Category: Business

  • Fashion: Istanbul is the new capital of pret-a-porter

    Fashion: Istanbul is the new capital of pret-a-porter

    img374-700_dettaglio2_Yesim_Gulsel(AGI) – Rome, March 30 – Istanbul is the new capital of pret-a-porter. Turkey has become the second largest supplier of European clothing and produces clothes for leading Italian and French fashion houses. The city, heart of the country’s economy, is gaining a place of prestige on the international fashion scene.
    The Istanbul Fashion Week showed us a different face of the Turkish economy. From mere suppliers of ‘labor’ for the Western brands, the local entrepreneurs are beginning to make their own designers and fashion houses known abroad. Therefore, the expression ‘Made in Turkey’ is quickly becoming a mark of excellence and quality: for the first time the Istanbul Fashion Week has had as the main sponsor Mercedes-Benz, just like the prestigious Fashion Week in New York.
    “In the international competition in the textile and clothing sector, Turkey is the real winner”, said to AGI news agency Michele Tronconi, president of Sistema Moda Italia, one of the largest global organizations representative of industrials in textiles and fashion. “Their textile districts are well organized and equipped with the latest technology, thanks to German knowhow and the fact that the Turkish purchased several plants from both Germany and Italy. Now Turkey has developed their own technology, allowing local businesses to meet their increasing number of orders”, Tronconi said.
    Despite the European crisis, in 2012, apparel exports reached 15.7 billion USD, with a positive trend in the first months of this year. But in addition to export, Istanbul – with its huge shopping malls, such as Mall Cevahir and Istinye Park, which is the largest in Europe – imports the most prominent international brands. According to data provided by the Ministry of Economy of Ankara, the clothing imports in 2012 totaled 2.5 billion USD, a figure considered by Italian entrepreneurs still too low compared to the economic potential of the country. “The interchange for the moment is predominantly in one direction” Tronconi said, “while it would be important to have a two-way traffic between imports and exports in order to ensure that Turkey would become, for Italian companies, the gateway to the Middle East market”. The key to success in the Turkish textile and clothing sector, according to the entrepreneurs, lies especially in the development of economic policy by the government in Ankara. “In Turkey, there is a political environment favorable to the industry, the costs for companies are under political control”, Tronconi said. An additional factor facilitating European production in the Turkey is a “currency exchange in our favor. Lastly, Turkey has tariff barriers that prevent the interruption of the production chain, which prevent the import of ‘low cost’ fabrics from China or Pakistan”. “The only handicap,” according to Tronconi, is creativity”: the Turks have become great engineers and technicians “, but “the ideas are Italian”.
    Behind the scenes, hundreds of people collaborate to the production of a line of clothing. “Creativity is the result of a continuous exchange of ideas and opinions,” Tronconi said, “each operator in the supply chain must offer something new every six months, from the fabric to the study of fibers.” At that point, having evaluated the different proposals, chosen the fabrics and imagined the finished product, one creates a sample that will be used to get estimates. And it is then that Turkey comes into play offering “the lowest price and high quality”. Producing abroad “allows companies a savings of about 30%,” said to AGI Rinaldo Lorenzon, President of Dressing SPA, an Italian company that has licenses on major clothing brands, such as Class Roberto Cavalli, Scervino Street, and the French Plein Sud. “50% of our production is done in Italy, the rest in countries such as Romania and Turkey,” Lorenzon said. Nowadays, the consumer “prefers to have a European produce rather than Asian”. Turkey is now perceived in the field of fashion, as a European country. “China has become less attractive for production” and is reducing investment in the textile sector, as companies “are turning more and more to Turkey, because of its proximity, only two hours by plane from Italy.” Lorenzon also explains how the production of clothing works.
    After working on sketches and prototypes are made by designers in Italy, “our technicians follow their realization abroad ensuring the highest quality. Then the clothes return to Italy where they are subjected to washing, ironing and finishing. ” With regards to Turkey, Lorenzon said, “there’s been a great deal technological advancement in recent yard, that has perfected production from of sportswear to garments of the highest level”.
    To mediate between the major fashion houses and textile companies in Turkey, there are specialized agencies such as Jasmin Agency Istanbul (JAI), which is well-known in the market for over 15 years. Amongst its client, JAI has Italian and French fashion houses. “Our clients send us sketches and specifications of clothes to make and JAI finds the most suitable textile company, indicating times and prices for the production”, says to AGI the JAI managing director, Yesim Gulsel. Then the clothes begin to take shape: from the choice of fabrics, often Italian, to packaging, everything happens in direct contact with the boutiques of haute couture, which take care of every step of production, usually through videoconference on Skype. “We provide ‘ready-to-wear’ (pret-a-porter)” says Gulsel, “sometimes we receive the original sketches to develop. With Italy, in particular, there is a close relationship of import-export, because we buy many of their finest fabrics, such as cashmere and merino wool ” Turkey’s in the fashion industry is fairly new, especially when compared to countries such as Italy and France, with historical traditions. “We have approached fashion when Turkey was Westernized,” says Gulsel. “In 1925, Mustafa Kemal Ataturk introduced a series of reforms as far as the country’s clothing costumes, hence designers landed from Paris and spread French fashion in Turkey.” Today, in addition to the production of European clothing, new local brands are emerging, and although they are still unknown outside the borders, they can count on designers both young and motivated who are convinced that Istanbu will earn the recognition it deserves amongst the capitals of fashion. “Today, in addition to carpets famous all over the world, and the “Blue Eye” (called ‘Nazar’ – famous Turkish amulet) apparel designers are already internationally known. I think that on one hand we need greater imports of foreign brands, and on the other, an enhancement of our exports, to make Turkish style and fashion known” says the entrepreneur.
    Returning to Italy, the president of the Italian Fashion System calls upon the institutions and policy: “It is not a problem of labor cost. What we need is an industrial policy made of synergies instead of one made of subsidies. We must encourage companies to produce in Italy in order to conquer new markets, such as China, which demand for a pure “Made in Italy” as a guarantee of excellence and creativity. (AGI) .

