Booming clothing sector in morocco finiiix

1,654
-1

Published on

Report on how well Primark will do in Morocco if they set up there.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,654
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Booming clothing sector in morocco finiiix

  1. 1. Morocco, a country of a fast booming clothing marketMorocco, a country of a fast booming clothing market Edmond Tindwendé Compaoré Understanding Markets Mr.A.Bennani April 4th, 2012
  2. 2. Morocco, a country of a fast booming clothing market with page number 2Content I. Introduction Company background The Research description and the outlining of its schedule II. Secondary data sources and collection process The purpose of research in general The benefits of secondary dataIII. Description of the target market The purpose of segmentation The benefits of targeting Demonstration of the research sampling unit and size. Use evidence from secondary data to reinforce your choiceIV. Research Methods Research Methods suggested to get primary data : The benefits of primary data Demonstration and description of the chosen methods The reasons behind the choice. V. Interview and Questionnaire Writing and piloting one questionnaire and one interview questions. Reporting the testing outcome and making any necessary adjustmentsVI. ConclusionVII. Referencing
  3. 3. Morocco, a country of a fast booming clothing market with page number 3I / Introduction All big investments require a serious and deep market research in order to unveil thehidden face of the market. It has a paramount importance. Thus, the following paper is amarket research of the clothing market for Primark that may decide to invest in Morocco.Indeed, after a little fear from the recession of 2008, Morocco has recovered immediatelyfrom this recession. In fact; Morocco has seen its clothing market developed considerably inalmost all the sectors. A report from Euromonitor (2011) argued that “clothing accessoriesretail volume sales increased by 4% in 2010 to reach 13.2 million units as consumerconfidence increased despite the worldwide recession. There is an increasing number ofinternational brands stores which opened in Morocco like Jules Cortefiel, Bossini Billabongand ZARA…”.Therefore, other big company as Primark could decide to open their stores inMorocco in the near future.In fact, Primark opened its first store in Dublin in 1969 and work a lot to open other storesthrough the years. Now, it is the biggest British discount fashion operating essentially inEurope with more than 232 stores .The Company manufactures men swears specially casualand formal ones. Also, it makes women swears for party or holiday and children swears forgirl and boys. In short the purpose of this study is to investigate on the opportunities that maybe offered to Primark in Morocco. Therefore, to do so, a market research will be necessary.Thus, about the market research, some specific secondary data will need to be collected,including quantitative and qualitative ones to uncover a specific gap in the Moroccan clothingmarket. The next step will be the explanation of the chosen target group. Then, the study willfocus on outline the research method that will be undertaken. Finally, primary data will be
  4. 4. Morocco, a country of a fast booming clothing market with page number 4collected by leading a survey, reporting the outcome and making any necessary adjustment.To conclude, an analyse and interpretation of all the data will be required.II/ Secondary Data Sources and Collection Process Research is the mother of management (Abad, 2000).So, it has a crucial importance.Abad (2000) stated that research is a “systematic inquiry aimed at providing information tosolve problems,” and as "a process through which new knowledge is discovered."Therefore, investigators will have to collect secondary data when conducting a marketresearch. About secondary data Lynne (2010) pointed out that the most obvious strength ofsecondary analysis is its cost effectiveness and time savings .The same author argued thatSecondary data are very useful especially for students who have limited means to access tosome data from large, national random. Therefore, Secondary data appears to be indispensablefor the market research.Thus, from the secondary that has been collected, it appears that the Moroccan fashionclothing market faces some critics despite of its booming. Indeed, consumers are complainingmore and more about the high costs of the different products. The immediate consequence ofthat is that the majority of people cannot afford to buy these items because of their low salaryeven if there is an increase of the middle class with more means. Discount chain as Primarkcould do better in exploiting this gap as it sells items which are very affordable. Indeed,according to the Primark website, the prices of the different items in Europe go from £8, £10to £15...,In addition, The “Centre Regional d’Investissement” (2010) stated that there are only veryfew brands that target children whereas the population of children under 15 years old
