Market Research in Armenia
Armenia lies south of the country of Georgia, east of Turkey, and west of Azerbaijan.
This landlocked country boasts a long history. It goes further back than that of most other European nations. It has an area of 11,500 square miles, and the major languages are Armenian and Russian. The major religion is Christianity.
Key Industries
Mineral exploitation, agriculture, telecommunications are the pillars of Armenia’s economy. So are hydroelectricity, tourism, and jewelry. Armenia has molybdenum, copper, zinc, bauxite, iron, lead, gold, and diamond deposits. It also has mercury, the basis of the country’s chemical industry sector. Industry contributes a quarter of the gross domestic product. It also employs a large section of the workforce. Services represent half of GDP. This sector employs about fifty percent of the population.
The textile industry is one of the most ancient economic drivers. This industry focuses on clothing technology, knitting, and dressmaking. The IT industry is growing due to a competent workforce. Several ICT companies have invested in Armenia. Another industry that is growing is banking, which employs thousands of Armenians.
The country also produces chemicals. It manufactures industrial and household chemicals, cosmetics, perfumes, and technical rubber. It also makes painting chemicals, as well as oxides and acids.
Neighborhoods
The capital of Armenia is Yerevan, an affordable and safe city. It has tons of fun stuff to do, and one of the perks is that it’s not crowded. It’s easy to do business in Yerevan, and most people speak basic English. Yet, there are downsides. Yerevan has slow Internet, treacherous roads, and it’s hard to make friends with the people.
The city center, also known as Kentron, has two hubs. These hubs are Grand Republic Square and the elegant Opera District. The newly-constructed Northern Avenue, which is only for pedestrian traffic, links the two. The main avenue is still under construction. When finished, it will get as far as the slope where the historical Kond District is located. Kentron is also the location of the University City, where several universities converge. Most of the hotels, museums, and eateries are in Kentron.
Trends
Armenia is a small market, which faces difficult challenges. There are ongoing hostilities over the Nagorno-Karabakh District. This situation has forced the country to close two of its borders. Nagorno-Karabakh is a disputed territory on the Azerbaijan border.
US goods and services have so far been successful in gaining market share. Investments by US companies are growing as a result. The biggest gains are in the mining and energy sectors.
Challenges exist for integration in the global economy. Yet, exports of goods and services have been expanding. Still, the country has transport barriers. These barriers restrict access to markets and increase the costs of trade. They also reduce the attractiveness of the country for foreign investment.
Opportunities
- Strong foreign exchange reserves and relative flexibility of the dram’s exchange rate
- Significant mining resources
- Partnership agreement with the European Union
- Member of the Eurasian Economic Union
- Considerable financial support from international organizations, including the International Monetary Fund
- Willingness to reform corruption and questionable justice practices
Consumer Base
Armenian consumers are the poorest in the Caucasus. The local population has low purchasing power. Yet, members of the diaspora who live in the US or Europe visit the country often and contribute to retail sales. They tend to buy traditional items such as wine, carpets, and jewelry.
Armenia is somewhere between Azerbaijan and Georgia in median age. The average consumer is 35.1 years old. Still, he/she is very price-sensitive but also eager to be able to choose between products. Brand names and foreign goods are desirable to such consumers.
Restaurants and other well-known Western franchises are in demand in Armenia. The sector is showing signs of growth. High-priced restaurants serving foreign foods are also finding success in niche markets. Several retail outlets sell US brand-name clothes. Yerevan even has a couple of franchise gyms. Many entrepreneurs have enough capital to provide startup funds for franchising. It’s plain that foreign brands and experiences do well, despite the low incomes of most of the population.
About Market Research in Armenia
SIS International Research conducts Qualitative, Quantitative, and Strategy Research in Armenia. Methods include Interviews, Focus Groups, and Online Surveys. Contact us now for a consultation on how to build a successful business in Armenia.