BAKU, Azerbaijan, Nov. 15
By Matanat Nasibova - Trend:
Decrease in demand for furniture materials is observed in Azerbaijan’s local market, a source in the Wood Group PSN, an Azerbaijani company that sells materials for furniture production, told Trend.
There is a decrease in the purchasing power of the population for furniture products, according to the source.
“As a result of this, the revenues from the sales of our company from January through October 2019, decreased by about 40-50 percent compared with the figures for the previous year,” the source said. “During the reporting period, a serious decline in sales was observed from the beginning of June to October this year. Considering that on average the company received about 10 million manat ($5.8 million) per year from sales, this year this indicator amounted to less than 5 million manat ($2.9 million).”
“Usually, sales increase in the summer season and remain stable over the next three months,” the source added. “This year, on the contrary, during the summer period a decrease was observed not only in the sales, but also in the number of appeals to the company for the provision of services, in particular for cutting, installation, gluing, ordering a kitchen furniture of various sizes, engraving, etc.”
The source also noted that, on average, the company carries out approximately 10-12 such orders daily.
“The company buys furniture materials mainly in the Russian, Turkish and partially Chinese market,” the source added. “The greatest demand is observed for Russian-made furniture materials, because they are relatively cheaper than Turkish and Chinese products, and aren’t inferior in quality. However, because recently there has been a decrease in activity in Azerbaijan’s construction market, this fact affects the level of sales of the company.”
($1= 1.7 manat on Nov. 15)