Iran’s Market new destination for Luxury groups

By: Khatereh Noorshid

2uThe Rich people of Iran and their lifestyle perhaps stun the westerners. After over 38 years of sanction against Iran when you travel to Iran is hard to believe this country and its people have lived under any sanctions.

Rich kids of Iran in Big cities like any other western countries have their beyond ones imagination, their Instagram pages more Rolex, fast cars, bikinis and latest fashion than chador or etc. to prove Islamic lifestyle. Another word Iranians are no different to their western counterparts and their fear is to be left out from latest fashion and so many must – have from electronic goods to latest luxury and etc.

Shocked western journalists which are trying to find their way to gather some firsthand news from streets of Tehran and other major cities in Iran, can’t believe their eyes when they see how people live in Iran, some even envy them.

I have read an article in Routers, about “Luxury groups should focus their FOMO on Iran“in this article the writer obviously overwhelmed by witnessing how the young generation live in Iran.

According to the latest news, almost $33 billion of frozen assets is due to flow back into Iran following the lifting of sanctions, according to the Iranian central bank. Iran has the second-largest economy in the Middle East after Saudi Arabia and its economy is forecast to grow 6 percent next year if oil reaches $50 per barrel, according to Renaissance Capital.

Iranians always have a taste for luxury goods. They were the second-largest shopping nationality in Turkey after the Saudis in March 2016, Global Blue data shows. And a robust grey market means many of the brands are already in Iran unofficially. Three-quarters of Iran’s 79-million strong population live in cities – important for luxury sales and higher than China’s 56 percent. Iran could eventually account for up to 3 percent of global luxury demand, analysts estimate, in an industry that passed $1 trillion in sales last year.

The article carries on with mentioning :Right now there is no Tehran equivalent to London’s Bond Street or New York’s Fifth Avenue. While Western-style shopping malls like the Palladium malls in Tehran are being built, there will be intense competition for the best retail space.

Meanwhile, middle-class spending power will take time to recover from the impact of sanctions. Finance is an issue: U.S. financial groups are still blocked from conducting transactions with Iranian entities, so the full range of financial services to support Iranian growth will take time to develop. Lastly, there’s political risk. Ayatollah Ali Khamenei, Iran’s supreme leader, has said he doesn’t agree with Iran importing many Western consumer goods, while tensions are mounting with Saudi.

The article concludes, since so many big brands has already opened stores in Major cities of Iran specially Tehran and Italy’s National Textiles and Fashion Association Sistema Moda Italia announced a trade deal with its Iranian counterpart this month to increase the presence of Italian companies in the country. With so much potential, the biggest risk might be not being there at all.

 

In conclusion I must add what western journalist see in streets of big cities in Iran i.e Tehran is not the life style of people in general and most Iranians like any other country in capitalist world struggle to maintain their minimum lifestyle.

However right now Iran is the best country for western gold diggers to target Iran as next best country to sign millions of dollar contracts.

Ironically the western media which not long ago were interested about human rights in Iran now only consentrate  on how is profitable to get close to Iranian Market.

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