Smart sourcing in Morocco – competitive advantages through nearshoring

•    Nearshoring, the future trend of sourcing

•    Morocco rising: economic growth and expansion of the textile industry

•    Optimization of the supply chain through production in Morocco

•    Marrakech, the first African culture capital

From October 17 to 18, 2019 around 200 top suppliers, all-round suppliers and CMT producers from the Mediterranean area present themselves at Maroc in Mode – Maroc Sourcing to buyers and retailers from Europe and overseas on an exhibition area of around 5.000 sqm on the site of the motor racing circuit Moulay Hassan. The fair offers an comprehensive overview of the Moroccan textile and garment industry from fast fashion to high-quality production of trend peaks up to offers of sustainably produced collections.

The fair will be segmented in the fields

•    FAST FASHION

•    DENIM

•    JERSEY, KNIT, LINGERIE

•    SPORTSWEAR, LEISURE WEAR, TECHNICAL GARMENTS

•    LEATHER, SHOES

The fair program will be supplemented by special B2B meetings and conferences, which deal with current production topics. Around 1,500 visitors from all around the world are expected.

Sourcing trend: nearshoring

The rising production costs in Asian countries make near shoringcountries like Morocco attractive and put them in the focus. The price difference between the production countries decreases continuously.

Especially short-lived trends, which develop from street styles and instagram posts, require a quick response market with short lead times.

For fashion focused companies a quick adaption and offering of trends is essential to stay competitive. These trends spread independent from seasons, the importance of in-season-flexibility increases constantly.

A current McKinsey study sees nearshoring, amongst others for online retailers, as decisive relevant. An agile supply chain being very important to master the stability of the business model. For short product development processes and low quantities nearshoring is the key. Moroccan producers are progressively adjusting to this demand and offer more and more options of low quantity production.

The survey of 100 executives in the course of the study shows that 79 percent of the study's  participants  see  a  shift  from offshoring  to  nearshoring  in  the  future  of sourcing.

Production country Morocco Continuous economic growth and expansion of the textile industry in Morocco

Morocco is in a phase of continuous growth due to foreign investments and an expansion of its infrastructure. For this year an economic growth of 3% is expected, the GDP is supposed to rise from 118,5 billion US$ in 2018 to 125,5 billion US$ in 2019, based on estimations of Economist Intelligence.

In 2018 the garment industry generated 15% of the industrial GPD of the country and 25% of the Moroccan export goods, around 3,6 billion Euro. The over 1,600 companies of the industry employ over 190,000 workers and have a production capacity of over one billion items. For 2020 Morocco set ambitious goals for the expansion of the textile industry. With investments of around 450 million Euro the Moroccan textile federation wants to create 62.500 new jobs and increase the sales by 1,5 billion Euro. The fields knit, technical textiles and denim are in special focus.

The ecosystems, clusters, which forward the modern production, the design and the accordance with international standards, play an important role for the expansion of the textile industry. In this context the denim cluster is taking a leading position and is highly supported in the course of the industrial promotion and sustainable production.

Morocco convinces with substantial benefits

•    Fast fashion experts

•    Short delivery routes

•    Quick delivery with short-term delivery dates

•    Optimal price/performance ratio

•    Duty-free production by EU convention

Morocco is a reliable production location through its geopolitical situation as well as its political and social stability. Besides the worldwide leading position as fast fashion champion Morocco offers fast delivery by land with short-term delivery dates thanks to its proximity to Europe. The shortening of the delivery routes is also a way to reduce the ecological footprint of the companies, an important aspect in the course of sustainable production, a decisive factor for future competitiveness. In addition many producers in Morocco are BSCI and GOTS certified.

Morocco scores as well with an excellent price / performance ratio, through EU agreements production in Morocco is duty free.

Trade fair location Marrakech: first African culture capital and source of inspiration for the fashion world

Marrakech will become the first capital of culture in Africa in the coming year. Not least because of the opening of the museum MACAAL, which shows contemporary African art, and the art fair 1:54, which took place first time in Marrakech last year, the Moroccan metropolis could establish itself as a center of art and culture. The 2017 opened Yves Saint Laurent museum with the adjoining Jardin Majorelle thrills the art and fashion scene alike. For a long time Marrakech has served the Haute Couture as a source of inspiration. Fashion house Dior just presented their African inspired cruise-collection in Marrakech this spring.