Retailing in Azerbaijan

Retailing in Azerbaijan

EXECUTIVE SUMMARY

Growth in retailing is boosted by improved living conditions, the rise of urbanisation and increased disposable incomes

In 2019, tourism played a significant role in retail development, enhancing sales of footwear and apparel, as well as luxury brands

The need for convenience, choice, low-unit prices and the rise of e-commerce platforms, drives the expansion of modern retailing

Domestic players benefit from having insights into the local landscape, however, international players spearhead e-commerce in the country

The rise of digital, partnered with the increase in busy lifestyles, is set to boost both e-commerce and mobile e-commerce over the forecast period

The rise in e-commerce, the expansion of modern retailing, increased disposable incomes and adapted shopping habits will drive growth over the forecast period

OPERATING ENVIRONMENT

Informal retailing

Opening hours

Summary 1 Standard Opening Hours by Channel Type 2019

Physical retail landscape

Cash and carry

Seasonality

Shopping Ramadan Bayram
Novruz Holidays

Payments and delivery

Emerging business models

MARKET DATA

Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2014-2019
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2014-2019
Table 3 Sales in Store-Based Retailing by Channel: Value 2014-2019
Table 4 Sales in Store-Based Retailing by Channel: % Value Growth 2014-2019
Table 5 Store-Based Retailing Outlets by Channel: Units 2014-2019
Table 6 Store-Based Retailing Outlets by Channel: % Unit Growth 2014-2019
Table 7 Sales in Non-Store Retailing by Channel: Value 2014-2019
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2014-2019
Table 9 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2014-2019
Table 10 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 11 Sales in Non-Grocery Specialists by Channel: Value 2014-2019
Table 12 Sales in Non-Grocery Specialists by Channel: % Value Growth 2014-2019
Table 13 Non-Grocery Specialists Outlets by Channel: Units 2014-2019
Table 14 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2014-2019
Table 15 Retailing GBO Company Shares: % Value 2015-2019
Table 16 Retailing GBN Brand Shares: % Value 2016-2019
Table 17 Store-based Retailing GBO Company Shares: % Value 2015-2019
Table 18 Store-based Retailing GBN Brand Shares: % Value 2016-2019
Table 19 Store-based Retailing LBN Brand Shares: Outlets 2016-2019
Table 20 Non-Store Retailing GBO Company Shares: % Value 2015-2019
Table 21 Non-Store Retailing GBN Brand Shares: % Value 2016-2019
Table 22 Non-Grocery Specialists GBO Company Shares: % Value 2015-2019
Table 23 Non-Grocery Specialists GBN Brand Shares: % Value 2016-2019
Table 24 Non-Grocery Specialists LBN Brand Shares: Outlets 2016-2019
Table 25 Non-Grocery Specialists LBN Brand Shares: Selling Space 2016-2019
Table 26 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2019-2024
Table 27 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2019-2024
Table 28 Forecast Sales in Store-Based Retailing by Channel: Value 2019-2024
Table 29 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2019-2024
Table 30 Forecast Store-Based Retailing Outlets by Channel: Units 2019-2024
Table 31 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2019-2024
Table 32 Forecast Sales in Non-Store Retailing by Channel: Value 2019-2024
Table 33 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2019-2024
Table 34 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 35 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024
Table 36 Forecast Sales in Non-Grocery Specialists by Channel: Value 2019-2024
Table 37 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2019-2024
Table 38 Forecast Non-Grocery Specialists Outlets by Channel: Units 2019-2024
Table 39 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2019-2024

CORONAVIRUS (COVID-19)

SOURCES

Summary 2 Research Sources

Modern Grocery Retailers in Azerbaijan

HEADLINES

PROSPECTS

Modern grocery retailers record strong growth, boosted by growing urbanisation, and consumers need for convenient and efficient shopping experiences

Discounters and convenience stores grow, driven by consumers seeking both time-saving shopping solutions, and increased value for money

Traditional bazaars and street vendors are a threat for modern grocery retailers, as they have better relationships with local producers

COMPETITIVE LANDSCAPE

In 2019, Azretail MMC maintains its lead, benefiting from a significant number of outlets that appeal to price-sensitive consumers

