E-Commerce Comes to Kazakhstan. By Michael Coleman #Kazakhstan’s vibrant economic growth continues to outpace that of most other nations - indeed, the sprawling Central Asian leader ranks among the top 10 fastest growing economies in the world. While much of that growth is fueled by Kazakhstan’s vast oil and gas resources, the smaller, less traditional e-commerce sector is showing significant economic potential, as well. Internet use is steadily rising in the rapidly-modernizing nation, and more and more Kazakhstan citizens are jumping into the exciting new realm of online commerce. In 2000, less than one-half of one percent of all Kazakhs had regular access to the internet. Today, more than 50 percent of the population is surfing the web and logging on with increasing frequency to business websites offering a wide array of goods, services and entertainment options. When it comes to selling goods and services over the internet in Kazakhstan, Almaty-based Chocolife is the undisputed leader. #Chocolife, found on the internet at chocolife.me, provides deeply discounted tickets to entertainment events, services and products. The company contracts with traditional businesses to provide their goods and services at a fraction of the regular price, delighting consumers who are just becoming aware of the power of the internet. Although the vendor sells their product through Chocolife at a discount, they still benefit because the collective purchases - hundreds or even thousands of people buying through Chocolife at one time - result in high sales and widespread public exposure for businesses who associate with Chocolife, which helps to win new customers. Chocolife was launched in April 2011 and by the end of 2012, the ambitious company had racked up more than $1 billion in sales. The company boasts more than a half million subscribers who receive daily updates on new deals available to them exclusively through the internet. About 1,500 of those subscribers purchase deals from Chocolifeeveryday. RamilMukhoryapov, director of Chocolife, told EdgeKz that his company is among very few specialists in the e-commerce market in Kazakhstan, so naturally it is a learning experience. “We have to learn from our own mistakes: how to do a day-to-day delivery in Kazakhstan (taking into consideration the purchase transaction and packaging), how to deal with returns and how to do thousands of deliveries a day,”Mukhoryapov said. “Additional complications are caused due to long distances in Kazakhstan and a low-density of population.” Although e-commerce - using the internet to buy goods and services - is a relatively new concept in Kazakhstan, Mukhoryapov said Kazakhs are adapting quickly. After all, who doesn’t like a great deal? And the purchases should increase as more and more homes become connected to the internet. “There is a real readiness to do purchases via the internet and it will be increasing together with an increase in penetration of the Internet and the speed the online shops do their work,” he explained. Mukhoryapov said the Kazakh government seems to realize the value of e-commerce and wants to maximize its potential for the nation’s economy. The Kazakh Parliament has already adopted one law legitimizing “e-money” - internet financial transactions - and is working on another to reduce value added tax rates for companies who do business online. “It is important to stress that the state makes no difficulties or barriers for e-commerce development as there is no strict regulation of the Internet,”Mukhoryapov said. He also suggested some things the government and loan industry could do to help boost e-commerce in Kazakhstan. “Introduction of online crediting tools would help to boost demand,” he said. “This requires changes in the policies of loans processing. This would allow a person to get a loan right at their home by signing the necessary bank documents using digital signatures. If the state could assist in the implementation of such laws it would facilitate the introduction of online bank lending.”
Posted on: Fri, 19 Jul 2013 04:35:24 +0000
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