Overview

American goods enjoy an excellent reputation.  Price is usually the consumer’s principal factor in purchasing decisions.  Local entrepreneurs often request concessionary payment terms or credit.  American exporters should be wary of extending credit before establishing a long and satisfactory trading history with a customer, as well as limiting exposure. Cash in advance or the use of irrevocable letters of credit through a reputable local correspondent bank is advised. Enforcement of contractual rights by the local court system remains uneven.

Trade Promotion and Advertising

The Advertising Law sets advertising standards in Georgia.  Advertisements must be in Georgian, and trademarks in a foreign language need to be accompanied with Georgian text.  Pharmaceutical and medical equipment advertising requires a permit from the Ministry of Health, Labor, and Social Affairs.  Advertising of firearms—including firearms used for sport—requires special permission from the Ministry of Internal Affairs.  Alcohol and cigarette advertising is also subject to restrictions in the Advertising Law.  Municipalities supervise and monitor compliance with the Advertising Law. 

There are several advertising agencies in Georgia, but businesses usually contact television, press, and radio advertising agencies directly.  Georgian broadcasters successfully switched from analogue to digital in 2015, a change which advertisers have had to keep pace with.  

Georgia has a wide variety of media outlets that express a wide variety of views.  The state funds Tbilisi-based Georgian Public Broadcaster and Batumi-based Adjara TV.  There are also  commercial television broadcasters including: Imedi, Mtavari Arkhi, Rustavi 2, Pirveli TV, Formula, Maestro, Kavkasia, PalitraTV, Georgian Dream Studios (GDS), and a small Russian-language operator TOK TV.  Imedi, Maestro, and GDS are part of IMEDI media holding.  IPN, Palitra TV, and Ambebi.ge are part of Palitra Media Holding.  The Georgian Orthodox Church also operates a satellite-based television station called Unanimity.  There are 26 regional television broadcasters across Georgia that are members of the Georgian Association of Regional Broadcasters and/or the Alliance of Georgian Broadcasters.  

The major newspapers and tabloids include Kviris Palitra, Kviris Qronika, and Resonansi.  Georgia Today, The Messenger, and the Georgian Journal are English language publications.  Major online publications of note include Indigo, Tabula, Batumelebi, Publika, and Southern Gates [in Georgian-Armenian Samkretis Karibche – SKNews], Netgazeti [in Georgian-Russian], Interpressnews, OC Media [in English-Russian], Accents, agenda.ge, ghn.ge, Civil.ge, On.ge, Jnews [in Armenian-Georgian-Russian] iFact.ge [in Georgian-English], BM.ge, DFWatch, JamNews, EuropeTime, and MtisAmbebi.

Major periodicals available in Georgia include Forbes Georgia, The Georgian Business Week (in Russian and English), Bank and Finance, Banki Plus, Finance, Macro-Micro Economics, and Economics (in Georgian and English).  The American Chamber of Commerce in Georgia publishes the bimonthly Investor.ge magazine in English. 

Expo Georgia, a local exhibition and conference center, also offers online advertising services including banner placement and links on its website. 

Pricing

Because of limited consumer purchasing power, price is the primary factor driving sales.  In a sector where American exporters do not enjoy a technological advantage, there is significant price competition from low‐cost suppliers in Turkey, Iran, and East Asia.  Imports of taxable goods and taxable operations at every stage are subject to an 18 percent VAT.

Sales Service/Customer Support

A growing number of official distributors and individual retailers offer delivery and installation services, as well as issue their own warranties on big‐ticket items, usually for up to one or two years.  American firms entering the Georgian market should consider the logistics of supporting their products in-country.

Local Professional Services

The Political and Economic Section of the U.S. Embassy in Tbilisi offers a range of assistance to U.S. firms interested in developing market opportunities or increasing their business in Georgia.  There are number of private consulting firms that offer market research or legal support to foreign companies.  The American Chamber of Commerce in Georgia, International Chamber of Commerce, or Georgia’s Chamber of Commerce are also instrumental for new market entrants.

Principal Business Associations

Several business associations operate in Georgia and some accept U.S. company members. Business associations in Georgia include the American Chamber of Commerce in Georgia, Georgian Chamber of Industry and Trade, Georgia Business Association, and International Chamber of Commerce.  Contact the organizations directly to determine membership eligibility requirements. Some of the business organizations regularly meet with the Prime Minister as part of the Prime Minister’s Investor’s Council (IC).  The IC meets regularly to discuss issues that are concerning to the business community.

Limitations on Selling U.S. Products and Services

No limitations known.