Page 63 - IRANRptJul22

Iranian producers ‘eager to take Russia market shares vacated by US, European brands in war exit’
effects of US sanctions while at the same time cutting the economy's dependence on oil revenues.
Another important factor that has boosted Iranian manufacturers of home appliances is the ban Tehran has applied to imports of white goods from South Korea, largely items produced by giants Samsung and LG. The ban was brought in as a response to Seoul’s support for the swingeing US sanctions that are undermining the Iranian economy. Grey and black-market imports of banned home appliance products continue, however. The smuggled imports flow into Iran from Iraq and other neighbouring countries.
The data showed 6,273,600 large household appliances were produced in the 12 months, including televisions, refrigerators and freezers, washing machines, air conditioner units. Among the mentioned products, a decline in output was only posted for air conditioners.
Iranian manufacturers are eager to expand their fast moving consumer goods (FMCG) and other brands in Russia following the exit of European and US brands in response to the military conflict in Ukraine, according to Oleg Voitsekhovsky, managing director of the Russian Council of Shopping Centres (RSTC).
Prior to the Ukraine invasion, brands from Iran over the course of several months made significant impact in Russian regions including Astrakhan, but the prospect of empty outlets in shopping malls, brought about by the departure of European and American brands from Russia, has given new impetus to the plans of Iranian producers to build Russian market share. “There are no popular [Iranian] brands recognisable in Russia, so it will also be necessary to invest money and time in creating a brand and marketing support for products,” the RSTC press office quoted Voitsekhovsky as saying.
Stores in Russia were ready to include Iranian brands, but on condition that the investments of Iranian manufacturers in Russia included local managing offices and the hiring of Russian firms for branding and advertising support, the trade association noted.
“So far, doubts remain that the quality of the luxury products will reach the levels of Italian, Spanish, Portuguese goods,” Voitsekhovsky also said.
The RSTC said there were plans to start a cooperation with Iranian manufacturers based on the opening of an initial 30 outlets.
9.1.10 FMCG sector news
Iranian producers ‘eager to take Russia market shares vacated by US, European brands in war exit’
Iranian manufacturers are eager to expand their fast moving consumer goods (FMCG) and other brands in Russia following the exit of European and US brands in response to the military conflict in Ukraine, according to Oleg Voitsekhovsky, managing director of the Russian Council of Shopping Centres (RSTC).
Prior to the Ukraine invasion, brands from Iran over the course of several months made significant impact in Russian regions including Astrakhan, but the prospect of empty outlets in shopping malls, brought about by the departure of European and American brands from Russia, has given new impetus to the plans of Iranian producers to build Russian market share. “There are no popular [Iranian] brands recognisable in Russia, so it will also be necessary to invest money and time in creating a brand and marketing support for products,” the RSTC press office quoted Voitsekhovsky as saying.
Stores in Russia were ready to include Iranian brands, but on condition that the investments of Iranian manufacturers in Russia included local managing
63 IRAN Country Report July 2022 www.intellinews.com