According to Ömer Sunar, Kuzey Yatırım’s assistant general manager, who was speaking to reporters in İstanbul on Thursday, Georgia possesses huge potential in the shuttle trade, and the best way to benefit from this is to concentrate trade on the border. Thanks to recent efforts by both the Turkish and Georgian governments to ease visa procedures, Sunay argues that the shuttle trade between the two economies will gain noticeably in the next few years. “We are expecting to maximize this potential with brand names that will sell their products directly to customers through their own stores. Prices are relatively cheap when compared to the Georgian market, and this will certainly attract customers,” he said. Sunar said they have received positive signs following their market research in the region.
The first one of its type in the region, İstanbul Bazaar’s contribution to the shuttle trade with Georgia is expected to be around $400 million annually.
As regards incentives introduced by the Georgian government for the shuttle trade with Turkey, Sunar said: “The Georgian government does not collect value-added tax [KDV] on shuttle trade goods of up to TL 1,000 from Turkey. Georgian officials require customers to produce receipts for each of their purchases from Turkey, and we are bringing in professional brands and stores here so providing receipts will not be a problem.” Sunar said another interesting incentive to encourage Georgian customers to buy products from İstanbul Bazaar was that they have agreed with Georgian officials to provide free transportation for each customer who makes a purchase of TL 1,000 or more from İstanbul Bazaar, to any point in Georgia, Sunar said.
Expected to open in March, the outlet mall will be home to some of Turkey’s famous brands, mostly ready wear and textiles, in 60 stores covering an area of 8,000 square meters. Sunar sees the mall project as an opportunity for Turkish brands to branch out into the region, encompassing not only the Georgian market but also those of Armenia, Azerbaijan, Russia and Iran. Some 300 people will be employed in the mall, among them Georgian workers. The project has cost Kuzey Yatırım some $10 million, and the company is considering launching similar projects on other borders.
