Iran’s air conditioning markets
Nowadays because of competition among various markets , some large companies have tried to develop into an international company. Becoming an international company makes some huge profits for companies. In the first instance , it could be mentioned that export trades increase their annual turnover. It means more operating profit from the other point of view it will introduce them to the world. Becoming an international company is the first step of globalization in their commerce. Nonetheless , there are some reputable companies that haven’t taken any steps for introduce themselves to the world. In this article , we will discuss you with Middle Eastern air conditioning markets especially Iran’s air conditioning markets.
History of air conditioning systems in the Middle East
One of the most obvious features of the Middle East is the climate of this area. When you hear about the Middle East or hearing the name of a country in this area without any doubt you will think about the tropical weather spontaneously. Due to this tropical weather , people in this area need air conditioning system more than the other parts of the world. One of the most substantial countries in the Middle East is Iran. The Culture of Iran , also known as the Culture of Persia , is one of the most influential cultures in the world. Iran is considered as one of the cradles of civilization. Iran is a 4-season country with 3 different types of climates. You can see topical weather in the south of Iran , on the other hand , we can see arid or semi-arid weather in the center of this country , however , cold weather exists in some parts of the country. Due to arid weather in the center of Iran , ancient Iranians thought about air conditioning systems. They invented a structure which is called BĀDGĪR (wind-tower) , literally “windcatcher ,” a traditional structure used for passive air conditioning of buildings. They used an air conditioning system without any energy consumption before the invention of heating ventilation air conditioning and refrigeration knowledge. But how did this system work? There were some gates that used to conduct fresh wind to the supposed room and a pool of water used to help them to cool the air. Eventually , cold air was entering the room which was such a brilliant air conditioning system thousands of years ago.
Economy of Iran
These days we can hear some news about Iran’s economy or some sanctions against Iran which has led to reducing Iran’s economic criteria. But the main question is what is exactly the base of Iran’s economy? The economy of Iran is based on three industries. The first one is oil industries , the second one is automotive industries and the third one is construction. Among these industries , just one of them is accessible to Iranian people. Oil and automotive industries are related to the government’s monopoly. But normal people can enter the constructions and there is no obstacle for them. One of the most important parts of every building is heating ventilation air conditioning and refrigeration of that construction. In Iran , it is so-called the hearth of the building! Due to this base of the economy in Iran , there are many companies which are trying to sell air conditioning system in this market such as SAMSUNG ad LG. if you are one of the producers or a merchant in this field , a piece of good news for you is you can develop your company to globalization. You can count on Iranian air conditioning markets. So , follow us until the end of the article to get a piece of good knowledge about Iran’s air conditioning markets , your choices and our offer for your business.
History of Iran’s air conditioning markets
It should not be left unmentioned that Iranians were using modern air conditioning systems more than 6 decades ago. Before the Islamic revolution of Iran , the king of Iran was preferring to trade with western countries especially the United States of America. Therefore , some American companies such as York and Carrier Global which are working in this area were working with Iranians. Generally , American systems are not economical in contrast with Japanese systems. It is not only related to the air conditioning system but it is also related to any industry of them such as the automotive industry. Therefore , after the Islamic revolution in Iran , the government cut the trades with the United States of America and tried to work with Japanese companies such as Hitachi , Mitsubishi , etc. this trend has been continued until heavy sanction against the Islamic Republic of Iran. After that Iranians tried to make deal with southern Korea’s companies such as LG and SAMSUNG. This trend was continued until the heavier sanctions. Today we can see the presence of Korean companies has decreased. Nowadays there are plenty of Chinese companies that are working in this area. Nonetheless , Iranian people don’t like to use these facilities from Chinese companies. Fortunately , or unfortunately , Iranian people wouldn’t like to rely on Chinese products it is not only a related air conditioning system , you can see this opinion about Chinese cars , Chinese smartphones , and every Chinese good or facility. So , if you are European , American , Korean and … company you can count on Iranian air conditioning markets. Iranian people usually prefer to don’t use Chinese brands if it will be possible.
