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Alternatives to Chinese Imports: Why It’s Time To Talk Turkey

Due to a myriad of issues like a shrinking labor pool, pricing and supply chain volatility and shipping challenges, the need for options outside of China has never been greater for North American promo importers. Which is why, in a post-COVID world, Turkey is emerging as a viable alternative – and not just in the area of textiles.

Promo pros in North America, particularly suppliers – 85%-90% of whom have traditionally imported the majority of their items to decorate and resell to distributors – have long lamented the dominance of China as the overwhelming choice where products are purchased. After all, it’s “Sales 101” to know that you never rely on one client or one sector for the majority of your business. Until recently, however, China was the undisputed leader in the world’s manufacturing output.

Alternatives to Chinese Imports: Why It’s Time To Talk Turkey

Omer Karatemiz is the CEO of the Turkish-based supplier ILPEN and the founder and current president of PROMASIAD, the Turkish Promotional Products Association.

But that’s changing in a post-COVID global economy, where it became abundantly clear due to supply chain and geopolitical turmoil that relying solely on one place from which to buy products wasn’t a prudent strategy. In this industry, smart promo companies have been looking to other countries as practical options for importing, especially when you factor in the changing demographic of Chinese labor – younger workers have little interest in working long hours in factories as their parents did – and rising raw material costs.

Enter Turkey, which for years has made inroads in the European promo market as an efficient, reliable and cost-effective option for suppliers looking to import textiles for apparel and bags, and now, for hard goods as well.

In response to this growing interest in Turkish manufacturing, a relatively new, Istanbul-based promo association has emerged, PROMASIAD (www.promasiad.org.tr), with a mandate to spread the word about the quality and reliability of its promo manufacturers, their cost competitiveness, abundant access to raw materials and their pro-trade stance as it relates to working with North American importers.

Here, we talk with Omer Karatemiz, the current president & chairman of the board of PROMASIAD, about how his association actively implements quality control measures among its members, the benefits of working with Turkish manufacturers and why now is the time to consider Turkey as a viable, lucrative importing option to China.

Q: How long has the PROMASIAD association in Turkey been in existence?

Omer Karatemiz: PROMASIAD was established in 2019 in Istanbul by the companies that are doing business in promotional products and printing/press sectors. The purpose of our association is to establish a common business environment between Turkish manufacturers and global buyers in the promotional products/printing industry, and to strengthen the international competitiveness of the Turkish promo and printing industry. Our association plays a key role in the activities we organize to promote this.

Q: How many members do you currently have?

OK: We have 160 registered members in our association – 50% are manufacturers (suppliers), 35% are traders (distributors) and 15% are involved with printing and press activities.

Q: How big is the Turkish promo market from a turnover standpoint?

OK: According to the research report prepared with the cooperation of the Istanbul Chamber of Commerce and our association, the Turkish promotional business is around $7 billion USD, including exports, of course. This amount is increasing day by day with the investments in production facilities and growing export rates. We believe the annual growth of the Turkish promo market is 6%-7% because every day the industry is gaining importance, and companies, corporations, NGOs, etc. are investing in promotions. Also, as per the same report, it’s been stated the employment in the Turkish promo sector is 300,000 people.

PROMASIAD, the Turkish promotional products association, holds an annual trade show in Istanbul; click through to see photos from last year’s event. This year’s show will be held from October 31-November 3.

Q: What is your background in promo?

OK: In addition to being the founder and president of PROMASIAD, I’m also the CEO of a company – ILPEN – specializing in the production of pens, pencils, wall clocks and decorative tabletop products and have been in the business for 25 years.

I’m also an active board member of the Istanbul Chamber of Commerce, focusing on oversight of our members to make sure everyone is behaving responsibly, ethically and reputably.

Q: Many Americans probably assume that most suppliers in Turkey primarily manufacture promo textiles for apparel and bags. Do they manufacture hard goods (pens, drinkware, etc.) as well?

OK: Over the years, textiles, apparel and bag producers in our country have been very successful abroad, with Turkish manufacturers and exporters having a solid reputation for quality products at fair, competitive pricing. Due to recent investments and developments, our manufacturers are also producing pens, pencils, key rings, medals, notebooks, agendas, calendars, tabletop products, ceramic items, caps, mugs and thermoses with good quality at competitive prices.

“According to the research report prepared with the cooperation of the Istanbul Chamber of Commerce and our association, the Turkish promotional business is around $7 billion USD, with that amount including exports.”Omer Karatemiz, PROMASIAD

Q: For American and Canadian importers looking to diversify their supply chain and reduce their dependence on China, can you give some reasons why Turkey is a smart option?

