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Kazakh manufacturers have received special rental conditions in the MEGA shopping center

On Monday, May 27, Nurlan Smagulov, founder of the MEGA network, head of the Astana Group, invited directors of 12 companies renting retail space in the mall to the meeting to tell them the good news: now they will receive special, improved, even privileged rental conditions. What is special about these 12 tenants? The fact that they all produce and sell products made in Kazakhstan.

Казахстанские производители получили особые условия аренды в ТРЦ MEGA

At the start of the meeting, Nurlan Smagulov admitted that he always tried to support the domestic manufacturer, but he was not satisfied with the level of support. Finally, it was decided to be changed. A trigger was the meeting of the Council of National Investors with the participation of the President of Kazakhstan, Kasym-Zhomart Tokayev, held on May 24. After listening to speeches of the head of state and entrepreneurs, the businessman arrived at the disappointing conclusions.

— Our neighbour countries actively support domestic production. Kyrgyzstan is increasing its export potential, production is growing in Uzbekistan, there are a lot of benefits in Russia. And we are outsiders in the consumer goods industry and, as consumers, we see it effect: we sell little Kazakhstan products. We know about the problems firsthand. Astana Group is a domestic manufacturer: assembling Hyundai buses, we have achieved a localization level of 50%, and we often ask the state to help us entering foreign markets, and market within the country. Therefore, we, are interested in supporting you, — Mr. Smagulov appealed to tenants. — Yes, they can find fault with you and say that the clothes you produce have imported fabrics or buttons from abroad. But it's only way business starts, from the simple beggining. When you gain critical momentum, you will achieve greater localization.

The Astana Group head said that this support can be viewed from several angles. Firstly, of course, this is a moral and patriotic gesture. But the commercial importance of such a step is obvious for MEGA. Yes, the shopping center network will have more expenses (or will have less revenue). But, on the other hand, domestic brands are working more efficiently in their homeland.

— You are our fellows in the market, you will hold on to your place and your business to the last, unlike many importers, Nurlan Smagulov again appealed to his partners. — I have repeatedly seen how foreign brands came and left our market. And your business is the meaning of life for you. We are very similar. There are only 12 enterprises in three MEGA centers. This is against 300 other tenants who are engaged in direct imports. Of course, they also work a lot, buy franchises, take risks and deserve respect. But you are special people, because you ventured to be a part of domestic production.

Казахстанские производители получили особые условия аренды в ТРЦ MEGA

The head of Astana Group announced a number of preferences for domestic manufacturers-tenants.

First, MEGA will fix a rental rate for them for three years.

Secondly, each tenant will be provided with individual rent terms depending on several factors — the area of the rented premises, location, type of goods, etc. Some tenant will get a discount.

Thirdly, the terms of the security deposit will be reduced to 1 month.

Fourthly, MEGA will compensate three years of costs associated with participation in the loyalty program, which will soon be launched.
«We want all of you to take part,» noted Nurlan Smagulov. — All your discounts will be given to customers. We do not take any fees, although we have invested $ 6 million in the program with Sberbank. You will get all the great analytics on the purchases of your customers.

Fifth, MEGA undertakes to hold fairs of Kazakhstan brands on a regular basis.

Sixth, domestic manufacturers will receive advertising support. So, their videos will now be showed free of charge on all LED screens in the MEGA shopping center network. And the audio clips will be placed on the MEGA radio for 15 days a month. And more — publications in the MEGAZine magazine in a special section.

Seventh, the windows of tenants will be marked with a special sign «Support your own» — buyers will know that they can buy here produced in Kazakhstan goods.
These initiatives have been documented: with the approval of those who present, the CEO of Mega Center Management, Seitzhan Esmagambetov, and the founder of the Mimioriki brand, Inna Apenko, on behalf of all 12 tenants signed a memorandum of understanding and cooperation.

Following manufacturers will be granted with benefits: manufacturer of men's clothing and shoes QLP, manufacturer of accessories for women and men and home textiles Adili, manufacturer of women's clothing Hey Baby, manufacturer of children's clothing Mimioriki, manufacturers of jewelry Balausa and Kazyna Gold, manufacturer of school uniforms and men's clothing Glasman, manufacturer of shoes Z Shoes, manufacturers of souvenirs Empire and Fantastique Gifts, Domashnee c lyuboviyu and Arua.
In conclusion, Nurlan Smagulov appealed to colleagues — owners of other retail networks and developers to create better conditions for «fellows». And then again appealed to partners:

— If you know other manufacturers of domestic products — invite them. We, however, do not have free rental premises, but there is a waiting list in all three shopping centers in Almaty and Nur-Sultan. Maybe we can work something out: we will place kiosks and hold fairs. In the end, there is a rotation of tenants, and if someone leaves, we, even losing the difference in the cost of rent, will support the domestic manufacturer.

Source: Forbes. kz