Retail and food sector

An Expert's View about Retail Trade and Electronic Commerce in Azerbaijan

Posted on: 24 Aug 2012

In Azerbaijan there is an opportunity for more international branded mainstream restaurants particularly those with good customer services.

Retail and food sector in Azerbaijan Azerbaijan has experienced rapid economic growth since the onset of the ongoing oil boom and there is huge potential in this market for UK luxury brands. Market overview Azerbaijan's GDP increased by 1.5 percent in January-June 2012 compared to the same period last year and reached 25.9 billion manat (approx. GBP 21 billion) in current prices. The foreign trade turnover with 135 world countries amounted to $17.17 billion (approx. 11 billion GBP) in Jan.-June 2012, or 1.4 percent less than last year. The UK continues to preserve its leading position in investment. Its share in total foreign investments hit 47.1 percent, while its investments amounted to 616.9 million manat (appox.502 million GBP).It is the leading foreign investor in Azerbaijan, mainly in the oil and gas sector; with the remainder concentrated in the construction industry, infrastructure, and retail. Currently there are around 10 UK retailers operating in the market through local franchisers. According to a recent Scoping Study of the Azerbaijan luxury market there is a potential market for UK luxury brands. The most promising sectors within the luxury market are: jewellery, clothing, accessories and furniture/interior design products. Evidence from Azerbaijani retailers suggests British companies in the luxury goods sector could do more to exploit the opportunities available. The food sector is mainly served by local restaurants and cafes. There are only 3 international chains of high street restaurants with branches in Azerbaijan (all in Baku) so there is an opportunity for more international branded mainstream restaurants particularly those with good customer services. Local people mainly drink tea but in the last decade the number of coffee consumers has significantly been increasing with the arrival of a handful of coffee outlets. Key opportunities ξ Furniture and fittings, megastores ξ Coffee shops, international branded mainstream restaurants Jewellery and high-end accessories There is a current lack of large department stores offering a wide range of products in one place, for example electronics, food, and clothing. Any development on these lines would be very popular especially with expatriates living and working in Azerbaijan. Latest export opportunities – Food & Drink Latest export opportunities – Giftware, Jewellery & Tableware Latest export opportunities – Household Goods, Furniture & Furnishings Latest export opportunities - Azerbaijan Getting into the market A foreign investor wishing to establish an entity in Azerbaijan may choose either a limited presence, in the form of a representative office or a branch, or a full presence in a number of legal organizational forms. In 2008, Azerbaijan introduced a “one-stop shop” system of registration of local commercial legal entities and foreign commercial legal entities’ representative offices or branches, with a much simplified registration procedure that allows persons wishing to engage in business in Azerbaijan to interact and file all documents with a single state authority, the Ministry of Taxes, in the process of establishing a legal presence. More about doing business in Azerbaijan Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Rena Zeynalova, British Embassy Azerbaijan. Tel: +994124377872 or email: ξ Nurana Muradova, British Embassy Azerbaijan. Tel: +994124377873 or email: Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – Food & Drink Latest events – Giftware, Jewellery & Tableware Latest events – Household Goods, Furniture & Furnishings Latest events - Azerbaijan Useful links More about OMIS and other UKTI services for exporters
Posted: 24 August 2012