Although there are reasons such as a virgin market, low competition intensity, and a considerable population, the Iranian market is attractive for investment in many areas. However, some markets in the country are less attractive for investment. Least attractive markets for investment in Iran
What happened to these markets?
The reduction of the attractiveness of a market for investment can happen for various reasons, some of the most important being:
- Decrease in people’s purchasing power and decline in markets related to non-essential and even luxury products.
- Decrease in the market’s weight value even with the growth of its financial value.
- Comparison of the nominal production capacity (potential supply) with potential and actual demand, and the decline in the public’s interest in a particular product.
- High competition intensity (in terms of quantity and quality) and the presence of powerful competitors.
Don’t invest in these markets in Iran!
Least attractive markets for investment in Iran
The market analysis agency, Nexlooks, annually categorizes and prioritizes unattractive markets for investment based on these indicators and introduces unattractive markets for investment:
– Travel industry: Although there are attractive opportunities in the tourism sector in Iran, the continuity of current economic conditions will cause people to reduce “costly” trips (such as air travel) and increase low-cost trips (such as traveling to the north of the country by personal car). Therefore, although the number of trips is increasing, the market volume size is decreasing significantly. In general, investment opportunities based on “low-cost tourism” will grow, but markets related to “premium tourism” will decline.
– Clothing market: The clothing market is a two-sided market. At the branding and online retail level, there are attractive opportunities in this market, but in the manufacturing sector, the clothing market has seen a significant decline over the past three years and is not attractive for investment.
– Sauces, Dressings, and Condiments: This market experiences very high competition intensity, and powerful competitors are present in the market. Only when it leads to the production of innovative and distinct products can it be attractive for investment?
– Tea: This market can be described as one of the most competitive markets in the country, experiencing very high competition intensity.
– Breakfast cereals: Some products in the Home Care market, particularly bleach and surface care cleaners.
– Fruit juices: Investment in this sector is not recommended due to the continuity of current economic conditions and the presence of powerful competitors. However, producing carbonated beverages based on essence is a different market and has good investment opportunities.
The introduction of unattractive markets for investment continues in the next series of articles.