  5. 5. Morocco, a country of a fast booming clothing market with page number 5represents around15% . This is a large and great opportunity for Primark that targets a lot thissub-segment of the young segment. Furthermore, there is a great unbalance in the productsdistribution in term of place. In fact, almost the fashion discount chains are located mainly inCasablanca, Rabat and Marrakesh. Other cities like Tangier, Agadir have not been targetedenough by these brands whereas; these cities represent a large potential market. Moreover, inMorocco, certain niches such as women lingerie and linen which are relatively new are nottargeted as much it should be (Ministere de l’Industrie, du commerce et des NouvellesTechnologies, 2010). These niches need more investments as the demand of these itemsincrease. Therefore, Primark could benefit from this lack of investments in these sectors. Inshort, the demand of fashion clothes in Morocco has increased considerably exceeding thesupply. (Others opportunities for Primark are highlighted below by the “Ministere del’industrie, du commerce et des Nouvelles Technologies.”). 01/03/2012
  6. 6. Morocco, a country of a fast booming clothing market with page number 6III/ Target group Description James (2002) argued that market segmentation is primordial in the way that it helps toidentify customers’ needs and market segments so as to develop profiles. He added thattargeting helps to evaluate the attractively of each segment and to select the right target inorder to be successful.So, to apply that to the current case the sample unit that should be included in the marketresearch will focus mainly on the young people and also teenagers or adolescents whichaccounts for 20% of the whole population (National Democratic Institute, 2008).The otherobvious reason is that Primark is a company which operates mainly in the manufacture ofclothes for children, men and women whom the particularity is that it targets mainly youngpeople and the teenagers.However, there will a big trend of targeting the female gender because of its high level ofspending on clothes and its number which accounts for more than the half of the young people
  7. 7. Morocco, a country of a fast booming clothing market with page number 7population (“Centre Regional d’Investissement”, 2011). It is true that the young peoplesegment is being bombarded by other brands like Sara and H&M, but there is still a large partof this population to be conquered .Indeed, Morocco is made up of lots of young people.According to the World Bank Organization (2008), the population of Morocco is estimatedabout 31 million of people whom around 36% are young aged from 15-34 years old which isaccountable for 11 millions of people .For the Regional Investment Centre (CRI), Morocco ismade of 32 million whom 64% aged less than 34 years old .So, the growing number of youngpeople is a reason of why targeting this segment is a right doing. That represents aconsiderable market for Primark. The number of participants to be questioned will be 100young people because of the big number of this population.Moreover, by choosing this sample size, it is to have an important number of diversifiedresponses so as to make a good analyse and a credible conclusion.Furthermore, the reason of the choice of this segment ,it is that ,young people and speciallyteenagers are influenced easily by their preferences like trend, fashion… ;what is an asset forPrimark .That fits well with the vision of Primark to create style, quality and affordable pricesand always create new products. This factor conjugated with the desire of young Moroccanpeople to look like the young people from the western countries is reason why it is good totarget the young and adolescents.After that, the above target groups are less worried about what is going on in the economythan their parents. Also, Primark’s products are at affordable prices what fits well with theslogan of Primark is “Look Good Pay Less”. Finally, Primark is likely to do well amongyoung people of Morocco because it has already a good perception from the young European
  8. 8. Morocco, a country of a fast booming clothing market with page number 8for its good quality. This is a great strength for Primark comparing to the already establishedbrands like Sara whose lots of consumers complained about the quality.IV/ Outline of the research methods Primary data is seen as being the most difficult and tiring part because it does not existyet. It must be conducted by the investigators. A good collection of primary data is crucial tocome up with a credible outcome of the market research (James, 2008).Thus, the first step for the primary data to be conducted will be a focus group. It is veryimportant to get a comfortable place to lead this activity. Indeed, the focus group will be heldin the room or the coffee of SIST where 8-12 people will come together to discuss about theirconsumptions preferences and experiences on the fashion clothes market. It is very importantto get a proof of the focus group. Thus, a video recorder will be the best way to record thefocus group; however, it will not be easy to get people to participate. Therefore, cash paymentwill be used and other incentives may be offered to the participants. Indeed, the focus groupmembers will have the privilege to know one another in small party that will be organized justafter the end of the focus group.For the interviews, the semi-structured interview will be the appropriate one as theinvestigation is an explanatory research. Therefore, by using this semi-structure, theinvestigation will be more qualitative as respondents will be asked to clarify their responses.The interview will take place in the coffees where students come to study. In fact; thequestions will turn about the number of clothes the members used to buy before and duringthe crisis.Then, respondents will be asked to talk about the health of their purchasing power. Also,
