"Made in Kazakhstan" project: How to shoe the whole country
Two ordinary guys have created a domestic shoe brand Shoes Republic
Shoes Republic is a 100% Kazakh brand of leather footwear. The project was launched only a year ago, but in the current season spring-summer 2017 should bring 20 million tenge of income to its creators.
The authors of the project are 29-year-old Shymkent resident Dauren Ramankul and 39-year-old Pavlodar resident Aydin Makash. The shoe production is based in Almaty - according to the guys, the hot southern temper with the Nordic temperament is well matched here.
Photo: Serikzhan Kovlanbaev
Aydin Makash (left) and Dauren Ramankul.
How it all began
The history of the Shoes Republic project dates back to the tailoring of costumes - this is what Aydin Makash was doing a few years ago. Orders for costumes were taken in Almaty and sewn in Europe. Production was only partially Kazakh. Nevertheless, things were going well, and, according to Aydin, at some point he began to feel the need for a partner to cope with the flow. So she and Dauren Ramankul met in 2013.
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- I just came from Shymkent then. After university he worked for two years as a physics teacher in one of the secondary schools in Shymkent. Having finally understood that it was not mine, I decided to go to Almaty, - recalls Dauren.
The businessmen had a desire to organize completely domestic production. Partially they were not satisfied with Kazakhstani tailoring of suits. At some point, they decided to make socks because they were inexpensive and easy to produce.
- The devaluation just happened. I once went to a store to buy shoes and was shocked by the price, which then more than doubled. And then I realized that I needed to make shoes, because the situation was very favorable in terms of prices, ”says Dauren.
And then a friend suggested to go to Uzbekistan to sample a batch of shoes from a local manufacturer. Dauren took 20 pairs at 7 thousand tenge each, arrived in Kazakhstan and in three days sold all the goods at a price of 14 thousand tenge per pair.
- When you sell all the goods in three days, without investing in advertising, you understand that this business has potential. And I suggested to Aydin: let's try to start the production of footwear, and put off the socks for now, ”says Dauren.
And the guys started.
They rented a room, found a technologist, purchased equipment and hired workers. All this happened in the spring of 2016. Neither Dauren nor Aydin had any experience in the shoe industry at that time.
- In May last year, we finally decided to start manufacturing footwear. But we were complete laymen in this matter. Each of us has never encountered production, and even more so with footwear, continues Dauren.
Businessmen say that only now they have come to a full-fledged production process, because the whole year that the project has existed has been for the most part a period of bumping. In January and February 2017, their factory was idle due to a delay in the supply of raw materials. And already in March they received 5 million tenge of income.
- We closed March with a production volume of 440 pairs of shoes. In April we are planning 850 pairs. In March, our income amounted to 5 million 280 thousand tenge, in April it is planned at the level of 9 million 600 thousand tenge. For the spring-summer 2017 season, it will probably be possible to bring up to 20 million tenge, says Aydin.
Fishing in the absence of industry
As already mentioned, Shoes Republic produces 100% Kazakh footwear. And this is despite the fact that in Kazakhstan there is no shoe industry as such. The market is overwhelmingly packed with goods from China, with which few are willing to compete. However, do not forget that there is a hot Shymkent spirit in Shoes Republic.
- Our goal is to create a truly recognizable brand in Kazakhstan. We want to release it specifically for the people. Therefore, our prices are not too high in comparison with foreign competitors. We set the price at which it is profitable for us to work, - Aydin explains.
Shoes Republic positions itself as a manufacturer of high-quality, inexpensive genuine leather footwear. Today the company produces shoes, leather moccasins and leather sneakers - only men's shoes, plans are to launch production of women and children. Manufacturing of products is carried out manually, as a result, the enterprise has a small production volume.
Aydin and Dauren say that Kazakhstan pays great attention to domestic producers. However, the footwear sector is in dire decline.
- We have big problems with employees. For 25 years, if in other countries technologies in the footwear industry have developed, in Kazakhstan it has not only degraded, it has been completely forgotten.
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In the 90s, the market was flooded with products from China. Our factories began to die. The workers left the factories. Students began to enroll less in shoemakers. The sector has fallen into extreme decline - in our country there are seamstresses and other textile professions, but we do not train shoe-makers, ”Aydin explains.
