Economy, Domestic Economy

Iran Fastest Growing Nation Brand

Iran Fastest Growing Nation Brand
Iran Fastest Growing Nation Brand

Iran has been crowned as the fastest growing nation brand in 2015, according to Brand Finance, a global independent brand valuation and strategy consultancy.

“Iran’s brand value went up 59% to $159 billion this year,” according to the group’s latest report published on Wednesday.

Brand Finance measures the strength and value of nation brands of 100 leading countries using an array of factors such as the nation’s brand strength, revenues and weighted average cost of capital.

Iran has been ranked 46th in 2015 ranking, “as President Hassan Rouhani’s moderate approach slowly shifts international perceptions of the country’s potential.”

A historic deal clinched between Tehran and the world powers in July after months of tough negotiations was the main international achievement of the Rouhani administration whose intention has been to improve Iran-West relations hit by a drawn-out dispute over Iran’s nuclear energy program for the most part.

“With a market of 77 million people, vast hydrocarbon reserves and a highly educated population, Iran certainly has a receptive audience globally. Managed correctly, Iran’s ancient treasures, sophisticated population, strategic location and natural assets could be used to transform its reputation,” the report reads.

Post-deal Iran has recorded an unprecedented number of visits by world leaders, officials and business-owners assessing the new emerging market. That has been a contributing factor to improving Iran’s brand value.

The report refers to Germany and France, which have been the fastest to reach out, since they have had a more established presence in Iran prior to sanctions.

France’s Peugeot was the market leader in the Iranian auto market, for example. However, its perceived abandonment of the country may mean other European firms are better placed to profit.

The United States, however, has fallen behind in reaching out to Iran’s market. Although the US is by far the most valuable nation brand, its standoff with Iran will affect, even if to a minor degree, the ability of its firms to export into Iran.

Those with a neutral, internationalist branding such as Apple, however, according to the report, should be largely unaffected though more “all-American” brands such as Coca-Cola may struggle to overcome negative perceptions.

In a global marketplace, a nation brand is one of the most important assets of any state, encouraging inward investment, adding value to exports and attracting tourists.