Cosmetics And Toiletries in Iran
Euromonitor International's Cosmetics And Toiletries in Iran market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 10 | Publication date: May 2006
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Executive summary
Traditional cosmetics and toiletries
Iran has a long history of cosmetics and toiletries, which dates back to Persian times. The colour cosmetic roots came from Assyrian, Babylonian and Egyptians, and soon it developed its own unique style.
Ancient Iranians used cosmetics, ointments and fragrances that are still popular today. Present Iranian women still use traditional materials such as henna, used for colouring hair and nails, sormeh, which is black powder used as eyeliner, and rose water known as golab. There also were other products such as gazeh, a rouge powder for cheeks and lips, sefidab, a powder to whiten the face and substitute for modern concealer, vasmeh, powder to darken and thicken eyebrows, zarak, yellowish powder used to lighten the hair colour, and khal, a beauty spot. The seven beauty products, except golab, represent perfection during the Zoroastrian times.
For centuries Iranian people used leaves from the Lotus tree called Sedr for washing their hair. Dried leaves are crushed into powder, and today some domestic companies add Sedr to shampoo. Shampoo with added Sedr is very popular due to high consumer loyalty to the traditional product.
Henna is widely grown in Iran and adds a vibrant red colour to the hair. It is also useful as medicine for skin and nails. Most rural and older women use henna for their nails and hair, and young women mix henna with coffee for a better colour on their hair.
Cosmetics were well-established in ancient Iranian times, but only married woman were allowed to wear make up.
Ancient fragrances still present today
Golab is one of the most famous perfumes to come from ancient Iran, and it is still popular and often used when going to the cemetery and other holy places. It is made from rose petals in the ancient city Ghamsar in Kashan, Isfahan State, which is still called the capital of rose water. The Mohammadi Flower Extraction Ceremony in Ghamsar is held in May every year. Golab from Koshan is distributed to the major cities of Iran, and many tourists purchase it when they visit Ghamsar.
Golab is also used in confectionery. The main ingredients for the famous halava are wheat flour, Golab, sugar, butter, and saffron. Halava is often served for periods of mourning, and is also brought to the houses of mourning. It has come to be associated with events of great sadness, as well as the holy month known as Ramezan (Ramadan).
The other perfume that is still present today is called moshk, which is obtained from the musk of gazelles and was very expensive in the past. Even though it is still made and sold in Iran, it is rarely available.
Traditional cosmetics sold in specialist stores
Traditional specialist shops such as Attari not only sell herbs and spices, they also sell Golab along with other traditional cosmetics. In Attari, thousands of different kinds of herbs and plants are sold that can be used in a variety of products ranging from perfumes to medicine and food. Some of the medicinal purposes of the herbs, spices and plants can be used as alternatives to modern skin care, and not only as medical care.
Ancient depilatory methods still used
The history of cosmetics in Iran shows that Iranians used to remove unwanted facial body hair centuries ago. The method is called band andazi and is still popular not only among traditional families but is also practised by some beauty salons in Iran. In traditional families, Iranian women get together to perform band andazi before a wedding. The unwanted hair is removed by thread. It is a form of beautification, a substitute for waxing, and can also be included among other spa or beauty salon services in major cities in Iran.
Tendency towards Western fashion
Since the 1979 Islamic revolution, all post-pubescent females have been required to wear the veil and a long coat concealing their bodily form, otherwise they face fines or imprisonment. All women in Iran have to wear a scarf and the traditional chador, a robe that covers women’s body from head to foot, or a conservative coat to conceal their figure and hair from the eyes of men. The Islamic government has heightened its campaign against violations of the Islamic dress code.
In spite of these restrictions by the government, it never succeeded in telling Iranian women what to wear. Western fashion has a strong impact on Iranian women, so most Iranian women and girls wear tight overcoats or short trousers and short sleeves with short socks or without socks and openly show parts of their body, which is forbidden by the Islamic government. Women also do not fully cover their hair anymore and often wear light flowing see-through scarves so their hairstyle is visible.
