The Central Asian region, encompassing five countries with a combined population of 75mn — Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan — is poised for an e-commerce boom as international players jockey for position in this high-potential market.

E-commerce expansion

According to the World Bank, the GDP of Central Asian countries grew by 5.6% last year, is projected to rise by 4.3% in 2024, and will grow by 5% in the coming year. E-commerce is experiencing especially rapid growth due to the low penetration of modern retail-store chains in the region, where markets (bazaars) and independent shops dominate as the primary trade format.

The expanding e-commerce market in Central Asia is being contested by several groups of players: local, global, and regional.

Global marketplaces like Amazon and Alibaba are technically accessible to Central Asian consumers but have not developed local infrastructure for fast delivery, which limits their popularity. Regional players, like Russia-based Wildberries, have gained significant traction by investing in logistics on the ground and making their platforms more accessible to local sellers.

Local companies like Kaspi.kz and Uzum currently lead the e-commerce markets in the region’s largest countries, but the region is set to see increasing competition as local consumers increasingly turn to shopping online.

Growing markets

In Kazakhstan, the largest economy in Central Asia, the e-commerce market reached $4.6bn in 2023, accounting for nearly 13% of retail turnover compared to just 4% in 2020. The largest marketplace, Kaspi.kz, which is also a digital bank, is listed on the NASDAQ stock exchange with a market capitalization exceeding $20bn. Kaspi.kz is pursuing international expansion and recently acquired the Turkish marketplace Hepsiburada.

In Uzbekistan, the most populous country in Central Asia, the e-commerce market amounted to $1bn in 2023, representing about 4% of retail turnover. The leading local player Uzum became the country’ s first tech unicorn this year and is expanding rapidly, with more than half of purchases on the platform made through its shariah-compliant BNPL (buy now, pay later) service. This is significant for Uzbekistan, where income levels are relatively low, and the predominantly Muslim population generally avoids using loans.

Kyrgyzstan, with a relatively small population of 7mn, saw its e-commerce market grow to $359mn in 2023, accounting for over 6% of retail turnover. In Turkmenistan, known for its natural gas production, and Tajikistan e-commerce is less developed but holds considerable potential.

For comparison, e-commerce accounts for 22% of retail turnover in the US and over 27% in China. Central Asian countries are poised for years of active market growth to reach such levels.

The Russian and regional market leader, Wildberries, is already present in three Central Asian countries and holds leading positions there. According to Forbes Kazakhstan, Wildberries’ sales in the country tripled in 2023, reaching $614mn.

In Uzbekistan Wildberries provides local manufacturers with opportunities to sell their products internationally, particularly to Russia. In 2023, sales of Uzbek sellers on Wildberries nearly doubled to $418mn.

More than 15,000 sellers from Kyrgyzstan are registered on Wildberries, generating sales of $115mn in 2023. In late 2024, Wildberries CEO Tatyana Kim announced plans to enter the Tajikistani market soon.

Warehouses and pickup points

What sets Wildberries apart from some local and global e-commerce platforms are several key features. First, the company has 75mn active users across six countries, offering local entrepreneurs access to a broad audience in the region. Second, Wildberries is developing its own logistics infrastructure to ensure fast and convenient delivery, including warehouses and pickup points, to support its business growth.

Currently, Wildberries operates eight logistics facilities in Kazakhstan and 1,600 order pickup points. The company is building two large logistics complexes near the country’s major cities, Almaty and Astana, with a combined area of nearly 270,000 square meters, and plans to complete them by the end of 2025. In Uzbekistan, Wildberries is planning to build a logistics complex of 150,000 square meters near Tashkent and expand its network of pickup points.

Wildberries started its business with clothing sales two decades ago. Its pickup points allow customers to try on clothing or shoes and return items that don’t fit on the spot. This format has helped the company gain consumer trust in Russia, where leaving packages at doorsteps is less common due to safety concerns in large cities and underdeveloped infrastructure in remote regions. Pickup points are also seen gaining popularity in Central Asia, where people are accustomed to inspecting goods at markets before making a purchase.

In the coming years, the Central Asian market is expected to grow rapidly, catching up with developed countries in e-commerce penetration. All the pre-requisites are in place – a young and growing population, advanced mobile internet penetration, GDP and income growth, and active local entrepreneurs. Although local and regional companies have already emerged as leaders, it is clear that intense competition lies ahead.