"Natural sales decline is normal. Don't worry!
Many FMCG markets are facing a decline in volume size. A review of 24 different markets in the FMCG sector since the beginning of 2023 shows that we have experienced a decline in market volume size in 17 markets (compared to 2022). In three different markets, there has been little change in market volume size (the growth rate has been almost equal to zero) and only four markets have shown positive growth.”
Therefore, if you are facing a decline in sales in your organization, it is quite natural to a large extent. This is because the total consumption of Iranians in FMCG items has experienced a significant decrease compared to 2022 April. Especially for non-essential products, this decline in value has been more significant. Only for essential items related to the dominant people’s power (such as tea, pasta, etc.) and some cleaning products (mostly to prevent diseases like Corona), we experience positive growth.
Of course, there is a clear point in the market that has been a lifesaver for many Iranian companies. In markets where international brands were previously available, we have seen many international brands leaving the Iranian market simultaneously with the increase in the exchange rate and the decrease in the value of the rial against the dollar, which has opened up space for Iranian companies. Even the statistics of smuggling have been accompanied by a significant decrease in many of these products. In 1396, international brands had a high share in markets such as shampoo, gum, chocolate, energy drinks, barley water, etc., but gradually from 1396, they left the Iranian market and made way for domestic brands, and most Iranian companies have been able to easily increase their market share.