Network Marketing Trends in Kazakhstan 2024

Network marketing in Kazakhstan began its development in the 1990s and now the MLM market of the country continues to actively grow. Although traditional stores and stalls still hold a strong position in Kazakhstan, the share of network companies increases annually. Already more than 150 foreign and domestic brands in the Kazakh market use network marketing to sell their products.

Economic Dynamics in Kazakhstan

Kazakhstan ranks 9th in size among all countries in the world and is characterized by stable economic development. Currently, the main source of positive changes is the use of raw material potential. Industry and trade also play a significant role, accounting for 46% of the country's GDP.

Despite the complex economic situation worldwide, Kazakhstan saw a confident 5% economic growth in 2023. The driving forces were oil exports and a 13.7% increase in investments to $39.5 billion.

According to the World Bank, in 2022 the country's GDP reached 261.4 billion US dollars, the population increased to 20 million people, and the GDP per capita amounted to $13.3 thousand.

Kazakhstan is experiencing a high level of inflation, but a positive trend is also noticeable here. The annual inflation rate has started to decline and now stands at 8.4% - 1.4% lower than the previous period. This factor should also be taken into account when setting prices and calculating the marketing plan.

The World Bank is making positive forecasts for the economy of Kazakhstan,

It is expected to

grow by 4% in 2024. This creates favorable conditions to develop your business or start MLM in Kazakhstan. According to the organization Liter, the volume of network trade in the country has already exceeded $356 million and continues to grow dynamically.

Impact of global trends on MLM business in Kazakhstan

The world and human needs are constantly changing under the influence of numerous challenges and technological progress. These changes create new MLM trends that affect business operations, including network marketing in Kazakhstan:

#1. Relocation of network businesses

Geopolitical tension is prompting the offices of many corporations to relocate to other countries with a more favorable business climate. MLM companies often choose Kazakhstan for relocation due to its stable economic situation and sufficient level of legal regulation of network sales. There are also opportunities to find partners in the local market or join the Direct Selling Association of Kazakhstan.

The banking, legal, and jurisdictional advantages of the state and the high level of foreign investments allow not only to preserve one's MLM business but also to significantly expand it. Thanks to this, there is a rapid growth of the number of companies and distributors in the country's MLM market.

#2. Implementation of Artificial Intelligence in MLM

The use of neural networks allows developing one's business and staying ahead of competitors. Artificial intelligence tools now play a significant role in automating labor-intensive processes, including collecting and analyzing large volumes of data. Market development forecasting, automated chatbots and sales funnels, personalized marketing, and quick distributor training are the main opportunities of AI for network companies.

For example, the corporation Faberlic launched a clothing selection service using AI on its website. With this technology, the company managed to reduce returns by approximately 20% and increase conversion by 5-10%. MLM companies in Kazakhstan, using neural networks, are able to attract more potential clients and increase their competitiveness.

#3. Digitalization of Business

The Covid-19 pandemic has led to a significant increase in online shopping and triggered a business transformation. Competitive business functioning is now impossible without a presence on internet platforms, social networks, and having its own website.

In Kazakhstan, business digitalization is at a high level compared to other CIS countries. The number of internet users in the country reached 18.2 million at the beginning of 2024, and the number of social media users is 14.1 million. The state supports online business and e-commerce, and it is forecasted that by 2024, the market volume will exceed $63.3 billion.

#4. New Wave of Internet Users

The labor market is rapidly changing due to economic tensions worldwide, immigration, and business relocations. In such conditions, another wave of freelancing and remote work is observed. Today, many internet users are looking for vacancies with the opportunity for online work, even without experience or in foreign companies.

Remote employment is becoming common in Kazakhstan.Due to high inflation, people are forced to seek new sources of income.

#5. Relocation of Russia's Largest Network Leaders

Against the backdrop of restrictions imposed by the Russian authorities within the country and international sanctions, Russia's network leaders are relocating in search of new opportunities. The main countries for the relocation of networkers are Turkey and Kazakhstan.

Most of the largest leaders choose Kazakhstan for relocation. And this is not surprising, as the country is located very close to Russia and has a number of advantages. The language factor is much more favorable in the country - over 85% of Kazakhs speak Russian. Also, there is a mentality that network leaders from Russia have long been familiar with and know, there are connections with local leaders and a reputation among local networkers. The relocation of MLM entrepreneurs to Kazakhstan opens up a window to the whole of Central Asia, allowing for significant development and growth of their structure.

Resume

Kazakhstan is a country with growing economic indicators and favorable legal regulation of network business. The government is taking all necessary measures to stimulate MLM entrepreneurs in Kazakhstan to conduct honest and transparent activities. As a result, the country's network market becomes more transparent and gains more trust from consumers and potential partners.

There are currently favorable conditions for the effective launch of an MLM company in Kazakhstan. However, it is important to conduct a detailed and quality analysis to determine the potential success of your business idea.Choosing the best product, the right marketing strategy, and quality software are some of the key components of effective operation and creation of a network business.