  • Constantinople rising

    Constantinople rising

    Ali-Agaoglu

    Funding growth: Agaoglu plans to issue $2bn in Islamic bonds starting next month to help with the financing of Istanbul’s International Financial Centre

    It was at the age of eighteen while working for his father that Ali Agaoglu embarked on a career in construction. Now at 59, the self-made billionaire and Turkey’s eighth richest man is helping rebuild Istanbul, once the capital of the Ottoman Empire.

    Of course it helps that Agaoglu, and his construction and real estate company, Agaoglu Group have the support of Turkish prime minister Recep Tayyip Erdogan.

    “We’ve been friends since 1990 even before he became prime minister,” Agaoglu says in an interview with CEO Middle East. “Twenty three years ago I was building close to 200 villas near Istanbul and I sold one of those villas to the brother of the first lady and this is how we met.”

    Agaoglu speaks fondly of Erdogan, who he sees as a pillar in the country’s development next to Mustafa Kemal Atatürk, who led a nationalist revolution and founded the secular republic of Turkey, and Turgut Ozal, who led Turkey out of military rule and ushered in an era of privatisation that helped develop the country’s economy.

    “He is a visionary, a strong leader,” Agaoglu says of Erdogan. “The GDP of our country was $220bn when he took office and in these ten years our GDP has increased four times to $880bn. In 2023 we are expecting a GDP of $2 trillion. Erdogan is a very strong leader supported by more than 50 percent of society and he is unique.”

    Part of Erdogan’s vision has been the building of a financial centre to position Istanbul as an international financial hub by 2023, marking the country’s 100th anniversary as a republic. Turkey’s economy today, in stark contrast to its economic woes of the late 1990s and 2001, is booming. Unemployment is declining, and industries are expanding.

    The country’s economy is estimated to have grown 3 percent last year due to the debt crisis in Europe and contracting economies there. In 2011, Turkey recorded GDP growth of about 8.5 percent and 9.2 percent the year before.

    Economic growth over the past ten years has also served as a catalyst for the urban renewal and gentrification of Istanbul. That is very much in line with Erdogan’s vision to widen the size of the city to meet increasing demand from a growing population and internal migration in addition to the construction of new buildings to replace older ones prone to collapsing in the event of an earthquake.

    For Agaoglu Group, one of Turkey’s largest construction companies, the country’s development and the firm’s evolution go hand in hand and it’s launched a charm offensive to attract businessmen from the Arab world to invest in the country’s property market. The construction industry accounts for about 4 percent of Turkey’s GDP.

