The call echoes from speech to speech, �Support local producers. Buy products made in Kazakhstan.� Candidates seeking support for a house in Parliament promised their support for local producers.
Very little happens. Now leading Kazakhstan ventures have decided to help themselves to restore the patriotism of local consumers. Buy quality products made in Kazakhstan is the theme of the producers�new organization, Quality Association. The Association�s target is not only consumers, but also producers who must woo consumers by demonstrating that they offer high quality products.
Founders want membership in the Association to be a guarantee of quality. The formation of the Association recognizes the general pessimism about the ability of Kazakhstani producers has hurt both enterprises and the national economy.
The business leaders who have organized the Quality Association have adopted a constructive and healthy approach to reviving their economic prospects. To spread their ambitions and hopes Quality Association proposes exhibitions, competitions for best products, conferences, seminars and a �national� trademark of quality assurance.
Rashid Dyusembaev
Our republic possesses a lot of natural resources and is famous for a highly educated population and scientific potential. We have all premises for a better life.
To hasten the economic rebirth, we, local producers, hold the national event �Buy products made in Kazakhstan!� and ask all citizens to support us.
We produce competitive products, create working places. We are real taxpayers and settle social problems of the Kazakhstan population. Buying our products, using our services, you promote the country�s rebirth.
The future depends on our uniting.
Contribute to the development of the Motherland!
Asem-Ai
Kazakhstan Centre of post-privatisation support Medeu Consulting�
International Forwarding company Transsystem
FoodMaster
Rakhat
Almaty tea
TransAl
From the editorial staff: on November 3, 1999 leaders of the Kazakhstani production announced the start of the event �Buy products made in Kazakhstan� to restore patriotism of Kazakhstan consumers. Below is the story about how Harley-Davidson was in the situation similar to the one of Kazakhstan producers. The company overcame the crisis. First of all USA impeded the import of cheaper Japanese motorcycles, which strongly resembles to the decision by the Kazakhstan government to restrict import of products from Russia, Uzbekistan and Kyrgyzstan. Then the company�s administration restructured both the production and the organisational system, which presently done by some local producers, in particular the introduction of such system as ISO 9000. The established Quality Association also should be considered from this point of view. After that the company followed the new marketing policy, including wide-scale advertisements. The similar campaign announced in Kazakhstan�
The results we will see later.
ALMATY, Nov 4
(THE GLOBE)
In 1980s Harley-Davidson, a famous motorcycle producer was in a very difficult situation, which might lead to bankruptcy. One of the main reasons for that situation was significant fall of QUALITY of the products. In 1980 about 50% of legendary Harleys returned to elaborating, as they did not pass technical control.
To prevent the total collapse, the company�s administration worked out the program. The anti-crisis strategy consists of several phases. First, the company persuaded the US government to increase significantly customs duties on import of Japanese motorcycles, the main competitors of Harley-Davidson.
Having a short chance (the customs duties were increased for four years with further gradual reduction), the company restructured both the production and the management system.
The last step was the new marketing policy to return Americans� trust. The latter supported the company!
In 1983 the company held the event �Superride� in all states, where more than 40,000 persons cane to try new motorcycles.
Person bought a Harley became a member of �Harley Club�. Besides, the client received a number of privileges. The company�s policy was successful, sales increased, and the number of members of �Harley Club� grew.
From the editorial staff: it is very important to follow the development of the economic situation in Russia, rather the promotion of Russian products in the domestic market than the macroeconomic indices, as similar trends are observed in Kazakhstan, but a bit later.
Concrete results of the event �Buy products made in Russia� are obvious from the below analysis. Along with the wide campaign and leaving of many foreign companies, Russian producers are at the threshold of creation local brands. Appearance of the local brands proves that Russian ventures are achieving a higher level and marks the completion of a definite phase. At the emotional level, brands are symbols of prosperous economy. In this regard, the �Buy products made in Kazakhstan� event is a transitional moment and may significantly speed up the creation of local brands.
Galina KOSTINA, Dan MEDOVNIKOV
Expert, # 41
First brands have appeared in the vodka market. Soon the customer will not choose from five thousand products, but from ten of national brands. The prohibition from advertising and the moratorium on licensing new productions will impede the development of the national vodka market.
Two years ago the Russian vodka market considered one of the most non-structured and criminal ones. The illegal sector produced a half of all cheap ordinary vodka, and the customer did not believe in any protection from imitations. The determining factor in the competitive struggle was price. But the situation is changing: the legal production has grown (for the first half-a-year 1999 by more than 60%), the consumption of imported brands has decreased after the crisis. The main thing is that at last first brands appear among more than five thousand names of Russian vodka.
Danyar Chingizbekov, 24, dentist:
- I think this event should have been held long ago. Though the Akimat announced it would support the event, the latter initiated by businessmen. Being a Kazakhstan citizen I understand that if the economy is not strong, we will not survive only with raw materials. We will remain an underdeveloped country. I prefer to buy products made in Kazakhstan. Of course, if they are qualitative.
We have a few branches manufacturing qualitative products. Mainly it is food industry, where Kazakhstan products are competitive. I think, the government should create conditions for the country to produce consumable products, e.g. cloths and footwear. I will rather purchase locally produced boots, if they are good, than Turkish in the bazaar.
Adel Iskakov, 31, teacher:
- It seems to me that Kazakhstan produces a lot, but does not use it, e.g. oil, metals. Just the opposite, it uses what it does not produce (different finished products). The event is to support local producers. But, for example, it is known that sugar prices in Kazakhstan are higher than in the world. If companies keep such prices here, this will be unjust in respect to consumers. If this event lead to misbalance between world�s and local prices, the customer will suffer.
Actually, this is a copy of the old American slogan �Buy American!� Why we should buy local products, if they are worse. As a consumer I wish our products were better. Then I will buy them. On the other hand, if we purchase our products, this may encourage companies to improve the quality.
To my mind, this event should support the development of small business. I heard the objective of the event is the moral support by the state. But except moral support companies need money, e.g. reduced taxes.
Wolles Kaufman, 60, consultant:
- I think this is the right way to settle the problem of local production in Kazakhstan. Success of the event depends on how it will be treated by producers. It should be held properly. It should comply with its objectives. Otherwise, next time people will not believe that such events may be effective.
Kazakhstan possesses good manpower, raw materials, and knowledge to produce highly quality products. Another thing is if economic, legislative and other conditions allow the local producer to invest money to production. But I think, he will invest money, as its is profitable.
Maybe, I am not a typical buyer in Kazakhstan, but I like handmade goods, many food products, and fur things. I live in a private house, and to repair it I preferred to buy construction materials produced in the country.
Tokzhan Tanatbekov, 38, local producer:
- At present there are a few producers in Kazakhstan. Almost everything exported from abroad. Of course, I would like this event to help local production, to increase producers, as production creates working places.
As a common consumer I would prefer more expensive but more qualitative imported products. But as a patriot I will buy local products. It is better to invest money to the economy.
To my mind, at present the country�s economy is stable, but too weak. As far as the tax policy is concerned, I consider it correct. Producer is to pay taxes whatever high they are.
Irina Koltsova, 45, housewife:
- I think this event is first of the effort by its organisers to attract investments to their business. In my opinion, producer does not need such events and prohibition from importing, but reduced taxes, as in Germany where producer has tax privileges for two years.
Of course, we have competitive food products, but the rest branches are underdeveloped. For example, 99% of my cloths are imported ones. I use foreign detergents, etc. of course, I try to buy local products, but only if they comply with my requirements.
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