Tehran Chamber of Commerce, Industries, Mines and Agriculture, in cooperation with Iran Franchise Association, is scheduled to hold the second conference on the capacities of franchise in boosting the cosmetics industry on July 12 from 2-5 p.m.
“Events related to the franchise industry are planned with the aim of promoting and developing this business model in economic activities as well as helping to build a network between the members of the Tehran Chamber of Commerce, Industries, Mines and Agriculture and players of the franchise industry,” Houman Hajipour, a TCCIM official, was quoted as saying by the news portal of the chamber’s website.
Iran’s cosmetics market is worth around $1 billion, 70% of which are dominated by contraband and fake products, according to the head of the board of directors of the Association of Toiletries, Cosmetics and Perfume Importers.
“As the market of skincare products and perfumes is as big as $3 billion, with smuggled and fake products accounting for 65% of the market,” Hamid Moqimi was quoted as saying by ILNA in late 2021.
The Ministry of Industries, Mining and Trade has banned the import of toiletry and cosmetic products since May 21, 2019.
“A few months later, imports of perfumes were also banned,” the official said, noting that the decision was made without proper market studies and did not take into account the consequences.
“The outcome of these measures has been a sharp increase in smuggling … Currently, we are not permitted to import end products, but we can purchase raw materials from foreign companies. These are mostly imported from China and India, while small volumes also come from European countries.”
Cosmetics Import Ban Criticized
The ban on imports of cosmetics and toiletries has killed 8,000 jobs, the official said last year.
“I dare say the remaining 12,000 jobs in this sector will disappear down the road, if the government fails to fix current rules and regulations regarding commerce. This comes as insurance companies are not financially capable of supporting the unemployed population. Trade bans over the past year, acknowledged by officials, have done little to improve production,” he said.
“By unlocking legal cosmetics and toiletries imports, the foreign currency that is now being absorbed by the contraband market would be directed toward legal imports and consequently job creation.”
According to the Headquarters to Combat Smuggling of Goods and Foreign Currencies, the share of contraband cosmetics and toiletries in the domestic market has experienced a 3-fold year-on-year rise since the ban came into effect.
Moqimi expressed concern over the low quality of contraband products and the possible health risks associated with their use.
“The contraband cosmetics are mostly smuggled into Iran by sea from the UAE, free trade zones and the western Kurdestan Province,” he added.
“If the private sector is given the chance to cooperate with foreign companies for joint production of cosmetics, skincare and toiletries,” he said, “we can reach a place where our products would enjoy high quality within 2 years, generating jobs as well as revenues from legal trade, and reducing smuggling in the market.”
Data released by the Islamic Republic of Iran Customs Administration show Iran exports toiletries and cosmetics to Afghanistan, Iraq, Azerbaijan, the UK, Germany, Canada, Austria, Hong Kong, Kuwait, Oman, the UAE, Russia, Bahrain, Turkey, Armenia and Kazakhstan.
The main exported products include shampoo, facial, skin and nail cosmetics, sunscreen creams, fixators, hairstyling products, toothpaste and soap.
Iran is one of the leading cosmetic markets in the Middle East and North Africa region.
