E-com in the world and in KZ

Author: Андрей Верес

A few years ago no one believed in buying shoes over the Internet, and now many people in the developed world do not imagine themselves without shopping for goods and services sitting on the couch, or on the way to work in transport.

The share of e-commerce in Kazakhstan is only 1% of the total turnover of goods and services of the market, while the dynamics of growth shows a colossal plus at 25% per year. If you take into account the profit of $ 700-800 million annually, now it’s time for the markets to start trading here!!!

For the best orientation in consumer activity, I suggest to consider a bit “boring but capacious” statistics of payment preferences in the world:

Turns and prognoses of electronic commerce all over the world ($ trillion) *


Buyer preferences in online payment methods (2017) *

* Source The WW Statistics Portal

In order to understand … no, not that! In order to predict changes in any way, one or the other, of the market ecosystems, great number of experts turn to the experience of the developed world economies. If you look at e-commerce, for example, in China, then you can confidently say that it waits in 15 years for us. Or not? After all, what they have already forgotten (active use of payment cards), we now actively promoted and developed. Such giants, with world famous reputation and income, like Amazon, Alibaba and others, are now actively talking through the media that they are testing the delivery of goods purchased by customers online, with the use of drones. In China, already today, about 1000 shipments are made by drones. The whole life of the Chinese consumer of goods and services today has flowed online and is paid with the use of tehnologies, rather than cash. With 500 000 !!! couriers, the user, instead of “offline” going to the store to buy goods, orders food online, via a mobile application. The use of international payment systems and their card products is common in the central parts of the cities, and, exclusively for tourists. The Chinese, themselves, long ago pay for goods using O2O technology (Online2Offline) using QR codes, which are everywhere in the country. Micro loans are given our clients through online banks with “space” speed (up to a minute in the amount of up to $ 50,000) and much .. much more.

«..What for this all?…»

Using the method of analyzing and scanning “horizons” is very popular among many experts, but direct use “someone else’s experience”, and it’s almost impossible to get an instant effect. It is necessary gradually to develop and improve all business processes in society for an achievement necessary, strategic result. A financial institution needs to develop technologies used in e-commerce and educate its consumers on new products. Merchants should expand sales channels online, advertise, improve and attract the customer’s purchasing power. This is mutually beneficial both for market players and for the country’s economy as a whole.

Many companies look at the market of Kazakhstan for the sale of their goods with a great interest. According to the ratings and forecasts, the leaders in Kazakhstan e-commerce today are on the sale of clothing online (lamoda.kz), air travel (airastana.com), government services (epay.gov.kz) and various marketplaces. Entering the e-commerce market in Kazakhstan is accompanied by minimal risks and many advantages for the dealer. Key marketplaces such as Satu.kz, Lamoda.kz, voiced readiness to cooperate with CIS countries and display their goods for sale. Herein there is a huge purchaser potential for understanding: the daily traffic of online visitors to Satu.kz is 145,000 users, 185,000 different companies propose their goods and services (more than 6.5 million positions),the turnover for 2016 was 18.5 billion tenge. Kazakhstan consumers are mostly interested in goods from the B2C category, namely, clothing, offenses, accessories, home and garden, medicine, electrical goods, etc. v.

The experience of popular trading platforms, shows that the leader of on-line delivery services is the courier service from the store. For today, this sphere of services is actively developing JSC Kazpost, which expanding its product line for goods delivery. Qualitatively sustained logistics processes can become a boost for the trade development on the Internet and strengthen the level of trust between the consumer and the seller.

The possibility of online calculation will become a key driver of Internet commerce and will assist expansion of economy of country. Trading platforms and delivery services develop and implement non-cash payment services, which gives the customer the opportunity to complete the “here and now” operation.

Developing e-com in Kazakhstan is not worth “afraid” of competition, to pattern the experience of other countries or to hope for the success of large ($$$) investments. Because, with the correct approach – carefully thought out strategy, built-up business processes, studied consumer ability and a thoughtful budget, you can make a small, “first” revolution in the market with a population of 18 million and enormous customer potential.

Андрей Верес

Project Manager

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