The cosmetics market has grown a lot during recent years in Iranian market and a significant amount of this matter is being provided by imports due to marketing in Iran. The domestic producers face a lot of problems, and on the other hand, many citizens have been misinformed about the quality and authenticity of the goods in Iranian market by using imported goods. Cultural constraints for cosmetics advertising in Iranian market has an effort to obtain a suitable market inside and outside marketing in Iran on the one hand, and the continuous promotion of foreign brands on satellite networks,
practically created conditions that closed the rules of the hands of the domestic producer and the competitive environment of inequality Imposes on them. However, institutions such as the Association of Detergents, Sanitary and Cosmetic Industries are seeking to be coworker by barriers for foreign producers and prevent the entry of high quality and counterfeit goods to Iranian market. In this regard, we take a look at a more detailed examination of the cosmetics market and the challenges of the domestic producers for marketing in Iran.
How do we assess the cosmetics market in Iranian market?
Iran is one of the largest consumers of cosmetics in the Middle East, and excess consumption in Iranian society is quite evident, and it is necessary to go through the cultural activities of correct consumption of these goods. Major consumption is taking place in the country's big cities and in the center of Iranian market, and as we move towards smaller cities, the consumption of cosmetics is reduced. In developed countries, mostly makeup is used by older women, and young people use finer cosmetics.
The volume of the cosmetics market in Iranian market is about $ 2.2 billion, of which 30% is supplied by domestic producers. This is if domestic producers can generate more than 100% of their domestic demand. The remaining 70% of Iranian market need is also provided by foreign goods. In the meantime, it is noteworthy that by 2012, only 10% of 70% of imported foreign goods were exported legally for marketing in Iran and the remainder was provided by smuggling. In other words, if the share of foreign cosmetics products with or without advertising in Iran is one billion and 600 thousand dollars, about 200 thousand dollars is officially imported, and the rest is imported into Iranian market by smuggling. The actions that took place were extensive correspondence that ultimately went so far as to mention the high-ranking officials of the political system and the import of these similar domestic products were banned.
What steps have been taken to meet existing conditions?
In the face of this, the Association insists, with the official institutions of the country and the Ministry of Industry, Mining and Commerce, that it is impossible to restrict the consumer and should not oppose the official import of cosmetics and sanitary products with reputable international brands, because this issue will lead to domestic monopolies and the quality of the goods due to Iranian market, the variety and needs of consumers will be overshadowed by such decisions. Eventually, the follow-up led to the Ministry of Industry support package. In this package, which was developed in cooperation with the Food and Drug Administration, it was suggested that credible foreign brands interested in supplying their products in the Iranian market are committed to deliver their goods within Iran for up to 18 months. This production is done either by establishing production units or by joining and concluding contracts with Iranian producers. In the detergent section, the companies Unilever and Henkel announced their agreement, and they made this decision with production inside Iran for marketing in Iran. The two companies are one of the largest health companies in the world who are active in this field and are ready to appear in Iranian market. In the situation where healthcare industry elders enter the Iranian market; there is a good opportunity for cosmetic companies to enter the Iranian market and to produce their own products inside the country for marketing in Iran by a planned advertising in Iran.
So far, cosmetic companies are keen to have a presence in the Iranian market?
Yes, good negotiations have been made, but foreign parties have not been seriously involved for marketing in Iran, because the import route is still open. In this regard, the Association of Sanitary Waste Industries and Food and Drug Administration announced the organization of the capacity of the domestic producers. Over and over again, this came to the attention of Food and Drug Administration, with domestic manufacturers with 30% capacity being produced. Why should the goods imported by domestic companies to several countries entering Iranian market, in addition, if they produce foreign goods in the country, they will supply their raw materials under the supervision of the faculties of medical sciences and the food and medicine organization and will pay for the production of goods; Therefore, quality goods are supplied. Many of the imported goods are produced in neighboring countries and are counterfeit.
Many counterfeit goods are produced in Sharjah, UAE, Malaysia and Turkey, and flood for marketing in Iran. For this matter, there are a lot of pressures on these incidents to reach their minimum levels. Some suggestions were made for it. First, the beauty class is separated from the Kharazi class and will be placed under the supervision of the Food and Drug Administration, such as pharmacies, to ensure adequate supervision. In the next step, up to 18 months, when foreign companies are supposed to produce their goods in Iranian market, the necessary explanations in Persian should be inserted on the goods so that Iranian consumers will have sufficient information on the conditions of the product which advertising in Iran play an important role here. Foreign goods as well as domestic goods should accept pricing. Advertising in Iranian market also needs to create equal conditions because the foreign producer with a wide range of interests in satellite channels and social networks is widely advertised, while the domestic producer is facing a lot of problems in advertising their products and there is a legal and cultural ban on it.