Italy sees Iran as an attractive market for luxury goods. It’s thought Iran has more than three million high net worth individuals who are major and regular buyers of luxury goods. Iran could probably be worth about two per cent of the global luxury market once developed.

The sanctions on Iran over the past decade did not apply to cosmetics and many other consumer goods, but they made it difficult for European companies to own stores in Iran. In February, fashion house Roberto Cavalli opened its first shop in Iran, in the footsteps of leather goods maker Piquadro and men’s shirt company Camicissima. Versace is due to open a flagship boutique in Tehran soon, in franchise with a local commercial partner.

However, setting up businesses in Iran is no easy task due to a lack of appropriate retail infrastructure, high tariffs and banking restrictions. Iran is hungry for infrastructure investment as it emerges from financial isolation and it’s seeking a strong Italian foothold. Iran rejoined the global trading system in January following a deal to lift crippling sanctions in exchange for limiting its nuclear activities.

Italian firms appear to have adopted a more proactive attitude than their French luxury and fashion rivals. Some French brands such as Longchamp and Lalique are looking for distribution partners but have no plans to open boutiques.