The large Spanish fashion firms that manufacture part of their production in Turkey, Mango, Inditex and the children’s clothing firm Mayoral, analyze the escalating tension between the Turkish and Saudi administrations and how it affects their business.
Spanish companies are suffering a embargode facto applied by Saudi Arabia to the sale in their country of products made in Turkey, indicate sources from the Spanish textile sector. The same sources point out that there is no official statement by the Saudi Administration in this regard, but they maintain that, in fact, the embargo is taking place.
Earlier this month the president of the Saudi business association, Ajlan al- Ajlan, called for a boycott “of everything Turkish, be it imports, investment or tourism,” he wrote on Twitter, “in response to the continued hostility of the Turkish government against our leadership, country and citizens.”
Mango has more than 60 stores in Saudi Arabia and works with 152 factories located in Turkey
The tension between the two countries comes from afar, due to different positions taken before Islamist groups, or due to the lack of support from Turkey for the blockade that Saudi Arabia proposed to Qatar more than two years ago. The distance has increased in recent weeks after the start of the trial in Istanbul, in July, for the murder of the journalist Jamal Khashoggi at the Saudi consulate in the Turkish capital, in October 2018.
Mango has in Saudi Arabia more than 60 stores, between them two flagship, being one of its top ten markets in the world. And he hires the services to manufacture his clothes in 152 plants located in Turkey, the second country after China where the Catalan firm has the highest production.
“We are monitoring the situation,” say sources close to the group founded by Isak Andic, and they point out that they could look for production alternatives to Turkey to sell in Saudi Arabia. “We are present in more than one hundred markets and we are used to geopolitical factors affecting our business, we are able to adapt,” they added.
Inditex worked in 2018 for the first time with more Turkish manufacturers (189) than with Spanish (186); has 181 stores in Arabia
Inditex, which did not want to comment on this information, has promoted the manufacture of its garments in Turkey in recent years. In 2018, for the first time Inditex worked with more Turkish suppliers (189) than with Spanish manufacturers (186 that same year).
The Spanish multinational founded by Amancio Ortega, which employs more than 5,000 people in Turkey, has twelve supplier clusters, in which 96% of total production is concentrated: Spain, Portugal, Morocco, Turkey, India, Bangladesh, Pakistan, Vietnam, China, Cambodia , Brazil and Argentina.
The group chaired by Pablo Isla owns in Saudi Arabia of 181 stores (44 from Zara; 19 from Pull & Bear; 11 from Massimo Dutti; 31 from Bershka; 46 from Stradivarius; 17 from Oysho; 8 from Zara Home; and 5 from Uterqüe).
The children’s clothing company Mayoral has a subsidiary in Turkey, and is represented in the main association of textile manufacturers in the country. Nor did Mayoral want to comment on this information.
The Malaga group, which last year earned more than 360 million euros, partnered in 2014 with the Arab firm Alhokair to open up 15 stores in Saudi Arabia.