A Global Marketplace
Meeting the Global Buyer at the Local Level – Armenia
Published September 11, 2018 - Written by Dan Oscarson
3 min read
In IAA’s latest edition of our Global Marketplace series, Dan Oscarson, Vice President of Global Market Development takes a deeper dive into the expansion of our global buyer base from large to small countries with a focus on Armenia.
As IAA’s reach continues to expand to more buyers in more countries, it is the perfect time to explore the factors that drive demand in different markets. Economic and regulatory conditions vary from country to country. Enterprising entrepreneurs, such as our global buyers, make the most of local conditions to provide affordable transportation options.
Many foreign buyers prefer vehicles manufactured for the U.S. market because of their design and extra options that are often standard. Buying vehicles with physical damage that can be repaired cost-effectively in local markets, is an excellent option for many who want high quality, affordable vehicles.
In addition to Mexico, large markets overseas — including countries in West Africa, the Middle East and Central America — generate significant bidding activity on a variety of vehicle makes and models. Buyers in these countries buy, import and sell locally, and are familiar with IAA, our internet auctions and the vehicles we sell.
A growing number of smaller countries are increasing bid frequency and purchase activity with IAA. Although the reasons are essentially the same – high-quality vehicles at affordable prices – it is insightful to consider the effect vehicles purchased from IAA have on these countries, particularly in these areas that do not manufacture or assemble cars.
One interesting example is Armenia — one of the oldest countries in the world, with a recorded history of about 3,500 years. Since Armenia restored its independence from the Soviet Union in 1992, the country has experienced economic growth, creating an increasing need for affordable transportation. Although it is a relatively small country, demand for vehicles from IAA is consistent and prospects for long-term growth are good.
IAA formed a marketing alliance with a local broker in Yerevan, Armenia’s capital, in October 2017. The broker’s team helps promote the IAA brand from a downtown bidding office, and has assisted in increasing the sale of IAA’s vehicles to buyers in that country. Local bidding offices are an important component of working with smaller countries like Armenia, as they provide the information and service local buyers need to confidently purchase vehicles from the U.S.
Whether they bid from countries large or small, all of IAA’s global buyers help us maintain our competitive bidding and buying environment for vehicles. Our strategic approach at the local level within countries around the world ensures we continue to connect sellers and buyers. Understanding the economy, transportation needs and longer-term potential of a country all work to create the IAA marketplace.
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