In the past, the Turkish shoe manufacturers who exhibited their products in the fairs organized abroad, were somehow accustomed to the shock of the customers upon learning that the products were made in Turkey just before placing their orders, and their immediate withdrawal of their orders.  The newly appointed chairman of the Association of Shoe Manufacturers, Ali Murat Kızıltaş explains this situation as “image problem”.  But today, Turkey is exporting shoes to most countries in Europe, including Italy, the capital of the shoe industry, worth 210 million dollars.  In spite of the boom in the importation of cheap and low quality shoes from China,  the European consumers are wearing shoes made in Turkey. As for the young chairman of the Association of Shoe Manufacturers: Kızıltaş has  entered in the shoe business in 1989, as his grandfather was also a shoe maker. At that date, the family owned one show shop in Fatih, Istanbul, which was founded by his grandfather and his father 58 years ago.  After taking over the management of this family-held establishment,  the first action of Kızıltaş has been to renew and update all the machinery found in the production  facilities. During the outbreak of the economic crises in Turkey in 1994, the exchange rate for 1 US dollar skyrocketed from 14.000 TL to 42.000 TL just at the time when he was negotiating with the suppliers abroad on the new machinery that he was planning to purchase. In fact, his relatives called from Istanbul and urged him to quit negotiating and return to Turkey immediately. But Kızıltaş was determined.  Knowing  that they had no other choice than investing in the manufacturing of high quality shoes, and that the manufacture of women’s shoes required expertise and know-how, Kızıltaş was adamant in investing, in spite of the risks. So he did. The results of this gallant decision are evident. Today, İnci owns 28 stores, and the firm is exporting shoes to four corners of the world, under the brand name of “Balans”.  

Since you Firm is exporting shoes to Italy, where the best shoes of the world are manufactured, can you say that top quality shoes are now being manufactured in Turkey?
Putting aside the top class shoes that are the most expensive ones, the Turkish shoes sector today produces shoes that are much better than the remaining categories of shoes in Italy. I think we are unable to  explain this fact adequately to the  foreign markets

Where do you think the shoes industry in Turkey will be in the near future?
In terms of production, during the next decade, we are anticipating an  upward trend in  shoe production for the segment targeting the middle and upper middle income groups, other than the lowest income groups. We have already achieved an export potential worth 200 million dollars. In the near future, we anticipate this potential to reach 500 million dollars. Our imports are also at the level of 200 million dollars. 

400,000 Persons are employed in shoe industry

To which countries do you export shoes?
The most important buyers are in Germany and Saudi Arabia. Of this figure also includes slippers as well as the shoes. Export of leather slippers is particularly high in Saudi Arabia.

How many people are recruited in the shoes sector?
We have about 4,000 factories and around 40,00 workshops in Turkey. The employment potential in the shoes industry is about 400,000 workers. The sector has a production capacity for 500 million pairs per year. However, the actual production is estimated to be around 210 million pairs per year. In fact, when we look at the production capacity, we mark that Turkey has the 9^th place in world classification. Yet, when we look at the export values, we note that we do not exist in this list.

What are your comments on the shoes coming from China?
The impact of China on the show industry will be particularly effective on the lower segments. In fact, China will destroy a great number of manufacturers operating in this segment. But at this point, the consumer must be fully aware on the quality of products before making any comparisons. Most of the Chinese products are made of synthetic materials. Whereas, in leather products, we can easily compete with China. But for synthetic products, a fair competition is out of question. 

When a given product is cheap, the consumer is most likely to avoid the quality factor. Can the products imported from China pose any health threats?.
We, as the Association of Shoe Manufacturers, have discussed  for ten minutes on how to identify whether a given product is made of genuine leather. In the Board of Directors, we examined the same product, and we were unable to assert immediately as to whether or not that product is made of genuine leather. The synthetic products offered in the markets are so successful that, it is practically impossible to say whether or not that product is made of leather without cutting the shoe to take a cross section.  If you ask, what is the hazard of synthetic products to human health, synthetic products do not penetrate air… You can  conjecture on the rest. Thus, we are currently exposed to a serious problem of unfair competition.

Hence; on one hand we have the cheap shoes imported from the Far East, and on the other hand, we have well known brands imported from Europe… What type of developments do you anticipate in the shoes industry?
It is already known that the number of shoe stores will not be reduced.  Yet, the shops that sell the products of a single manufacturer will be replaced by stores that sell a variety of brands. This is not the case for today; but the projections show that this situation will change in the oncoming period of 5 years.  This is the most important problem in the sector.  Look at the Bakırköy district for example. There, you can see more than one thousand shoe shops. In fact, certain arcades contain only shoe stores. In time, we anticipate that the number of  such stores selling the products of a single merchant will  decline and will be replaced by chain stores. Of course, there is also an inflow of foreign brands. Take Bata for example. Bata has signed a contract with Derimod. Several German firms are also in the stage of negotiating with Turkish merchants. We believe that the cooperation with the Italians will add a significant impetus to the sector.  Therefore, as the shoes sector, we will accept functioning as toll manufacturers for some time in the future. In fact, we all should accept his fact. There is no need to act in a quixotic manner and insist on being a brand name. First, we must fully cooperate as the shoes sector, and then contemplate on the building of a brand name. I am quite optimistic about Turkey’s prospects in the shoe industry. When we examine the world trends, we note that Italy is gradually losing its dominance. As the world leader in shoe industry. Obviously, the impact of the Far Eastern manufacturers on this situation cannot be denied. Italy’s biggest market was the US ten years ago, and today, they have lost this market to a great extent with the invasion of the Chinese products in the US markets. They lost Germany entirely. Therefore, it is very important that we convince the Italians on cooperation with Turkey. 

Manufacturing Ladies’ shoes is more difficult

How many millions of pairs are sold at present?
Of the total of 210 million pairs, 70 million are exported.  But on the other hand, a total that is almost to this figure, i.e. 70 million pairs are imported. Hence, w can say that about 210 million pairs of shoes are sold in Turkey each year.

Where are we exactly as Turkey in shoe production?   
Italy might be an interesting example for you. In Italy, a person buys three pairs of shoes per year.

What are the characteristic features of the sector?
This is a very interesting subject matter. If you look at the sector, although 35% of the consumption consists of men’s shoes, 80% of the production is focused on men’s shoes.   For, manufacturing of men’s shoes is both easier and is less costly. The biggest problem in women’s shoes is that,  the production costs in women’s shoes are higher.

Does Inci have sales outlets abroad?    
In the short term, we are planning to open a store in Greece.   Germany offers a market that we most penetrate. . We are present in Russia; but not as stores. We sell our products to the stores that are already operating in Russia.

Do you sell goods to Italy?
Yes.  We are selling our products to Italy, as well as to the other European countries such as Belgium, Netherlands and Germany.  The designs of our collections that we export to Italy, are sent to us from Italy. The firm that is in charge of the marketing of our products in Italy, also prepared the designs. This firm is also the firm who markets the shoes of Armani throughout the world.