Iranian Rugs Losing International Market Share

January 2, 2008--Iranian made Persian rugs famous for their designs are losing worldwide market share, according to fibre2fashion.com.

The market share of the Iranian carpet industry has fallen from a high of 52 percent a decade ago to 43 percent.

Along with the decline in market share there has also been a massive reduction in the prices, which have plunged to a low of US $91 from a high of $120 corresponding to nearly 27 percent drop.

The main reason ascribed to the decline is due to the influx of low-cost carpets from countries like India and Pakistan. There carpets are mainly manufactured from thick fiber, felt and leather, which account for their low costs.

India and Pakistan command a market share of nearly 45 percent with Iran contributing 43 percent of the share of the hand woven carpet industry. The US and Germany accounted for nearly 2/3rd of exports of the Iranian carpet industry.