New European clothing brands set to enter the Azerbaijani market

Several new European fashion brands are expected to enter the Azerbaijani market in the coming months, said Farid Novruzi, chairman of the Azerbaijan Retail Clothing Importers Association (AFRA), in comments to Minval.az.

“I can’t disclose the names yet because it’s a commercial secret. Let’s wait for the contracts to be signed — there will be pleasant surprises,” Novruzi said.

He noted that imports of clothing from Turkey have declined over the past year due to the stabilization of the U.S. dollar, which made online shopping from Turkey less profitable. Consumers are increasingly turning to international e-commerce platforms, negatively affecting local online retailers.

Local entrepreneurs are subject to VAT and customs duties, while online purchases from abroad worth up to $300 are exempt, making foreign goods much cheaper.

Novruzi said this imbalance is forcing many local clothing retailers to exit the market or shift to other businesses. The solution, he suggested, lies in granting tax incentives to local e-commerce firms.

The problem primarily affects the mass-market segment, while premium and luxury categories remain stable. One notable example of the market impact is the suspension of Defacto’s operations in Azerbaijan.