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Iran Cosmetic Profile
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3. Iran: Market overview
6th largest global market for color cosmetics. ( source: Euro monitor)
Largest consumer market in the Middle East
Population more than 70,000,000
70% of population between the age of 16 to 40
15 million women aged 20-39
European brands are gradually becoming dominant because of strong
global and local advertising
Iranian demographics shows that three areas are resistant to economic
downturn food, medication and color cosmetics.
4. The problem faced by importers is that the grey market imports of
unregistered brands, counterfeit products , grey market imports by
UAE distributer and most important a lack of coherent advertising
Growth of cosmetics and toiletries spurred by satellite TV
Offshore and “Exile” channels broadcast via satellite have highest
viewership and have an impact not comparable to other markets
Fragmented market requiring local presence and co-ordination
Iran: Market overview
5. Point of Sales
Type Tehran
(The capital)
Other cities
Accessory shops* 200 300
Beauty Salons/Hair dresser** 500 N/A
Cosmetic shops/ Perfumeries 500 2500
Department stores 12 5
Pharmacies 1500 8000
Hypermarkets 30 25
Online sales It’s not common for selling cosmetic products in Iran
* Accessory shops: Due to high demand and good sell of accessory items, and also expensive price of estates,
more than 90% of cosmetic shops sell accessories too. So there are fewer shops selling accessories solely.
** Beauty Salons: Because of financial and credential concerns, most of the cosmetic companies in Iran prefer to
work with salons “indirectly” through wholesalers and cosmetic shops.
6. Technical details
Below you may find some useful information. Studying these items will give you a more
accurate look about cosmetic market:
•Advertising limitations: Due to religious limitations, it is not allowed for cosmetic
products to have TV Ads or Bill boards. So our advertising department focuses on paper
Ads like magazines, internet Ads, SMS based Ads, holding seasonal festivals or
competitions, designing shop windows (showcase) and etc.
•Customers (Shops) classification: cosmetic shops are classified into 4 groups from A , B, C
and D. (A groups are the best sellers with good store position). Certainly selection of
customers and the distribution policy is based on brand position ( including price, quality
and competitors), package of products, advertising budget and materials, display stands
appearance and expected purchasing amounts.
•Customer selection strategy: Our Company has a watchful procedure for selecting
customers. We consider different parameters, such as: financial credibility, store
reputation, store decoration, store size, systematic product assortment and the available
selling brands.
7. other points
• Small but strong! : Due to expensive price of estate in the country, there are several small stores who have
good sales of cosmetics. If you check the photos in next slides, you may see some stores that they don’t have
modern designs, but they are good sellers.
• Foreign exchange rate: Since January 2012, Iran has experienced high fluctuation in foreign currency price. As
a result, price of products (Specially imported products) became doubled or even tripled. For your information, in
September 2013, EUR 1= IRR 45.000.
• Cooperation with professional make-up institutes: Our advertising department has direct communication
with professional make-up institutes. They introduce them new products by sending “beauty advisors”. They give
samples of new products or gifts to these institutes, put sales displays, banners, posters, product catalogs and
any advertising materials which helps to introduce and distinct the brand.
8. Sample photos of Iran cosmetic market
Customers
Department Store
Cosmetic shop
Drugstore