    Agaoglu plans to issue $2bn in sukuk, or Islamic bonds, starting next month to help with the financing of Istanbul’s International Financial Centre.

    The company “has been undertaking construction work of the financial centre and we will be issuing some new financial instruments such as murabaha, sukuk and real estate certificates,” Agaoglu says. “We have been carrying out the preparation work for all of those instruments. With this new set of financial instruments we will be offering more to the Gulf region.”

    Turkey issued its first ever Islamic bond of $1.5bn in September which saw strong demand from the oil-rich Gulf. Last year about $144bn of sukuk were issued, according to Islamic Finance Information Service. The country, which is the sixteenth largest economy in the world, attracted about $16bn in foreign direct investment in 2011, according to the United Nations Conference on Trade and Development. That’s more than the inflows to countries such as Korea, Malaysia, Argentina, Peru, Belgium, Denmark and Portugal.

    via Constantinople rising – Construction – ArabianBusiness.com.

  • Meet BlackBerry co-founder Mike Lazaridis

    Meet BlackBerry co-founder Mike Lazaridis

    Blackberry’nin Kurucusu İstanbul doğumlu Lazaridis şirketteki görevini bırakıyor.

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    Mike Lazaridis, the co-founder of BlackBerry (formerly known as Research In Motion), is leaving the company as vice chairman and board director. Here are some biographical details on him.

    Name: Mike Lazaridis

    Age: 52

    Born: March 14, 1961, in Istanbul, Turkey

    Hometown: Windsor, Ontario, since moving to Canada as a kid in 1966.

    Education: Attended University of Waterloo in electrical engineering. Dropped out to start RIM. Later, While leading RIM, he served as the school’s chancellor.

    Family: Married with two kids.

    Career:

    * Invented BlackBerry and co-founded RIM in 1984, during his last year at college.

    * Stepped down as co-CEO in January 2012, became vice chairman and board director.

    * Leaving RIM on May 1.

    * Recently co-founded a $100 million venture capital fund called Quantum Valley Investments, to focus on the power of quantum computing.

    Community:

    * Founded the Quantum-Nano Centre in Waterloo in 2012.

    * Founded the Institute for Quantum Computing at the University of Waterloo in 2002.

    * Established the Perimeter Institute for Theoretical Physics in 2000.

    * Has spent $270 million in the community, including $170 million on Perimeter.

    Early achiever: He won a prize at age 12 for reading every science book in the Windsor Public Library.

    The Arts: Won Academy Award and Emmy Award for technical achievements for developing a high-speed bar-code reader that has helped speed up film editing.

    Quote: “I’m very proud of what we built at RIM together. I believe I’m leaving the company in good hands.”

    Wealth: Lazaridis’ stake in RIM was worth more than $3 billion at its peak in 2008, according to Forbes magazine, but the value has fallen to about $440 million amid the company’s declining stock price.

    via Meet BlackBerry co-founder Mike Lazaridis – Times Of India.

  • Turkey’s peace dividend

    Turkey’s peace dividend

    Guest post: Turkey’s peace dividend

    Naz-Masraff
    By Naz Masraff of Eurasia Group

    Recep Tayyip Erdogan, Turkey’s prime minister, has had a very good week. On March 21, the Kurdistan Workers’ Party (PKK) announced a ceasefire; the next day, Israel apologized for an attack on a Turkish-led peace flotilla in 2010. The possibility of a solution to its Kurdish insurgency holds out the possibility of real benefits for Turkey through increased trade with Iraq, improved security and political calm. There is a less immediate payoff from the Israeli apology but it is a favorable signal, nonetheless, from a region where there has been little good news of late.

    Should Ankara negotiate a durable solution to the PKK insurgency, the country’s overall risk premium would decline considerably, improving the business environment. For the last three decades Turkey’s eastern and south-eastern regions have struggled to attract investment because of the annual violence and terror attacks on oil and gas pipeline infrastructure that also disrupted the country’s energy supplies. A sustained ceasefire would do much to assuage investor concerns.

    By removing a sticking point in relations with the Kurdistan Regional Government (KRG), the ceasefire with the PKK would also allow for even tighter economic cooperation between Ankara and Irbil. Turkey already has substantial trading ties with Kurdish Iraq but Turkish businesses have not yet tapped into the region’s significant oil and gas opportunities. Turkey already imports a small, though symbolically important, amount of oil by truck from northern Iraq, and the two sides are allegedly in talks to establish greater energy links while sidestepping Baghdad’s involvement. Although Ankara is unlikely to approve the construction of oil and gas pipelines connecting Kurdish Iraq directly to Turkey in the near term, hydrocarbons trading may increase in the future.

