Tajikistan, along with other Central Asian countries—Kazakhstan, Uzbekistan, Kyrgyzstan, and Turkmenistan—is becoming an increasingly significant market with high growth potential. The economies of these countries, home to over 80 million people, are growing due to population increases, rising domestic consumption, infrastructure projects, and foreign investments.
GDP growth is also driving the development of e-commerce, which is becoming a critical driver of economic activity in the region.
Competitors in the e-commerce space
According to the World Bank, Central Asia’s GDP grew by 5.6% last year, 4.3% in 2024, and is projected to increase by 5% in the coming year. E-commerce is expanding particularly rapidly, as traditional retail networks remain underdeveloped, and markets (bazaars) and independent shops dominate.
Competing for Central Asia's growing e-commerce market are local, global, and regional players like Wildberries, which created Russia's largest marketplace and aims to replicate its success in neighboring countries.
Global companies such as Amazon and Alibaba are technically accessible to Central Asian consumers but do not develop local infrastructure for fast delivery, making them less popular. Local companies lead in the major regional markets.
Growing markets
Kazakhstan, the largest economy in Central Asia, saw its e-commerce market reach $4.6 billion in 2023, accounting for nearly 13% of retail turnover compared to 4% in 2020. The leading marketplace, Kaspi.kz, is also a digital bank and is listed on NASDAQ with a capitalization exceeding $20 billion. It is expanding internationally, having acquired Turkiye's Hepsiburada marketplace.
E-commerce market of Uzbekistan, the largest population in the region (37 million), was valued at US$1 billion in 2023, approximately 4% of retail turnover. Local player Uzum is the dominant force, with more than half of purchases made using its BNPL (Buy Now, Pay Later) service, essential for a population with relatively low income and a preference for avoiding traditional credit due to religious reasons.
Despite its smaller population (7 million), Kyrgyzstan’s e-commerce market reached US$359 million in 2023, over 6% of retail turnover.
Turkmenistan and Tajikistan are less developed in e-commerce but show significant potential.
By comparison, in countries like the U.S., e-commerce accounts for 22% of retail turnover, and in China, it exceeds 27%. Central Asia’s e-commerce sector has many years of growth ahead to reach these levels.
Wildberries among the leaders
Russia's largest marketplace, Wildberries, is expanding aggressively in the region. Already present in three Central Asian countries, it holds leading positions in those markets.
In Kazakhstan, Wildberries ranks second after Kaspi.kz. Its sales in Kazakhstan tripled in 2023, reaching $614 million, according to Forbes Kazakhstan.
In Uzbekistan, Wildberries shares the market leadership with Uzum, focusing on enabling Uzbek producers to sell their goods abroad, particularly to Russia. In 2023, Uzbek seller sales on Wildberries nearly doubled, reaching $418 million.
In Kyrgyzstan, over 15,000 sellers are registered on Wildberries, with sales totaling $115 million in 2023.
In Tajikistan, retail trade is growing steadily, driven by infrastructure development. However, the e-commerce market is still in its infancy, lacking dominant players, which creates favorable conditions for major international companies to enter.
Logistics and infrastructure development
Marketplaces are investing heavily in logistical infrastructure to support e-commerce growth in Central Asia.
In Kazakhstan, Wildberries currently operates eight small logistics facilities and plans to complete two large complexes near Almaty and Astana by 2025, with a combined area of nearly 270,000 square meters.
In Uzbekistan, the company is preparing to build a 150,000-square-meter logistics complex near Tashkent and expand its network of pick-up points.
Wildberries' business model originated with clothing sales, encouraging the development of pick-up points where customers can try on items and return those that don't fit. This format gained consumer trust in Russia, where doorstep deliveries are less common due to theft concerns.
Pick-up points gain popularity
Pick-up points are also becoming popular in Central Asia, where consumers are accustomed to inspecting goods before purchase. This approach is particularly useful in countries with challenging mountainous terrain, like Tajikistan, where logistics often face additional hurdles.
By expanding the network of pick-up points, e-commerce platforms can significantly speed up delivery and make products more accessible, even for remote areas. This strategy will be crucial for the continued growth of e-commerce in the region.
