It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
Kazakhstan, located in Central Asia, is the world’s largest landlocked country. As of 2023, it has a population of around 19 million people. Known for its vast steppes and rich natural resources, Kazakhstan has a diverse cultural heritage influenced by Russian, Central Asian, and Mongol nomadic traditions.
With a GDP per capita of approximately $9,700 USD in 2023, Kazakhstan’s economy is heavily reliant on its vast natural resources, including oil, natural gas, and minerals. The country is also developing its agricultural sector, focusing on grain and livestock.
Kazakhstan’s primary imports are machinery, electronic equipment, vehicles, and chemical products, essential for its growing economy and infrastructure development.
Important cities include Nur-Sultan, the modern capital; Almaty, the largest city and cultural and financial center; Shymkent, a major industrial city; and Karaganda, known for its mining industry. These cities play a crucial role in Kazakhstan’s economic and cultural landscape.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:
Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.