Must-know, Art of Doing Business in IRAN-Chapter One : Market Overview
Posted On 2019-01-29
By considering current situation in the region and conflicts in high
populated countries, IRAN market have be come more attractive, despite
of risks , political issues. Iran has significant advantages compared to
other countries in the region. Iran’s economy is much more diversified.
Although oil features prominently, so do many other business
opportunities in a wide range of fields including, Banking
Telecom,Technology,Finance, FMCG and etc. Iran is a huge potential cash
market with high ratio of consumption. This will make it really
interesting for doing business but beware that this country although is
in the middle east region, but it is absolutely unique market and not
easy as it looks.
I will try to explain some of key MUST-KNOW factors for entering IRAN in series of short articles for better understanding.
Chapter one : Market Overview
- Population of 80M
- 50% population between 15-40 years
- Tech savvy young generation
- 71 percent are living in urban areas
- Tehran (Capital) and its satellite towns are home to almost 18 million inhabitants
- With 10 percent of the world’s proven oil reserves and 15 percent of its gas reserves, Iran is considered an Energy Superpower!
- 60 percent of the economy is centrally planned dominated by oil and gas production.
- Iranians love consume & shop, and they have continued to surprise domestic and international brands with their resilience
- There is almost no competition in terms of local brands except Dairy sector.
- Due to the low quality of local brand and unreasonable price, Iranian shoppers rather to go after foreign brands
- To accelerate its economic growth, Iran government is interested in
cooperation between foreign companies. so the government warmly
welcomes attraction of foreign investments
- There is no room for error to launch a brand. if you make a mistake
you might kill your brand and the recovery is almost impossible.
- There are Financial barriers but it dos not mean it can not be managed. In Iran there is always a solution for doing business.
- There is no credit provided by banks, no credit cards, only debit cards so it is absolute cash market.
- Time consuming process in terms of registration, approvals and importation.
This is the end of chapter one , Stay tuned!