Let’s take a look at some points that you need to be aware of before getting access to the Iranian market.
The government is not the most significant player
The Iranian government has always been open to promoting international economic relations, especially now that many sanctions and obstacles are being lifted. Notwithstanding, working with the public authority isn’t generally the appropriate response, and the public authority isn’t really the best customer for all novices to the Iranian market. With all this in mind, is it always the wisest plan to bypass all the capabilities of the private and gray sectors and try to cooperate with the government? No, you can try those famous ones.
Understanding the ecosystem
Market development is the beginning of a movement about new times, geographic and cultural places, and geographic issues. Iran is known for its complicated work system. Therefore, if you want to clarify your views on this, you need to ask yourself some questions. You need to get familiar with Iranian marketing regulations.
GIVE to GET
Some companies try fancy promotions to get people’s attention. But depending only on marketing methods, it may not work as expected in Iran. The Iranian customer and people have very positive memories of the high-quality products of European and American companies, and these expectations cannot be replaced by advertising alone. Providing reliable services for an Iranian customer, high-quality products, and proper advertising is the best way to enter the market. Sometimes the best way is to establish contact with Iranian companies through co-branding and add value through licensing. You should consider that you should regard Iran as a huge market for consumer goods and show a sense of social responsibility towards society. If it rests in the shade, you need to water it.
Summary of the benefits of getting access to the Iranian market
The benefits of getting access to the Iranian market include:
- Attractive prospects for expected growth
- The Iranian government encourages foreign investment
- The advantages of the Iranian market include:
- Approximately 85 million people
- Approximately Young people (It is estimated that 63% are under 30 years old)
- A highly educated workforce
- Abundant natural resources
- Its strategic location
The volume of trade between Europe and Iran in 2017 was approximately US $ 830 million and is expected to quadruple in 2019.
The main imports from Iran are:
- Chemicals and related products
- Transport vehicles
Iran’s national economic issues
- Specific information
- Relevant sanctions and possible political risks
- Iran-specific practical and legal considerations
To ensure that banks that have determined that they are willing to facilitate payments, and companies that wish to conduct business with them, Iran can use appropriate financial channels. Also, you need to consider Iranian marketing regulations too.
You can also read the article What is a B2B marketplace
Iran’s economic growth
Iran is the second-largest economy in the Middle East after Saudi Arabia. The 2015 nominal GDP is estimated at 397 billion U.S. dollars.
Iran’s economic performance is expected to improve after the recent lifting of some sanctions. The Iranian government is taking measures to reduce the inflation rate. In 2015, the inflation rate was 15%. According to World Bank data, Iran grew by 4.4% in 2014.
Iran’s goal is to have an annual GDP growth rate of 8% by 2020. Non-Iranians estimate an annual growth rate of around 6%.