Smartup is expanding its presence. More than 600 companies around the world are developing their business with Smartup. Earlier, we wrote about the launch of our partner in the Kyrgyz Republic. Tentech is an official partner in the neighboring country. The founder and CEO of the company Dastan Omuraliev spoke about the specifics of the Kyrgyz market, the advantages of joining the WTO and the great demand for cloud business automation platforms.
Quick poll:
- Dastan Omuraliev - graduate of KIMEP University (Kazakhstan)
- included in the Forbes Under 30 - Asia list (2019)
- founder of the first natural juice plant in Kyrgyzstan Ecoproduct Asia (2013-2023)
- founder and CEO of Tentech (2024)
The path from student to entrepreneur
I started working at the age of 14 - in a pizzeria. At 18, I created my first website, which showed current exchange rates in exchange offices and banks in Bishkek - kursvalut.kg. This was back in 2008 and, of course, it didn’t work out to monetize this project, although there was an offer to buy it.
After graduating from university, I started my career at PwC (Big 4), then continued at Unicredit Group Bank in Kazakhstan. It was the bank that prompted me to think about starting a business. At the bank, I headed a group that worked together with consultants from McKinsey and was engaged in significantly reducing the bank's risks and reserves that the bank was creating. This was 2009, after the global financial crisis of 2008. This was a big problem in our bank - the share of problem loans reached 27% and something had to be done about it!
We managed to successfully implement this project - we significantly reduced the size of the bank's reserves, which then subsequently led to the bank earning over 50 million dollars! But my expectations in terms of bonuses and compensation were not met. Not only I had expectations, but probably the entire team did. And then I realized that investing so much effort, energy, time, depriving yourself of everything and completely devoting yourself to another organization sometimes does not always pay off and your work is not always appreciated! Then there was such a click in my head that made me think that it might be better to do some kind of your own business, where you don't mind investing your effort, energy and time.
I started working at the age of 14 - in a pizzeria. At 18, I created my first website, which showed current exchange rates in exchange offices and banks in Bishkek - kursvalut.kg. This was back in 2008 and, of course, it didn’t work out to monetize this project, although there was an offer to buy it.
After graduating from university, I started my career at PwC (Big 4), then continued at Unicredit Group Bank in Kazakhstan. It was the bank that prompted me to think about starting a business. At the bank, I headed a group that worked together with consultants from McKinsey and was engaged in significantly reducing the bank's risks and reserves that the bank was creating. This was 2009, after the global financial crisis of 2008. This was a big problem in our bank - the share of problem loans reached 27% and something had to be done about it!
We managed to successfully implement this project - we significantly reduced the size of the bank's reserves, which then subsequently led to the bank earning over 50 million dollars! But my expectations in terms of bonuses and compensation were not met. Not only I had expectations, but probably the entire team did. And then I realized that investing so much effort, energy, time, depriving yourself of everything and completely devoting yourself to another organization sometimes does not always pay off and your work is not always appreciated! Then there was such a click in my head that made me think that it might be better to do some kind of your own business, where you don't mind investing your effort, energy and time.
About Ecoproduct Asia
I founded the company in March 2013 and exactly 10 years later, in March 2023, I left the founders and left the position of CEO.
During these 10 years, we managed to create an industrial enterprise from scratch and a leader in the direct-squeezed juice market not only in Kyrgyzstan, but also throughout Central Asia, established exports to 7 countries, and steadily supplied our products to 3 countries outside the Kyrgyz Republic. The staff increased to 140 people, and installed the most modern bottling line. In general, there were many successes, but there were also many difficulties in fact. And often we only see the successful side.
I had to compete with two global giants - Coca-Cola and Pepsi-Cola, which own many juice brands. The most important thing for me is to create a local and strong brand that is recognized and preferred by consumers. And I succeeded!
History with Forbes
I would like to clarify right away - the Forbes 30 under 30 list - from each region they select 30 people under 30 years old.
I got on this list just before my 30th birthday, when I was 29 years old. When I found out that my name was on the list of nominees, I did not even hope for victory, because the Asia-Pacific region is the most highly competitive market, plus more than half of the world's population lives here! These are highly competitive markets such as China, Japan, Korea, India, Singapore and so on.
Of course, getting on this list was a great honor for me. I am glad that my work was appreciated and I became the first from Kyrgyzstan whose name is on the Forbes list. We have many smart and talented guys in our country. I hope that in the near future other compatriots of mine will be on the list, who will get on this list and their number will grow.
A sharp jump into IT
My interest in IT began back in my school years. In the 9th grade, I became interested in hardware. I was given a computer, a system unit, which did not work because it had a broken hair dryer and hard drive. And I had to fix it myself, because turning to someone was an expensive pleasure. That was my first immersion in the world of IT! In the 9th grade, I already began to study HTML code - that's when I created our family's first website. Then I got interested in Flash and Dreamweaver.
