CONSUMER LOYALTY TO INTERNATIONAL BRANDS AS AN IMPEDIMENT TO THE ECONOMIC REVITALIZATION POLICIES OF THE ISLAMIC REPUBLIC OF IRAN

Farrokh Safavi
Western Washington University – Tehran University

ABSTRACT

The Iranian government’s disappointment with liberal trade strategies has led to the
introduction of protectionist policies amidst a backdrop of global economic sanctions. Policy
initiatives used to promote domestic products under the pretext of “enhancing national production
and employment” have not received broad consumer support, as many Iranians have exhibited a
sustained preference for international brands. This has resulted in imports continuing to grow at
the expense of domestic production over the last three decades, leading to high unemployment and
social unrest. This study examines patterns of Iranian consumer preferences for three categories
of personal hygiene products for the past 27 years. Using data from the International Monetary
Fund, Iranian Customs, and several other public institutions, the author of this study applied a
stepwise regression model to identify factors contributing to Iranian consumer preference for
international brands. Finally, suggestions are offered to the producers of domestic products and
international suppliers for enhancing their market share amidst the highly volatile environment.

Keywords: Personal hygiene trade, battle of the brands, domestic vs. import preferences, international marketing of
toothpaste, soap, and shampoo, Islamic Republic of Iran.