Armenia - Distribution & Sales Channels Armenia - Distribution & Sales
Armenia’s domestic distribution channels are adequate for the country’s small size, population, and market. The main storage facilities and wholesale companies are based in the capital Yerevan, the hub for domestic distribution. Retail and wholesale operations are often combined. Brand name recognition depends on the type of product and the Armenian public tends to give loyalty to established brands. Armenian and foreign freight-forwarding companies have established a reliable system for transporting goods to and from Armenia. While Armenia's two closed borders limit export-import routes and raise the cost of transportation, Armenian producers, importers, and freight forwarders have adopted reliable, but expensive, transport routes through Georgia. Goods from or bound for Europe and beyond enter or exit the Georgian ports of Poti and Batumi on the Black Sea coast. The overland trip between these ports and Yerevan often constitutes the most expensive part of the journey. As of 2017, the shipment of a 40-ft. container from Yerevan to New York cost approximately 4,000 USD, and from Yerevan to Los Angeles 5,000 USD, but the price can fluctuate significantly during the year.
Most imported products and services are handled by agents and distributors. Most companies in Armenia are relatively small and family-owned and operated, although there are some notable exceptions, including several major local and European supermarket chains (Carrefour) and a few department stores. Big companies representing multiple brands often have their own distribution centers based out of Yerevan.