In the 11th grade, my classmate Anton and I won a city competition! Then we created an entire application dedicated to the 60th anniversary of the end of World War II and did it all based on Flash.
In 2005, I did not see many prospects in the Kyrgyz Republic in terms of IT. Therefore, I chose another direction - finance. And I entered the faculty of business administration at the American University. After some time, I transferred to KIMEP.
My history with IT began in my youth and continues to this day. For me, this is not so much a leap as a return. And today I see a demand for IT products in the country. So we need to develop in this direction.
I founded the company in March 2013 and exactly 10 years later, in March 2023, I left the founders and left the position of CEO.
During these 10 years, we managed to create an industrial enterprise from scratch and a leader in the direct-squeezed juice market not only in Kyrgyzstan, but also throughout Central Asia, established exports to 7 countries, and steadily supplied our products to 3 countries outside the Kyrgyz Republic. The staff increased to 140 people, and installed the most modern bottling line. In general, there were many successes, but there were also many difficulties in fact. And often we only see the successful side.
I had to compete with two global giants - Coca-Cola and Pepsi-Cola, which own many juice brands. The most important thing for me is to create a local and strong brand that is recognized and preferred by consumers. And I succeeded!
History with Forbes
I would like to clarify right away - the Forbes 30 under 30 list - from each region they select 30 people under 30 years old.
I got on this list just before my 30th birthday, when I was 29 years old. When I found out that my name was on the list of nominees, I did not even hope for victory, because the Asia-Pacific region is the most highly competitive market, plus more than half of the world's population lives here! These are highly competitive markets such as China, Japan, Korea, India, Singapore and so on.
Of course, getting on this list was a great honor for me. I am glad that my work was appreciated and I became the first from Kyrgyzstan whose name is on the Forbes list. We have many smart and talented guys in our country. I hope that in the near future other compatriots of mine will be on the list, who will get on this list and their number will grow.
A sharp jump into IT
My interest in IT began back in my school years. In the 9th grade, I became interested in hardware. I was given a computer, a system unit, which did not work because it had a broken hair dryer and hard drive. And I had to fix it myself, because turning to someone was an expensive pleasure. That was my first immersion in the world of IT! In the 9th grade, I already began to study HTML code - that's when I created our family's first website. Then I got interested in Flash and Dreamweaver.
In the 11th grade, my classmate Anton and I won a city competition! Then we created an entire application dedicated to the 60th anniversary of the end of World War II and did it all based on Flash.
In 2005, I did not see many prospects in the Kyrgyz Republic in terms of IT. Therefore, I chose another direction - finance. And I entered the faculty of business administration at the American University. After some time, I transferred to KIMEP.
My history with IT began in my youth and continues to this day. For me, this is not so much a leap as a return. And today I see a demand for IT products in the country. So we need to develop in this direction.
About Tentech
Tentech is a young company founded this year.
Tentech's goal is, first of all, to help businesses in the Kyrgyz Republic become better, more flexible, and more competitive.
There can be no talk of automation here! Therefore, in a strategic partnership with Green White Solutions, Abdukahor Toshmukhamedov and I decided to develop Smartup and Verifix products in the Kyrgyz Republic.
In partnership, we adapted the solution for our market. Using the rich experience and knowledge of our partners, we actively promote solutions in the Kyrgyz Republic.
Our goal is to help businesses - large, small and medium, automate business processes, increase their competitiveness, increase their revenues and reduce their costs.
In parallel, we also provide consulting services, sharing our experience and knowledge with companies so that they become more competitive.
Demand for Smartup
Many market participants have already realized the need for automation. Many, as they say, have had their share of mistakes with other solutions that did not give the expected result.
Smartup entered the market when many participants were ripe. Some are working on the transition to automation processes, or are making certain adjustments due to the fact that previous systems or solutions that were offered did not quite justify themselves. Many suppliers promise mountains, but in the end their solutions turn out to be very limited!
Smartup is the #1 distribution automation solution in the Uzbek market. More than 75% of market participants use the Smartup solution, there is a very high degree of satisfaction with this product. I hope that we will have a similar situation and we will be able to help many.
Expectations
Expectations from cooperation are ambitious and high. I see that Green White Solutions is a very strong and competent company, it is developing dynamically. And our company TENTECH would also like to take part in joint development, in joint creation of products, possibly in joint entry into other markets with these products.
I think that by combining our efforts, both of our companies can achieve much more, that is, and get such a synergy effect.
