Kazakh fashion manufacturers, overprotected by subsidies in state tenders, are not competitive with private consumers

18 فبراير 2022

During the first three quarters of 2021, clothing and footwear produced in Kazakhstan accounted for only 10% of domestic sales, 4.6 percentage points less than in the same period of the previous year, according to estimates by the Kazakh Committee for Industrial Development. [Kazakh fashion manufacturers lose market share- Shoe Intelligence]

 

The overall size of the market is $2 billion, with imported goods prevailing in retail stores, said Olzhas Saparbekov, chairman of the Committee for Industrial Development.

“The high dependence on imports is associated with the fact that domestic manufacturers focus mainly on public sector orders, while the demand for casual and fashion items among the population grows every year,” Saparbekov said.

During the first 11 months of 2021, production for the Kazakh fashion industry decreased by 0.6% year-on-year, the Industrial Development Committee said.

Kazakh government agencies regularly organize tender procedures for the purchase of clothing and shoes for the national army, police and emergency services. In most tenders, the government requires that the products be manufactured in Kazakhstan.

The benefits to local producers have the effect of eliminating competition and discouraging investment. Competition is then found in retail sales to private consumers and there local producers, without investment and accustomed to the protected market of public tenders, are not competitive.


Paese: كازاخستان
protezione| Moda| produttori locali| Competitività| bandi di gara| importazioni.| Produttori

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