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Will school uniform producers maintain their presence in Kazakhstan following the lifting of the quarantine measures?

The Uniform's Lifeline: The Method of Commencing the Academic Year, Whether In-Person or Virtual, Affects the Existence of School Uniform Manufacturers.

School year format choice: Online or offline learning impacts the prosperity of school uniform...
School year format choice: Online or offline learning impacts the prosperity of school uniform manufacturers.

Will school uniform producers maintain their presence in Kazakhstan following the lifting of the quarantine measures?

School's Out for Many Local Uniform Makers in Kazakhstan

In the heart of Central Asia, Kazakhstan's school uniform sector is a battleground between local manufacturers and foreign competitors. Despite catering to over three million schoolchildren, fewer than 10% sport uniforms sewn domestically, with the rest coming from neighbors Russia, China, Kyrgyzstan, Uzbekistan, and Turkey.

The light industry in Kazakhstan recorded a 15% growth in 2020, driven by a 4.5% increase in textile items, 5.5% boost in clothing, and a striking 131.1% surge in leather goods. However, this growth was largely due to changes in raw material and product costs, as the quantity of uniform production decreased significantly.

Lyubov Khudova, chairperson of the Association of Light Industry Enterprises, revealed that over 4 billion tenge worth of ready-made uniforms sat unused, overshadowing a total loss of around 9 billion tenge to the sector. The only ray of hope lies in the "All-Education" program, which aims to supply clothing for low-income families - but there's yet no certainty for local producers' inclusion.

Foreign manufacturers have an edge due to government support from their home countries, including export subsidies, which domestic producers lack. This unfair competition is causing setbacks for companies like TOO "Glasman," which lost nearly half of their business when schools moved online, leaving warehouses filled with unsold uniforms worth a staggering 2 billion tenge.

As the "All-Education" program remains uncertain, domestic manufacturers like Anvar Khilajev, director of TOO "Glasman," are advocating for transparency in budget fund usage to avoid corruption. They proposed automating the procurement program to ensure funds are used efficiently and fairly.

Enrichment Insights:

  1. Global Impact on Local Markets: Kazakhstan's school uniform sector is just one example of how global market trends can affect local industries. As countries strive to integrate into the global economy, they open themselves to increased competition and potential market saturation.
  2. Solution Strategies for Local Manufacturers: To combat the impact of foreign competition, local manufacturers can focus on quality and design innovation, invest in digital marketing and e-commerce, seek government support and regulations, collaborate with industry partners, and provide education and training for their workforce. By implementing these strategies, local industries can remain competitive and sustainable in the long run.
  3. Despite the light industry growth in Kazakhstan, the local business of producing school uniforms still faces significant challenges, as over 90% of the uniforms are imported, with foreign competitors benefiting from government support.
  4. To counteract this, local uniform manufacturers like TOO "Glasman" are advocating for transparency in budget fund usage for programs like "All-Education," and propose automating the procurement process to ensure efficient and fair use of funds, ultimately helping domestic businesses remain competitive.

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