Trials and Tribulations of Iran’s Real Private Sector

EghtesadOnline: The formation of brands is imaginable in the real private sector and in a free and competitive environment, but branding is impossible in the presence of crony capitalism and semi-governmental companies whose management is unstable and whose system is fe

News ID: ۷۵۲۶۱۰

19 June 2023

The news of the closure and reopening of Darugar, a vintage company in hygienic and cosmetic industry, once again brought prestigious Iranian brands and their sad fate into stark relief.

The fact of the matter is that the birth and death of commercial brands has a clear economic logic, therefore it is not surprising or worrying to see some of them dissolve over time. The problem is somewhere else.

The question is why almost all successful and important Iranian economic enterprises formed during the 1950s and 1960s gradually lost their efficiency and either turned into loss-making state companies or went bankrupt.