Morocco, a country of a fast booming clothing market

Morocco, a country of a fast booming clothing market

Edmond Tindwend Compaor Understanding Markets Mr.A.Bennani April 4th, 2012

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Content

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 data 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 choice 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.

III.

IV.

V.

Interview and Questionnaire Writing and piloting one questionnaire and one interview questions. Reporting the testing outcome and making any necessary adjustments Conclusion Referencing

VI. VII.

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I / Introduction

All big investments require a serious and deep market research in order to unveil the hidden face of the market. It has a paramount importance. Thus, the following paper is a market 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 immediately from this recession. In fact; Morocco has seen its clothing market developed considerably in almost all the sectors. A report from Euromonitor (2011) argued that clothing accessories retail volume sales increased by 4% in 2010 to reach 13.2 million units as consumer confidence increased despite the worldwide recession. There is an increasing number of international brands stores which opened in Morocco like Jules Cortefiel, Bossini Billabong and ZARA.Therefore, other big company as Primark could decide to open their stores in Morocco in the near future. In fact, Primark opened its first store in Dublin in 1969 and work a lot to open other stores through the years. Now, it is the biggest British discount fashion operating essentially in Europe with more than 232 stores .The Company manufactures men swears specially casual and formal ones. Also, it makes women swears for party or holiday and children swears for girl and boys. In short the purpose of this study is to investigate on the opportunities that may be 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 clothing market. The next step will be the explanation of the chosen target group. Then, the study will focus on outline the research method that will be undertaken. Finally, primary data will be

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collected 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 to solve problems, and as "a process through which new knowledge is discovered." Therefore, investigators will have to collect secondary data when conducting a market research. About secondary data Lynne (2010) pointed out that the most obvious strength of secondary analysis is its cost effectiveness and time savings .The same author argued that Secondary data are very useful especially for students who have limited means to access to some data from large, national random. Therefore, Secondary data appears to be indispensable for the market research.

Thus, from the secondary that has been collected, it appears that the Moroccan fashion clothing market faces some critics despite of its booming. Indeed, consumers are complaining more and more about the high costs of the different products. The immediate consequence of that is that the majority of people cannot afford to buy these items because of their low salary even if there is an increase of the middle class with more means. Discount chain as Primark could 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, 10 to 15..., In addition, The Centre Regional dInvestissement (2010) stated that there are only very few brands that target children whereas the population of children under 15 years old

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represents around15% . This is a large and great opportunity for Primark that targets a lot this sub-segment of the young segment. Furthermore, there is a great unbalance in the products distribution in term of place. In fact, almost the fashion discount chains are located mainly in Casablanca, Rabat and Marrakesh. Other cities like Tangier, Agadir have not been targeted enough by these brands whereas; these cities represent a large potential market. Moreover, in Morocco, certain niches such as women lingerie and linen which are relatively new are not targeted as much it should be (Ministere de lIndustrie, du commerce et des Nouvelles Technologies, 2010). These niches need more investments as the demand of these items increase. Therefore, Primark could benefit from this lack of investments in these sectors. In short, the demand of fashion clothes in Morocco has increased considerably exceeding the supply. (Others opportunities for Primark are highlighted below by the Ministere de lindustrie, du commerce et des Nouvelles Technologies.). 01/03/2012

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III/ Target group Description James (2002) argued that market segmentation is primordial in the way that it helps to identify customers needs and market segments so as to develop profiles. He added that targeting helps to evaluate the attractively of each segment and to select the right target in order to be successful. So, to apply that to the current case the sample unit that should be included in the market research will focus mainly on the young people and also teenagers or adolescents which accounts for 20% of the whole population (National Democratic Institute, 2008).The other obvious reason is that Primark is a company which operates mainly in the manufacture of clothes for children, men and women whom the particularity is that it targets mainly young people and the teenagers. However, there will a big trend of targeting the female gender because of its high level of spending on clothes and its number which accounts for more than the half of the young people

