Retailing in Kazakhstan

Retailing in Kazakhstan

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

COVID-19 impact on retailing

COVID-19 country impact

Continued optimisation of selling space

E-commerce players also focus on improving customer experience

What next for retailing?

OPERATING ENVIRONMENT

Informal retailing

Opening hours

Summary 1 Standard Opening Hours by Channel Type 2018

Physical retail landscape

Cash and carry

Seasonality

Payments and delivery

Emerging business models

MARKET DATA

Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2015-2020
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2015-2020
Table 3 Sales in Store-Based Retailing by Channel: Value 2015-2020
Table 4 Sales in Store-Based Retailing by Channel: % Value Growth 2015-2020
Table 5 Store-Based Retailing Outlets by Channel: Units 2015-2020
Table 6 Store-Based Retailing Outlets by Channel: % Unit Growth 2015-2020
Table 7 Sales in Non-Store Retailing by Channel: Value 2015-2020
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2015-2020
Table 9 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2015-2020
Table 10 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2015-2020
Table 11 Sales in Non-Grocery Specialists by Channel: Value 2015-2020
Table 12 Sales in Non-Grocery Specialists by Channel: % Value Growth 2015-2020
Table 13 Non-Grocery Specialists Outlets by Channel: Units 2015-2020
Table 14 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2015-2020
Table 15 Retailing GBO Company Shares: % Value 2016-2020
Table 16 Retailing GBN Brand Shares: % Value 2017-2020
Table 17 Store-based Retailing GBO Company Shares: % Value 2016-2020
Table 18 Store-based Retailing GBN Brand Shares: % Value 2017-2020
Table 19 Store-based Retailing LBN Brand Shares: Outlets 2017-2020
Table 20 Non-Store Retailing GBO Company Shares: % Value 2016-2020
Table 21 Non-Store Retailing GBN Brand Shares: % Value 2017-2020
Table 22 Non-Grocery Specialists GBO Company Shares: % Value 2016-2020
Table 23 Non-Grocery Specialists GBN Brand Shares: % Value 2017-2020
Table 24 Non-Grocery Specialists LBN Brand Shares: Outlets 2017-2020
Table 25 Non-Grocery Specialists LBN Brand Shares: Selling Space 2017-2020
Table 26 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2020-2025
Table 27 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2020-2025
Table 28 Forecast Sales in Store-Based Retailing by Channel: Value 2020-2025
Table 29 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2020-2025
Table 30 Forecast Store-Based Retailing Outlets by Channel: Units 2020-2025
Table 31 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2020-2025
Table 32 Forecast Sales in Non-Store Retailing by Channel: Value 2020-2025
Table 33 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2020-2025
Table 34 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2020-2025
Table 35 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2020-2025
Table 36 Forecast Sales in Non-Grocery Specialists by Channel: Value 2020-2025
Table 37 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2020-2025
Table 38 Forecast Non-Grocery Specialists Outlets by Channel: Units 2020-2025
Table 39 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2020-2025

