“Promotion of national brand abroad in focus”
Azerbaijan, with its aim to stimulate development of non-oil sector and to minimize dependence on petrodollars, has already introduced certain novelties, with a view to improve business climate in the country.
The recent decree of the president regulating the procedure for determining main aspects of rendering the state support to exporters, is considered to be a weighty step taken in this direction.
Head of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), Rufat Mammadov told Trend that the decree may be defined as historic, as exporters are to be supported in the process of entering the target market.
He mentioned that the state has already done much in terms of improving the business sphere and reducing bureaucratic obstacles to business, as a result, Azerbaijan has managed to establish a strong cluster of companies that produce goods for foreign markets, while the output possesses a great export potential.
Moreover, there is a great opportunity to strengthen Azerbaijan’s positions in the markets where the country is already present, as well as to find a niche in the markets where the country does not present yet, that is, to find new market segments for selling the output of the country.
All mechanisms envisaged in the decree are based on international practice, while creating these mechanisms is based on a thorough and in-depth analysis.
In today’s competitive and marketing savvy world, branding is accepted as a fundamental strategy for success. Brands are considered to be a major tool for creating product differentiation. The combination of brand name with other important aspects has long ago become a core competitive asset in an ever-growing number of contexts.
The country is keen to penetrate widely in the international commodity markets with its products branded "Made in Azerbaijan". The export of agricultural products is expected to be a locomotive for non-oil sector exports as Azerbaijan is indeed trying to diversify its economy and bring its energy dependence to the lowest notch.
Azerbaijan outputs more than 250 kinds of home-made products in food, light, heavy and construction industries with good export potential.
Mammadov said that the lion’s share of Azerbaijan’s non-oil export accounts for the country’s agricultural and food products, which are mainly sold in shops and supermarkets, while promotion of the access for Azerbaijani products to foreign stores will be one of the mechanisms to promote export.
This mechanism envisages the creation of some racks with ‘Made in Azerbaijan’ branded products in foreign stores.
Head of AZPROMO believes it is firstly necessary to introduce Azerbaijani products in Duty Free shops at the biggest airports in Europe, Asia, the US and others, that is where local output can reach a large number of consumers. Duty Free shops will give an opportunity to increase awareness about the country’s output, even in the countries where local products are not supplied.
One of the mechanisms is to assist in getting various certificates, patents, registration of trade marks for being presented in a target market. In this regard, 50 percent of the amount spent on a certificate, a patent or a trademark, will be compensated to the exporters, provided that the amount of support does not exceed 5,000 manats ($)
To reach the target, the consumer should be aware about the product, therefore, one of the mechanisms will be directed at raising awareness about the ‘Made in Azerbaijan’ brand. Moreover, a number of events such as export missions, participation in international exhibitions are planned for advertising the products on foreign markets.
Mammadov said that relevant experince of such leading countries as Turkey, Australia, Kazakhstan and European countries was thoroughly explored and studied, adding that the new mechanisms include the best global practice, which will give immediate results
A total of 3 million manats ($1.84 million) has been allocated out of the Azerbaijani President’s Reserve Fund in the 2016 State Budget in order to finance the support the implementation of mechanisms.
The Cabinet of Ministers has already approved the list of non-oil products that will be eligible for benefiting from export promotion mechanism. Moreover, the authority approved the procedure of issuing incentives for those engaged in the export of non-oil production and coefficient applied in this regard.