17 Billion Tomans worth of clothes in Iranian market

Category: Blog Published: Saturday, 03 November 2018 Print Email
17 Billion Tomans worth of clothes in Iranian market

70% of clothes for marketing in Iran are from foreign companies.
The textile and clothing trade and textile association's secretary said that the clothing and textile industry in Iran has a market value of 25 billion Tomans,

of which 17 billion tomans are dedicated to clothing and the rest are to the fabric and carpet market in Iran.
Mahdi Yekta, in an interview with ISNA, said: "70% of the clothing in the Iranian market is foreign, with which nearly 100% of has being smuggled.
He added: $ 4.5 billion worth of apparel imports into the Iranian market annually. In contrast to this volume of smuggled goods, only about $ 3 million of official imports is made by official dealers from some foreign brands. They make this import amount officially so that they can display official import documents at the time of inspections; otherwise, official representatives of foreign brands also import most of their goods through unofficial channels and smuggling.
One explains why the smuggling boom in the Iranian apparel market is due to the fact that apparel, luxury goods are identified, its import tariff is 100%, and its cost is doubled when it arrives from official sites. In contrast to this 100% tariff, there is a strong smuggling network that delivers purchases from the Turkish markets for $ 10 per kilogram for marketing in Iran. That is, for every dress is only about 35 thousand tomans; it is therefore reasonable for the activists of this market to prefer to enter their countries without proper advertising in Iran from unofficial channels because of the incomparable costs.
He also stressed the need to place insecure goods for sale, said: "Currently, about 12,000 trade units are offered only for marketing in Iran." Responsible institutions can start the fight against smuggling from the 12,000 known IDs and insecurity of the smuggling apparel, but the relevant class is not inclined to deal with smuggling goods and trafficking entities. Fortunately, with the direct instruction of the Minister of Industry, the Headquarters for Combating Trafficking in Goods established a committee chaired by the Deputy Minister responsible for organizing the import of this commodity.
The secretary of the textile and clothing export and trade association added: "If the Ministry of Industry, Mining and Commerce refrains attention and reduces at least 70% of the smuggler’s share to 60%, the market share will open for domestic producers."
"Some activities and licenses in the apparel market are outlawed," he said. Now in Iranian market there are foreign brand of 90 agents. Why not deal with these dealerships that all claim to be from Dubai's dealership? This indifference is for the domestic manufacturer to consider all licenses, constraints, and challenges for its productive activity due to marketing in Iran.
Unique, distribution of the product is one of the major problems of Iranian producers, and it’s said that; a producer who can deliver his product directly to the consumer will be more successful. If we can help our producers make their products easier and cheaper for the consumer, show support for branding in Iran, advertising in Iran, market research in Iran and so on, we will narrow the market share for low quality external supply. Experts believe that the correct sale on the domestic markets is a form of export, because meeting domestic needs with domestic products prevents foreign currency from exiting foreign goods.
He added: "We must admit that in the past years, with the apparent prevalence of clothing smuggling, this industry has been damaged, because it is a mother industry and other industries support it. Now that the main industry has been hit, affiliated industries have also been challenged. The human resources and experts of these industries are gradually declining, and the process of training technical and expert forces in this industry has slowed down.
While regretting the decline in apparel exports out of Iranian market, the minister said that, when an industry is weak, it loses its export power. In 2010, we had about $ 120 million worth of apparel exports, which has already fallen by about $ 40 million. This is due to the fact that Turkey has $ 20 billion in apparel exports and plans to raise this figure by $ 80 billion by 2020.
The secretary of the textile and clothing export and export trade group said, "Iranians spend about 3 million annually. The internal production capacity of the company is 500,000 and the other 2.5 million are outsourced. If the government protects the only producers in this sector, there will not be a significant amount of currency going out of the country, and new job opportunities will be created for young people due to marketing in Iran.
One of the main obstacles to the growth of the garment industry is the branding in the Iranian apparel industry, which is not taken very seriously because the producers in Iranian market, if they are of a larger size, are subject to numerous challenges and problems, such as insurance, taxes, value added taxes, and tolls. However, they will not face any of these problems if they distribute their products in anonymous workshops and trademarks and through traditional networks in the marketplace. In order to encourage manufacturers to not be silent and branding, we must provide them with special supportive laws.
At the end, he said: organizations such as social security and taxation go hard with firmware and branded brands and face them with many challenges. If the government, instead of these hardships, supports producers and encourages them to go to a factory instead of producing a workshop, the quality of Iranian clothing will increase, domestic products will be more welcomed by consumers and new job opportunities will be created. .

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