Amongst beginning of Russia stone industry exhibition, an stone expert considered

Amongst beginning of Russia stone industry exhibition, an stone expert considered:

Stone market success depends on government support and preferential tariff

The price of transportation affects prime cost of stone; because of that one of neighbor countries should be determined as a target market.

Mohammad Rasa said: Stone is one of the mineral fields in Iran with the most capacity for global scale development and competition. Nevertheless, still there is not much success and Iran has given the important markets over to small and unknown competitors. However, the entrance opportunity has been prepared in Russia as the first chain of globalization of Iran stone reputation.

Youstone executive director (Service and Consulting Iran Stone Company), Mohammad Rasa, in an interview with “Samt” declared: Although, the Russia market has been located close to Iran, it was not considered by internal Iranian companies. It’s because of success in internal market and followed by at least in two last years any Iranian companies did not participate in Moscow stone exhibition.

Russia, stone target market

Rasa said: One reason for the importance of Russia market is its proximity to Iran’s borders. Another reason is huge Russia stone market. Russia with abundant population and appropriate economic situation is a country which can have significant imports.

According to demographic and economic specification of Russia, this country can be a suitable market for Iran luxury stones and it can prepare the market for ordinary and cheaper Iranian stones, as well.

The challenge of entry to the Russia Market

Rasa noticed about different difficulties of entry to Russia market. He said: As food industry has problems to enter Russia profitable market, stone industry also cannot enter to this market easily. One of these obstacles has been strong penetration to Russia. Rasa mentioned: Iran Stone Association and stone industry activists have done an unprecedented action. Meanwhile they declared their presentation in Moscow stone industry exhibition, they concluded to be present with an equal shape, unit strategy and same pavilions.

Unreached expectations from government

Rasa said: 9 to 10 Iranian companies’ participation in Moscow stone industry is not enough. More than this number was expected but unfortunately it was not possible because of high price in international exhibitions.

Youstone executive director said: The government could have an effective role in supporting of Iranian companies in Moscow stone exhibition, but it did not happen.

It is expected at least 50 percent of stone industry costs be provided by the government.

Stone requires Full government support

Youstone executive director continued: Iran stone quarries are located in outlying and excluded places. On the other hand, this field creates high value added and high revenue for the country. He said: If the government supports stone industry, it will be profitable and foreign exchange inflow market. To achieve these goals, the government should facilitate exports, and like as Turkey, request Russia to adopt the preferential tariff for stone exporting.

Number of participated countries in Moscow stone exhibition during last years

Some of participated countries 2014 2015 2016
Russia 136 122 123
China 67 38 36
Turkey 17 19
Italy 30 25 28
India 4 7 5
Iran 0 0 14