Due to the success of local modern grocery retailers, international players do not have a significant presence on the landscape

Azerbaijan Supermarket LLC’s stores Bravo, use promotional activities and instore marketing to entice consumers through the doors

CHANNEL DATA

Table 40 Modern Grocery Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 41 Modern Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 42 Sales in Modern Grocery Retailers by Channel: Value 2014-2019
Table 43 Sales in Modern Grocery Retailers by Channel: % Value Growth 2014-2019
Table 44 Modern Grocery Retailers Outlets by Channel: Units 2014-2019
Table 45 Modern Grocery Retailers Outlets by Channel: % Unit Growth 2014-2019
Table 46 Modern Grocery Retailers GBO Company Shares: % Value 2015-2019
Table 47 Modern Grocery Retailers GBN Brand Shares: % Value 2016-2019
Table 48 Modern Grocery Retailers LBN Brand Shares: Outlets 2016-2019
Table 49 Modern Grocery Retailers LBN Brand Shares: Selling Space 2016-2019
Table 50 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 51 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024
Table 52 Forecast Sales in Modern Grocery Retailers by Channel: Value 2019-2024
Table 53 Forecast Sales in Modern Grocery Retailers by Channel: % Value Growth 2019-2024
Table 54 Forecast Modern Grocery Retailers Outlets by Channel: Units 2019-2024
Table 55 Forecast Modern Grocery Retailers Outlets by Channel: % Unit Growth 2019-2024

Traditional Grocery Retailers in Azerbaijan

HEADLINES

PROSPECTS

Traditional grocery retailers record steady growth, however, it is losing share to modern grocery retailers

The largest local retailer expands to discounters, which have a significant impact on traditional retailers

Traditional grocery retailers compete against modern grocery retailers, offering a personalised consumer experience

COMPETITIVE LANDSCAPE

SABA Group leads traditional grocery retailers, with Az-Granata MMC in second place

Locals independent stores lead traditional grocery retailers

Traditional grocery retailers bring new concepts to the landscape, including food/drink specialists, which provide personalised advice for customers

CHANNEL DATA

Table 56 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 57 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 58 Traditional Grocery Retailers GBO Company Shares: % Value 2015-2019
Table 59 Traditional Grocery Retailers GBN Brand Shares: % Value 2016-2019
Table 60 Traditional Grocery Retailers LBN Brand Shares: Outlets 2016-2019
Table 61 Traditional Grocery Retailers LBN Brand Shares: Selling Space 2016-2019
Table 62 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 63 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024

Apparel and Footwear Specialist Retailers in Azerbaijan

HEADLINES

PROSPECTS

Rising levels of income boost growth, however, the increase of e-commerce is a threat for the forecast period

The various levels of income shape the landscape in Azerbaijan

Tourism is expected to boost the advance apparel and footwear specialist retailers

COMPETITIVE LANDSCAPE

Sinteks MMC leads apparel and footwear in Azerbaijan, with products at a higher price point, increasing value sales

International brands lead; however local products have their place in apparel and footwear specialist retailers

As consumers increase their time in shopping centres, apparel and footwear specialist retailers increase

CHANNEL DATA

Table 64 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 65 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 66 Apparel And Footwear Specialist Retailers GBO Company Shares: % Value 2015-2019
Table 67 Apparel And Footwear Specialist Retailers GBN Brand Shares: % Value 2016-2019
Table 68 Apparel And Footwear Specialist Retailers LBN Brand Shares: Outlets 2016-2019
Table 69 Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling Space 2016-2019
Table 70 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 71 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024

Health and Beauty Specialist Retailers in Azerbaijan

HEADLINES

PROSPECTS

The improving economic system and consumer spending confidence boosts growth for health and beauty specialists

The increasing prices of medicine boost growth in value sales in 2019

Stricter regulation applied in 2018, male it harder for smaller and medium-sized drugstores/pharmacies to break through, impacting the landscape in 2019

COMPETITIVE LANDSCAPE

Dokta MMC continues to lead, benefiting from widespread availability throughout the country

