How to sell your products in Iran - Part1
After Iran’s 5+1 nuclear deal Iran commercial door will soon open to international brands and new opportunities will be created for these brands. Because of Iran’s political, social, financial, and cultural unique structure international brand have limited knowledge about Iran. So the main question is how to get into Iran's market, How to advert your product in Iran, What are the approaches to plan and buy advertising media. To answer these questions and other questions which may come to mind in entering Iranian market we are publishing a two-part article on Badkoobeh blog. Here is the first part:
Iranian market structure is traditional with the potential of moving towards a modern market. There are still traditional big bazars such as Tehran big bazar, Mashhad and Gilan big bazar. The other kind of shopping centers include big and small malls. Beside all mentioned Iran has a unique bazar which includes small shops measured only 50 to 150 meter which sales FMCG. Iran 4P (price, product promotion, place) has changed traditional into modern. Recently another source of sale has come alive like digital, where everything is sold online just like other part of the world.
Pricing in Iran for special products is done by the government, when the company gives its price, the government decides if the price is fair or not. Brands like non-Iranian chocolates, decoration, branded cloths are out of the government’s hand. But milk, ice cream, oil, pasta, rice, and tea are priced under the government’s rules.
The minimum budget required to be a best seller and effective in Iran’s market for a full year is 3 and half million dollar which it can help build the frame work. It’s very important to study Iran’s market, analyses competitors. So the 1- steps are to study Iran’s market and culture and knowing Iran’s law. 2-obtaining legal permits. And then is localizing the packages, product distribution, advertising, after sales services, assessing brand performance. If you pass all the steps correctly, your sale will be guaranteed.
A lot of foreign brands have traveled this route successfully in Iran and still remain in Iran’s market like LG.
Obtain a permit to enter goods into Iran is the next main step. Iranian National Standards Organization must confirm the products standard according to world standard laws. And the ministry specializing in that product also needs to approve it. Iran’s Ministry of Health applies very strict laws on importing dietary products. Obtaining a permit from this ministry can take anytime between 6 months to a year and a half. Imported products have different custom tariffs from 0% to 100%. For example custom tariff on a car is 100%. Importing some goods into Iran is forbidden like cars with over 2000cc engine capacity, alcoholic drinks, and non halal products.
Sometimes foreign brands sale their products in Iran through an Iranian joint venture. It means they produce their products under their own license through a factory in Iran. Or they build a factory from scratch and start producing and importing their products. For example, Nestle has built a factory for some of its products and imports some others. Coca Cola sales its products using JV in Iran.
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