Apparel Value Chain Assessment


    Deloitte Consulting LLP



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The apparel manufacturing industry has become increasingly competitive as more countries enter the global value chain. Especially, with the increase in labor costs, more brands have begun to look at outsourcing some of their production to more cost competitive markets, while keeping their focus on value added activities, such as developing designs and creating brands.

Georgia, with its lower labor costs (compared to Turkey), duty free trade potential with large consumer markets such as Russia and the EU (due to GSP+), lower tariffs to the U.S. (due to GSP), and competitive tax rates, has the potential to become an apparel manufacturing and export base. Instead of focusing on the development of the apparel industry solely with Georgia’s own resources domestically, strategic collaboration with countries such as Turkey could enable faster development of the industry.

The supplement to the Apparel Value Chain Assessment was conducted by Deloitte Turkey consultant, Selen Poyraz, in February and March 2011. The purpose of the supplement is to build on the existing Apparel Value Chain Assessment by providing information on, and a comparison with, Turkey’s apparel industry.