The QazTech Alliance of Technology Companies recently held a roundtable on the digitalization of small and medium businesses in Kazakhstan, reports TengriNews.
The e-commerce in Kazakhstan almost doubles every two years and currently accounts for 12.5% of total purchases.
The participants of the roundtable noted the buoying role played by the digitalization of consumer services in the promotion of ecommerce.
However, they were concerned that foreign companies, with their strong home base and solid team of experts were denying the level playing field for the local companies. In order to create the equal conditions for the Kazakhstani companies, they recommended the following:
Clear requirements for foreign marketplaces need to be established. It is proposed to develop clear requirements for foreign marketplaces operating in Kazakhstan to ensure equal conditions for all market participants.
There is a threat of dumping due to subsidies for products from China. Participants noted that large foreign players are dumping and possibly receiving subsidies from their government, while digital platforms are significantly reducing commission fees. According to the participants in the discussion, this creates a risk of ousting Kazakhstani platforms and manufacturers from the domestic market, which requires careful analysis and development of measures to protect local participants.
Lack of mandatory certification and control over counterfeit products on marketplaces. The need to tighten requirements for sellers on marketplaces to provide mandatory data on product certification was discussed. Participants noted that the difference in requirements between different platforms creates conditions for the import of counterfeits, which undermines confidence in the market.
Lack of modern warehouse space. Experts emphasized the need to create modern warehouse space with a developed transport infrastructure to ensure efficient logistics.
Inequality in compliance with standards for goods imported for personal use, including phytosanitary ones. It was noted that official suppliers of products are required to comply with phytosanitary and sanitary standards, while goods imported for personal use do not undergo similar checks. This creates arbitrage opportunities in economic activity and increased risks to public safety.
The impact of financial technologies and installments on online business. The importance of installments and the role of fintech in the development of online business were discussed. An example of successful cooperation with the Kaspi marketplace, which offered advantages in delivery and customer authorization, was given. Participants emphasized the need for further development of fintech as a basis for the growth of online business.
The roundtable participants believe that it is necessary to put Kazakhstani small and medium businesses on equal terms with foreign trading platforms that sell goods to Kazakhstan without paying taxes and without creating jobs. It is noted that, by taking advantage of duty-free import and other benefits, foreign companies receive an unfair competitive advantage, which harms domestic entrepreneurs.
TengriNews reports that to solve the problems voiced, QazTech has set the following goals:
Improving regulation of foreign marketplaces and combating dumping. The QazTech Alliance, through the established committee, will promote and facilitate the development of clear rules for foreign marketplaces operating in Kazakhstan in order to create equal conditions for all market participants and protect the interests of domestic companies. An analysis of possible unfair market behavior on the part of foreign digital platforms and suppliers will be conducted, based on the results of which measures will be proposed to maintain fair market competition, including the development and implementation of anti-dumping measures.
Developing standards and unifying requirements, combating counterfeiting. The committee will promote the development and implementation of uniform requirements for sellers on all marketplaces, including mandatory provision of product certification data. This will help eliminate differences in requirements between platforms and increase consumer confidence in online trading. It will also propose measures to combat counterfeiting, including strengthening controls and inspections.
Creation and development of logistics infrastructure for Kazakhstani suppliers. The QazTech Alliance will support the creation of modern warehouse complexes with developed transport infrastructure, which will improve logistics and ensure stable product supplies.
Support for the development of financial technologies. An important area will be promoting the development of fintech and the introduction of consumer-friendly tools, such as installments. This will contribute to the further growth of online business and support for small and medium-sized businesses. /// nCa, 30 August 2024