CU to effect share of Russian franchises in Kazakhstan

The share of Russian franchises in the Kazakh market will significantly increase amid intensification of interaction in the Customs Union, Interfax-Kazakhstan reports citing franchising expert Beknur Kissikov. “The Russia’s role will strengthen (in franchised business segment) amid interaction under the Customs Union. Russian brands had been significantly expended (into the Kazakh markets) even before the Customs Union was created. I suppose that next year Russian franchising companies will double their share in the market,” said Kissikov. He noted that in the coming years Russia will become the main supplier of both Russian and foreign franchises to Kazakhstan, which is more of a sublicense territory thanks to its geographic, economic and other characteristics. Kissikov said that mainly American and European brands had been represented in the Kazakh market before 2007, but their share substantially decreased in the last several years after Russian franchisers stepped up operations.