TEHRAN (Iran News) –Chairman of the Iranian Home Appliances Trade Union Mr. Akbar Pazouki says recession has dominated the home appliances market admitting that the home-made products are unable to compete with their foreign rivals in terms of price.
Speaking to ILNA, Pazouki said that purchasers expect with the strength of national currency against dollar the price of the goods to decrease at the same level but the rules of the market is different and for decrease in the price of a product we need different factors simultaneously happen.
He went on to say that currently home appliances market in the country is struggling with 90% recession, adding that purchasing power of the people has declined and purchasers expect the prices of the products to slow down with the national currency gaining strength against dollar but it does not happen in the market because several factors are needed to happen for the decrease in the price of the products.
Pazouki reiterated that people are waiting the prices of the products to be determined, adding that removal of the sanctions is just at the early stage and for seeing its positive impacts they need at least one year. He added that although the price of dollar has declined in the market and people expect the price of the products to decrease but producers have purchased their raw materials with the then price of dollar and therefore they cannot decrease the price of their products.
Touching upon the possibility of exporting home appliances to Saudi Arabia, he said that the industry can pin hopes on the growth of export that the price and quality of the products can compete with their international rivals.
He added that currently Iranian products have no problem in terms of quality but some factors like the forex rate and raw materials deprive Iranian producers of being able to competite with their rivals in the neighboring countries.
Pazouki said that Iran is able to produce some luxurious products and it is currently continuing their production.
He reiterated that rise in the cost of productions like salary and rent as well as the taxes have caused price hike in the products and their sales, admitting that because of the prices and people’s losing their purchasing power, this industry is seriously in the recession mode and it is challenging with 90% recession.