  9. 9. Morocco, a country of a fast booming clothing market with page number 9respondents will be welcome to talk about their favourite fashion clothes named in Moroccoand in Britain. To record the interview, the voice Notes Recorder or a microphone will benecessary.For the final research method that will be used is a questionnaire. In the questionnaire, therewill have at the head of the paper, a clear explanation of the goal of the questionnaire and astatement of keeping the collected information strictly confidential. Then, below, there willhave the gender and the range of age and the occupation of the respondents.After, the different questions will follow and will be made up of a closed-end-questions; aLiker scale…to give to the participants more choices. There will have some multiples choicesand feeling scales. Participants will be asked to feel free to let any comment after filling thequestionnaire. Finally, there will be a message of thank. . To get the questionnaire completed,the questionnaire will be posted online, in different group’s page on Facebook. Students fromdifferent universities or superior school will be approached. In short the questionnaire will becompleted by interviewee.V/ Interview and Questionnaire After piloting the questionnaire to four (4) persons, the respondents seem to be pleasedwith the questionnaire but, they recognize the need to make more questions relating to theirpurchasing power and the confidence of the consumer in a context of global economic crisis.They were also a little skeptical to fill up the age section because according to them, it is alittle bit distributing. Example of comments: “Good questionnaire, but, you need to ask somequestions on the purchasing power. Also, it may seem disturbing for other to fill the section ofthe age.”(Anonymous, 2012).
  10. 10. Morocco, a country of a fast booming clothing market with page number 10 Appendix Cardiff Metropolitan University Questionnaire We are doing a research on the habits consumption of clothes by young people inorder to convince Primark, the British fashion chain to invest in the booming clothing marketin Morocco. Please complete the questionnaire to the best of your knowledge. Yourcontribution will help us know more about the topic and answers are going to remainconfidential. Thank you for your time.Gender: Female MaleAge : <18 18-20 21-25 23-30 30-35Occupation: Student/Pupil worker Student and workerPlease circle the response that applies to you:1) Do you think that Morocco still need other foreign investment in the clothing market? Yes No2) Do you know Primark, the British discount fashion chain? Ye s No3) Do you think that Primark will be successful in Morocco? Strongly disagree Disagree Neutral Agree strongly agree4) What is/are your favourite brand name? Zara H&M G-Star Pull&Bear Breshka Marwa Others (Please specify)5) How many clothes do you buy per month? 0-2 3-5 5 and more6) How often do you buy fake clothes monthly? Never Rarely Neutral sometimes always
  11. 11. Morocco, a country of a fast booming clothing market with page number 117) Do you think that people will decrease their sales of clothes if the crisis persists? Yes No8) What are the degree of your optimism and pessimism about the future? Very pessimist Pessimist Neutral Optimistic Vey optimistic9) How is your purchasing power doing? Decrease Stable Increase10) How do you think about the prices of clothes in general? Very Cheap cheap Neutral expensive very expensiveDo you have any other comments regarding this questionnaire?…………………………………………………………………………………………………..…………………………………………………………………………………………………..…………………………………………………………………………………………………..…………………………………………………………………………………………………..THANK YOU VERY MUCH FOR FILLING IN THIS QUESTIONNAIRE
  12. 12. Morocco, a country of a fast booming clothing market with page number 12Conclusion In conclusion, having said all that, one cannot deny that Morocco has become anunavoidable partner in Africa .It is come out from this investigation that any big companywhich respects itself has to do business with Morocco, especially in the clothing sector. Inshort, from this investigation it is clear that Morocco is the ideal country where one has toinvest. It is an immense opportunity for Primark to be part of the “ongoing clothingrevolution” in Morocco “Future belongs to those who awake early.”
  13. 13. Morocco, a country of a fast booming clothing market with page number 13References Lynne, M.C., 2010. Secondary analysis. MEDSURG Nursing, 19(3), pp.192-193. Abad, A.2000.Research with a Purpose. Journal of Management Research, 1(1), pp.5-11. Paul, B., Chris.F. and Kelly, P., 2008.Marketing.New York: Oxford University Press. Robert, B. M. et al., 2009. Entrepreneurship for Everyone. London: SAGE Publications Ltd. Stella, C., 2008.The Study Skills Handbook. New York: Palgrave Macmillan. Moroccan Investment Development Agency., 2010.Why Morocco. Invest in Morocco. [Online] Available at :< http://www.invest.gov.ma/?lang=en&Id=3 > [Accessed 09 January 2012]. Portail national du Maroc, 2011.Invest in Morocco.Maroc.ma.[Online] Available at :< http://www.maroc.ma/portailinst/Ar > [Accessed 08 January 2012]. Ministere de l’Industrie, du commerce et des Nouvelles Technologies ,2010 .Statistics. Maroc- trade.gov.ma. [Online] Available at :< http://www.maroc-trade.gov.ma/default.aspx > [Accessed 29January 2012]. Casainvest.ma. 2011. Investors :The good reasons to invest in Casablanca. [Online] Available at:<http://www.casainvest.ma/Investisseurs/Secteurscl%C3%A9sdeCasablanca/Franchisecom merceOrganis%C3%A9/tabid/129/Default.aspx> [Accessed 03 February 2012]. Primark, 2012.Our Product. [Online] Available at :< http://www.primark.co.uk/our_products/ > [Accessed 03 March 2012]. Emergence, 2011.Sector Development Strategy. . [Online] Available at :< http://www.emergence.gov.ma/En/MMM/Textile/Pages/DevelopperActiviteMaroc.aspx > [Accessed 10 March 2012].

×