Turkish Furniture Brands Expand in Morocco, Challenging Local Market

Thanks to a free trade agreement that came into force in 2006 and a market maturity that places more trust in made-in-Turkey products, the openings of franchise stores through Turkish investors are multiplying, notes La Vie Eco.

"The opening of new stores is not necessarily a sign of good health or profitability of the company. Some Turkish brands are struggling in Morocco. Often, the opening of a second store allows to cover the charges of the first or proves to be a flagship store necessary to build the brand’s notoriety. In general, it takes two years before judging the profitability of a store," said Tunç Arkok, master franchisee of Yatsan.

The latter is a Turkish bedding manufacturer established in 2011 in Casablanca, in 2016 in Marrakech, then in 2018 in Rabat. He is active for an upcoming establishment in Tangier. According to him, the Moroccan market remains difficult due to the crisis that the real estate sector has been going through for two years. However, many Turkish brands manage to achieve high sales figures, unlike Moroccans.

With its commercial offensive, Turkey is crushing the competition in Morocco. "On the Moroccan market, what saves us is custom-made. As soon as the Turks start to manufacture custom-made, we will be suffocated," says Arkok. To counter imports, Anass Lasry, associate director of the Moroccan brand "Le Cube", a creative craftsman, suggests imposing new customs duties on furniture products imported from Turkey and reducing the VAT on Moroccan craft products to 10% instead of the current 20%.