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Big international clothing brands are entering the market through franchised retailers - 09 July 2007
09-07-2007 - EGYPT
Source :
Country from : Egypt
Activity :
Textile, clothing, luxury |
According to American Chamber of Commerce in Egypt:
"The past two years have seen enormous growth in the number of international clothing brands with licensed franchise outlets in Cairo and Alexandria. Prior to 1998, the government imposed a comprehensive ban on imported ready-made garments. Since then, it has maintained high duties on imported clothing that have discouraged many foreign brands from entering the market. “The main reason these restrictions were in place was to shield and protect the production of local clothing companies,” explains Magdy Tolba, chairman of the Ready-made Garments Export Council, a body created by the Ministry of Trade & Industry (MTI) to promote and regulate local clothing producers.
The latest customs revision, implemented in February, reduced the tariff on ready-made garments from 40 percent to 30 percent. The lower rate has encouraged a number of international clothing brands to enter the market.
The response from local shoppers, say retailers, has been overwhelmingly positive. “It’s very clear to us that the Egyptian market is hungry for brand names and a generally better quality of clothes,” says Nermine Abu El Naga, store manager at Karen Millen, a British women’s clothing brand that recently opened in CityStars Mall.
Yet some shoppers have complained about cost, charging that prices here are far higher than at outlets in other countries. Yolla El Sayed, brand manager at Nile Projects & Trading Co., which owns the Tommy Hilfiger franchise in Egypt, says shoppers have to take into account the cost of import fees and duties, which are passed along to the end consumer. “The reason that our prices in Egypt are higher in comparison to Europe and the Gulf is because customs here are too high even after the reduction,” she explains."
For further information: American Chamber of Commerce in Egypt |
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