- We had to hire seamstresses and retrain them for sewing shoes. This job is somewhat specific, so we provide employees with free meals and other incentives. The situation is such that the former technical schools have become colleges, everyone wants to be managers and work in the office.
Another problem is the supply of raw materials. Shoes Republic purchases leather mainly from Turkey, where suppliers are not punctual.
- In our country, no one wants to engage in production because it seems to be a difficult business. Many people think that it is much easier to build a shopping and entertainment complex and rent out boutiques. That is, it is easier to get passive income. Therefore, we do not have manufacturers of leather for civilian footwear. The only thing we buy in Kazakhstan is leather lining. But even then reluctantly, because its quality leaves much to be desired, - said Dauren.
First Almaty, then neighbors
But Shoes Republic's problems aren't scary. From the enthusiasm of its founders, their eyes are burning and, according to them, the company's immediate plans are to provide all of Almaty with footwear.
- One year of existence for a company is a very short period. Now we have just entered a rut. This year's season for us, as a full-fledged company, will be the starting one. This is the first season in which we can offer our own lineup, our own line of footwear.
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At the same time, our production is in the handmade format, which slows down the volume of products. Therefore, we plan to automate it in the future, - Aydin explained.
Last summer Shoes Republic shoes were sold in the range from 13 thousand tenge to 15 thousand tenge. This year the price has grown and ranges from 17 thousand tenge to 18 thousand tenge. Manufacturers say that the reason for this was the improvement in quality, in particular the modernization of components: the Russian sole was replaced with a European one, the quality of the leather was improved.
In the future, the company intends to conquer not only the Kazakhstani market, but also foreign horizons.
- We have very good prospects for entering foreign markets. Because in comparison with foreign counterparts, our footwear in wholesale prices is lower and the quality is much better. Even today we can compete with foreign companies in terms of prices and quality, but not in terms of volume. But in the future we will be entering their markets. Quality and price allow us. When we move to automated production, this will further reduce the prices of our products, said Dauren.
Перевод статьи: Жарасова Сымбат
Источник:https://m.forbes.kz/made_in_kz/proekt_sdelano_v_kazahstane_shoes_republic
Shoes Republic is a 100% Kazakh brand of leather footwear. The project was launched only a year ago, but in the current season spring-summer 2017 should bring 20 million tenge of income to its creators.
The authors of the project are 29-year-old Shymkent resident Dauren Ramankul and 39-year-old Pavlodar resident Aydin Makash. The shoe production is based in Almaty - according to the guys, the hot southern temper with the Nordic temperament is well matched here.
Photo: Serikzhan Kovlanbaev
Aydin Makash (left) and Dauren Ramankul.
How it all began
The history of the Shoes Republic project dates back to the tailoring of costumes - this is what Aydin Makash was doing a few years ago. Orders for costumes were taken in Almaty and sewn in Europe. Production was only partially Kazakh. Nevertheless, things were going well, and, according to Aydin, at some point he began to feel the need for a partner to cope with the flow. So she and Dauren Ramankul met in 2013.
Mare's milk from Kazakhstan turns into an international brand
- I just came from Shymkent then. After university he worked for two years as a physics teacher in one of the secondary schools in Shymkent. Having finally understood that it was not mine, I decided to go to Almaty, - recalls Dauren.
The businessmen had a desire to organize completely domestic production. Partially they were not satisfied with Kazakhstani tailoring of suits. At some point, they decided to make socks because they were inexpensive and easy to produce.
- The devaluation just happened. I once went to a store to buy shoes and was shocked by the price, which then more than doubled. And then I realized that I needed to make shoes, because the situation was very favorable in terms of prices, ”says Dauren.
And then a friend suggested to go to Uzbekistan to sample a batch of shoes from a local manufacturer. Dauren took 20 pairs at 7 thousand tenge each, arrived in Kazakhstan and in three days sold all the goods at a price of 14 thousand tenge per pair.
- When you sell all the goods in three days, without investing in advertising, you understand that this business has potential. And I suggested to Aydin: let's try to start the production of footwear, and put off the socks for now, ”says Dauren.
And the guys started.
They rented a room, found a technologist, purchased equipment and hired workers. All this happened in the spring of 2016. Neither Dauren nor Aydin had any experience in the shoe industry at that time.
