LC Waikiki becomes first Turkish apparel retailer to invest in Iran
LC Waikiki, also known as LCW, which has become the first such Turkish apparel retailer to invest in Iran, will create a factory there with the aim of exporting products carrying the tag, "Made in Iran." The move came after the rapprochement between Turkey, Iraq and Iran following recent recent developments in Northern Iraq that led to military cooperation among the three countries in regional matters.
As Iran is trying to recover after sanctions against the country became relatively lighter, international companies have taken the country into their investment radar. The country is focused on increasing exports with 'Made in Iran' labels and Turkish apparel retailer LC Waikiki is the the first company to invest in Iran.
The company has been in negotiations with Iran officials for the last eight months and plans to buy goods worth a total 20 million euros from local suppliers in the next 18 months, according to Afsaneh Mehrabi, who manages the textile and clothing department at Iran's Ministry of Industries, Mining and Trade.
In the second step of its activities in the country, the company plans to establish a facility, sell Iran-produced items in its domestic stores and export them to Europe, Africa, the Middle East and CIS countries.
LC Waikiki's investment means employing 5,000 local workers. In order to export from Iran, foreign companies must have a minimum 20% of local supply in the country. According to company executives in Turkey, LC Waikiki is holding talks for cooperation with a local partner to achieve this.
LC Waikiki has 473 stores in Turkey and 350 stores in 37 countries. Iran, with 22 stores, is the retailers fourth-largest market.