TEXTILE & CLOTHING IN MOROCCO
Milan, le 28 janvier 2014
TOWARDS NEW BORDERS TO GROW :
DESTINATION MOROCCO
2
SUMMARY
Textile and Clothing in Morocco :
Key Figures
Why Morocco is representing an
alternative sourcing for several
brands ?
15 mn
1
2
3 2025 Textile Plan
3
36%20%
4%
Contribution to GDP
Contribution to industry employment Contribution to exports
• 1st employer in Morocco with more than 175 000employees
Other information
• 2013: 20% of exports of goods
• Exports turnover is equal to 4 %*of the national GDP
• ~ 1600 companies
• Manufacturing capacity of 1 billion articles
(including 50% to be exported)
One of the core sectors according to the economic and social development in Morocco
*Exports of Goods
Textile and Clothing in Morocco : Key Figures1
4
Destination countries of Moroccan textile and Clothing exports [Mls EUR; %; 2013]
Export turnover in Textile & Clothing
[Mls EUR; 13]
% Export in Textile & Clothing
[%; 13]
∑∑∑∑ Europe: more than 93 % of textile and clothing exports
165 6%U.K.3
1 152 42%Spain 1
850 31%France2
162 6%Germany4
110 4%Italy5
1
①①①① Textile and Clothing exports have shown a steady growth until 2008. Such trend is to be seen again since 2010.
②②②② Southern Europe markets remain strategic : Spain 42%, France 31%, Italy 4%
③③③③ In Morocco, short circuit, restocking and updating represent the main sourcing modes of international and particularly european fashion brands
④④④④ A rich line (Middle high, middle and middle low) and wide range of products
Source : Trademap – Office des Changes, AMITH,
Moroccan textile and Clothing exports from 2003 to 2013 [MIs EUR ; K Tonnes ;03-13]
35% 35% 34% 30% 30% 29% 24% 20%% Moroccan
exports 1)
1) Exports of goods
140141142 139
148 144155
145 146 143 147
0
500
1 000
1 500
2 000
2 500
3 000
3 500
0
20
40
60
80
100
120
140
160
180
2541
2602
2799
2961
2625 26562742
2626
20112003 2004 2005 2006 2007 2008 2009 2010
2424
Exports turnover
[MIs EUR]
Exports volume
[K Tonnes]
Textile and Clothing in Morocco : Key Figures
20132022
2567
2748
24% 23% 21%
5
Source IFM
-8%
+5%+4%
-1% +8% -5% -+23% +10% -10%
Textile and Clothing in Morocco : Key Figures1
1. Correlation between the evolution of consumption and the evolution of imports.
2. Distribution favours more and more late purchases, re-ordering and updating
(25%) and limits the risk-taking linked to long term orders (72%).
3. The Euromed started to recover in 2013 after a tough 2012 year (-2% in
tonnage and +2% in value) which indicates less pressure on prices.
