Hand-woven carpets have always been the most tangible manifestation of Persian art for other nations.

Carpet weaving is an ancient tradition in Iran.
Until a few years ago, Iran was the world's leading carpet producer. The Persian carpet with its fast colors, fine designs and unique texture, has always been the most tangible manifestation of Persian art for other nations.
Its pile material and construction, design and color composition, border design, foundation threads and knot density, generally distinguish a good quality carpet. In spite of serious challenges in the global carpet market, Persian carpets have a superior quality from every aspect.
Unlike the figural arts of the western culture, in Persian art, words and shapes are important means to convey artistic messages. The art of carpet weaving takes the most of the shape aesthetics. The Iranian carpet weaver in her enchantingly beautiful designs penetrates deep into human emotions. Carpet weaving is a well-established traditional form of art in most parts of Iran. The best Persian carpets are usually produced in Tabriz, Kashan, Qom, Isfahan, Mashhad, Naiin, Kerman and Hamedan. Regional carpets have design and colors specific to that region.

Suitable Opportunity
The 13th Tehran International Carpet Exhibition held recently focused on the export and foreign sales of Iranian carpets. Officials say the experience gained from the past twelve exhibitions greatly helped Iranian producers and exporters to provide the visitors and Persian carpet lovers from around the world with the finest and most beautiful carpets from different regions of Iran. This unique commercial, artistic and cultural event also provided a suitable opportunity for producers, exporters and buyers to exchange ideas and adapt to the latest market conditions. The exhibition helped bring those involved in the carpet field closer together. The event, officials say, would contribute to better marketing and supply of carpets that meet the consumers' needs and preferences.

Lost Position
Hand-woven carpet has long been the government's second source of income after oil. However, the industry has in recent years suffered setbacks to the extent that many today claim Iran has lost its outstanding position in the global carpet markets.
Given that the carpet industry is a major foreign exchange earner and a vital sector in Iran's fragile economic system, a slump in the industry would unleash unemployment and cost the government hugely.
For a short while during the 1980s and early 1990s, non-oil industries such as carpet got a major boost, mainly because of the state's encouraging policies like extended deadline to exporters for the return of foreign exchange into the banking system, allocation of export proceeds to exporters for the import of authorized goods, relaxed banking regulations and the introduction of the floating foreign exchange rate instead of the preferential rate.
These measures pushed up carpet exports to $2,132 million in 1994. The following year, however, exports slipped to $979 million. The downturn was blamed on stringent banking laws that obliged exporters to deposit guarantee funds with banks for the return of foreign exchange. Other factors included high carpet prices and the reduction of purchasing power among the European customers.
The downward trend continued until 1997, mainly because of unstable export regulations and flagging demand for the Persian carpet.

A slump in the carpet industry will unleash unemployment and cost the government hugely.

Downward Trend
Carpet exports tumbled to $641 million in 1996 and $636 million 1997. This downward trend reduced the share of carpets as non-oil exports from 44 percent in 1373 (1994) to 22 percent in 1376 (1997).
Experts warned that ineffective policies and negligence would result in more cuts in the share the hand-woven carpet has in the non-oil exports sector.
The government tried to improve the situation by passing lenient laws on exporters. The First Five-year Economic Development Plan (1989-1993) envisaged carpet exports to reach $4,400 million within the plan period. Exports topped $4,504 million, well above the plan forecast.
The Second Plan (1995-1999) envisioned $7 billion in carpet exports, a target level, which for many reasons was not materialized.
The carpet industry has long been plagued by smuggling, as encouraged by the high price difference between the foreign exchange rate of the black market and the officially declared rate. On the other hand, hand-woven carpets are being unrealistically priced, and this causes problems in the international market.
The importers of Iran's hand-woven carpets are mainly countries with high per capita income. They include Germany, Italy, Switzerland, France, Austria and Britain in Europe; plus, the United Arab Emirates (UAE) and Japan in Asia, and Canada. European customers, led by Germany, buy around 70 percent of Iran's carpet exports.

Promising Figures
General Director of Iran's Carpet House said a few days ago that Iran's carpet exports increased by 28 percent last year, 2003-04.
Speaking to the press, he said with the efforts made to improve the quality of carpets both in design and weaving, the growth in carpet exports is projected to be higher than the mentioned figure, hitting above 50 percent.
Saeed Bolourchizadeh said that Iran lacks proper marketing strategy; the reason the country lags behind competitors in international carpet markets.
"Countries such as Pakistan and India have dominated carpet markets due to the cheap labor force and better marketing strategy," he said, adding that Iran currently exports carpets to North European countries, Germany, Italy, Spain, and some states of the USA.
Stressing that in order to maintain these markets and focus on more markets, the country should improve the quality of the carpets supplied, Bolourchizadeh said. He emphasized that in addition to absence of a proper marketing strategy, Iran's carpet industry lacks proper administration, which is not just the problem of the carpet sector but prevalent in all industries.

Exhibitions contribute to better marketing and supply of carpets.

Meager Share
In an interview with the Persian daily Iran, a member of the Carpet Exporters Union's board of managers, Razi Miri, admitted that the situation in the global carpet market has in recent years proceeded to the disadvantage of Iranians. "Market circumstances have more or less been to the benefit of countries such as Pakistan and China," he said, adding that presently, Iran's share of global carpet transactions stands near 27 percent.
Miri said on the whole, international carpet markets have undergone major recession in the past few years, leaving an adverse impact not only on Iranian exports but on other major producers as well.
Miri admitted that a number of countries easily outclassed by Iran have now emerged as the country's major competitors and significantly increase the share of the market. "They have done this mostly in collaboration with the US. A privilege that Iran is deprived of."
The official noted the carpet industry in Iran has in the past two decades suffered deadly blows, the effects of which could not be overcome easily and in a short period.
Saying that customer tastes (of carpet design and colors) have undergone unprecedented changes in recent years, Miri said Iranian carpet weavers should keep abreast of these trends. "This, of course, calls for an organized and coordinated system."
Here in Iran, said Miri, regulations are changed too often and the state is in control of everything, whereas in most countries the private sector is in charge of most economic affairs with governments only responsible for policy making.
"Still, Iranian carpet manufacturers have suffered badly due to poor performance of the government, more than ever necessitating the private sector to take over carpet-related affairs."
Market Balance
Asked whether liberalization of carpet exports through carry-on luggage trade would help promote overseas sales, Miri said he believed such a move would only further damage the industry. "Consumers should not be allowed to engage in the distribution network. This will create a direct link between producers and consumers, disturbing the balance in such a vital sector."
"Passengers carrying the valuable item abroad do so for profitability; to exchange the national currency into foreign exchange, harming not only the reputation of Iranian carpets, but also offering them at a cheap price."
According to him, estimates show that the price of hand-woven carpet in domestic market is unreasonably high, while they are sold below their real value in other countries.
To avoid further damage, the government should impose more strict regulations on carpet exports through carry-on luggage trade, he added.