Can retailers overcome counterfeiting in Iran ?

Although Tehran’s citizens offer the highest per capita consumer spending in the Middle East, with US$4,700 per person inhabitant in 2016, counterfeiting remains a threat to foreign retailers eager to sell in Iran’s capital city. In many retail sectors, Iranians are used to buying counterfeit products, which explains the slow retail expansion of foreign players so far.

Roberto Cavalli opened a store in Tehran’s Zaferaniyeh neighbourhood in February 2016, followed by Versace in April, both...