Domestic manufacturers in Kazakhstan are facing a sharp decline in demand as Chinese online marketplaces gain market share, according to Inna Apenko, founder of local brands Mimioriki and Global Nomads.
Read also: Chinese e-commerce giants Temu and Pinduoduo expanding partnerships with Kazakhstan.
Speaking during a discussion on the impact of tax reforms, Apenko — who also serves as vice president of the Light Industry Association of Kazakhstan — said the challenges began even before recent policy changes.
She pointed to a noticeable drop in retail demand, driven by both declining household incomes and a shift toward online shopping.
Competition from foreign platforms
Apenko highlighted growing competition from Chinese e-commerce platforms, particularly Temu, which she said has captured a significant share of the local market.
«We have opened the door wide to Chinese marketplaces, Temu in particular, which have taken a large share of the market from local producers,» she said.
She also raised concerns about the fiscal impact, arguing that purchases made through such platforms contribute little to the domestic economy.
«In effect, revenue is flowing abroad rather than supporting local businesses,» Apenko said.
Double-digit decline in local brands
According to Apenko, demand for clothing produced by Kazakhstani brands fell by 15% to 20% last year, a significant drop for the industry.
Read also: The human cost of NAFTA: New study links trade shocks to US deaths.
The decline underscores mounting pressure on domestic manufacturers as they compete with lower-priced imports and rapidly expanding online retail options.
