Kazakhstan is taking steps to support products labeled “Made in Kazakhstan” not only in retail chains but also online platforms.
The Ministry of Trade and Integration has prepared legislative amendments strengthening the rules for promoting domestic goods both in offline retail trade and e-commerce. According to the proposed legislation, online marketplaces will be required to ensure the priority display of Kazakhstani products in search results and to create separate “Made in Kazakhstan” sections.
The new requirements are part of a broader state policy to support domestic producers. According to the current legislation, the mandatory share of Kazakhstani goods in retail outlets should be at least 30% of all goods. An additional 20% of shelf space could be allocated through support programs of the Damu entrepreneurship development fund. Altogether, domestic products are entitled to occupy half of a store’s shelf space.
Acting Minister of Trade and Integration Aizhan Bizhanova believes that it is no less important for the buyer to see the domestic product. “The legislation establishes requirements not only for the quantity but also for the quality of the display of domestic products. Products of domestic manufacturers should be placed in visually and physically accessible locations at the buyer’s eye level, the so-called ‘golden shelf.’ It is from this shelf that the buyer takes the product first. I think the Kazakhstani producer has the right to this place,” Bizhanova said.
The efficiency of this approach has been confirmed by an experiment conducted by the National Analytical Center (NAC) at Nazarbayev University. Together with the Magnum retail chain, researchers tested behavioral tools to promote cheeses made in Kazakhstan. The stores used simple visual solutions such as banners, shelf dividers, stickers, shelf strips, and audio announcements emphasizing the “Made in Kazakhstan” labeling. The experiment took place in a real shopping environment over four weeks. As a result, sales of Kazakhstani cheese in the pilot stores increased by 20%, compared to the global average effect of similar behavioral tools estimated at about 8%.
“We tested behavioral tools using cheese as an example. Cheese is on the list of basic food products, yet it has a high share of imports (47%). In just 4 weeks of the experiment, sales of Kazakhstani cheese in the pilot stores surged by 20%. Our experiment proves that Kazakhstani people are ready to show ‘economic patriotism’; they just need help making this choice in the store, that is, making the product more recognizable and visible,” said Saltanat Dzhanenova, Director of the NAC’s Center for Public Administration and Behavioral Public Policy.
