Page 57 - IRANRptNov21

deprecation will prompt the authorities to further cut down on hard currency expenditures.
9.1.9 Retail sector news
Iran’s footwear industry ‘well capable of reaching billion pairs per year target’
‘Iranian Amazon’ Digikala says it is Middle East e-commerce champion with five million product varieties
Iran’s clothing sales fall “to almost zero” amid retailers’ virus woes
Iran’s footwear industry is well capable of reaching an output threshold of 1bn pairs of footwear annually within a few years from its current 450mn pairs, Ali Ajdarkosh, who chairs the Iranian Guild Association of Shoe Manufacturers, told PressTV.
Hitting the target, with substantial exports to regional countries featuring in the success, would enable Iran to earn around $6bn in shoe export revenues per year, he reportedly added.
An outright ban on imports of shoes into Iran was enacted in 2018, causing rapid growth in the Iranian footwear sector.
“The ban on imports led to significant growth in the footwear industry, with Iranian manufacturers reaching a growth level within three years that would normally have been attained within 20 years,” Alireza Jabbarian, a businessman representing shoemakers of Tabriz in northwestern Iran, was quoted as saying. Tabriz is well-known for its handmade shoes.
Iranian footwear manufacturers are also said to owe their major expansion to price surges in the cost of hard currency caused by the reimposition of heavy US sanctions on Iran that began in 2018. The smuggling of foreign-made shoes into Iran almost stopped because of rising exchange prices, while consumers developed a preference for brand new Iranian shoes that were more affordable, according to the Iranian Guild Association of Shoe Manufacturers.
Iran’s Digikala has laid claim to the title of “prevailing e-commerce business in the Middle East”, with the company—sometimes known as the “Iranian Amazon”—saying it has moved up to offering more than five million product varieties, while boasting more than 150,000 marketplace sellers and 40mn active monthly users.
In an update on business progress, Digikala said: “Founded in 2006 with inadequate funds, Digikala is the largest e-commerce business in Iran as of today as it had a substantial share of the country's e-commerce industry in 2020.
“Despite being known as the leader of online retail in Iran, Digikala has had a constructive impact by contributing far more than just an online store in fortifying the country's business ecosystem within the e-commerce industry.” Outlining Digikala’s ambitions, the update stated: “This corporation aims to become the primary destination for online shopping, not only in Iran but also in the Middle East, by using breakthrough technologies to reach several goals tending to the needs of customers.
“These goals include creating a first-rate shopping experience for customers, presenting a deep assortment and a wide variety of products, offering favorable prices, producing abounding and valuable content, having the quickest delivery time, and completing operations efficiently.”
The head of Iran’s Association of Clothing Manufacturers has said clothing sales in the country have fallen “to almost zero” amid coronavirus (COVID-19) restrictions, according to ILNA.
Tehan’s Grand Bazaar, stores across Iran and production workshops in the country have since the spring been forced to close for extended periods, decimating the domestic clothing manufacturing and retailing sectors,
57 IRAN Country Report November 2021 www.intellinews.com