Your Guide to Europe: 5 Tips for Turkish Fashion Expansion

Europe is calling — but before you answer, there are a few things you’ll want to know. In recent years, Turkish brands have had a bumpy ride. Thanks to sky-high inflation, a plummeting lira, and some tough trade deficits that have made going global a little trickier. But don't worry: from stock management hacks to the perks of local marketplaces, we’re breaking down five essential moves that can make your expansion from Türkiye to Europe not just doable, but downright profitable.

With inflation in Türkiye soaring and the lira taking a 60% nosedive against the dollar between 2021 and 2023, Turkish brands face mounting pressure to keep logistics and inventory costs in check across Europe. Simply put, it’s time to work smarter, not harder. The economic squeeze means finding partners who can streamline inventory, consolidate fulfilment processes, and cut costs is now more critical than ever.

Between 2021 and 2023, Turkish exports inched up just 13.4%, while imports leapt by 33%, ballooning the trade deficit to $106 billion. If Turkish brands want to keep their European operations in the black, they must master cost management and currency strategies like pros. This new economic reality calls for a serious focus on efficiency for Turkish companies aiming for profitability and long-term growth in Europe.

Thinking about expanding from Türkiye into Europe? It’s more than just shipping your products across borders. Success hinges on mastering essential strategies that set your brand apart in a competitive market. At 2024’s Istanbul Global E-Export Summit (IGEXX), Turkish fashion powerhouse Koton shared their experiences and insider tips for cracking the European market. We spoke with Koton’s CEO Dr. A. Bülent Sabuncu and have compiled a quick guide to navigating the challenges and maximising the opportunities Europe has to offer. Let’s dive in.

1. Optimising logistics

In Europe, your products shouldn’t play hide-and-seek with customers—centralising inventory is key to getting products where they’re wanted, fast. Koton, a leader in Turkish fashion, recently embraced Zalando’s fulfilment network to streamline their logistics game, switching to a single-stock pool to manage inventory across multiple sales channels. The benefits? Smoother order fulfilment, lower costs and fewer headaches.

As Koton continues its expansion across Europe, streamlined return logistics have become essential. By investing in advanced technologies, Koton has optimised its unified stock pool to not only support seamless selling across multiple channels but also efficient and customer-friendly return processes. With one central inventory, brands like Koton can prevent stockouts or overstocking in specific markets. And there’s a green bonus: reducing multiple shipments means cutting carbon emissions by tens of thousands of tonnes annually. The recent economic policy shift in Türkiye, which saw commercial loan interest rates soar to 70%, means that optimising supply chains isn’t just smart – it’s essential.

2. Leveraging data to steer your assortment

Data isn’t just a “nice-to-have” any more; it’s become a necessity. In Koton’s words: “Data means analysing the customer and their pathways to shop.” Today’s consumer wants a smooth, reliable experience, no matter where they shop. Koton embraces this approach by using data to ensure every touchpoint – from online to brick-and-mortar – meets the same high standard. By moving their big data to the cloud, Koton can synchronise their insights across multiple regions and platforms, breaking down silos and creating a consistent, customer-first experience.

In an age where shoppers are loyal to experiences, data lets you craft a tailored, seamless shopping journey that builds trust and loyalty with European customers who value flexibility and dependability.

3. Scaling your offering

The European fashion scene is fiercely competitive, and to stand out, your brand needs to scale offerings strategically. European customers expect access to the latest trends from top brands, and this means delivering a diverse and timely range that caters to different tastes. Koton’s approach is a perfect example—they consistently tune into their customers’ needs, ensuring their product lines align with trending styles and are accessible at the right price.

Scaling up isn’t just about adding more products; it’s about thoughtfully expanding in a way that strengthens customer loyalty. As Koton’s CEO Dr. A. Bülent Sabuncu puts it: “Our top priority is to listen to our customers.” By responding to what customers want and delivering it efficiently, your brand can build a loyal following across multiple channels.

4. Building trust and local relevance on marketplaces

Marketplaces are your golden ticket to making waves in Europe. With economic forecasts predicting a moderate real GDP growth of 3% in 2024 and inflation set to gradually decrease, Turkish brands can leverage trusted European marketplaces to minimise overhead costs while increasing brand visibility. Accessing established channels can offer Turkish businesses a more stable revenue source amid currency fluctuations and high local production costs. 

Platforms like Zalando, About You, and ASOS are where European customers are already shopping and where Turkish fashion shines brightest. In fact, nearly half of every euro spent on fashion in Europe goes through a marketplace, making these platforms invaluable for reaching new customers.

As Koton’s CEO, Dr. Bülent Sabuncu, highlights, these platforms are essential for building customer trust. By operating on 31 global marketplaces, Koton gains more than just exposure; they’re offering a seamless shopping experience that fosters loyalty. By placing your brand on these trusted platforms, you don’t just expand your reach—you enhance your credibility in the eyes of European customers.

5. Balancing international growth with local focus

Expanding into Europe isn’t just about extending your audience; it’s about truly understanding them. Europe’s blend of countries, languages and diverse preferences can make or break your expansion strategy. What resonates in Türkiye may not hit the same notes in Germany, France or Poland. For example, while home delivery might be a norm, some countries, like Poland and the Czech Republic, actually prefer parcel lockers. And that’s just one of the many regional quirks. From favoured payment methods to local shipping partners, each market has its own demands.

Success lies in finding the balance between scaling internationally and adapting to local needs. Meeting these specific preferences makes your brand feel closer and more relevant to each market, building the kind of trust that keeps customers coming back.

With Türkiye’s pivot to more orthodox economic policies aiming to stabilise the lira and curb inflation, Turkish brands have a new opportunity to secure a stable foothold in Europe. This gradual economic shift offers a chance to build more resilient business practices, and initiatives like the “Middle Corridor” project promise better connectivity and lower logistics costs.

So, while going global from Türkiye to Europe isn’t without its bumps, with the right strategy, data-driven decisions, and a focus on local relevance, Turkish brands can take on the continent—and win.