1703931483
From Doha Khaoulani
In Morocco, the prices of clothing from international brands raise several questions. In fact, this difference with the costs charged abroad can be explained by a variety of factors, in particular customs duties, logistics costs, etc.
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This notable gap is due to several factors including exchange rate, rent, logistics costs and taxes. In this sense, tariffs on franchised imports were 25%. However, in order to encourage brands to buy locally, the government decided to increase tariffs to 40% in 2020, which led to an increase in consumer taxes and therefore caused the decline in sales. Furthermore, under the Finance Bill 2024, these tariffs will be reduced from 40% to 30% for better administration.
Another aspect to consider is the size of the quantities. With distribution networks covering several hundred points of sale and generating significant sales, ready-to-wear brands in Europe have the opportunity to significantly reduce their prices by exploiting sales volume, exposing them to a particularly aggressive level of competition. In Morocco, however, the market remains limited, making it difficult to amortize fixed costs.
Tariff differences between Morocco and other markets open up great prospects for the development of the national textile sector. A targeted government push could not only spur the emergence of new local brands, but also encourage more entrepreneurs to invest in this industry.
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