There were two famous Iranian companies that were producing the Iranian air conditioning system. The first one was “Shauffage kar” and the second one was “Sara vel”. These two companies were very strong in the past. Because not only they could answer the demands in Iran but they usually export their goods to other Middle Eastern air conditioning markets such as Iraq , Afghanistan , Pakistan , Saudi Arabia , etc. unfortunately because of the unstable economic situation in Iran and currency fluctuations in last two decades this company forced to make redundant and eventually collapsed after more than 40 years activities. Fortunately , after the war between Iraq and Iran these companies set up business and today , they are working in this area but not as strong as before. The positive point of these two companies for foreign air conditioning companies without any doubt is creating an opportunity for exporting air conditioning systems from Iran to other Middle Eastern countries. You can take these two companies’ route. But how you can do this? If you be a foreign air conditioning company who is entered into Iran’s air conditioning markets you can take over the rest of the processes to Iranians. They usually try to sell their goods to other Middle Eastern companies.
Iranian culture for using air conditioning system
Nowadays Iranians usually use independent systems for each apartment unit because the central air conditioning system needs monthly costs and unfortunately this system is not yet embedded in Persian culture. So , some constructors prefer to use 20 separate air conditioning system instead of using a central air conditioning system. It could be a lucrative business for your company that most of the people in Iran prefer to use independent systems that may be more expensive than a central air conditioning system. So , you can develop your business in Iranian air conditioning markets. Don’t forget that Iranian air conditioning markets have already this capacity to make you a huge profit. Therefore , our suggestion for you is to enter the Iranian air conditioning system as soon as possible.
On the other hand , there are a lot of constructors that they are using central systems. Usually high-rise buildings use these systems. Iran’s population is significantly moving towards urbanization. Consequently , nowadays they are building many of high-rise constructions. Logically if you are a central air conditioning system producer you can also count of Iran’s air conditioning system.
It should not be left unmentioned that people in the south of Iran because of tropical climate usually use air conditioning system much more than the other regions. The most important factor for people of this area without any doubt is the quality and power of air conditioning systems such as the American air conditioning system that these days you cannot found it in Iran’s air conditioning markets. The interesting point is people of this area usually don’t any care about the energy consumption of the air conditioning system because the energy price in these areas due to their tropical climate is far lower than the other places in Iran. Although it is an undeniable fact that the energy price in Iran is far cheaper that the other countries. So , when we are speaking from the lower price in the south of Iran , it means the energy price in the south of Iran is almost free. Therefore , tropical climate and energy prices in south of Iran have led to using air conditioning system non-stop. It could cuss some breaks in air conditioning system. So , they need high quality of air conditioning system. People in this area usually don’t care about price , size and energy consumption. They only focus on the strength of air conditioning system. So , if you would like enter Iranian air conditioning markets. One of the most important areas as your customers will be in the south of Iran. You have to produce high-quality air condition system for southern people
An interesting point about southern people is they usually have a piece of good knowledge about repairing the air condition system. It is because of involving the air conditioning systems. You can find the best repairmen of air condition systems around the world form normal southern people. There is a proverb from these southern people that saying “the first thing that I have seen was my father and the second thing was the air conditioning system”. It is not only related to their home but also , they usually use Toyota cars because of the quality of the air condition system in these cars.
One of the most surprising points about southern Iranian people is they believe the best kind of air conditioning system in Iranian air condition markets is an air conditioning window unit. We don’t know why but the fact is they believe that Duct Split systems are not efficient. However , we know the Duct Split is newer than an air conditioning window unit. But we think to a psychologically point of view they would like to see the air conditioning system instead of feeling the effects of the temperature. Therefore , it should be noticed again that of you are producing the window unit air conditioning system you have to (I should repeat) you have to pay enough attention to the southern part of Iranian’s air conditioning markets.
Due to no-stop use of air conditioning systems in the south of Iran, they usually search for the best guarantee and warranty of the products. In means, if you would like to enter Iranian air conditioning markets by paying attention to the south of Iran as a loyal customer , we can reach this conclusion that you have to improve your guarantee and warrantee for having a better competition.
A substantial point about the southern Iranian air conditioning markets is that due to the oil industries , there are many refineries in the area. So , this market not only doesn’t restrict to homes but it can include industrial places and refineries. Too much heat produced by any refinery and tropical climate of this area has led to there be a great need for cooling systems. It means if you are an industrial air conditioning system producer , there is no worries. You can still count on Iranian air conditioning markets. However , the Iranian air conditioning markets are wider than this. You know the middle east’s economy is based on oil industries. Iran as an exporter of the air conditioning system in the middle east can play an active role for selling you air conditioning systems in the rest of middle eastern countries. So , by entering Iranian air conditioning markets not only you can think about Iranian customers you can count on the other middle eastern countries especially Iraq.
