Iran's Apparel Market Valued at $2.3b Last Fiscal Year

EghtesadOnline: Iran's apparel market was worth 267.58 trillion rials ($2.38 billion) in the last fiscal year (ended March 20, 2018).

News ID: ۷۸۴۴۳۴

30 December 2018

The figure was announced in a new report released by Tehran Chamber of Commerce, Industries, Mines and Agriculture, citing the current fiscal year's data from the Statistical Center of Iran.

Clothes and shoes accounted for 208.97 trillion rials ($1.86 billion) and 58.61 trillion rials ($523 million) of the total sum respectively.

The report shows each Iranian urban household spent an average of 12.05 million rials ($107) on clothes and shoes during the period. The figure for those living in rural areas was 8.13 million rials ($72), according to Financial Tribune.

Per capita spending was at 3.35 million rials (about $30)—3.69 million rials ($33) for urban and 2.38 million rials ($21) for rural areas.

Clothes and shoes had a 4.6% share in Iranian household expenditures during the year under review. This share was 4.4% and 5.3% for urban and rural areas respectively.

Total spending in urban areas accounted for 218.34 trillion rials ($1.94 billion) of the total sum, with an 81% share from the market.

Data Disparity Points to Smuggling

Domestic demand is largely met through imports, a great deal of which are smuggled into the country through unofficial channels, as evident in the huge difference between data provided by the Islamic Republic of Iran Customs Administration and those by the International Trade Center, TCCIM said.

IRICA data indicate a total of $60 million worth of clothes, in addition to $35.3 million worth of shoes, were imported last year.

As for clothes, 64% worth about $38 million, was imported from Turkey. China, Germany and the UAE followed with 10%, 9% and 7% respectively.

China, Turkey and the UAE were the biggest exporters of shoes to Iran last year with a respective share of 37%, 28% and 21%.

International Trade Center's data put imports of clothes and shoes into Iran at $856.5 million and $314 million respectively in 2017.

The biggest difference in figures is seen in those related to imports from China. IRICA says China exported $6.2 million worth of clothes to Iran in March 2017-18, which ITC says were valued at $493 million in 2017.

Differences in figures for other countries, including the UAE, Turkey, India and Italy, are also noticeable.

IRICA says $4.3 million, $38.3 million, $91,000 and $735,000 worth of clothes were imported to Iran from these countries respectively last year. This is while ITC put the respective imports at $215 million, $95 million, $19 million and $17 million respectively in 2017.

Last fiscal year started in March 21, 2017.

All dollar values in the above text have been converted at a rate of 112,000 rials.