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Carpet in The Language of Statistics and Figures

Qali Iran [Iran Carpet; Cultural, Economic & Social Magazine (Monthly)
Oct. 1998, No. 4

Summary: The Average share of the European Union in the export of Iranian hand-woven carpets in the 1988-1994 period was around 65 percent. The total export of carpets to Europe by Iran has increased seven folds in the said period. In 1988, of 306 million dollars worth of carpets imported by Europe, 208 million dollars belonged to Persian carpets. In 1994, Europe imported 2,080 million dollars worth of carpets, 62 percent of which were Persian carpets. Iran had the highest share in European carpet imports in 1990 with 70 percent while its lowest share with 62 percent was related to the years of 1994 and 1996.

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POSITION OF PERSIAN CARPET IN EUROPE

In order to study the position of Persian carpet in European markets, some points should be taken into consideration because at present Europe absorbs 65 percent of carpets being exported by Iran. For this reason, it is of vital importance for Iran to maintain its share in this market. As proven in previous years, to limit Iranian carpet exports to Europe or failing to pay due attention to this market entails grave consequences.

1- As shown in the following table, among European countries Germany has had the lion's share in the import of Persian carpets, followed by Italy, Britain and France each with 10 percent of the total imports.

2- Of the total imports of Persian carpets to Europe, the majority of European countries had a meager share of 10 percent, indicating the lack of direct contact between the traders of these countries and Iran.

The trend of exports from 1988 to 1994 shows that the import figures in such countries as Italy, France, Spain and Belgium has had a tangible growth with the passage of time. The reason for this should be searched in the export services methods inside the country. Italy's imports of Persian carpets in 1988 was 10 percent of that of Germany in the same year but the figure rose to 40 percent in 1994.

3- Germany, because of rendering wholesale services for carpets in its Hamburg and Frankfurt ports, hosting big carpet companies which render services to large chain stores all over Europe and holding major international carpet exhibitions such as "Demotex", exports a large portion of its imported carpets to other European countries. Therefore, a small part of carpets being imported by Germany from Iran remain in that country for domestic consumption.

4- Despite the long record of carpet exports to Europe by Iran which dates back to the time of the Safavid dynasty and Europe's recognition of Persian carpet as an artistic and luxurious item, the export of carpets to the European continent by Iran's rival countries (China, India, Turkey and Pakistan) has grown over the past 20 years and therefore this point should be taken into account that despite an increase in the export of Persian carpets to Europe, other producers have substantially increased their exports to Europe as well.

5- Due to the strong dependence of Iran on Europe for export of its hand-woven carpets and its lack of attention to the market of other continents, any changes in the political and economic affairs in European countries (particularly Germany, France and Italy) can greatly affect the trend of Iran's carpet exports. For example, the stagnation in Iranian carpet exports to Europe over the past two years can be attributed to the economic recession gripping the European market. So, not only this dependence cannot be regarded as an advantage, it has also kept Iran away from market in other countries of the world. To this end, reference can be made to the export of carpets by India and China to the American continent and Africa.

6- Currently, the wholesale of Persian carpets in Europe (particularly in Germany) is carried out in traditional methods which is not ideal to large chain stores. Therefore they rely more on Indian and Chinese rugs. Though the main reason for this lies in the system of production in Iran, the storage methods in such regions as Hamburg port cab also be blamed.

7- Despite the fact that the majority of carpet dealers in Europe are Iranian, in many cases, the same dealers have helped improve the market of other countries' carpets to make profits and maintain their share in markets. The main problem of these traders is their lack of a certain establishment for advertising their carpets on a large scale and their efforts to market their goods individually. In the event of close competition with their rivals, they have sometimes to take unfair measures.

The closed trade practices of these traders have played a key role in the lower demands for Persian carpets on international markets than for carpets of other countries. However, they cannot be blamed for not being committed to their colleagues or wanting to maintain their individual profits. Therefore, it is the duty of Iranian carpet policy makers to take serious measures to employ modern marketing methods and replace the current closed trade system with a better trade system.

8- Although the table of Iranian carpet exports to Europe from 1988 to 1994 shows a six fold increase, total exports of carpets from Iran to Europe have practically increased seven folds. In other words, in 1988, of 306 million dollars worth of carpets imported by Europe, 208 million dollars or 68 percent belonged to Iran. The figure on European carpet import in 1994 which was a good year for Persian carpets reached 2,080 million dollars of which 62 percent belonged to Iran. This shows that Iranian carpet exports have dropped compared to that of other countries. This also reveals that Iran has not only a meager share in markets of the American continent and Far East but also its share in European markets has declined compared to the past. The reason for this decline should be searched in carpet marketing system practiced inside the country.

Table showing the monetary value of Persian carpet exports to the European Union in the 1988-1994 period (Figures are in million dollars)

Source: Iranian Customs Administration, Statistical Year Book on foreign trade of the Islamic Republic of Iran in the 1988-1994 period, Statistics Bureau

The average share of the European Union in exports of Persian carpets in the 1988-1994 period was around 65 percent.