The conference “Imported textiles from Turkey: substitution, lozalization and changing directions” took place on 26 February, 2016 within the Russian Week of Textile and Consumer industry. Experts shared their opinion on perspectives of having Turkish imported fabrics substituted by the Chinese products, and possible ways how production, purchasing and logistic processes might change.
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Imported textiles from Turkey: problems, perspectives and ways of changing directions
Dmitriy Medvedev, vice-president of the Russian Federation, approved the list of goods from Turkey prohibited for import related to textile and consumer goods industry. Entrepreneurs working in this field are facing difficulties in export-import interaction at the border between Russia and Turkey.
Due to these factors, the businesses are now facing the questions of how sanctions against Turkey affect the Russian market connected with textile industry, how can those products be substituted? This and many other things were discussed on February 26, 2016 during the conference “Import of textile from Turkey: substitution, localization and changing directions” organized by Exhibition Communication Agency “Vector Expo”. The event took place within the Russian Week of Textile and Consumer Industry, and gathered a number of leading experts in both textile and consumer industry, and economic interaction with Turkey and Oriental countries.
The conference was opened by the head of the Center for Eurasian Cooperation and Development Olga Biryukova. In her speech, Ms Olga Biryukova mentioned necessity to minimize financial risks for participants of the real economy sector due to the current political and economic disagreements. Moreover, she emphasized the importance of having a Turkish party as a partner from the trade and economic point of view.
The conference was also visited by Andrey Razbrodin, president of the Russian Union of Entrepreneurs in Textile and Consumer Goods Industry, Chairman of the Public Chamber of Russia. He promised to contribute to dealing with the economic difficulties both for Russian and Turkish companies.
-I am against any kind of sanctions, since they destabilize the market. Regulating measures are more productive. They can be organized in a way to give priority or make some characteristics of providers even. The government has to react to some processes quickly and in a flexible way, for example, to regulate customs processes and system of benefits. This might lead to solving some of the problems.
Many participants of the conference, including Olga Biryukova, saw eye to eye with Andrey Pazbrodin. According to Olga, competitive ability of the Russian manufacturers should be increased not with sanctions or import reduction, but with increasing marketability of their own products.
Despite the fact that Russian and Turkish relations are currently going through really hard time, many Turkish textile producers are ready to move their manufactures to Russia. Jason Techvani, co-founder of VESTORO company claimed: “Our partners in Turkey showed interest in opening their manufactures in Russia to reduce production costs”.
Today Turkey appears to be one of the most significant providers for Russian consumer goods industry. “Turkey goes next after China to take one of the biggest share on the Russian textile market. However, Turkey is more than China adapted to work with Russian businesses.”- noticed Anna Lebsak-Kleymans, general director of Fashion Consulting Group.
Nevertheless, there are perspectives of supplies not only from China, but also from Indonesia, India, Bangladesh. Amit Telang, head of economic and commercial department of the Consulate of India in Russia, told to participants of the conference about the Indian textile industry, which already has its products on the Russian market. “In 2014-2015 the volume of Indian export was about 14 billion dollars, including Russia-1%. However, due to current economic situation, we have more opportunities to make our cooperation more effective”-he mentioned.
Interaction between Russia and Indonesia is slightly different. Commercial attache of the Consulate of Indonesia confirmed the fact that Indonesia exports large amount of textile to Turkey, meanwhile its export to Russia is growing every year.
Recently implemented changes in customs procedures were highly discussed during the conference. The audience addressed many questions to chairperson of the Federal Customs Service Tatyana Zybleva, who told about customs clearance of products from Turkey, ways how Russian entrepreneurs can minimize loss. She also showed their willingness of cooperation with businesses in solving problems connected with the customs changes.
A wide range of questions on substitution of imported textile from Turkey was discussed during the conference. Experts shared their experience in minimization of financial risks, getting over logistic barriers, effective finance management in foreign trade, reorientation of imported goods to south-eastern Asia, and improving cooperation with Turkish partners.