Moroccan exporters are interested in the Chinese market

What opportunities for Moroccan exporters in the Chinese post-covid market? What has been the impact of the pandemic on imports from this country and on Chinese consumption habits? What are the chances of the Moroccan exportable supply and how should we proceed?

To answer these questions and many others, the Moroccan Association of Exporters in partnership with the firm Harvard Consulting, organized the 4th webinar of the “Doing business” series, Wednesday October 28, 2020.

Hosted by Camille Verchery, CEO and founder of VVR International, a management and project management consulting company in China, this meeting was an opportunity for Moroccan exporters to inquire about the market situation and the conditions for accessing it. .

According to Verchery, to date, the health situation in China seems to be under control and the economy relaunched with a recovery of 100% of factories. The annual growth rate for 2021 is estimated at 8%.

China nevertheless remains strict on travel and transport conditions, a situation which should unblock as soon as the vaccine is available. Today, people traveling to Chinese territory must observe 14 days of total confinement.

«China is clearly showing its willingness to develop its economic and trade relations with Morocco as a gateway to the rest of Africa. Moroccan exporters and industrialists must take advantage of this to best seize the business opportunities offered by this market.», Underlines the expert.

Today, we are witnessing a gradual recovery of the Chinese economy with a GDP which reached 3.2% in the second quarter of 2020. Industrial and commercial activity is restarting at 95% with forecasts of foreign investments of + 6% (+150 billion $). “Under the effect of the pandemic and the change in consumption habits, we are seeing the emergence of new growth sectors with a focus on innovation », Underlines Mr. Verchery. The crisis has had a negative impact on tourism, restaurants and luxury goods, but at the same time, e-commerce and convenience stores are strengthening their presence. At the end of June 2020, the growing industries were dairy products and eggs (+ 11.63%), meat (+ 14%) and fish and shellfish (+ 11.5%). The cosmetic products market is recovering, notably with sustained demand for eco-friendly and natural products.

Automotive and medical are also up in the first half. Energy and particularly renewable energies, for their part, have very promising development potential.

It should be noted that between 2018 and 2019, Morocco’s exports to China fell slightly from $ 270 million to $ 259.5 million (-3.9%), but with an exceptional development in certain categories of products which now draw the growth.

The Moroccan products most exported to China are minerals (sulphate and copper in particular); seafood; aeronautical products and automotive products. It should be noted that cosmetics have practically doubled in volume exported to $ 550,000.

Halal food is also a very interesting niche for Moroccan exporters with a total Muslim population in China of around 24.4 million people, or 1.8% of the country’s population.

The halal food market in China amounts to CNY 594 billion in 2020. The demand covers processed products (health products, meat products and snack products) as well as unprocessed products (meat, poultry , milk, honey, fish, plants, vegetables, fruits, beans, peanuts, cashews, hazelnuts, walnuts and cereals…).

Olive oil also presents a great opportunity for Moroccan companies, especially since this product is currently benefiting from a national campaign that touts its health benefits.

The other flagship product on which Morocco is completely absent and which could boost Moroccan exports to China is leather (cowhide or sheepskin) and particularly luxury products (shoes, handbags).

But whatever the product to be exported and the demand to which it is the object, the Moroccan exporter will have to face very tough competition from European countries, from the United States which benefit from a Sino-trade agreement. American and Asian countries (Japan, Vietnam, Pakistan, India, Indonesia, etc.), which benefit from proximity and historical commercial relations.

At the end of his presentation, Camille Verchery recommended that Moroccan exporters favor niche products on which Morocco presents a clear differentiation (quality, traceability, price…). “Having a good product is not enough! You have to have a structured approach. Knowing what is consumed in China but also and above all who sells it and at what price and in what quantities to be effective in its commercial approach, ”he says.