Marubeni To Enter Europe's Clothing Market Via Turkey

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Marubeni To Enter Europe's Clothing Market Via Turkey

Japanese trader in tie-up with Istanbul-based fast-fashion supplier

Japanese trading house Marubeni will invest in Turkish clothing company Saide Textile, seeking to supply products to fast-fashion retailers and others throughout Europe.

Marubeni is expected to spend 7-10 billion yen (US$ 63-90 million) next month for a 45% stake in the Istanbul-based company. It will be the trading house's largest-ever investment in a fashion enterprise. Saide designs and produces clothing for major European retailers. The Turkish company's annual sales have doubled in four years to around US$ 180 million. From its offices in London, Saide looks for the latest trends and plans products for production at partner factories in Turkey. It can finish the process from planning to delivery in as little as two months or so. Marubeni supplies garments to Japanese apparel companies from seven partner factories in China, Bangladesh, Vietnam & elsewhere in Asia. This business generates yearly sales of about 200 billion yen & growing. Marubeni will use Saide's London office to improve its ability to propose new products to Japanese retailers, hoping to challenge rival trading houses Itochu & Mitsubishi Corp., which both have strength in apparel.

Meanwhile, Saide will gain access to Marubeni's partner factories in Asia, where labour costs are lower. With a bigger production network from which to export to Europe, the Turkish company aims to reach about US$ 270 million in sales in four to five years. Clothing exports from Turkey totaled US$ 15 billion in 2015, according to the World Trade Organisation. Turkey is the world's seventh-largest clothing exporter thanks to its proximity to the European Union.