Foreign Investment and Outsourcing
Some 294 foreign-owned firms operate in the sector. Many western manufacturers, such as L.C. Waikiki, Hugo Boss and Levi Strauss have manufacturing operations in Turkey. Foreign department stores and hypermarkets, such as Marks and Spencer, JC Penny, and Sears have purchasing offices in Turkey or have agents that make purchase orders on behalf of them. Companies such as GAP, Next, and Nike also buy direct from Turkish producers for their world-wide networks. The existence of these companies has to some extent protected Turkey from the progressive loss of competitiveness due to the over-valued Turkish Lira.
Turkey has been producing garments and ready to wear for a wide range of European and American fashion houses and clothing manufacturers and retailers from Versace to Benetton to Wal-Mart and Carrefour for the past two decades.
The country’s demographics – 50 percent of Turkey’s 73 million people are under the age 28 – and its closeness to heavily populated markets in Eastern Europe and the Middle East, make it an excellent base for foreign investment.