DISCLAIMER

GLOBAL MACROECONOMIC ENVIRONMENT

GLOBAL INDUSTRY ENVIRONMENT

SOURCES

Summary 2 Research Sources

Modern Grocery Retailers in Kazakhstan

KEY DATA FINDINGS

2020 IMPACT

Convenience stores in local neighbourhoods perform

Large local players target all groups of consumers to maximise profit potential

New kid on the block in 2020

RECOVERY AND OPPORTUNITIES

Consumers will be increasingly price sensitive over forecast period

Logistical challenges hamper expansion to regions

Smaller shopping formats gain momentum thanks to increased need for convenience

CHANNEL DATA

Table 40 Modern Grocery Retailers: Value Sales, Outlets and Selling Space 2015-2020
Table 41 Modern Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2015-2020
Table 42 Sales in Modern Grocery Retailers by Channel: Value 2015-2020
Table 43 Sales in Modern Grocery Retailers by Channel: % Value Growth 2015-2020
Table 44 Modern Grocery Retailers Outlets by Channel: Units 2015-2020
Table 45 Modern Grocery Retailers Outlets by Channel: % Unit Growth 2015-2020
Table 46 Modern Grocery Retailers GBO Company Shares: % Value 2016-2020
Table 47 Modern Grocery Retailers GBN Brand Shares: % Value 2017-2020
Table 48 Modern Grocery Retailers LBN Brand Shares: Outlets 2017-2020
Table 49 Modern Grocery Retailers LBN Brand Shares: Selling Space 2017-2020
Table 50 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2020-2025
Table 51 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2020-2025
Table 52 Forecast Sales in Modern Grocery Retailers by Channel: Value 2020-2025
Table 53 Forecast Sales in Modern Grocery Retailers by Channel: % Value Growth 2020-2025
Table 54 Forecast Modern Grocery Retailers Outlets by Channel: Units 2020-2025
Table 55 Forecast Modern Grocery Retailers Outlets by Channel: % Unit Growth 2020-2025

Traditional Grocery Retailers in Kazakhstan

KEY DATA FINDINGS

2020 IMPACT

Government tries to stop tax evasion but for the most part fails

Small scale of operation leads to fragmented and volatile competitive environment

Chained specialist retailers are most active and largest players in traditional grocery retailers

RECOVERY AND OPPORTUNITIES

Discounters could pose threat to traditional grocery over forecast period

Traditional grocery retailers lose share to modern retail

Traditional grocery retailers face decline due to inefficiency of operations

CHANNEL DATA

Table 56 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space 2015-2020
Table 57 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2015-2020
Table 58 Traditional Grocery Retailers GBO Company Shares: % Value 2016-2020
Table 59 Traditional Grocery Retailers GBN Brand Shares: % Value 2017-2020
Table 60 Traditional Grocery Retailers LBN Brand Shares: Outlets 2017-2020
Table 61 Traditional Grocery Retailers LBN Brand Shares: Selling Space 2017-2020
Table 62 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2020-2025
Table 63 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2020-2025

Apparel and Footwear Specialist Retailers in Kazakhstan

KEY DATA FINDINGS

2020 IMPACT

Little demand for updating wardrobes as people spend a lot of time at home

Economy and mid-priced brands gain momentum in light of increased price sensitivity of Kazakhstani consumers

Apparel and footwear specialist retailers go omnichannel to maximise potential

RECOVERY AND OPPORTUNITIES

Consumers update their wardrobe, once they can move around again

Customer service and choice of products increase in importance with growing competition in the channel

Trends for healthy lifestyles and eco-thinking shape customers’ preferences

CHANNEL DATA

Table 64 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space 2015-2020
Table 65 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2015-2020
Table 66 Apparel And Footwear Specialist Retailers GBO Company Shares: % Value 2016-2020
Table 67 Apparel And Footwear Specialist Retailers GBN Brand Shares: % Value 2017-2020
Table 68 Apparel And Footwear Specialist Retailers LBN Brand Shares: Outlets 2017-2020
Table 69 Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling Space 2017-2020
Table 70 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2020-2025
Table 71 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2020-2025

Health and Beauty Specialist Retailers in Kazakhstan

KEY DATA FINDINGS

2020 IMPACT

Chemist/pharmacies perform well, but beauty specialists register decline

Product offer and customer experience gain high importance in light of growing competition

Players expand to e-commerce to maximise potential

RECOVERY AND OPPORTUNITIES

More working from home will dampen value sales of beauty products over forecast period

Emerging trends including eco-friendly products, as well offering cosmetic procedures through beauty specialist retailers

Increased consumer awareness of beauty products drives channel growth

CHANNEL DATA

Table 72 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling Space 2015-2020
Table 73 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2015-2020
Table 74 Sales in Health and Beauty Specialist Retailers by Channel: Value 2015-2020
Table 75 Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth 2015-2020
Table 76 Health and Beauty Specialist Retailers GBO Company Shares: % Value 2016-2020
Table 77 Health and Beauty Specialist Retailers GBN Brand Shares: % Value 2017-2020
Table 78 Health and Beauty Specialist Retailers LBN Brand Shares: Outlets 2017-2020
Table 79 Health and Beauty Specialist Retailers LBN Brand Shares: Selling Space 2017-2020
Table 80 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2020-2025
Table 81 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2020-2025
Table 82 Forecast Sales in Health and Beauty Specialist Retailers by Channel: Value 2020-2025
Table 83 Forecast Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth 2020-2025

