Seeking to supply products to fast-fashion retailers throughout Europe.Japanese trading house Marubeni enters Europe's clothing market via Turkey. It is expected to spend 7 billion yen to 10 billion yen next month for a 45 per cent stake in the Istanbul-based company, Saide Textile. It will be the trading house's largest-ever investment in a fashion enterprise. Marubeni will send two people to Turkey to support operations.
Saide Textile designs and produces clothing, even manufacturing the sample products. Saide designs and produces clothing for major European SPAs. The Turkish company's annual sales have doubled in four years to around $180 million. From its offices in London, Saide looks plans products for production at partner factories in Turkey. It can finish the process from planning to delivery in as little as two months.
Marubeni business generates yearly sales of about 200 billion yen AS IT supplies garments to Japanese apparel companies from seven partner factories in Asia. To improve its ability to propose new products to Japanese retailers, Marubeni will use Saide's London office to challenge rival trading houses Itochu and Mitsubishi, which are doing good in apparel. On the other hand, Saide will gain access to Marubeni's partner factories in Asia, where labor costs are lower. The Turkish company aims to reach about $270 million in sales in four to five years thus getting a bigger production network from which to export to Europe.
Retailers of private-label apparel, or SPAs, Inditex continue to enjoy rapid growth owing to the popularity of their fast-fashion brands. A similar business model Uniqlo casual wear chain, follows. According to the World Trade Organization clothing exports from Turkey totaled $15 billion in 2015, Turkey is the world's seventh-largest clothing exporter thanks to its proximity to the European Union.