Domestic players lead, having a better knowledge of the landscape, and established relationships with importers

Chained health and beauty specialist retailers acquire independent chemists/pharmacies to strengthen their position

CHANNEL DATA

Table 72 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 73 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 74 Sales in Health and Beauty Specialist Retailers by Channel: Value 2014-2019
Table 75 Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth 2014-2019
Table 76 Health and Beauty Specialist Retailers GBO Company Shares: % Value 2015-2019
Table 77 Health and Beauty Specialist Retailers GBN Brand Shares: % Value 2016-2019
Table 78 Health and Beauty Specialist Retailers LBN Brand Shares: Outlets 2016-2019
Table 79 Health and Beauty Specialist Retailers LBN Brand Shares: Selling Space 2016-2019
Table 80 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 81 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024
Table 82 Forecast Sales in Health and Beauty Specialist Retailers by Channel: Value 2019-2024
Table 83 Forecast Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth 2019-2024

Direct Selling in Azerbaijan

HEADLINES

PROSPECTS

The improved economic landscape drives growth, however, awareness remains low

Direct selling continues to have relatively low sale, being underdeveloped due to narrow coverage

The majority of the products sold by direct sellers are beauty and personal care, limiting the audience of the channel

COMPETITIVE LANDSCAPE

Oriflame Azerbaijan and Faberlic Azerbaijan lead, both benefiting from being active on social media, targeting women with discounts, promotions and new launches

International players benefit from positive reputations and greater credibility

The health and wellness trend has increased consumer interest in organic products

CHANNEL DATA

Table 84 Direct Selling by Category: Value 2014-2019
Table 85 Direct Selling by Category: % Value Growth 2014-2019
Table 86 Direct Selling GBO Company Shares: % Value 2015-2019
Table 87 Direct Selling GBN Brand Shares: % Value 2016-2019
Table 88 Direct Selling Forecasts by Category: Value 2019-2024
Table 89 Direct Selling Forecasts by Category: % Value Growth 2019-2024

E-Commerce in Azerbaijan

HEADLINES

PROSPECTS

E-commerce is driven by rising urbanisation, partnered with consumers increasing incomes and the ability to shop at any hour

Local authorities impose controls on e-commerce, impacting the landscape in 2019

E-commerce is threatened by lack of trust, partnered with the wide availability of products from modern retailers

COMPETITIVE LANDSCAPE

3rd party merchants continue to lead e-commerce landscape in Azerbaijan

E-commerce in Azerbaijan is led by international players, due to a lack of e-commerce infrastructure in Azerbaijan

A wide range of products at different price points supports sales of e-commerce

CHANNEL DATA

Table 90 E-Commerce by Channel and Category: Value 2014-2019
Table 91 E-Commerce by Channel and Category: % Value Growth 2014-2019
Table 92 E-Commerce GBO Company Shares: % Value 2015-2019
Table 93 E-Commerce GBN Brand Shares: % Value 2016-2019
Table 94 Forecast E-Commerce by Channel and Category: Value 2019-2024
Table 95 Forecast E-Commerce by Channel and Category: % Value Growth 2019-2024

Mobile E-Commerce in Azerbaijan

HEADLINES

PROSPECTS

Barriers to growth include a lack of digital skills, however, growth will be driven by an increasing number of mobile e-commerce applications

Growth in mobile e-commerce will be driven by the younger generations and the increase in the use of online banking

Development of mobile e-commerce is linked to the growing use of smartphones, and the state program for digital payments expansion in the Republic of Azerbaijan

COMPETITIVE LANDSCAPE

E-commerce retailers use promotions as an incentive to create a consumer base for their mobile applications

Competitive landscape of mobile retailing follows online selling competitive performance

Global players dominate mobile e-commerce due to strong reputations and awareness

CHANNEL DATA

Table 96 Mobile E-Commerce: Value 2014-2019
Table 97 Mobile E-Commerce: % Value Growth 2014-2019
Table 98 Mobile E-Commerce Forecasts: Value 2019-2024
Table 99 Mobile E-Commerce Forecasts: % Value Growth 2019-2024

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