    In the meantime, closer ties with the KRG, much to the chagrin of the authorities in Baghdad, reduce opportunities for Turkish businesses in the remainder of Iraq. Turkey’s exports to Iraq increased around 1,200 per cent in the last decade and the country is set to become Turkey’s number one export destination in 2014. Nearly 80 per cent of Ankara’s exports, however, end up in the area controlled by the KRG, where Turkish companies are already very active in infrastructure and construction projects. Ankara’s deteriorating relations with Baghdad are disconcerting for Turkish exporters and contractors who will find it increasingly difficult to expand their operations into southern Iraq where there are many unexploited business opportunities.

    The ceasefire also reduces the risk of spill-over from northern Syria as well as security threats from Iran. This is good news for investors looking at the region. Ankara has long been concerned about terror attacks originating from northern Syria, which is currently dominated by PKK-affiliated groups. Deteriorating relations with Iran have also worried Ankara because Iranian authorities have done little to crack down on PKK activity. Both risks are now reduced.

    The Israeli apology has fewer business implications if only because, despite heightened political tension between the two countries, trade actually increased over the past three years. So an immediate jump in trade volume is unlikely. It also remains to be seen whether the US-brokered apology actually leads to a full normalization of relations.

    It will be tough to reset the relationship completely. Erdogan is unlikely to change his anti-Israeli rhetoric overnight, given that it helps him domestically. The language he uses during a planned trip to Gaza in April will signal both the speed and extent of the rapprochement. The apology does, however, open up the option of exporting Israeli natural gas through an underwater pipeline to Turkey, though this remains a distant likelihood. Even though such an export route makes the most economic sense, Israeli authorities are likely loathe to rely so much on Turkey in coming years.

    Naz Masraff is Europe analyst at Eurasia Group.

     

  • Syrian Financial Capital’s Loss Is Turkey’s Gain

    Syrian Financial Capital’s Loss Is Turkey’s Gain

    Syrian refugees are pictured at Kilis refugee camp in Gaziantep, Turkey, on Nov. 1. An estimated 150,000 Syrians are reported to be living in the Turkish border town.

    syria-gaziantep3

    Maurizio Gambarini/DPA/Landov

    There is a brain drain in Syria, an exodus of the skilled and the educated as the Syrian revolt grinds into a third year.

    The health care system is one casualty, as hospitals and clinics are shelled and doctors flee the country.

    The business community is another — particularly in Aleppo, Syria’s largest city and once the country’s industrial and financial hub.

    As Aleppo was dragged into the war, many in the business community fled to southern Turkey, less than a two-hour drive away. Gaziantep, a Turkish border town, has become a new hub for Syrian businessmen.

    At the recent opening of a new restaurant in Gaziantep, the excitement among Syrian exiles was all about the white creamy sauce served with the spicy chicken.

    Syrians flocked to the recent opening of a new restaurant in Gaziantep serving a creamy garlic sauce known as creme toum. It’s a sign that some Syrians are beginning to think about Gaziantep as more than just a temporary home.

    Deborah Amos/NPR

    “Garlic, very important with chicken,” insisted customer Ahmad Showah, who has longed for Syrian cuisine since he came to Turkey seven months ago. For him, the traditional Syrian sauce was part nostalgia, part identity — a powerful reminder of home.

    “Garlic, eggs, oil and spices,” said restaurant owner Mohamad Serjeh, listing the ingredients of Syria’s “special” sauce as he piled plates with crispy chicken. Serjeh brought his stainless steel chicken roasters from his ruined shop in Aleppo and opened the first Syrian restaurant in this Turkish border town.

    More than 150,000 Syrians now live in Gaziantep, with more arriving. So Serjeh had a full house on opening day.

    “There are about 17,000 Syrians here who have the wherewithal to buy this kind of food,” Serjeh said, “so we hope for a good success.”

    That’s his rough calculation of Syrian exiles with means in just one Turkish town. Official data from the Turkish banking agency shows that Syrians have deposited almost $4 billion in Turkish banks — some of the cash transferred across the border on the backs of mules, packed by Syrians in a hurry to get money out. As the war has intensified, more than 400 factories have shut down.

