Big fashion companies are not shield from changes, this is where crisis can be turned to opportunities for investors, according to McKinsey report “Asian and Middle Eastern investors will push on with cross-border acquisitions while the markets are down”.
Turkey and textile factories
Turkey is expected to have an increase in order demand for clothing production with many fashion brands around the world shifting their orders from China to Turkey as mentioned by Textilegence. I have spent couple of years in Turkey, I don’t think their local market will face significate change in their consumer purchase spending, their domestic market already have a large number of discount re-sellers that take mostly mid-market brands unsold inventory and resell it at a lower price, there is also bazars which take place on certain days during the week that offer factory clothing at a very affordable prices. wholesale offline and online platforms already exist as players in the Turkish domestic clothing market (beside selling internationally), we will have to see if the online re-sellers will be as effective as the offline.
Other middle eastern markets like Jordan has a wide number of shops, very well-known in the capital Amman as discounted price re-sellers, most of their items come from brands like Mango, Zara and Bershka, alongside clothes manufactured in China, unnecessarily with known brand name attached to them. These resellers can play part in taking fashion brands excess in inventory, although it should be noted that the Jordanian consumer market is considerably small compared to other countries like Egypt which has a larger market powered by the high density of its population which can play larger role in the wholesale re-selling process.
The signs reflect a downturn for many fashion brands, but the adaptation of e-commerce has decreased the harm, many livestream product promotion are being made via the meeting app ‘Zoom’ which shows how resilient fashion companies can be. We will have to wait and see who will stay in the fashion business and who will be out.
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