One of the most important factors of energy consumption in Iranian societies is the culture of energy consumption. Iranians usually live comfortably. For example , you can see people around the world usually wear thicker clothes in the winter but Iranians wear like summer and use gas for warming the room. It has led to more than 7 times energy consumption in contrast with the global average. It is not good news for the environment but it means Iranian air conditioning markets have a huge capacity that you can make a profit for yourself.
It should not be left unmentioned that building insulation is any object in a building used as insulation for any purpose. While the majority of insulation in buildings is for thermal purposes , the term also applies to acoustic insulation , fire insulation , and impact insulation (e.g. for vibrations caused by industrial applications). Often an insulation material will be chosen for its ability to perform several of these functions at once
The policy of municipalities in Iran has changed recently today they are very careful about the insulation of the building and they force the constructors to insulate the different parts of the building. Therefore , it has led to air conditioning systems that you can buy in Iran’s air conditioning markets to be economical despite high energy consumption. Because it prevents energy loss. Thermal insulation can play an active role in constructions , great demands of thermal comfort result in a large amount of energy consumed for full-heating for all rooms. Around 40% of energy consumption can be attributed to the building , mainly consumed by heating or cooling.
Why entering Iran’s air conditioning markets is necessary?
It is a fact that Iran is one of the most important countries in the middle east and it should be mentioned that the language of Iran , Afghanistan , Tajikistan is Persian , so they could have many trades with each other. On the other aspects Iran , Iraq and … have common religious. It has led to more and more and more commercial connections between these countries. One of the most important points is that Iran usually supports religious places in the middle east and most of them need air conditioning systems. All of these facts show un that if you have trades with Iran you can play an active role around the middle eastern air conditioning markets. So , the key point is entering Iran’s air conditioning markets.
Some of the businessmen because of the worth of Iran’s rial in contrast with the other currencies , buy the air condition systems and export these goods to the other middle eastern countries such as Iraq , Syria , etc.
Despite the recent sanction, there is good news from Iran and Iraq commercial connection. The central banks of Iran and Iraq are finalizing negotiations to begin trade in their own currencies , chairman of Iran-Iraq Chamber of Commerce said. Speaking to Tasnim , Yahya Ale-Eshaq said negotiations between the central banks of Iran and Iraq are underway to reach an agreement on using rial and dinar in bilateral trade. Once finalized , the agreement would allow the banks of the two countries to issue letters of credit on the basis of Iranian rial and Iraqi dinar , he added. Ale-Eshaq also noted that the value of Iran’s exports to Iraq in the first eight months of the current Iranian year (March 21- November 21) reached $8 billion , equal to the total amount of exports to Iraq in the previous year. On Saturday , secretary-general of Iran-Iraq joint chamber of commerce , Hamid Hosseini , said the daily value of Iran’s exports to Iraq stands at $45 million and sometimes reaches $70 million.Iraq’s new Foreign Minister Mohamed Ali Alhakim has made it clear that his country cannot cut off trade ties with Iran under the US sanctions , saying the value of annual trade between Iran and Iraq amounts to $12 billion.
As can be seen , one of the most common ways to play a substantial role in Iran’s air conditioning markets is finding a sales representative who can take over the rest of your response. Usually a sales representative by their connections in Iranian air conditioning markets could be far better than a foreign direct seller. They usually have a piece of good knowledge about the bazaar. What is the bazaar? The traditional bazaar consists of shops in streets that can be closed off by gates at each end. It is the historical town-planning requirement that commercial and residential areas be kept strictly apart. Though they are far from uniform; bazaars are typically divided into various sections that each specialize in a single trade or craft. In small towns , the bazaar can be as small as a single covered street , while in large cities it can be a vast area filled with maze-like passageways. The substantial point is that the most volume of trades Is related to Tehran bazaar. It is the heart of Iran’s market. It could be related to Iran’s air conditioning markets but it is also related to everything. However , it is impossible for you to enter Tehran’s bazaar directly. You have to find a sales representative in this area.
