Identifies common practices to be aware of when selling in this market, e.g., whether all sales material need to be in the local language.

Operating in the Azerbaijani market requires patience and a long-term perspective.  Having a local partner in Azerbaijan significantly facilitates marketing and selling goods and services, as well as interacting with the local government.  Identifying a reliable partner requires sufficient due diligence.  The U.S. Embassy’s Commercial Section can help U.S. companies conduct market research, identify potential partners, and conduct due diligence. 

The Azerbaijani retail business is becoming increasingly regulated and moving off the “street” into shops and retail outlets.  Azerbaijani consumers are price-sensitive and brand-conscious.  U.S. goods and services typically enjoy a price premium and good brand recognition.  New shopping malls and supermarkets have increased the profile of western brands in recent years.  Counterfeit consumer goods, however, are a problem.  Furthermore, the Azerbaijani market remains segmented based on income.  The largest share of the population earns a monthly wage of approximately $352 and has limited disposable income; a small, but growing middle class earns roughly $1,000 per month; and a concentrated, but very wealthy segment of the population concentrated in Baku has sufficient income to purchase luxury goods.  The 2015 currency devaluations significantly decreased the purchasing power of the majority of Azerbaijanis and reduced demand for high-end goods and services, though this is changing as oil prices increase and the economy stabilizes.

As Azerbaijan develops its tourism industry, the number of visitors from Iran, Iraq, and Gulf Cooperative Council (GCC) states’ residents has increased significantly, representing a growing segment of the shoppers in Baku’s malls.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.