Yekpay Blog

The growth of online business in Iran

The growth of online business in Iran

Not a day goes by when we don’t hear about the growth of the online businesses and the success of start-ups. But the other side of this coin is the threat that it poses to the traditional market of the country.

Although it might take time, it is obvious that online business is going to win in the end.

Given the power of the start-ups, in the near future they can disrupt the traditional and offline market and create new markets for themselves. Soon traditional market players will not be able to influence prices. In other words, in most parts of the world, offline do not exist anymore and are replaced by online ones.

For instance, ever since Amazon entered the book selling market, most of the bookstores throughout the U.S have closed down because when people needed books they simply ordered it from the website. This has happened to many offline businesses in the U.S. Let us take a few steps back in history. We have witnessed that every time a new technology or invention replaced an old one, the old one was simply forgotten after a short while.

A good example is the development of sending a message from telegraph to telex and fax and email and mobile applications such as Skype, Viber and Telegram. Another example is the development of photography from old analogue cameras to modern ones and then to digital cameras and now to mobile cameras which has rendered nonprofessional cameras literally useless and out of sale.

It can be concluded that throughout history, new technology has always been triumphant over the old and has always found its way into the human society.

We should accept that in today’s world, start-ups or online businesses can replace the traditional market in any way possible. It might take a while but in the end, it’s the online businesses and start-ups that come out of it winning. Offline businesses are aware of this fact too that if they do not change, they will be replaced by start-ups. So it’s only natural for them to feel threatened and attempt to deal with their problem.

In Iran, given their power and influence, syndicates and guilds might put up a temporary stop to the activities of start-ups.

A good example of this situation is Digikala, which is an online business very similar to Amazon, and the pressure that it has suffered by the guilds in the past few years. Despite all the influence of the traditional market, Digikala was not closed down and is currently expanding and claiming the largest share of the market.

At some points, the guilds lobbied major suppliers into not working with Digikala, but the rapid growth of this online business caused the resistance of the traditional market to cease. Now we are witnessing similar online businesses like Bamilo growing along with Digikala and the share of the online business in the retail market is larger than ever.

Online businesses in Iran have been growing quite unbelievably in the past few years which is a wake-up call for the traditional market and makes them concerned for their future. They feel threatened by these new players when they see that their share of the market is being reduced and the new players, because of their appeal, the better experience and value which they provide for their customers and even the reduction in their prices, have managed to connect with the new generation. Therefore, they try to stop the start-ups and online businesses.

Please note that, mobile phones, the Internet and people younger than 30 are among the most effective factor in the market. These are the features that even some European countries lack and it’s because of this same reason that traditional guilds will not be able to resist for much longer. It is true that some start-ups, like Uber, have been stopped and banned in some countries and cities, but Iran’s market differs in that there is so much demand for the online business that stopping its development and growth is almost impossible.

Not a day goes by when we don’t hear about the growth of the online businesses and the success of start-ups. But the other side of this coin is the threat that it poses to the traditional market of the country.

Although it might take time, it is obvious that online business is going to win in the end.

Given the power of the start-ups, in the near future they can disrupt the traditional and offline market and create new markets for themselves. Soon traditional market players will not be able to influence prices. In other words, in most parts of the world, offline do not exist anymore and are replaced by online ones.

For instance, ever since Amazon entered the book selling market, most of the bookstores throughout the U.S have closed down because when people needed books they simply ordered it from the website. This has happened to many offline businesses in the U.S. Let us take a few steps back in history. We have witnessed that every time a new technology or invention replaced an old one, the old one was simply forgotten after a short while.

A good example is the development of sending a message from telegraph to telex and fax and email and mobile applications such as Skype, Viber and Telegram. Another example is the development of photography from old analogue cameras to modern ones and then to digital cameras and now to mobile cameras which has rendered nonprofessional cameras literally useless and out of sale.

It can be concluded that throughout history, new technology has always been triumphant over the old and has always found its way into the human society.

We should accept that in today’s world, start-ups or online businesses can replace the traditional market in any way possible. It might take a while but in the end, it’s the online businesses and start-ups that come out of it winning. Offline businesses are aware of this fact too that if they do not change, they will be replaced by start-ups. So it’s only natural for them to feel threatened and attempt to deal with their problem.

In Iran, given their power and influence, syndicates and guilds might put up a temporary stop to the activities of start-ups.

A good example of this situation is Digikala, which is an online business very similar to Amazon, and the pressure that it has suffered by the guilds in the past few years. Despite all the influence of the traditional market, Digikala was not closed down and is currently expanding and claiming the largest share of the market.

At some points, the guilds lobbied major suppliers into not working with Digikala, but the rapid growth of this online business caused the resistance of the traditional market to cease. Now we are witnessing similar online businesses like Bamilo growing along with Digikala and the share of the online business in the retail market is larger than ever.

Online businesses in Iran have been growing quite unbelievably in the past few years which is a wake-up call for the traditional market and makes them concerned for their future. They feel threatened by these new players when they see that their share of the market is being reduced and the new players, because of their appeal, the better experience and value which they provide for their customers and even the reduction in their prices, have managed to connect with the new generation. Therefore, they try to stop the start-ups and online businesses.

Please note that, mobile phones, the Internet and people younger than 30 are among the most effective factor in the market. These are the features that even some European countries lack and it’s because of this same reason that traditional guilds will not be able to resist for much longer. It is true that some start-ups, like Uber, have been stopped and banned in some countries and cities, but Iran’s market differs in that there is so much demand for the online business that stopping its development and growth is almost impossible.

 

 

 

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