Development forecasts
Regarding development forecasts, in a fairly short period of time we managed to conclude several contracts, both with large and medium-sized companies. We have already launched one client and are planning to launch two more in September.
On September 26, the first closed business seminar for market participants will be held in Bishkek, where we plan to talk about the possibilities of Smartup for growth and business.
We are attracting a special guest in the person of Nikolay Doroshchuk, as well as colleagues from Uzbekistan. These are specialists and managers of very large manufacturing and distribution companies. Based on their real cases, they will talk about the advantages of working with the system, share their experience and answer current questions from participants.
The purpose of the event is to create a platform where distributors and manufacturers could gather and openly discuss pressing issues and topics, and jointly find solutions to them.
We want there to be more cooperation and collaboration, not just competition, because after all, all market participants have the same task - to satisfy the needs of the end consumer. And I think that everyone has the same goals in this.
Taking this opportunity, we would like to invite everyone to this business seminar. Participation is absolutely free, you just need to register at the link: http://tentech.kg/landing
Joining the WTO: opportunities for the FMCG market
In our region, 2 countries are members of the WTO – Kyrgyzstan and Kazakhstan (since 2015). In general, the advantage of joining the WTO is openness. Being a member of the WTO, borders open up and, naturally, this has both pros and cons.
Many countries are probably worried about joining the WTO, because competition increases significantly and goods from markets such as China, where goods of fairly good quality have very low prices compared to local producers, enter.
But I think that in the long term, joining the WTO still forces the market to increase its competitiveness, and this allows local producers, among others, to enter exports. That is why, in general, of course, it is necessary to be participants in such international associations, but this must, of course, be approached very carefully.
Retail market of the Kyrgyz Republic
According to various estimates, the share of modern retail is from 15% to 25%, traditional retail still dominates. And if we talk about the total number of retail outlets throughout the republic, again, according to various estimates, it is somewhere around 14-16 thousand retail outlets.
Our country is relatively small - only 7 regions. The population is slightly more than 7 million people. Distribution of large players is established in all regions, retail is developing very dynamically.
Among the large chain supermarkets, we can note "Narodny", "Spar", "Globus", "Asia". Many international brands are present on the market.
Many start with the capital - Bishkek. Currently, almost all large retail chains have their own outlets in almost all regional centers and large cities. In principle, the development trend is the same as in other parts of our Central Asian region.
Competition is definitely growing and in the near future only those who stay afloat will win, those players who have a high degree of automation and a high degree of cost control, and those companies that constantly conduct online analysis and make timely, high-quality and correct management decisions.
Forecasts for the next 10 years of the FMCG market.
In the near future, classical distribution in the form in which we are accustomed to seeing it will evolve and change. Most likely, large manufacturers of international scale - multinational companies, they will probably already start to engage in sales themselves.
If now they have distributors who are engaged in sales, storage, and logistics, and large manufacturers themselves are mostly engaged in marketing, then, according to my forecasts, they will also be engaged in sales themselves. The classical distributor, which we know, will turn into a logistician. The distribution company will carry out storage and logistics of goods to the final points of sale.
Marketing sales will most likely be carried out by large manufacturers.
Definitely, modern retail will continue to develop. I think that in 10 years the share may well reach and even exceed the 50% mark of the total market share, if we are talking about items and monetary volume.
Consumers will become more picky in a good sense, I would even say they will start to be more selective about their consumption. After all, there is a trend towards a healthy lifestyle and proper nutrition, and I really hope that consumers in our region will start to consume healthy products and invest in their health.
This is very important for the long-term development prospects of the region as a whole.
After all, our primary task is to strive for our population to be healthy, strong, energetic, then everything will be fine with us!
In the near future, classical distribution in the form in which we are accustomed to seeing it will evolve and change. Most likely, large manufacturers of international scale - multinational companies, they will probably already start to engage in sales themselves.
If now they have distributors who are engaged in sales, storage, and logistics, and large manufacturers themselves are mostly engaged in marketing, then, according to my forecasts, they will also be engaged in sales themselves. The classical distributor, which we know, will turn into a logistician. The distribution company will carry out storage and logistics of goods to the final points of sale.
Marketing sales will most likely be carried out by large manufacturers.
Definitely, modern retail will continue to develop. I think that in 10 years the share may well reach and even exceed the 50% mark of the total market share, if we are talking about items and monetary volume.
Consumers will become more picky in a good sense, I would even say they will start to be more selective about their consumption. After all, there is a trend towards a healthy lifestyle and proper nutrition, and I really hope that consumers in our region will start to consume healthy products and invest in their health.
This is very important for the long-term development prospects of the region as a whole.
After all, our primary task is to strive for our population to be healthy, strong, energetic, then everything will be fine with us!