Mixed Retailers in Kazakhstan

KEY DATA FINDINGS

2020 IMPACT

Steep value decline as consumers increasingly price sensitive

Viled Fashion TOO represents department stores with unique offer of luxury brands

Variety stores expand to smaller towns and regions

RECOVERY AND OPPORTUNITIES

Lower value growth than prior to COVID-19, as price sensitivity hits channels such as department stores

Return of foreign visitors will underpin value growth in department stores

Overall price sensitivity of population benefits variety stores

CHANNEL DATA

Table 84 Mixed Retailers: Value Sales, Outlets and Selling Space 2015-2020
Table 85 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2015-2020
Table 86 Sales in Mixed Retailers by Channel: Value 2015-2020
Table 87 Sales in Mixed Retailers by Channel: % Value Growth 2015-2020
Table 88 Mixed Retailers Outlets by Channel: Units 2015-2020
Table 89 Mixed Retailers Outlets by Channel: % Unit Growth 2015-2020
Table 90 Mixed Retailers GBO Company Shares: % Value 2016-2020
Table 91 Mixed Retailers GBN Brand Shares: % Value 2017-2020
Table 92 Mixed Retailers LBN Brand Shares: Outlets 2017-2020
Table 93 Mixed Retailers LBN Brand Shares: Selling Space 2017-2020
Table 94 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2020-2025
Table 95 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2020-2025
Table 96 Forecast Sales in Mixed Retailers by Channel: Value 2020-2025
Table 97 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2020-2025
Table 98 Forecast Mixed Retailers Outlets by Channel: Units 2020-2025
Table 99 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2020-2025

Direct Selling in Kazakhstan

KEY DATA FINDINGS

2020 IMPACT

Social distancing measures curtails direct selling in 2020

Avon applies technologies to give company new lease of life

Large international companies dominate the channel

RECOVERY AND OPPORTUNITIES

Value growth will return once COVID-19 infection rates start to fall

Direct selling will see modest growth in line with overall economic development

Direct sellers adopt new marketing tools to withstand growing competition

CHANNEL DATA

Table 100 Direct Selling by Category: Value 2015-2020
Table 101 Direct Selling by Category: % Value Growth 2015-2020
Table 102 Direct Selling GBO Company Shares: % Value 2016-2020
Table 103 Direct Selling GBN Brand Shares: % Value 2017-2020
Table 104 Direct Selling Forecasts by Category: Value 2020-2025
Table 105 Direct Selling Forecasts by Category: % Value Growth 2020-2025

E-Commerce in Kazakhstan

KEY DATA FINDINGS

2020 IMPACT

Huge boost in e-commerce, due to people shifting to online shopping in order to prevent exposure to COVID-19

Kaspi Magazin TOO continues to win value share

E-commerce develops to cover wider audience and broader product range

RECOVERY AND OPPORTUNITIES

Healthy value growth trajectory over the forecast period

E-commerce players focus on online customer experience

Foreign internet retailers have good prospects in Kazakhstan

CHANNEL DATA

Table 106 E-Commerce by Channel and Category: Value 2015-2020
Table 107 E-Commerce by Channel and Category: % Value Growth 2015-2020
Table 108 E-Commerce GBO Company Shares: % Value 2016-2020
Table 109 E-Commerce GBN Brand Shares: % Value 2017-2020
Table 110 Forecast E-Commerce by Channel and Category: Value 2020-2025
Table 111 Forecast E-Commerce by Channel and Category: % Value Growth 2020-2025

Mobile E-Commerce in Kazakhstan

EY DATA FINDINGS

2020 IMPACT

As consumers avoid brick-and mortar stores, mobile e-commerce registers huge surge

Share of mobile e-commerce set to grow

Mobile apps as tools for competing

RECOVERY AND OPPORTUNITIES

Double-digit value growth over forecast period

Mobile e-commerce players focus on customer experience

International competition pushes local companies to improve service

CHANNEL DATA

Table 112 Mobile E-Commerce: Value 2015-2020
Table 113 Mobile E-Commerce: % Value Growth 2015-2020
Table 114 Mobile E-Commerce Forecasts: Value 2020-2025
Table 115 Mobile E-Commerce Forecasts: % Value Growth 2020-2025

---