we had a conversation with Mohammadreza Bahiraei, the head of the importers of hygienic and cosmetic products association, about the import status of these products. The problems and challenges of importers and how far the contract production of hygienic and cosmetic products has progressed in Iran.
Question: Recently, the head of the food and drug organization admitted that we made a mistake in imposing restrictions on the import of hygienic and cosmetic items. In your opinion, have this multi-year prohibition on the import of hygienic and cosmetic products been able to lead to a boom in production?
Bahiraei: to answer this question, it is better to review the achievments of the last few decades. The fact is that in these few decades. we have witnessed the prosperity of this industry and well-known brands and products have been launched in the market which is really a national pride. But were the country’s doors closed on imports in those years when these capabilities were achieved? No; at the same time imports have been carried out and domestic industry finds itself facing foreign competitors and had to invest in research units, formulation, branding, packaging, and other industry sections.
Therefore, the growth of the industry has been due to the existance of a competitive market. A market that has stimulated craftsman to supply a better quality and diverse goods to the market.
In other words, it is the import which created the atmosphere of competition in the market and transformed the global knowledge to our country and created conditions for the Iranian manufacturer to endeavor day by day to improve the quality of their products.
If we close the doors of t he country and force the Iranian consumer to buy any product of any quality which is produced inside the country, we will have no future except the car industry.
It is better if the market is open and tarde and production face each other. production is qualititative when we can export abroad and take a good share of the market of other countries and this will be achieved in the condition that the domestic market becomes competitive, and this means that the conditions for import are provided.
Question: Have the importers leaded to invest in the production sector during this time?
Bahiraei: In recent years, the importers of hygienic and cosmetic products have moved towards production according to the policies of the food and drug organization and ministry of industry, mine and trade and many of them have made significant investments in the production sectors and this presented that there are lots of capacities in this market.
But this issue should not cause us to neglect some other issues. Unfortunately, meanwhile, a significant number of small businesses have gradually weakend and shut down. and the authorities should review this matter so these companies can be revived and provide relevant occupation.
It is true that a number of importing companies have leaded to production and become so-called producers, but we must note that not all companies are able to do this.
one of the new mechanisms in the world for development of the industry is contract manufacturing. what plans have you made in this issue? Have Iranians importers moved towards contract production?
currently, a number of importers due to the efforts they have made in the field of production, have created brands whose products are produced in Iranian factories under the supervision of the food and drug organization of our country, and this has caused adouble added value in our industry.
In this way, on one hand, the vacant capacity of factories and production sites has been exploited, and on the other hand, our country has acquired worthy and valuable brands that can play a role in the goegraphy of the Middle East region. In addition, in this way, the connection with the global production chain is also maintained.
In this regard, extensive coordination has been done with the food and drug and ministry of industry, mine and trade
and we hope with the development of contract production, new horizions in the cosmetic and hygienic industry will be presented to the ecconomic activists of our country.
Question: what do you expect from government officials to develop contract production?
Bahiraei: The owner of Iranian brands should definitely be supported by the government, and our request to government organizations is to pay more attention to contract production and facilitate the business environment for them. Of course, before that, we had an expanded memorandum with the food and drug organization, which we hope the content will be implemented as soon as possible.
our memorandum with the food and drug organization is considered as a general framework in the field of common cooperation, synergy, and topics such as outsourcing, training, obtaining advisory opinions of the association, referring aplicants to the association, cooperation in the field of combating smuggling and using capacity of the association in order to increase the health of products and improve the business environment.
Question: what plans does the Association of hygienic and cosmetic importers have in mind for the development of contract manufacturing?
Bahiraei: In order to facilitate things, we have made amendments in the association’s status in order to facilitate the conditions for improving the business environment.
I must say that our association has added contract production in its constitution and all those who are active in this field (both importers who have entered the field of contract production and producers who are open to contract production) can become members of the association.
so that the necassary synergy can take place and we can use the experience of the parties and improve the work and affairs.