OK: A larger number of Turkish promotional product companies are participating in important exhibitions around the world, and specifically in Europe. The demand for our products is increasing day by day, especially in the post-pandemic era. Turkey has become an important production base in Europe for the promotion sector, as well as other sectors, and starts to lead the world thanks to various alternatives in supply chain solutions.

For example, I recently saw an article about the freight rates from China to the U.S. which have been raised up to $6,000 USD for a 40-foot container. The same rate from Turkey is half of this amount, which provides a leverage on costs. Also the transit time for sea freight is a lot shorter than the Far East.

One other reason for U.S. companies in particular to consider working with Turkish producers is that our sample and production lead times have gotten much shorter, certainly more so than many other countries from which products are being imported. We can produce faster and provide a better quality and flexible service in terms of communication, production and sampling.

Another important thing to consider is that with raw materials, Turkish manufacturers do not depend on other global suppliers. Most of the raw materials are being produced in Turkey such as fabrics, plastics, ceramics, etc. We do not lose time for raw material supplies and can easily develop new models and products to adopt new trends in the promo sector. And frankly, we believe our country has a better position than China in quality standards and environmental awareness during the production.

In terms of prices, our companies can compete with Chinese and Asian companies. Perhaps Turkey hasn’t been as sought out by American and Canadian importers and buyers due to geographical reasons, but on our recent visit to America we realized that the U.S. market has a high potential for Turkish companies. We can confidently state that our companies can be a very powerful alternative for a long-term business relationship with American and Canadian promo companies. We believe that the North American and Turkish markets need to develop a higher level of communication and should develop stronger and sustainable cooperation together, which would be beneficial for everyone.

Q: How can you ensure that your association’s manufacturers provide top-level product and service quality?

OK: Most of our members are also exporters to the European market. Therefore, the members are aware of the quality standards required and also they have all the necessary certifications which are essential to do business in Europe, as they often require the highest levels of quality certification in the world. We, as the association, also provide support and organize educational seminars about the documents and certifications required for exports and continually update the members. We also have a special committee in our association to inform the members on this subject.

It’s important to note that to become a member of our association, a minimum of two current members have to provide a letter of recommendation on behalf of the applicant company and its owner. After receiving the necessary documents, we perform a background check with the Chamber of Commerce, exporter unions, banks, etc., and then discuss and vote on the application among PROMASIAD’s board members. We prefer to accept genuine, decent and hardworking business people to become members, who can not only benefit from our association but also contribute with their presence and experience.

Additionally, PROMASIAD’s board keeps close contact with our members to encourage them to be a part of international markets and increase their production and export capacity. Each of our board members are responsible to oversee a certain number of members and they have to call or meet with them on a regular basis to inform and mentor them regarding their activities for export and about the global market standards.

Q: What are some things about the promo market in Turkey that many people may not know?

OK: Between the years of 1970-2010, the Turkish promotional business was based on imports from China. Generally, the perception about the Turkish promo business is that we’re still known as importers. But due to a change of country policies in the last 10-15 years, the local investments receive powerful support from the state. And due to increasing import taxes for the goods imported from China and the currency changes in our country, the local production and demand for local products are increasing. Today, we have a large number of manufacturers that can compete with China. Also, ironically, in the last few years, Chinese manufacturers have started to contact us, searching for opportunities to invest in our country.

One other important qualification which we assume is not known about our country is that we have a young and dynamic population with a large number of qualified workers in this field. And thanks to our universities, we’re able to employ trained and educated young men and women in our companies. With the cooperation of educational institutions like our universities, we’re investing in fields like industrial design, which we think is very important to develop new products and trends in our sector.

Q: Can you share more information about PROMASIAD’s annual promo show in Istanbul later this year?

OK: Of course. PROMOGIFT ISTANBUL will be held from October 31-November 3 in Istanbul with the participation of more than 300 exhibitors. We’re happy to share all the details about our exhibition and also would like to invite ASI’s members to our event to explore the potential of and opportunities in the Turkish promotional industry.

For more information about the PROMOGIFT ISTANBUL show, go to: https://en.promogiftistanbul.com; for more information about the PROMASIAD promo association, go to: www.promasiad.org.tr.

Michele Bell, senior vice president of content & global alliances at ASI, travels extensively overseas to cover trends in the global promo market. She can be reached at mbell@asicentral.com.