Fastness, reliability and convenience are three criteria for a modern person to choose one or another product or service.
E-commerce emerged 25 years ago, and the first Kazakhstani Internet shop would celebrate 20 years this year. Since then e-commerce steadily gathers steam, gradually putting traditional sale outlets out of the market. Transfer to e-commerce solved a number of problems. Thus, a customer receives pleasant bonuses such as free delivery, cashless payment, wide choise, return and exchange of goods, and affordable prices, which are the most attractive. Not to speak of saving time.
Zerde Holding JSC experts conducted a comparative analysis in order to see price differences in traditional sale outlets and websites (е-shops). Research objects are as follows:
• Central market (Astana);
• Malls (Ramstor, Anvar);
• Internet shops (Astykzhan, Ramstor, Metro, satu.kz, AliЕxpress).
Research subjects are as follows:
• Household chemicals;
• Household appliances.
Market and malls sell household chemicals, namely laundry powders like Mif, Persil, at 10-15% higher costs than in е-shops. Mif powder on the market costs KZT3,700 in average, while Internet shop of Astykzhan hypermarket sell it at KZT2,900.
Capital housewives can buy Comet cleaner at KZT300 on market or while staying at home to order it from Ramstor website and to pay KZT23 less. Siberica hair shampoo can be bought through e-commerce resources at KZT909, while market sells it at KZT1,340.
As for food products, price difference is not so significant, but e-shops attract with better service, more convenient packaging (i.e. package and weight), and various monthly offers. For example, Shedevr sunflower oil costs KZT360 in satu.kz Internet shop, but it costs KZT480 on market.
Nevertheless prices for other food products are not very different. However Internet shops reach consumers with advantageous offers like “1+1”, “three-for-two”, etc.
Household appliances. A regular stand for camera and cell phone in Technodom shop costs at around KZT10 thsd., the same can be found on AliЕxpress at a price starting from KZT7 thsd. with free home delivery. AliЕxpress offers about 20 different wireless speakers of mean price range from KZT1.5 thsd., while such portable device costs KZT4.5 thsd. on market.
These are just a small part of products and goods offered by Internet shops. As of today, majority of customers in the world prefer online shopping on such well-known websites like Аmazon, AliExpress, Таоbао, Lamoda, Ebay, etc.
PRICE COMPARISON OF CONSUMER GOODS
Product prices are as of 14.03.2018 and can vary depending on the market situation
Kazakhstan has a growing number of Internet shops as well. As per Kazpost latest data, more than 1,700 Internet shops are active in the country. Kazakhstani online shoppers first and foremost prefer to buy clothes, footwear and accessories, the second preference is food, the third preference is pharmaceuticals.
We should not ignore inconveniences caused to shoppers when buying products on market or in malls and the following is the most evident ones:
• Traffic jam (home – market – home);
• Difficulties with parking;
• Unfavorable conditions for shopping due to rough weather;
• Travel costs (bus, taxi or petroleum);
• Loss of time;
• Queues to cashier desks;
• Search of products in different and widely separated points
• No cashless payment.
Advantages of e-commerce:
• Save of time;
• Save of money;
• Cashless payment;
• No additional expenses.
Conclusion: e-commerce has clear advantages and a large number of elements to promote sales.
Internet shopping in Kazakhstan just starts to develop itself actively despite a growing number of e-shops. Share of e-commerce in the country nowadays accounts for a small part of retail turnover of 1% (in 2016). In the era of digitalization, its growth is of the highest importance. Digital Kazakhstan Program also covers development of this sector. Share of e-sales in overall volume of retail trade in 2022 in the republic is expected to be 2.6%.
Mr. Sarsenov, Chairperson of the Board of Kazpost JSC, made positive forecasts regarding e-commerce market. According to him, e-commerce market in Kazakhstan can increase threefold by 2020.
Attractiveness of e-commerce in Kazakhstan is expected to increase in the near 10 years due to a number of qualitative changes. Among them there is improvement of delivery efficiency, including through use of new delivery methods, wide use of customer intelligence, widening of product range and increase of popularity of Internet commerce.