But the main question is how you can enter this commercial place. First of all , attention to the grand bazaar of Tehran. Historic , expansive , and dizzying , Tehran’s Grand Bazaar should be at the top of any bargain-hunters agenda. The bazaar consists of over 10 kilometers of labyrinthine covered alleys , and is divided up into sections selling different types of products. Everything imaginable is up for sale here; of particular note are the jewelry and carpet sections. The frenzied atmosphere may not be every shopper’s cup of tea , but the Grand Bazaar offers a tour de force of Iranian market life , and there are plenty of teahouses and restaurants around for a moment’s respite. This place can improve your sales rate more that you can think. Therefore , you have to pay enough attention to Iranian air conditioning markets in Grand bazaar of Tehran. Usually, all of goods in Iran will spread out by this commercial palace.
But how you can introduce yourself to the sellers of these bazaars? a common way that we think it is not optimized is taken part in exhibitions. Let’s pay attention to HVAC & R which is related to Iranian air conditioning markets. International Exhibitions provide companies with a great opportunity to showcase their brands and advantages in a spacious market and develop their network of Business partners in new regions.
19th IRAN HVAC & R 2020 will be held on 21-24 Oct in Tehran international permanent fairground and gets hundreds of industrial companies and experts together. In 2019 , the event was held in 32000 SQM space , exhibiting 477 companies , from 18 different countries such as Italy , Germany , USA , Turkey , Taiwan , Slovakia , Canada , Malaysia , Sweden , France , UK , Japan , Denmark , UAE , India , Korea , China , etc. Exhibitor companies gained the opportunity of meeting 25696 visitors including top managers , suppliers , traders , investors , experts and end users.
We honor to host you in IRAN HVAC & R 2020 and provide you with a full service of traveling , exhibiting , customs and all that you need. Our purpose is to create a profitable and trouble-free experience for you.
But what is the most problem to deal with these exhibitions? In our opinion, there is no guarantee to find a sales representative. Why? Because you cannot force anyone to visit your presentations. There are large number of companies that they would like to find representatives. Most of them are the strongest companies around the world and it can make hard this competition for you and it can lead you to make anything form this exhibition. On the other points of view , it should not be left unmentioned that taking apart in exhibitions is a very money consuming process and it can make your process very hard because there will be some companies with the higher budget that make it impossible for you to have a competition with these companies. So , for entering Iranian air conditioning markets we don’t suggest you to take apart international exhibitions. It should be noticed that usually Iranians cannot speak English well and it can make this process harder for your company to make a trade with them. So , you can play a more active role in the other ways that will be introduced for you to develop your business.
Let’s read about an example who could play an active role in Iranian air conditioning markets.
The Ebara Corporation traces its origins to the foundation of the Inokuty Type Machinery Office in 1912 and has been taking on social and technological challenges with a spirit of passion and dedication (netsu to makoto) ever since. With an eye towards delivering its customers , and society as a whole , superior solutions to engineering problems , Ebara has evolved into a world leader for the production of environmental and industrial machinery. Along the way, it has come to be recognized for developing an industry-standard variety of products ranging from pumps to blowers , chillers and wastewater machinery. As it mentioned Ebara has entered Iranian air conditioning markets like the other Japanese companies. One of the most substantial points was that no company has the power to compete with this company. But why? Pay attention to the next paragraph to know the main reason.
It should be mentioned that; abruption absorption chiller is not a best seller. These chillers are not very popular with the international community. Because of the high energy consumption. But in Iran Ebara’s absorption chillers had the most successful rate in sales. What was the reason of this? Ebara had written a compromise between itself and Karo Andishe company in other words , Karo Andishe was the representative of Ebara. Despite the lower economic power of Karo andishe , Ebaras had allocated a special budget to its advertisement in Iran. This advertisement was the most extensive type of advertisement in this field in the history of Iran’s air conditioning markets. Despite the very low sales of this type of chillers, it should be said that it was the most sales chiller in Iranian air condition markets at that time. It was possible to see the advertisement everywhere. Not only you could see their advertisement on the heating ventilation air conditioning and refrigeration communities but also in was possible to see their advertisement in the virtual space , magazines , bill boards , television channels , newspapers , radio , etc.
From another aspect, it should be explained that they were caring on their after-sales services. This service is vital for you to have a competition with your competitors. Because Iranians due to their economical situations prefer to use the products which can use it in the long term.
