TOWARDS NEW BORDERS TO GROW : DESTINATION MOROCCO
TEXTILE & CLOTHING IN MOROCCO
Milan, le 28 janvier 2014
SUMMARY
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Textile and Clothing in Morocco : Key Figures Why Morocco is representing an alternative sourcing for several brands ?
15 mn
2025 Textile Plan
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Textile and Clothing in Morocco : Key Figures
One of the core sectors according to the economic and social development in Morocco
Contribution to industry employment
36%
• 1st employer in Morocco with more than 175 000 employees
Contribution to exports 20%
• 2013: 20% of exports of goods
Other information
Contribution to GDP 4%
*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)
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Textile and Clothing in Morocco : Key Figures
① Textile and Clothing exports have shown a steady growth until 2008. Such trend is to be seen again since 2010. ② Southern Europe markets remain strategic : Spain 42%, France 31%, Italy 4% ③ In Morocco, short circuit, restocking and updating represent the main sourcing modes of international and particularly european fashion brands ④ A rich line (Middle high, middle and middle low) and wide range of products Moroccan textile and Clothing exports from 2003 to 2013 [MIs EUR ; K Tonnes ;03-13] Exports turnover [MIs EUR]
Destination countries of Moroccan textile and Clothing exports [Mls EUR; %; 2013]
Exports volume [K Tonnes] Export turnover in Textile & Clothing [Mls EUR; 13]
3 500 3 000
180 142
139
148
155
2 500
146
143
147 141
140
120 2748
2799 2656
2625
2602
1 500
160
2541
2742 2626
2567
5
Italy
110
4%
4
Germany
162
6%
3
U.K.
165
6%
2
France
850
31%
1
Spain
1 152
42%
140
2961
2 000
1 000
145
144
100 80 60
2424
% Export in Textile & Clothing [%; 13]
40 500
20
0 % Moroccan exports 1)
0 2003
2004
2005
2006
2007
2008
2009
2010
2011
2022
2013
35%
35%
34%
30%
30%
29%
24%
24%
23%
21%
20%
1) Exports of goods Source : Trademap – Office des Changes, AMITH,
∑ Europe: more than 93 % of textile and clothing exports
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Textile and Clothing in Morocco : Key Figures
Total : 64,1 Billion of euros in 2013:
-2% on 2012;
;-5% -5%onsur 2011 2011
-8% -8% +5% +5%
+4% +4%
-1% -1%
+8% +8%-5% -5% -
-
+23% +23% +10%
+10% -10%
-10%
Source IFM Source IFM
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
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Textile and Clothing in Morocco an alternative sourcing for several brands
Both the government and the private sector offer a complete and overimproving package Administrative and customs easiness Tailored facility for major clients Investment and logistic infrastructures
Preoccupation of clearance delays reduction
Integrated Industrial Platforms and parks
A competitive short delivery ensured towards every European destinations between 1 to 3 days and 2 days toward France
Communication / Profiling Financial support for communication actions towards imported products from Morocco and distributed by the Group
« Port Tanger Med » : dedicated way via specific customs regime: integrated logistic platforms, big ship capacity/rotation
Competitive delay (restocking and updating)
Government Private Mix
Partners identification (ones can match the needs) and personalized meetings organization
« Public/Private » Package
Capacity, Quality, Competencies Important manufacturing capacity
Competitive cost A competitive production cost compared to cross-border countries
Adaptation to norms and european standards Sector organization towards structured and solid association « AMITH »
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Textile and Clothing in Morocco an alternative sourcing for several brands
Several brands operating in Morocco: professionalism, competition and know-how of the Moroccan textile and clothing industries
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Textile and Clothing in Morocco an alternative sourcing for several brands
Morocco may represent an alternative sourcing zone according to new sourcing strategy in restocking and updating… Competitive delay
Costs
Capacity, Quality, Competencies
France Algesira s Tanger
Competitive delivery
Production responsiveness
• 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
1 to 2 weeks if commodities import from Europe and Turkey Less than a week if local supply of commodities
Production - Logistic
A week of production in Morocco
Manufacturing
2 to 3 days if export in Europe
• Morocco is competitive in terms of production responsiveness and delivery, which matches the « Fast Fashion » short cycle of restocking and updating
Delivery
Total : 4 to 5 weeks
• 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%) 8
Textile and Clothing in Morocco an alternative sourcing for several brands
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…and hereby offers competitive advantages in terms of delay and cost Competitive delay
Costs
Capacity, Quality, Competencies
Cost of workforce (1 hour) [Euro ]
Transportation delay - Western Europe [Days] 2)
12,57
25.0 6,46
Transportation cost [Euro/Kg] 0,27
20.0 20.0 17.5 0,20
0,19
3,13 2,92
0,11 2,22
5.0
0,94
Spa Port Pola Turk Slov
0,90 0,77
4.5
2.0
0,58 0,38 0,21
Mor Chi Egy Ind Pak Bang 1)
The cost of workforce remain competitive comparing with other nearby countries
Bang Chi Pak Ind Egy Turk
1.0
1.0
1.0
1.0
Mor Slov Spa Port Pola
Chi
Egy
Turk
Mor
The transportation delay and cost represent a very competitive advantage for Morocco
1) Estimated Cost in 2010 2) Average delay for product transportation towards the following countries: Germany, Austria, Belgium, France, Holland, Switzerland Source : CEDITH / Clothe source & Werner International / Textile Industry Labor Cost Comparisons : Study of ministère de l’Equipement et du Transport
