textile & clothing in morocco - il sole 24...

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


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


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


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


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

15

Thank you for you interest!

textile & clothing in morocco - il sole 24...

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