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.