Zorlu Textiles Group reflects branding process on export markets. The company started to cooperate with retailers rather than wholesalers in those markets.
Turkey’s leading textile manufacturer Zorlu Textiles Group aims to reflect its strong production power on export destinations via retail network. The group is active in textiles and home textiles via 12 companies including Koretks and Zorluteks, while it will reduce contract share in manufacturing to 25-30% in the coming 5 years. Zorlu Holding Textiles Group President Vedat Aydın announced that they will work on branding in particularly export markets and aim to raise their exports from the current USD200 million to USD300 million in 2019. Their largest destination is Europe, Aydın mentioned, adding, “We needed to do something different and we changed our customer profile and channel. We were working with wholesalers within Germany and the UK, but now we shifted to retailers.”
On the contrary to lower overall exports, Turkey’s textile exports did not fall, while exports are important in production as otherwise the local market’s fluctuations would result in negative effects. Aydın highlighted, “We always focused on exporting 50% of our production in our investments. We maintained our export figures last year and this year. Our current exports stand at around USD200 million, while we saw USD260 million in 2014. Today, Taç products are sold in 788 spots, while Linens has 17 stores in foreign countries. Valeron products are sold in 40 countries, meanwhile.”
Zorlu Textiles has been in a severe changing process in the last 5 years
Zorlu Textiles has been in a severe changing process in the last 5 years; while the company is no after cheap price competition. Aydın reminded that Germany and the UK are their largest export markets in Europe; while they started to work with retailers instead of wholesalers in those locations. “Shortly we changed our customer. Wholesalers achieve 25-30% profit margins, while retailers bring another added value of 20%. Our contract production will be down to 25-30% in the next 5 years,” Aydın explained.
Changing customer profile also affected their investments; while the group started to manufacture products and collections that are liked by their new customers. Aydın noted, “You need to have a strong production power and also you should be able to make boutique production at this power level.” Pointing to the importance of Researc&Development and innovation, Aydın reminded that both Korteks and Zorlu Textiles own approved R&D centers. Around 200 engineers are employed at those centers, while the company spends USD4 billion per year for R&D studies.