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population (Centre Regional dInvestissement, 2011). It is true that the young people segment is being bombarded by other brands like Sara and H&M, but there is still a large part of 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 estimated about 31 million of people whom around 36% are young aged from 15-34 years old which is accountable for 11 millions of people .For the Regional Investment Centre (CRI), Morocco is made of 32 million whom 64% aged less than 34 years old .So, the growing number of young people is a reason of why targeting this segment is a right doing. That represents a considerable market for Primark. The number of participants to be questioned will be 100 young people because of the big number of this population. Moreover, by choosing this sample size, it is to have an important number of diversified responses 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 specially teenagers are influenced easily by their preferences like trend, fashion ;what is an asset for Primark .That fits well with the vision of Primark to create style, quality and affordable prices and always create new products. This factor conjugated with the desire of young Moroccan people to look like the young people from the western countries is reason why it is good to target the young and adolescents. After that, the above target groups are less worried about what is going on in the economy than their parents. Also, Primarks products are at affordable prices what fits well with the slogan of Primark is Look Good Pay Less. Finally, Primark is likely to do well among young people of Morocco because it has already a good perception from the young European

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for its good quality. This is a great strength for Primark comparing to the already established brands 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 exist yet. It must be conducted by the investigators. A good collection of primary data is crucial to come 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 very important to get a comfortable place to lead this activity. Indeed, the focus group will be held in the room or the coffee of SIST where 8-12 people will come together to discuss about their consumptions preferences and experiences on the fashion clothes market. It is very important to get a proof of the focus group. Thus, a video recorder will be the best way to record the focus group; however, it will not be easy to get people to participate. Therefore, cash payment will be used and other incentives may be offered to the participants. Indeed, the focus group members will have the privilege to know one another in small party that will be organized just after the end of the focus group. For the interviews, the semi-structured interview will be the appropriate one as the investigation is an explanatory research. Therefore, by using this semi-structure, the investigation 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; the questions will turn about the number of clothes the members used to buy before and during the crisis. Then, respondents will be asked to talk about the health of their purchasing power. Also,

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respondents will be welcome to talk about their favourite fashion clothes named in Morocco and in Britain. To record the interview, the voice Notes Recorder or a microphone will be necessary. For the final research method that will be used is a questionnaire. In the questionnaire, there will have at the head of the paper, a clear explanation of the goal of the questionnaire and a statement of keeping the collected information strictly confidential. Then, below, there will have 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; a Liker scaleto give to the participants more choices. There will have some multiples choices and feeling scales. Participants will be asked to feel free to let any comment after filling the questionnaire. Finally, there will be a message of thank. . To get the questionnaire completed, the questionnaire will be posted online, in different groups page on Facebook. Students from different universities or superior school will be approached. In short the questionnaire will be completed by interviewee. V/ Interview and Questionnaire After piloting the questionnaire to four (4) persons, the respondents seem to be pleased with the questionnaire but, they recognize the need to make more questions relating to their purchasing 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 a little bit distributing. Example of comments: Good questionnaire, but, you need to ask some questions on the purchasing power. Also, it may seem disturbing for other to fill the section of the age.(Anonymous, 2012).

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Appendix Cardiff Metropolitan University Questionnaire We are doing a research on the habits consumption of clothes by young people in order to convince Primark, the British fashion chain to invest in the booming clothing market in Morocco. Please complete the questionnaire to the best of your knowledge. Your contribution will help us know more about the topic and answers are going to remain confidential. Thank you for your time.

Gender: Age :

Female <18

Male 18-20 21-25 worker 23-30 30-35

Occupation:

Student/Pupil

Student and worker

Please circle the response that applies to you:

1) Do you think that Morocco still need other foreign investment in the clothing market? Yes No

2) Do you know Primark, the British discount fashion chain? Ye s No

3) Do you think that Primark will be successful in Morocco? Strongly disagree Disagree Neutral Agree strongly agree

4) 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 more

6) How often do you buy fake clothes monthly? Never Rarely Neutral sometimes always

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7) Do you think that people will decrease their sales of clothes if the crisis persists? Yes No

8) What are the degree of your optimism and pessimism about the future? Very pessimist Pessimist Neutral Optimistic Vey optimistic

9) How is your purchasing power doing? Decrease Stable Increase

10) How do you think about the prices of clothes in general? Very Cheap cheap Neutral expensive very expensive

Do you have any other comments regarding this questionnaire? .. .. .. .. THANK YOU VERY MUCH FOR FILLING IN THIS QUESTIONNAIRE

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Conclusion In conclusion, having said all that, one cannot deny that Morocco has become an unavoidable partner in Africa .It is come out from this investigation that any big company which respects itself has to do business with Morocco, especially in the clothing sector. In short, from this investigation it is clear that Morocco is the ideal country where one has to invest. It is an immense opportunity for Primark to be part of the ongoing clothing revolution in Morocco Future belongs to those who awake early.

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References

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 lIndustrie, du commerce et des Nouvelles Technologies ,2010 .Statistics. Maroctrade.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].