Kazakhstan lacks policies to promote national brands, expert says

Astana, Kazakhstan, Sept. 4

By Daniar Mukhtarov - Trend:

Kazakhstan, unfortunately, lacks a policy to promote national brands, chief researcher at the Kazakh Institute for Strategic Studies (KISR) under the Kazakh President, Irina Chernykh said Sept. 3.

"We do not have a policy to promote national brands in the country," she said at a meeting of the expert club of the World of Eurasia Public Foundation.

"One of our polls showed how the population sees brands in Kazakhstan. Foremost are the baursaks (fried bread balls) - 32 percent, wheat - 27 percent, Baikonur (a space launch facility) - 27 percent, and oil - 23 percent. There was no Kazakh brand for production of anything else in this list," Chernykh said.

The expert expressed her concern that under the EAU (Eurasian Economic Union), which will be created on Jan. 1, 2015, Kazakhstan will face difficulties in creating such a product that could be marketed as a national brand.

"Let me draw your attention to one thing: there are many Belarusian products in Kazakhstan. But something else is more interesting. I talked to a store manager, and he told me that the goods made in Kazakhstan are now sold under the brand name 'Belarusian goods', because the 'Belarusian' brand attracts buyers," Chernykh said.

At the same time many experts agree that for example, Astana, the capital of the republic, has become a brand of Kazakhstan, she said.

Chief researcher at the Kazakh Institute for Strategic Studies (KISR) under the Kazakh President, Lesya Karataeva believes that the country as a national brand can put domestic crops on a foreign market within the framework of the EAU.

"It's the obvious advantage that in a few decades we will practically be the only ones who deliver grain to international markets, because other manufacturers change their direction to the oilseeds etc," she said. "If the matter rests in branding of the goods from the EAU, we will probably export wheat, corn, flour, marked Made in EAU," Karataeva added.

But Professor of Kazakh-German University Rustam Burnashev believes that such concepts as brand associations (ie, the EAU) and the country brand (i.e. made in a particular country) should be differentiated.

"Kazakh grain is the brand, of course," he said. "For example, Uzbekistan is happy to buy Kazakh flour, but they may not buy the grain under the brand Made in the EAU, as it may turn out to be not from the country Uzbek consumers are used to," Burnashev explained.

In his turn, Kazakh political scientist, head of the World of Eurasia Public Fund Edward Poletaev believes that today it is necessary to adopt common solutions and develop common understanding of what is needed from the EAU branding.

"Today, there are many questions how to determine the new association," he said. "If we pay attention to a number of the current integration associations, from the European Union and the Asia-Pacific Economic Cooperation, the CIS, as well as the WTO, which Kazakhstan intends to join, all these organizations have certain symbols, such as the flag, which determines this association."

He recalled that the EAU is an association of an economic nature. "Perhaps, it would be more correct first to determine the goods and services produced by the EAU countries."

"For example, Belarusian Minister of Agriculture and Food Leonid Zayats proposed a few months ago for the EAU countries' products to be manufactured under the brand 'Made in EAU'," Poletayev said. "It would be a kind of quality mark for labeling. But the issue is rather complicated."

As an example, he cited the EU experience. There was a failure initiative to replace the countries' labeling of products to a single one "Made in EU" more than ten years ago.

"As a result, despite strong political integration, single currency, France and Germany opposed such "convergence" in the EU. Earlier, they were the main combiners. Thus, a single label has not been accepted by the European Commission," Poletayev noted.

"Leaders of the old Europe thought that popular products such as 'Made in France' wine or 'Made in Germany' cars give consumers more sense than simply 'Made in EU'. Nevertheless, the idea was supported by the new EU members - Eastern European countries - as their brand names are not so popular in the world market," Poletayev said.

The expert pointed out that for example two banks (Czech and Slovak) signed an agreement to create 'Made in Czechoslovakia' brand, despite the fact that this country ceased to exist 20 years ago.

"What was the purpose of doing this? During the Soviet period, the Czech exporters were sending many goods to Asia and Africa where this brand name is still remembered. Pragmatic bankers expected that the products of the non-existing country will also be in demand," Poletayev added.

"It is more difficult to create a brand name of an integration association, rather than of any company. All the more so, the brand name within EAU should also be agreed upon by all its participants. It is necessary to analyze the whole positive background of the EAU, to form new symbols based on the logic of integration and economic prospects of our countries," the expert stressed.