The remarkable growth of some countries in economic and industrial sectors has made the term “emerging markets” receive more attention than ever before. These countries, with increasing demand, development of economic infrastructure, and attraction of foreign investment, have provided an attractive platform for exports and imports. For Iranian merchants, intelligent entry into these countries is an ideal opportunity for diversifying export markets and sourcing quality raw materials. In this article, a complete analysis of emerging markets, commercial opportunities, and strategies for entering them is presented.

Emerging markets at a glance

Emerging markets include countries that are moving towards permanent economic development, looking for improvement in financial infrastructure and development of industry and international trade. With increasing middle class and domestic consumption, there is a high demand for quality goods in these countries.

Why Do Emerging Markets Matter for Iranian Merchants?

• Diversity in export markets and reducing dependence on traditional trade sites
• Extensive demand for Iranian items such as petrochemicals, machine-made carpets and medicinal plants
• Possibility of importing raw materials at competitive prices from emerging countries
• Reducing trade obstacles and facilitates access to international markets

Export opportunities in emerging markets

Finding commercial opportunities in economic markets can help increase profitability and credibility of a trading company. These commercial opportunities are made possible by examining different markets and their conditions. Emerging markets can export their goods to other countries. These opportunities include the following:

Petrochemical products exporting to Europe

Europe is one of the largest importers of petrochemical products. Iran, with rich resources and high production capacity, can be a competitive supplier for this region. Our country had more than $15 billion in petrochemical exports in 2022.

Why is Europe an ideal destination?

• High volume of demand from plastic, packaging, and automotive industries in Europe
• Strict environmental standards that limit domestic producers.

Success strategy in this market:

• Compliance with European environmental standards to obtain export permits
• Development of maritime logistics to reduce transportation costs
• Use of international financial mechanisms for managing payment risks

Machine-Made Carpet Export to Middle East and Europe

Why are Iranian machine-made carpets popular in global markets?

• Competitive price and high quality compared to Turkish and Chinese products
• Increasing demand in UAE, Saudi Arabia and European countries
• 30% increase in global demand for modern and classic Iranian carpets in the last 5 years

strategy for entry into emerging markets:

• Participation in specialized international carpet exhibitions
• Focus on branding and digital marketing to attract foreign customers
• Use of secure international payment gateways to facilitate online purchases

Essence and Medicinal Plants Export to Europe

Export of medicinal plants is one of the most profitable commercial sectors. Essence and medicinal plants are used on a large scale in the production of perfumes, medicines and cosmetic and health products. Iran is one of the top 10 producers of medicinal plants in the world.

Why is this industry profitable?

• Europe is one of the largest consumers of medicinal plants and natural essences.
• Increasing interest in organic products and herbal medicines.

How to succeed in this market?

• Obtaining European standard certificates such as ISO and CE
• Creating sustainable supply chain for regular and long-term product delivery
• B2B marketing and cooperation with European manufacturers

Cosmetics Import from Germany

In 2022, the value of smuggling cosmetics in Iran was more than $ 2 billion, indicating high demand from Iranian consumers and weakness in official supply of goods.

Why is Germany a suitable option?

• Reputable brands with European standards
• Higher quality compared to Asian products

Suggested solution:

• Legal and official import through reputable channels to reduce smuggling and provide sustainable market supply
• Cooperation with German brands for joint production inside Iran to reduce costs and increase quality control

Textile Fiber Import from Thailand

Import of textile fibers is done to supply raw materials for the textile industry and meet the production needs of the country. Import of textile products includes cotton yarn, jute yarn, spandex yarn, polyester span slub yarn, sewing thread, polyester viscose yarn, cotton fibers, viscose fibers, etc. Thailand is one of the fiber exporting countries to Iran.

Why is Thailand a suitable option?

• Top producer of textile fibers in Asia with excellent quality
• Competitive prices compared to other international producers
• Reducing fabric production costs in Iran
• Increasing competitive power of the country’s textile industry

Suggested solution:

• Reviewing supply options from top Thai producers to select the best quality and price of fibers
• Using sea and rail transportation facilities to reduce import costs

Grain Import from Kazakhstan

Grain imports have had significant growth in recent years due to water scarcity in the country. So much so that in 2023 alone, about 2.5 to 3 million tons of grain were imported to Iran. Kazakhstan is one of the grain exporting countries to Iran and one of the largest grain exporters in the Central Asia region.

Why is Kazakhstan a suitable option?

• Geographical proximity and reduction of transportation costs compared to other global suppliers
• Development of railway lines between Iran and Kazakhstan that has provided the possibility of supplying wheat and barley at cost-effective prices.
• Importance of this cooperation in securing the country’s food security and reducing dependence on more distant suppliers

Suggested solution:

• Planning to conclude long-term contracts with Kazakh producers for stability in supply
• Using rail and maritime transport routes to reduce transit costs and accelerate import process

How to benefit from these opportunities?

For successful entry into emerging markets, market research plays an important role. Identification of consumer needs, analyzing commercial trends and knowing the competitors helps traders make smart decisions. In addition, creating local networks and cooperation with reputed distributors can help the facility of entry and reducing logistics obstacles in target countries.

Utilizing financial facilities and export insurance is another important tool for reducing financial and currency risks. Using commercial insurance and international banking services can guarantee the security of payments and investments. Also, developing international payment infrastructure and selecting secure payment methods provides the possibility of financial transfer without problems and will increase the confidence of commercial parties.

Mahta Vista Kish, Your Business Partner in International Trade Development

As we mentioned earlier, emerging markets are a golden opportunity for international trade development. But for success, plan, market knowledge and risk management are necessary. Mahta Vista is ready to assist Iranian traders in market analysis, goods supply and export development with experience and expertise in international trade.