Foreigners increased their consumption with the advantage of the exchange rate

The depreciation of the Turkish lira, caused by the increase in inflation that started with the pandemic, adversely affected the consumption preferences of the citizens. Brands began to use lower quality inputs to meet the demand for cheap goods. Foreigners, on the other hand, increased their share of consumption thanks to the exchange rate advantage.

While the share of domestic customers of top segment brands decreased, a rapid increase was observed in the ratio of foreign customers. This trend has manifested itself in many areas, from automobiles to housing, from ready-to-wear to shoes, from electronics to technology. The rise in prices after the cost increases caused a decline in purchasing power. In parallel with the consumer trend, the sector where the share of 'entry' level (the lowest priced) products increased, decreased the number of products in its stores after high costs and turned to more economical inputs in the materials used.

Ramazan Kaya, President of the Turkish Clothing Manufacturers Association (TGSD), said, "Especially in domestic brands, due to the increase in commodities and costs, there was a decrease in unit-based capacity. If 100 units were produced before, they have now decreased to 70 units. They wrote as minus 30 percent on a piecemeal basis. Consumers also reduced their purchases. If he used to buy 3 units, now he has reduced it to 1.

Turkish Shoe Manufacturers Association (TASD) President Berke İçten said, "Due to the increasing demand for economic shoes across the industry, production develops in parallel with this. One of the biggest reasons for this is the decrease in purchasing power. We anticipate that this trend will continue in the coming period. Previously, first-quality leather and leather soles were used. However, their prices would be high. Then, since a product of that quality exceeds the purchasing power of the current consumer, the orientation towards inputs that will reduce the cost has increased. Lower quality inputs such as second-quality leather and plastic soles have started to be used."

Brands Association (BMD) President Sinan Öncel explained that the share of foreigners in luxury brands has increased, while brands that appeal to the middle and lower segments have begun to turn to a lower segment in their production. Önl said, "The ratio of foreigners in credit card sales of a luxury segment brand, which is also among our members, has increased to 70–80% at many points. Foreigners buy because the purchasing power of locals has decreased. Selling 70-80 percent of products to foreigners is not good news. Due to the price increases at the middle and entry levels, everyone is turning to a lower segment."