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Expensive and distant Chinese market? The new frontier of fashion is Morocco

China is no longer so close, it is less and less low cost and pays more and more attention to domestic consumption – 85% of sourcing still comes from Asia, but a vacuum is being created for European companies, in the throes of the crisis and looking for original and easier to reach production locations – This is why many buyers now choose Morocco.

Expensive and distant Chinese market? The new frontier of fashion is Morocco

Asia is no longer the Eldorado of textiles. It starts to cost, and China is no longer as close as it seemed. And above all, it also begins to produce for itself. And there are those who, however, much closer to Europe, just a few steps away, could enter the fashion sector: it is the Morocco, until now almost exclusively supplier of the Spanish neighbors (37%) and the French (35%).

But Moroccan industrialists want more. With the support of associations and authorities, clothing manufacturers want to increase their technological level, moving from sub-contracting to co-contracting.

"The textile and clothing industry is worth 7 billion euros, 3 of which come from exports. In October, the exports grew by 7,3% compared to October 2010“, to speak is Mohammed Tazi, director general of AMITH (Moroccan Association of Textile and Clothing Manufacturers). Maroc in Mode and Maroc Sourcing, which took place from 16 to 18 November, were therefore an opportunity to show European buyers the diversity of products and the profiles of local companies.

There are three strengths of the Moroccan model: the originality of the products and the geographical proximity for European buyers.

“Moroccan industry has a tendency to benefit from the effects of the crisis. The plants reduce their orders with distant suppliers and work in the short term, i.e. with neighboring countries such as Tunisia, Turkey and Morocco“, explains Aziz Elkouhene, director of Quattro, specialist in shirts. Exhibitors are convinced that Morocco is a country made on purpose to get out of the way of current problems, but that, with the current crisis, it will be increasingly in demand, and this even if European distributors are facing many difficulties at this stage.

It confirms it Gildas Minvielle, director of the economic observatory of the French Institute of Fashion, described the situation as follows: on the one hand, production costs in China are rising sharply and producers are turning to their domestic market of 1,3 billion inhabitants. In parallel, consumption on the Old Continent suffers and stagnates”. Simply put, there is a vacuum in Europe. And Morocco wants to enter this void, why not.

In volume, the increase in Moroccan exports to Europe was 9%. “European brands still carry out 85% of their sourcing in Asia – explains Khalid Boujida of Modaline, who works in particular for La Redoute, Pimkie, Phildar, Inditex and H&M – but some customers are starting to have a very clear sourcing policy , with the desire to maintain nearby textile production sites. In this way, they can face risks such as contingencies or other unforeseen events”.

The only problem: bargaining on prices: Moroccan fabrics are very valuable, while someone thinks they can go there to do business "the Chinese way": “Someone wants caviar for the price of sardines…”, is whispered around Marrakech.

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