Sephora France Prepares to Enter Iran

Reuters has reported that the French cosmetics and beauty company 'Sephora' plans to open several stores in Iran at the beginning of this year. According to the report published on Friday, November 8, it is expected that this major French company will be the first major European firm to make direct investments in Iran after several years of sanctions. Sephora is part of the luxury goods company 'LVMH', which has about two thousand retail outlets worldwide and is eager to enter the beauty market in Iran, particularly in facial cosmetics. The report adds that Iran, with a population of nearly 80 million, is the second-largest consumer of cosmetics in the Middle East after Saudi Arabia. According to market research firm 'Euromonitor', the value of Iran's cosmetics market reached 3.5 billion euros last year and is expected to triple in the next five years, reaching 10 billion euros. An informed source told Reuters that Sephora is finalizing negotiations with its business partner in Iran: 'Negotiations have made significant progress with the (Iranian) distributor (of cosmetics) so far.' Another source mentioned that the company intends to open seven boutiques in Iran. Sephora and 'LVMH' have declined to comment on this matter to Reuters. Iran and six world powers reached a comprehensive nuclear agreement in July of this year, and it is expected that sanctions against Iran will be lifted next year. Reuters writes that although Western cosmetics have been sold in Iran for years, it is expected that the nuclear agreement will lead to a flourishing of Iran's economy, which has long suffered from a lack of investment. There was a crowd of people in front of the Sephora store on the Champs-Élysées in Paris. Reza Miramadi, a major distributor of L'Oréal cosmetics such as Maybelline and Garnier in Iran, told Reuters: 'Our assessment is that women, depending on their income level, spend about one-third of their income on cosmetics.' The report adds that several officials from 'LVMH' traveled to Iran last month and this month, and executives from companies like 'Dior', 'Louis Vuitton', and 'Bulgari' are also preparing to visit Iran to assess investment opportunities in the country. The French group 'Comité Colber', which owns 80 luxury product brands, is also planning a business trip to Iran in the spring.