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Iran’s apparel retail and personal luxury goods industry

April 7, 2016 by  
Filed under News, Retail

Iran’s apparel retailing and personal luxury goods are receiving renewed interest with the normalisation of relationships and lifting of sanctions. With a population of more than 80 million, the country is the last big emerging market to open up to the international community. Iran is already the second largest retail market in the Middle East.  Like its Middle Eastern counterparts, Iranians have a big appetite for luxury goods. Dubai and Istanbul have been the choice destinations, however US cities such as Los Angeles, have also profited from a large diaspora population.

The Middle East’s personal luxury goods industry has enjoyed a 10% annual growth rate for the last decade. Management consultancy Bain reported sales of $8.7 billion in 2015, however growth is slowing. In Iran, a number of international retailers have recently entered and local 3rd party resellers have always been present (a backdoor that European retailers have used).  Apparel retailer Mango, recently opened a new flagship shop.

However, in the personal luxury segment, consumers are still complaining about the limited access and assortment. Retailers also complain about limited retail space suitable for personal luxury brands.

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