- In May last year, we finally decided to start manufacturing footwear. But we were complete laymen in this matter. Each of us has never encountered production, and even more so with footwear, continues Dauren.
Businessmen say that only now they have come to a full-fledged production process, because the whole year that the project has existed has been for the most part a period of bumping. In January and February 2017, their factory was idle due to a delay in the supply of raw materials. And already in March they received 5 million tenge of income.
- We closed March with a production volume of 440 pairs of shoes. In April we are planning 850 pairs. In March, our income amounted to 5 million 280 thousand tenge, in April it is planned at the level of 9 million 600 thousand tenge. For the spring-summer 2017 season, it will probably be possible to bring up to 20 million tenge, says Aydin.
Fishing in the absence of industry
As already mentioned, Shoes Republic produces 100% Kazakh footwear. And this is despite the fact that in Kazakhstan there is no shoe industry as such. The market is overwhelmingly packed with goods from China, with which few are willing to compete. However, do not forget that there is a hot Shymkent spirit in Shoes Republic.
- Our goal is to create a truly recognizable brand in Kazakhstan. We want to release it specifically for the people. Therefore, our prices are not too high in comparison with foreign competitors. We set the price at which it is profitable for us to work, - Aydin explains.
Shoes Republic positions itself as a manufacturer of high-quality, inexpensive genuine leather footwear. Today the company produces shoes, leather moccasins and leather sneakers - only men's shoes, plans are to launch production of women and children. Manufacturing of products is carried out manually, as a result, the enterprise has a small production volume.
Aydin and Dauren say that Kazakhstan pays great attention to domestic producers. However, the footwear sector is in dire decline.
- We have big problems with employees. For 25 years, if in other countries technologies in the footwear industry have developed, in Kazakhstan it has not only degraded, it has been completely forgotten.
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In the 90s, the market was flooded with products from China. Our factories began to die. The workers left the factories. Students began to enroll less in shoemakers. The sector has fallen into extreme decline - in our country there are seamstresses and other textile professions, but we do not train shoe-makers, ”Aydin explains.
- We had to hire seamstresses and retrain them for sewing shoes. This job is somewhat specific, so we provide employees with free meals and other incentives. The situation is such that the former technical schools have become colleges, everyone wants to be managers and work in the office.
Another problem is the supply of raw materials. Shoes Republic purchases leather mainly from Turkey, where suppliers are not punctual.
- In our country, no one wants to engage in production because it seems to be a difficult business. Many people think that it is much easier to build a shopping and entertainment complex and rent out boutiques. That is, it is easier to get passive income. Therefore, we do not have manufacturers of leather for civilian footwear. The only thing we buy in Kazakhstan is leather lining. But even then reluctantly, because its quality leaves much to be desired, - said Dauren.
First Almaty, then neighbors
But Shoes Republic's problems aren't scary. From the enthusiasm of its founders, their eyes are burning and, according to them, the company's immediate plans are to provide all of Almaty with footwear.
- One year of existence for a company is a very short period. Now we have just entered a rut. This year's season for us, as a full-fledged company, will be the starting one. This is the first season in which we can offer our own lineup, our own line of footwear.
How Kazakhstani guys taught trade shelves to "think" in Russia
At the same time, our production is in the handmade format, which slows down the volume of products. Therefore, we plan to automate it in the future, - Aydin explained.
Last summer Shoes Republic shoes were sold in the range from 13 thousand tenge to 15 thousand tenge. This year the price has grown and ranges from 17 thousand tenge to 18 thousand tenge. Manufacturers say that the reason for this was the improvement in quality, in particular the modernization of components: the Russian sole was replaced with a European one, the quality of the leather was improved.
In the future, the company intends to conquer not only the Kazakhstani market, but also foreign horizons.
- We have very good prospects for entering foreign markets. Because in comparison with foreign counterparts, our footwear in wholesale prices is lower and the quality is much better. Even today we can compete with foreign companies in terms of prices and quality, but not in terms of volume. But in the future we will be entering their markets. Quality and price allow us. When we move to automated production, this will further reduce the prices of our products, said Dauren.
Перевод статьи: Жарасова Сымбат
Источник:https://m.forbes.kz/made_in_kz/proekt_sdelano_v_kazahstane_shoes_republic