The private sector in Iran
In the summer of 1999, the Iranian parliament approved a law where private
entrepreneurs are allowed to import cosmetics and toiletries products into Iran under a more relaxed pricing mechanism.
Since the government minimised the restrictions on customs duties, cosmetics and toiletries have been imported widely both legally and illegally into Iran. However, the most popular Western brands are still restricted to import and are enter the country illegally. At the end of the review, most of the American-originated cosmetics and toiletries brands were illegally smuggled into the country and sold via the usual distribution channels including department stores and supermarkets.
Free trade zones
Following the United Arab Emirates free trading zones example, the Iranian government established two main free trading zones in the Kish and Qeshm Islands, located in the strategic Persian Gulf waters. A third one, Chabahar is also situated on the southern borders near the shores of the Sea of Oman. Iran tried to create these free zones as a second Dubai for both Iranian customers and tourists. The variety of the foreign cosmetics and toiletries brands is far higher there than within the country, and unlike in the rest of Iran, are imported legally.
Smuggled cosmetics
According to the report from the Cosmetics and Hygienic Association of Iran, in 2005 smuggled and non-hygienic products accounted for about 85% of Iranian cosmetics and toiletries. Most of the products posing as popular brands are produced in non-hygienic environments in India, Pakistan, UAE, Turkey and China, and finally smuggled into Iran, or are produced locally in Iran itself.
Unfortunately, smuggling cosmetics and toiletries is far easier than getting the import permit from the Chamber of Commerce of Iran.
Throughout the review period, increasing incidents of smuggled and counterfeited goods seriously damaged the local cosmetics and toiletries industry. However, local Iranian companies still hold the dominant position in producing original cosmetics and fragrances, yet many smaller local cosmetics and toiletries manufacturers were forced to close down as they were unable to compete with the increasing presence of foreign and counterfeited brands that were reaching consumers through mainly illegal ways.
Cosmetics must be labelled in Farsi language
Due to the high presence of illegal products in local cosmetics and toiletries, the Iranian Ministry of Hygiene strongly recommends consumers buy only products that have a label in the Farsi language. The labels in Farsi language consist of production/expiry date, hygienic permit number, the name of company, and manufacture’s country. This label on any cosmetics and toiletries product shows that it is approved by the Ministry of Hygiene of Iran and its quality corresponds to standards.
If consumers are faced with problems on any labelled cosmetics, they should present their complaints to the Food and Drug Ministry of Iran.
Under these circumstances, all shopping centres and stores are required to sell the legal imported cosmetics with Farsi labels, and if product does not have the label it means it could be either an illegal import or counterfeit. The Ministry of Hygiene of Iran can close shops that sell cosmetics and toiletries products without labels in Farsi.
Iran bans advertising for all foreign goods on domestic market
The Iranian government banned advertising for all foreign goods and cosmetics and toiletries including via the media, TV, sponsors, promotional cars or public places on January 2005. This was due to development of domestic industries and support for private companies as part of efforts to improve the quality of domestically produced goods.
Based on the plan, the advertisement of any foreign goods is sanctioned by the Iranian government as follows:
- Any foreign goods that are also made in Iran
- Any assembled goods that are produced under the license of a foreign company in Iran
- No Iranian companies are allowed to promote their products in terms of “under license of foreign company” or “under confirmation of foreign company”.
The Cultural Commission of Parliament of Iran approved the plan, and the punishment depends on the level of the offence. It might be either a cash fine, ranging from IRR10 to IRR50 million.
However at the time of writing, advertisements of foreign brands are still very common on the major streets of Tehran. The ban turns out to be nothing more than only part of the political pose of the Iranian government. Nevertheless, some domestic manufacturers keep on complaining about the unfair pressure from imported goods, and the government tries to support them by its general policy against Western products.
Ban on advertising products from USA
Even though the Iranian government banned the media from advertising goods from the USA in November 2002, at the time of writing products such as baby care brands by Johnson & Johnson Inc were still widely available and well known to local consumers. There is no clear indication how the products entered Iran, and whether they are illegal imports or simply counterfeits. At the end of the review period, Johnson’s Baby accounted for nearly a quarter of total baby care, and was available via drugstores as well as other retail channels.