    Fuad Barazi is among the latest arrivals in Gaziantep. He owned a furniture store, a once-prosperous family business, in Aleppo. Barazi stayed as long as he could, caring for his elderly parents while delivering humanitarian aid. But a few weeks ago, he decided he had to get out of Aleppo.

    “Last few months, it was devastating — horrible, actually. The bombs very near to us, power, no water. Also, and I have a sick dad, so I had to come,” Barazi said.

    For the moment, he and his family are recovering from their ordeal, and not thinking of how long to stay in Turkey. But Barazi and others like him from Syria’s business elite are wondering when they can go back and rebuild the country’s economy — and, more broadly, what kind of country will Syria become.

    The answers will determine Syria’s recovery, said Soli Ozul, a Turkish political commentator.

    “When the best leave, then you end up with the brutes,” Ozul said. “I just don’t know how much of that elite went out and how many of them will want to return after, at least, there is a regime change.”

    For now, Aleppo’s loss is Turkey’s economic gain, certainly in Gaziantep, a city with historical links to Syria. In Ottoman times, Gaziantep was part of Aleppo province.

    And once again, the Turkish border city is intertwined with Syria. The Sanko Park mall was built a few years ago to cater to Syrians who easily crossed the border to shop on weekends. Now, more than 30,000 Syrian businessmen have come to Turkey to escape the war — attracted by government policies that allow them to open factories and offices and make lucrative deals, said Barazi, the furniture store owner.

    Can Aleppo recover if the business community stays in Gaziantep?

    “I guess not, because the businessman plays a major role in Aleppo,” Barazi said. “Aleppo will not survive without the businessmen.”

    But even Barazi can’t say yet whether he will go back to rebuild what was once Syria’s financial capital.

  • Turkey urges E.U. to restructure the terms of the current Customs Union

    Turkey urges E.U. to restructure the terms of the current Customs Union

    Turkey has urged the European Union to restructure the terms of the current Customs Union, or cancel the Customs Union altogether and make a separate free trade deal with Turkey.

    “If this system aggrieves us then we tell the European Union: Let’s revise this system, lift the visas, lift the quotas on our goods and say ‘Turkey is also a side in this deal,’ while making free trade deals with other countries. Or we could leave the Customs Union and you could make a free trade deal with us,” Turkish Economy Minister Zafer Çağlayan told daily Hürriyet.

    The minister was expressing his concerns over the damage that the EU’s free trade deals with other countries has on the Turkish economy, triggered by the possibility of the EU signing deals with the world’s largest economies, the United States and Japan.

    The U.S. and EU launched moves on Feb. 13 to open negotiations on a new free trade pact, while Japan and EU have reached a separate agreement to kick-off talks on a comprehensive cooperation, including the elimination of barriers and restrictions on trade.

    The free trade agreement between the EU and third parties enables these other countries’ goods to enter European markets or Turkish markets via Europe with zero duties, but the decision to provide the same privileges to Turkey is up to the discretion of the third party. Turkey is the only non-EU country included in the Customs Union.

    Prime Minister Recep Tayyip Erdoğan has sent a letter to U.S. President Barack Obama to encourage Washington to continue talks with Turkey for a free trade agreement simultaneously with the EU.

    Gearing up its efforts to prevent the neglecting of Turkey in the process, the government and Turkish businessmen have been pressuring the United States to make a separate deal with Turkey, but Çağlayan’s recent remark indicates that Ankara also has another potential path to follow.

    “The Customs Union has begun to work completely against Turkey. Under these circumstances, to switch to a Free Trade Deal would be more in line with Turkey’s interests,” Çağlayan said during a meeting of automotive industrialists on March 27.

    Since Turkey is the demanding side, the opposite party is asking for a number of compromises that put Turkey in a disadvantageous situation, the minister said.

    South Africa, Mexico and Algeria are all countries that have inked free trade deals with the European Union in the last 10 years.

    In 2012, Turkey bought $1.3 billion worth of goods from South Africa, while selling only $382 million. It bought $867 million worth of products from Mexico during the same period, but sold $206 million. It exported $1.8 million worth of goods to Algeria while importing $2.6 billion, according to figures provided by Çağlayan.

    Hurriyet Daily News