; -5% sur 2011
Source IFM
-8%
+5% +4%-1% +8% -5% -
+23% +10% -10%
Total : 64,1 Billion of euros in 2013: -2% on 2012; -5% on 2011
6
Both the government and the private sector offer a complete and over-improving package
« Public/Private »
Package
Competitivecost
Communication / Profiling
� Financial support for communication
actions towards imported products from
Morocco and distributed by the Group
� Partners identification (ones can match
the needs) and personalized meetings
organization
Investment and logistic infrastructures
� Integrated Industrial Platforms and parks
� « Port Tanger Med » : dedicated way via
specific customs regime: integrated logistic
platforms, big ship capacity/rotation
Competitive delay (restocking and updating)
� A competitive short delivery ensured towards
every European destinations between 1 to 3 days
and 2 days toward France
Capacity, Quality, Competencies
� Important manufacturing capacity
� Adaptation to norms and european
standards
� Sector organization towards structured and
solid association « AMITH »
Administrative and
customs easiness� Tailored facility for major clients
� Preoccupation of clearance delays
reduction
� A competitive production cost
compared to cross-border
countries
GovernmentPrivateMix
2 Textile and Clothing in Morocco an alternative sourcing for several brands
7
Several brands operating in Morocco: professionalism, competition and know-how of the Moroccan textile and clothing industries
2 Textile and Clothing in Morocco an alternative sourcing for several brands
8
Morocco may represent an alternative sourcing zone according to new sourcing strategy in restocking and updating…
• Morocco is
competitive in terms
of production
responsiveness and
delivery, which
matches the « Fast
Fashion » short cycle
of restocking and
updating
• Through the organization of supplying platforms and inputs manufacturors,
Morocco wishes to reduce the delivery time of two weeks accross Europe
(would be reduced by 50%)
Competitive delivery
Production responsive-ness
2 to 3 days
if
export in
Europe
A week of production in
MoroccoLess than a week if local supply of
commodities
1 to 2 weeks if commodities import
from Europe and Turkey
Production - Logistic Manufacturing Delivery
Algesiras
Tanger
France
• Port Tangier Med allowed the Textile and Leather industry gained in
reactivity:
- Detaxing < 1h30 : approved ; 0% customs rights from the EU;
- Dedicated way for major clients
- Big ship capacity/rotation
- Opening to corporations dedicated only to trucks transportation (RoRo)
• TIR delivery towards every european destination between 1 to 3 days, et 2
days toward France
Total : 4 to 5 weeks
Capacity, Quality, Competencies
Competitive delay
Costs
2 Textile and Clothing in Morocco an alternative sourcing for several brands
9
0,210,380,580,770,900,94
2,22
2,923,13
6,46
Port Pola Turk Slov Mor1)
12,57
Spa Chi Egy Ind Pak Bang
…and hereby offers competitive advantages in terms of delay and cost
Source : CEDITH / Clothe source & Werner International / Textile Industry Labor Cost Comparisons
: Study of ministère de l’Equipement et du Transport
1.0
Spa
1.0
Port
1.0
PolaChi
20.0
Pak
17.5
25.0
Bang
20.0
Ind
5.0
Egy
4.5
Turk
2.0
Mor
1.0
Slov
0,27
Chi
0,20
Egy
0,19
Turk
0,11
Mor
Cost of workforce (1 hour) [Euro ] Transportation delay - Western Europe [Days] 2)
Transportation cost
[Euro/Kg]
The cost of workforce remain competitive comparing with other nearby countries
The transportation delay and cost represent a very competitive advantage for Morocco
Capacity, Quality,
Competencies
Competitive delay
Costs
1) Estimated Cost in 2010
2) Average delay for product transportation towards the following countries: Germany, Austria, Belgium, France, Holland, Switzerland
2 Textile and Clothing in Morocco an alternative sourcing for several brands
10
Capacity, Quality
Competencies
Originality
• Important global capacity of 1 billion/ year
– Sub-contracting : 620 million
– Co-contracting: 270 million
– Own collections: 110 million
• High quality according to European standards
• Experienced sector operating for 50 years within European and American markets
• Competencies improvement is at the very middle of the sector strategy: 2 000 engineers and 30 000 operators in 2015
• Creation of “Ecole de Mode et de Design” in October 2010
• SME’s Financial and operational assistance for originality development via dedicated funds (Moussanada, Imtiaz,
Information Systems and Products development…)
Textile and clothing products represent many advantages in terms of capacity, quality and competencies
Structure,Communication
• Sector organization towards structured associations « AMITH », which regroup more than 90% of exports corporationswithin the sector
• Communication and interaction with major clients (culture, language)
Ethics • Moroccan legislation
• International standards of sustainable development: adopted label
2 Textile and Clothing in Morocco an alternative sourcing for several brands
11
Existing and given advantages to major clients made them increase their supply in Morocco
Feed-back on major clients supplying choice (Study IFM* ; 2011)
*French Fashion Institute Study
� Time
« Being close is everything. »
� Quality
« There are good fabrication units : they did acquire a
good know-how and an acceptable level of flexibility,
hence the presence of good suppliers. »
� Historic
« Morocco is an experienced production system, in
which we have experienced partners for 15 years. »
� A right mix
« We are only working on markets that offer the best
delay/quality/cost ratio. We have such a right mix in
Morocco. »
2
Exemple of the trend of supply of a major client from Morocco [Millions of pieces]
+22%
Textile and Clothing in Morocco an alternative sourcing for several brands
12
Change of context and paradigm :� Manufacturer in Asia are reorientated to satisfy their
domestic markets
� Begin of withdrawl of customers in favor of the mediterranean basin, because of logistic costs,
environmental constraints, increase of costs.