Advertisement limitations
In spite of the high availability of imported colour cosmetics, the government still does not allow any advertising of products via the media or in public due to the strict Islamic codes. Nevertheless, some adverts for lipstick, nail polish, mascara, fragrances, and skin care can be found in glossy women magazines, while other press is free of any advertisements on cosmetics products, excluding domestic oral care, shampoo, liquid/bar soap, and a few other necessities.
Islamic values and cosmetic exhibition
The first cosmetics and personal hygiene fair was closed by the Iranian judiciary on February 6, 2005 in Mashhad city, which is a holy city devoted to Islamic values.
During the exhibition, a large number of Iranian women visited the stands offering colour cosmetics and other feminine toiletries. Many women were openly wearing bright make-up, which is not in line with the Islamic code of conduct that forbids colourful make-up in public.
The Iranian judiciary officially asked the director of the Mashhad exhibition that only women run the cosmetic stands in order to respect the Islamic code, but it was not done. As a result, the Mashhad cosmetics exhibition was shut down but later re-opened.
Satellite TV technology and the impact on cosmetics and toiletries
Most domestic brands of cosmetics and toiletries such as Nasim, Darugar, Shabnam, and BBK are promoted via TV and media in Iran. However, foreign brands such as Gillette, Oral-B, Elite, Nivea, and L’Oréal are advertised only on Satellite TV, which is available for wealthier consumers. This media revolution allows advertisers to target this community by accessing US- Based Persian Media, which also includes cable television, radio, print and Internet marketing options.
Iranian people are interested in foreign cosmetics and toiletries that they see via satellite TV. There are a number of TV channels broadcast from the USA and translated into Farsi. However, the Iranian government disagrees with this kind of activity and defines it as illegal.
As a matter of fact, most of the products seen by Iranians via satellite are available in major cities in Iran. Thus, volume sales of foreign cosmetics and hygiene products are growing day to day in Iran in both legal and illegal ways.
At the time of writing, the best known Iranian consumer satellite TV channel was called Tapesh Global Network, which also issued the monthly Tapesh magazine full of colourful adverts and is published in Dubai.
Iranians can watch satellite TV channels only via a dish, and there are not any foreign TV channels available on Iranian TV. Some satellites TV channels in Farsi language are: www.tapeshtv.com, www.irantvnetwork.com/, www.pmc.tv, www.itcnetwork.tv/, www.nitv.tv/, www.oitn.com/, www.penonline.tv/.
Table of contents
COSMETICS AND TOILETRIES IN IRAN : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. COSMETICS AND TOILETRIES SALES
2.1 Market Performance
Table 1 Retail Sales of Cosmetics and Toiletries by Sector: Value 2000-2005
Table 2 Retail Sales of Cosmetics and Toiletries by Sector: % Value Growth 2000-2005
2.2 Competitive Environment
Table 3 Cosmetics and Toiletries Company Shares by Retail Value 2001-2005
Table 4 Cosmetics and Toiletries Brand Shares by Retail Value 2002-2005
2.3 Leading Company Profile: Paxan Corporation
Summary 1 Paxan Co Operational Indicators 2004
2.4 Leading Company Profile: Firooz Hygienic Group
2.5 Leading Company Profile: Beiersdorf AG
2.6 Leading Company Profile: Pakshoo Co
Summary 2 Pakshoo Chemical Co Operational Indicators 2004
2.7 New Launches
2.8 Retail Distribution
Table 5 Retail Sales of Cosmetics and Toiletries by Distribution Format: % Analysis 2000/2005
Table 6 Retail Sales of Cosmetics and Toiletries by Sector and by Distribution Format: % Analysis 2005
2.9 Retailer Activity and Private Label Trends
2.10 Forecast Market Performance
Table 7 Forecast Retail Sales of [Market] by Sector: Value 2005-2010
Table 8 Forecast Retail Sales of [Market] by Sector: % Value Growth 2005-2010
3. DEFINITIONS