
VIETNAM
5%
HONG KONG
8%
GERMANY
4%
TURKEY
1%
WORLD LEADING LEATHER &LEATHER GOODS
EXPORTERS 2010
Turkey has a share of 1 % in world total export.
TOTAL LEATHER EXPORT OF THE WORLD: 190 BLN $

15. ITALY
14%
CHINA
24%
TURKEY
7%
PAKISTAN
10%
INDIA
10%
GERMANY
7%
OTHERS
28%
WORLD LEADING LEATHER GARMENTS
EXPORTERS 2010
Turkey is the 5th biggest exporter with a share of 7 %
in the world leather garment export
TOTAL LEATHER GARMENT EXPORT OF WORLD: 6.6 BLN $

16. CHINA
57%
HONG KONG
9%
GREECE
9%
TURKEY
8%
ITALY
8%
OTHERS
9%
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
TOTAL DOUBLE FACE GARMENT EXPORT OF WORLD: 2.9 BLN $

17. CHINA
36%
ITALY
10%VIETNAM
8%
OTHERS
36%
GERMANY
4% HONG KONG
6%
TURKEY
0,4%
WORLD LEADING FOOTWEAR EXPORTERS 2010
TOTAL FOOTWEAR EXPORT OF WORLD: 99.3 BLN $

18. CHINA
43%
HONG KONG
12%
FRANCE
10%
ITALY
9%
OTHERS
23%
GERMANY
3%
TURKEY
0,4%
WORLD LEADING LEATHER GOODS EXPORTERS
2010
TOTAL LEATHER GOODS OF WORLD: 44 BLN $

19. 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 %.

20. Italy
9,7%
Russia
21,2%
Others
38,5%
Germany
8,8%
France
6,3%
UK
4,6%
Iraq
4,4%
Ukraine
3,3%
Hong Kong
3,2%
Leather & Leather Goods Exports: 1,5
LEATHER & LEATHER GOODS
EXPORT MARKETS; 2011

21. FINISHED LEATHER & FUR MARKETS OF TURKEY-
2011
CHINA
15,7%
OTHERS
39,6%
ITALY
9,1%
HONG KONG
15,8%
RUSSIA
10,3%
UKRAINE
9,5%
TOTAL FINISHED LEATHER & FUR EXPORTS: 239 Million $

22. LEATHER GARMENT MARKETS OF TURKEY-
2011
FRANCE
15,0%
RUSSIA
18,6%
GERMANY
16,7%ITALY
8,8%
SPAIN
6,7%
AUSTRIA
3,6%
OTHERS
30,6%
TOTAL LEATHER GARMENT EXPORTS : 236 Million $

23. DOUBLE FACE GARMENT MARKETS OF
TURKEY-2011
OTHERS
22%
GERMANY
10%
FRANCE
8%
KAZAKHSTAN
7%
ITALY
6%
RUSSIA
47%
TOTAL DOUBLE FACE GARMENT EXPORTS: 268 Million $

24. LEATHER GOODS MARKETS OF TURKEY
2011
OTHERS
31%
DENMARK
5%
RUSSIA
6% GERMANY
11%
UK
17%
ITALY
30%
TOTAL LEATHER GOODS EXPORTS : 236 Million $

25. FOOTWEAR MARKETS OF TURKEY
2011
UK
3%
OTHERS
47%
BULGARIA
3%
GERMANY
5%
S. ARABIA
7%
IRAQ
13%
RUSSIA
22%
TOTAL FOOTWEAR EXPORTS : 450 Million $

26. 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 %.

27. TOTAL LEATHER & LEATHER
GOODS SUPPLIERS OF TURKEY
2011
OTHERS
29,7%
ITALY
11,6%
INDONESIA
4,2%
VIETNAM
5,3%
SPAIN
6,2%
PAKISTAN
3,7%
INDIA
2,8%
CHINA
36,5%
TOTAL LEATHER AND LEATHER GOODS IMPORTS : 2,2

28. TURKEY’S LEATHER AND LEATHER
GOODS IMPORT
• TURKEY’S 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.

29. LEATHER & LEATHER
GOODS IMPORT OF TURKEY
2011
RAW HIDES &
SKIN
18,8%
LEATHER
GARMENTS
4,7%
LEATHER
GOODS
18,1%
FINISHED
LEATHER &
FUR
18,4%
DOUBLE FACE
GARMENTS
0,8%
FOOTWEAR
40,0%
TOTAL LEATHER AND LEATHER GOODS IMPORTS : 2,2 bln $

30. 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.