� Only industries that are well prepared in terms of
integration and competitivness will benefit of the withdrawl
Beside apparel and fashion, there are interesting
opportunities/potentials for developpment,in exports as well as on the domestic market.
Great capability of adaptation But there are real opportunities to seize
Manufacturers are operating in exports mainly on a
CM/CMT basis. The market share and activities in the branches Technical Textiles and Home Textiles is still
weak.
A break from previous
strategies in order to seize opportunities
New economic context: the return to industrialisation
is considered as a essential value
The Moroccan textile industry prooved a great
capability of adaptation facing the effects of two
consecutive crisis
However, constraints and challenges to get over related to the unbalance of the sector
THE WILLPOWER
of PRO ACTIVITY
Define the position
and the role of the
Moroccan Textile
Industry at the
horizon of 2025 and
determine the
strategy of AMITH–
PublicAuthorities that
aims to support the
actors in Textiles.
An association more than ever mobilized next to
the their partners.
Successful company models existe (i.e. upstream and
distribution) and show the way
3
Weak integration of the supply chain in its whole
(raw materials, dying, printing) , the distribution
system including the domestic market level
The domestic market, despite its great potential,
remains marginalized
The basis of the “2025 Textile Plan”
1313
5 PILLARS of the « 2025 TEXTILE PLAN » :to develop an underdeveloped sector into a branch, that is well-balanced, horizontally integrated , innovative and competitive
1Balanced strategy for the moroccan textile sector, through the offensive
development of the 3 poles (apparel/home textiles/technical textiles), that reflects the
competitivness of Morocco
Balanced strategy for the moroccan textile sector, through the offensive
development of the 3 poles (apparel/home textiles/technical textiles), that reflects the
competitivness of Morocco
21 big gamble: industrialisation to improve the competitivness of the morrocan offer
(in exports and domestic markets)
1 big gamble: industrialisation to improve the competitivness of the morrocan offer
(in exports and domestic markets)
3A responsable and innovative approach to solve the difficulties with the informal
sector, focalized on strengthening the competitivness of the actors in the formal sector
A responsable and innovative approach to solve the difficulties with the informal
sector, focalized on strengthening the competitivness of the actors in the formal sector
5
Deployment of a new offer of support for the textile sector (v.2.0), that is long terme
orientated: in breaking with the past, with actions that are coherent with the strategic interests of the sector
Deployment of a new offer of support for the textile sector (v.2.0), that is long terme
orientated: in breaking with the past, with actions that are coherent with the strategic interests of the sector
4Renewal of the actors within a balanced approach: between attracting new actors
(including foreign investment) and reinforcing the existing industrials (y.c. PME)
Renewal of the actors within a balanced approach: between attracting new actors
(including foreign investment) and reinforcing the existing industrials (y.c. PME)
14
14
POTENTIAL TO MULTIPLY PER 2 to 3 THE SIZE OF THE SECTOR AT THE HORIZON of 2025 – VISION CONSOLIDATED –
SOURCE: HCP, MCI, OC
PIB PIB
Mds MADMds MADLabour forceLabour force
000000’’ ETPETP
16
2025
46-48
2010
Exports Exports
Mds MADMds MADTurnoverTurnover
Mds MADMds MAD
2025
450-500
2010
~200
2010
46
2025
130-140
2010
29
2025
85-95
DIRECT EFFECTS