Baku’s Growing Trade Turnover Unlocks Diverse Investment Opportunities

(MENAFN- AzerNews)

Ulviyya Shahin
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Between January and July of this year, Baku experienced a
notable increase in trade turnover, which rose by 4.4% compared to
the same period last year, reaching a total of 18,744.9 million
manats. This positive trend reflects a robust economic performance
in the capital city, according to a report from the Baku City
Statistics Department.

The report reveals that the growth in trade turnover is driven
by both food and non-food sectors:

Food Products, Beverages, and Tobacco: Sales in this category
increased by 3.9% year-over-year, totaling 10,392.9 million manats.
This growth indicates a steady demand for essential consumer goods,
despite broader economic fluctuations.

Non-Food Products: This segment saw a more substantial increase
of 5.1%, amounting to 8,352.0 million manats. The stronger growth
in non-food sales suggests a healthy consumer appetite for diverse
goods, including electronics, clothing, and other durable
goods.

The distribution of consumer products across various channels
highlights shifts in shopping behaviours and business models:

Enterprises with Legal Entity Status: These entities accounted
for 37.1% of consumer product sales. This category includes large
retail chains and established businesses that have formal corporate
structures.

Commercial Facilities Operated by Individual Entrepreneurs:
These facilities represented 48% of sales, reflecting the
significant role of small to medium-sized businesses in Baku’s
retail landscape. This indicates a vibrant entrepreneurial sector
contributing substantially to the city’s economy.

Commodity Markets: Sales through commodity markets comprised
14.9% of the total. These markets often cater to a diverse range of
consumers looking for a variety of goods, from fresh produce to
household items.

Consumer Confidence: The growth in both food and non-food
product sales indicates a positive shift in consumer confidence and
purchasing power. The increased expenditure on non-food items, in
particular, suggests that residents are willing to spend on
discretionary and durable goods, which is a positive indicator of
economic stability.

Entrepreneurial Activity: The significant share of sales through
individual entrepreneurs underscores the importance of small
businesses in the local economy. It also highlights the dynamic
nature of Baku’s retail sector, where individual entrepreneurs play
a crucial role in meeting consumer needs.

Market Dynamics: The diversity in distribution channels reflects
the adaptability and segmentation of Baku’s retail market. The
balance between formal enterprises and individual entrepreneurs
shows a mixed-market approach that caters to different consumer
preferences and shopping habits.

The continued growth in trade turnover and the increase in both
food and non-food product sales suggest a robust economic
environment in Baku. If this trend persists, it could lead to
further investment opportunities and a more diversified retail
sector. Additionally, the focus on expanding both formal and
informal retail channels will likely continue to drive economic
activity and support the city’s growth trajectory.

Overall, Baku’s trade performance in the first seven months of
2024 paints a promising picture of economic vitality, driven by
strong consumer demand and a balanced retail ecosystem.

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