While our country has been striving to establish and develop its own industry since the founding of the Republic, the footwear industry has lagged significantly behind many other sectors. Inadequate government support has led to a lag in production technology and limited production.
The transition from manual to industrial production in the 1980s led to increased exports. It can be said that with the increase in shoe capacity and production volume around this time, the focus on foreign markets began. As a result of significant strides made by the private sector, the shoe sector now accounts for 2.5 percent of registered exports, and, when suitcase trade is included, nearly 10 percent of total exports. The primary reason for the low official export figures is the significant involvement of the sector in suitcase trade.
While the sector's export development level is insufficient, it has a large supply potential that can compete with European manufacturers, particularly Spain and Portugal. However, this potential is largely unknown globally (5). To fully utilize this export potential, emphasis must be placed on international promotion, design, and product standardization.
The selection of former Eastern Bloc countries for footwear exports due to their geographical proximity has led to significant impacts on developments in these countries. The 1998 crisis in the Russian market, which accounted for 50% of exports until 1998, forced footwear companies to seek new markets. Following the crisis, the share of former Eastern Bloc countries like Kazakhstan, Ukraine, Bulgaria, and Hungary in exports decreased, while the share of countries like Israel, Libya, and Saudi Arabia increased.
When footwear exports are considered by export item, leather shoes rank first with a 50.4% share. The demand for affordable shoes in the Russian market has led to shoes made from materials other than leather also becoming a significant export. The economic crises in Asia in 1997 and Russia in 1998, in particular, pushed shoe manufacturers to produce inexpensive shoes made from non-leather. This type of production was driven by the protection of foreign markets from Asian countries, which gained competitive advantage through devaluation, and the lack of high-quality shoe styles and designs that would appeal to high-income groups.