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Textile and Clothing in Morocco an alternative sourcing for several brands
Textile and clothing products represent many advantages in terms of capacity, quality and competencies
Capacity, Quality
Competencies
Originality
Structure, Communication Ethics
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Important global capacity of 1 billion/ year – Sub-contracting : 620 million – Co-contracting: 270 million – Own collections: 110 million
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High quality according to European standards
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Experienced sector operating for 50 years within European and American markets
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Competencies improvement is at the very middle of the sector strategy: 2 000 engineers and 30 000 operators in 2015
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Creation of “Ecole de Mode et de Design” in October 2010
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SME’s Financial and operational assistance for originality development via dedicated funds (Moussanada, Imtiaz, Information Systems and Products development…)
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Sector organization towards structured associations « AMITH », which regroup more than 90% of exports corporations within the sector
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Communication and interaction with major clients (culture, language)
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Moroccan legislation
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International standards of sustainable development: adopted label
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Textile and Clothing in Morocco an alternative sourcing for several brands
Existing and given advantages to major clients made them increase their supply in Morocco Feed-back on major clients supplying choice (Study IFM* ; 2011)
Exemple of the trend of supply of a major client from Morocco [Millions of pieces]
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. »
+22%
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. »
*French Fashion Institute Study 11
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The basis of the “2025 Textile Plan” But there are real opportunities to seize
Great capability of adaptation The Moroccan textile industry prooved a great capability of adaptation facing the effects of two consecutive crisis
A break from previous strategies in order to seize opportunities
Change of context and paradigm :
However, constraints and challenges to get over related to the unbalance of the sector 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. 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 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.
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.
New economic context: the return to industrialisation is considered as a essential value Successful company models existe (i.e. upstream and distribution) and show the way An association more than ever mobilized next to the their partners.
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5 PILLARS of the « 2025 TEXTILE PLAN » : to develop an underdeveloped sector into a branch, that is well-balanced, horizontally integrated , innovative and competitive
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Balanced Balanced strategy strategy for for the the moroccan moroccan textile textile sector, sector, through through the the offensive offensive development development of of the the 33 poles poles (apparel/home (apparel/home textiles/technical textiles/technical textiles), textiles), that that reflects reflects the the competitivness competitivness of of Morocco Morocco
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11 big big gamble: gamble: industrialisation industrialisation to to improve improve the the competitivness competitivness of of the the morrocan morrocan offer offer (in (in exports exports and and domestic domestic markets) markets)
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A A responsable responsable and and innovative innovative approach approach to to solve solve the the difficulties difficulties with with the the informal informal sector, sector, focalized focalized on on strengthening strengthening the the competitivness competitivness of of the the actors actors in in the the formal formal sector sector
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Renewal Renewal of of the the actors actors within within aa balanced balanced approach: approach: between between attracting attracting new new actors actors (including (including foreign foreign investment) investment) and and reinforcing reinforcing the the existing existing industrials industrials (y.c. (y.c. PME) PME)
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Deployment Deployment of of aa new new offer offer of of support support for for the the textile textile sector sector (v.2.0), (v.2.0), that that is is long long terme terme orientated: orientated: in in breaking breaking with with the the past, past, with with actions actions that that are are coherent coherent with with the the strategic strategic interests interests of of the the sector sector 13
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POTENTIAL TO MULTIPLY PER 2 to 3 THE SIZE OF THE SECTOR AT THE HORIZON of 2025 – VISION CONSOLIDATED –
DIRECT EFFECTS
PIB Mds MAD
Labour force 000’ ETP 450-500
46-48
~200
16
2010
2025
Turnover Mds MAD
2010
2025
Exports Mds MAD 85-95
130-140
46
2010
29
2025
2010
2025
14 SOURCE: HCP, MCI, OC 14
Thank you for you interest!
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