Piero Agnetta, Global Consulting Pioneer, Says Do Your Homework
March 16, 2017
MILAN—Piero Agnetta, principal of L.M. Consulting s.r.l. who has been involved in the fabrics industry for nearly 30 years has become a specialist in the Iranian textiles market.
He is one of the first Europeans to enter the country and he expects to begin selling fabrics in Iran this year. He was also a fabrics pioneer in South America and Russia. “The Iranian consumer loves imported fabrics,” Agnetta says.
Piero Agnetta: When he’s not traveling, he’s cooking
“In Iran the local industry including fabrics are old fashioned,” Agnetta says. “The majority of the fabric in Iran comes from China and Turkey. Now the rich Iranians are starting to buy furniture and fabrics from Europe especially from editeurs and expensive manufacturers,” he says.
“In Tehran, an apartment can easily cost 9,000 Euros per meter!”
Agnetta says doing business in Iran is not very easy. “The customer is used to bargain down the price starting at 25 percent off. They will promise to buy big quantities but when you reach an agreement you must ask for 30 percent in advance as an LC, sometimes from Austrian or Dubai based banks.”
“The customer requests that because they are trying to eliminate paying import tax to Iran. because that is also the final destination.
Agnetta suggests it is wise to visit the country first because it takes such a long time to make a deal and it is better to see your customer face to face. “In Tehran, there are two big locations; The Bazaar and the Furniture Bazaar. Also there are some big independent shops as well.”
“Consider that very few Iranians speak English. The taxi driver can drop you someplace and nobody understands you. The best way is to find a taxi driver who speaks English and pay him $100 for the day.”
Before your trip to Iran, you must plan extremely well, he says. “And remember, all your expenses must be paid in cash because credit cards are not accepted!”
“In Tehran, there are a lot of decorators who can help you distribute your product. There are two styles; modern like Prada and Armani or Classic in the Russian style. The important thing is the structure and the quality of the finish of the fabric.”
