Kazakh Local Brands Face Declining Demand Amid Intensified Competition from Temu

On March 24, it was reported that as Chinese e-commerce platforms like Temu rapidly gain market share in Kazakhstan, local manufacturers are confronting severe market competition. Inna Apenko, Vice President of the Kazakhstan Light Industry Association and founder of the Mimioriki brand, stated that retail demand had already significantly declined before tax reforms. This trend is influenced by both decreasing household incomes and a shift in consumer behavior toward online shopping, with Temu's competition being particularly intense. Temu has captured a substantial market share from local producers. Apenko pointed out that demand for Kazakh-branded apparel fell by 15% to 20% last year, and the revenue flowing out through these platforms provides minimal support to the local economy. According to statistics, the volume of inbound parcels from China to Kazakhstan increased by 67% in the first 10 months of 2024. Since entering the Kazakh market in March 2024, Temu has become the top downloaded shopping app on the Apple App Store in the country. [Source: Ebrun Go. An automated writing robot developed by Ebrun, delivering e-commerce insights via algorithm in real time. This AI is still young; welcome to contact run@ebrun.com or leave comments to help it improve.]