Tajikistan - Using an Agent to Sell US Products and ServicesTajikistan-Using-agent
The cities of Dushanbe, Khujand, Isfara, Istaravshan, Qurghonteppa, and Khorugh are the major population and economic centers in the country. Granting official distributor status to a Tajik company responsible for a specific region and/or expansion to other regions can be a good market entry strategy, because of the fragmented domestic market. However, this may not work well with all commodities.
A detailed market and risk analysis should be completed in advance. Very few Tajik companies have official distributor status for U.S. goods and services. Due to limited English use in Tajikistan and the distance from the United States, information about U.S. products is not widespread. Competitors from China, Russia, South-East Asia, and Europe are closer to the market. Sales of some U.S. goods originate from neighboring hubs such as Almaty, Bishkek, Tashkent, Moscow, Dubai, and Istanbul.
A local agent may have a better sense of the market and potential consumers. A local agent establishes a presence in Tajikistan with relatively little startup cost. A local agent circumvents the need to navigate the often difficult and frustrating process of establishing a new business entity in Tajikistan, which may require dealing with corrupt officials, long delays, and contradictory regulations. Local companies need training in Western business practices, including reporting, accounting, sales, marketing, customer care, and the English language. Local companies may lack the skills and resources required to manage a nationwide distribution and sales network.
Cultural and business differences may lead to misunderstandings between the supplier and distributor. There is also the potential for unscrupulous behavior. While each situation is different, the following general comments apply: Tajikistan’s domestic market is fragmented due to mountainous terrain and poor transportation infrastructure; therefore, U.S. companies may want to have separate agents in each region. A local distributor will need start-up support from its U.S. partner to be able to effectively reach out to clients and transfer skills and knowledge. The U.S. company should expect to support its Tajik partner in a nationwide campaign to promote its goods. Most U.S. companies are not fully aware of the market conditions and market peculiarities in Tajikistan. Promotion and product materials must be available in either Tajik or Russian.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
A detailed market and risk analysis should be completed in advance. Very few Tajik companies have official distributor status for U.S. goods and services. Due to limited English use in Tajikistan and the distance from the United States, information about U.S. products is not widespread. Competitors from China, Russia, South-East Asia, and Europe are closer to the market. Sales of some U.S. goods originate from neighboring hubs such as Almaty, Bishkek, Tashkent, Moscow, Dubai, and Istanbul.
A local agent may have a better sense of the market and potential consumers. A local agent establishes a presence in Tajikistan with relatively little startup cost. A local agent circumvents the need to navigate the often difficult and frustrating process of establishing a new business entity in Tajikistan, which may require dealing with corrupt officials, long delays, and contradictory regulations. Local companies need training in Western business practices, including reporting, accounting, sales, marketing, customer care, and the English language. Local companies may lack the skills and resources required to manage a nationwide distribution and sales network.
Cultural and business differences may lead to misunderstandings between the supplier and distributor. There is also the potential for unscrupulous behavior. While each situation is different, the following general comments apply: Tajikistan’s domestic market is fragmented due to mountainous terrain and poor transportation infrastructure; therefore, U.S. companies may want to have separate agents in each region. A local distributor will need start-up support from its U.S. partner to be able to effectively reach out to clients and transfer skills and knowledge. The U.S. company should expect to support its Tajik partner in a nationwide campaign to promote its goods. Most U.S. companies are not fully aware of the market conditions and market peculiarities in Tajikistan. Promotion and product materials must be available in either Tajik or Russian.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.