It should be mentioned that Ebara using the knowledge of its sales representative , this company had reached a good knowledge of the internal conditions of the Iranian air conditioning market. For example , the gas price in Iran if far cheaper than the other parts of the word and it has led to using absorption chillers. It should be mentioned that they had understood that despite the low cop (cop meaning will describe in the next paragraph) using absorption chillers will be economical in Iranian air conditioning markets because of gas prices in Iran. It should be mentioned that Iran is one of Iran is one of the strongest exporters of oil and gas in around the world. They understood this point can make this space for customers to use these chillers instead of other types of chillers. They realized that using this type of chiller would be cost-effective for the Iranian people and the Iranian industry. They predicted that the sale of this type of chiller in Iran and therefore in the Middle East could be very successful This was exactly what many foreign companies have failed to understand about the Iranian air conditioning markets conditions. They assume that the demand in the Iranian air conditioning markets should be the same as in the European air conditioning markets.
What is the COP? In the previous paragraph, we have mentioned about a concept which is called COP. It was supposed to explain what is COP. According to Wikipedia ” The coefficient of performance or COP (sometimes CP or CoP) of a heat pump , refrigerator or air conditioning system is a ratio of useful heating or cooling provided to work required. Higher COPs equate to lower operating costs.”;
Why having a business plan is important?
Before writing a business plan in Iranian air conditioning markets, it is important to consider two important factors
1) Who will the reader be?
For example, If you are interested in raising capital, it is very likely that investors will be your target audience. If you are interested in partnerships or joint ventures, your potential business partners will be your audience.
2) What do you want their response to be?
Depending on your target audience, focus on the key message you want them to receive in order to get the response you want.
- To raise money for your business in Iranian air conditioning markets
- To make sound decisions in Iranian air conditioning markets
- To help you identify potential weaknesses in Iranian air conditioning markets
- To communicate your ideas with stakeholders in Iranian air conditioning markets
Writing a good business plan in Iranian air conditioning markets , the Ernst and Young Business Plan Guide adds, can’t guarantee success, but it can go a long way toward reducing the odds of failure. This is also according to multiplestreams.org, even if you aren’t looking for investment, your entrepreneurial plans will fall flat quickly without a plan to guide them.
What do we offer for your business?
As we told you it is possible to use the exhibitions but you have to consider this fact that you have to pay the expenses and the expenses is not a small cost. For instance , you have to pay cost of hotel , air plane’s ticket , exhibitions , etc. it should be said that it could be logical if you can find a sales representative but there is no guarantee that you can find a loyal representative because you have to compete with the superpowers in this field. Not only it is very hard but also you have to pay much money for exhibitions. The cost of participating in international exhibitions about Iranian air conditioning markets can reach tens of thousands of dollars
We have a website which is called Uservice. Uservice is an Iranian reference in the heating ventilation air conditioning and refrigeration. Almost all of Iranian engineers use the information of this website you can check us from www.Uservice.ir . We suggest you put your ads on our site. It will cost you very little but you have to pay attention you can be seen by the engineers every day and your ads will be displayed in a unique way. It could be far effective than taking apart in exhibitions. Because you have to compete with the strong companies and by this way you can be shown on top of the page.
It should not be left unmentioned that our goal is finding a sales representative. After putting your ads on our website if you would like we can help you to find a sales representative. Due to our knowledge about Iran’s air conditioning markets. We can find a loyal sales representative which might be impossible for you in international exhibitions. And the second point is that we can do it for you far cheaper than the exhibitions. However , we will with you in the rest of your way. You can count on us for example for your future strategy and tell you about the demands in Iranian air conditioning markets which can be helpful for your business. We talked about the Ebara company which could play an active role in Iran’s air conditioning markets despite selling the absorption chillers that are not best-selling in the rest of the world.
For contacting with us you can send an email to firstname.lastname@example.org or email@example.com you can also contact us with our phone +982122069011 you can also send txt or voice messages with our whatsapp phone number +989125038634 . We can assure you of the agreement we are making together. For example , we can put your ads on the website before you pay. So , don’t worry about your payments. Also, we can tell you how you can export your goods to Iran without dealing with sanctions.
It should be noticed that in this way you don’t pay a large amount of money and it can decline your investment risk in contrast with tens of thousands of dollars that you can pay on an international exhibition. We have worked in the Iran’s air conditioning system more than 20 years. Therefore , our knowledge in this field is more than most of the active people in this filed. Also , most of the engineers in this field have known us and it could help us to find a sales representative for you that can make this capacity for your goods to play an active role nor only in Iranian air conditioning markets but also in the middle eastern air conditioning markets. We are proud to one day be able to help international activists in this field
Thank you so much for taking the time to read the article.
With best regards