Azizbek Yusufov: Now is the most effective period for investing in the Uzbek market
Business
According to estimates by MCA Advertising (owned by global agency Omnikom), the advertising services market in Uzbekistan in 2023 grew by 30% compared to 2022, and the total volume of the country's media market is rapidly approaching 500 billion sums of turnover per year. Against the backdrop of the country's economic reforms, the entry of global corporations into the Uzbek market, the growth of total budgets for marketing and advertising, the demand for expertise has increased significantly, and the rating of platforms for advertising communications has also grown.
In an exclusive interview with Bright, Azizbek Yusufov, one of the leading marketing experts in Uzbekistan and co-founder of advertising agency WorldWide Media, winner of the 2018 Personality of the Year award according to the Marketing Association of Uzbekistan, discusses new trends in the advertising market. He also explains what is important for international corporations to consider when entering the Uzbek market and why companies should invest resources in marketing communications.
Azizbek, over the past years you have played an important role in companies such as Worldwidemedia, Imcon plus and Lebazar. How has the changing advertising and marketing market influenced your work in these companies?
Marketing has undergone a significant transformation, evolving from a stage where it was primarily associated with international brands seeking to expand their presence in various markets to becoming a crucial component of business operations today. Throughout my tenure at companies such as WorldWide Media, where I serve as the founder and CEO, Imcon Plus, and Lebazar, where I held the position of marketing director, I have been deeply involved in crafting marketing strategies. Our focus has been on elucidating the fundamental roles of marketing to our partners—highlighting why it is essential for businesses to heed the insights of marketers. Marketing plays a pivotal role in determining product development, market positioning, and demand. It encompasses everything from engaging with the target audience to conducting thorough analytics and ensuring commercial profitability.
As an example, I can tell you about my successful case study at Imcon plus, the largest ice-cream producer in Uzbekistan. Since the company's main product is ice cream, it is obvious that we were experiencing a significant shortage of profit during the winter period, as our main product was not in demand at that time. Prior to my arrival, the company made its major profits during the summer period, with limited sales in the winter. However, when I took over the marketing department of the company, I decided to conduct a market research study where we came to the conclusion that a product category such as frozen desserts could attract the interest of the audience. I came to the top management of the company with the idea of expanding the product line by introducing a new product to the market. This gave the company an innovative product called "Dessert" - a series of frozen desserts. The product was a great success with consumers, and we were able to increase winter sales by 12%. In this way, well-built marketing had an impact on the success of the entire company.
In 2019, you were honored at the Brand of the Year Marketing Awards in the Personality of the Year category, triumphing over formidable industry heavyweights. What specific business qualities do you believe contributed to your success?
In fact, the competition in marketing is always tough and I am proud to have been able to win this award in 2019. To achieve such a successful result, I believe several factors played a crucial role.
Firstly, my constant striving for self-improvement has helped me to stay in the rhythm of the changing industry and find new ideas, implementing successful cases time after time. I have always tried to stay ahead of the trends by studying new marketing tools and methods and applying them in practice, in particular by developing a fundamentally new approach to property marketing.
Secondly, I have never been afraid to pass on my knowledge and secrets, in particular, from 2017 to 2020 I taught marketing at Alpha Education training centre. Some of my students later became my subordinates and contributed to the success of my projects.
Thirdly, effective leadership and teamwork played a huge role in my success. I have always endeavoured to create an inspiring and motivating atmosphere in the team, where each member felt valued and effective as a member of the project. My desire to constantly develop horizontal links between marketers was also evident in my interaction with the Marketing Association of Uzbekistan.
Azizbek, speaking about the Association and your active participation in it, how in your opinion has its creation influenced the field of marketing in Uzbekistan?
The Marketing Association of Uzbekistan is the only and unique Association in Uzbekistan, and one of the largest in Central Asia according to Eplus Marketing. Every year the Association organises the Tashkent Advertising Festival TAF, the Makon Marketing Conference, the Yil Brendi (Brand of the Year) brand competition, and the Tashkent Digital Marketing Forum digital conference.
Local agencies from Uzbekistan - Evos, Akfa, Murad buildings and others - started to participate and win prizes at international festivals. As far as the market is concerned, in addition to openness, due to improved economic indicators, we have seen advertisers' budgets grow, companies have started investing more in marketing, and there is more money in the media market.
Due to the association in our market, the marketing profession has started to attract more attention from the youth and also conservative brands have started to focus more on marketing their products.
Also, all the activities conducted by the Association allow attracting external players to the Uzbek market, and this in turn improves both the prestige of the market in the international arena and the investment attractiveness of our market and the companies operating within it. It is important because thanks to the fact that we are not afraid to change the rules of the game and pay attention to non-standard methods, we can actively develop and find new creative approaches to marketing.
Speaking about my first experience of interaction with the Association, I can recall that in the years when it was established (2014-2018), I held the position of marketing director in a large company IMKON and badly needed the opportunity to communicate with colleagues from Uzbekistan and neighbouring countries, in the period of active growth it is one of the drivers of the company's growth.
Together with the Association, we also launched several practical workshops, and I taught in Uzbek-language forums and courses.
Returning to your experience of scientific and teaching activity, I would like to touch upon one of the topics of your scientific works, namely the evaluation of the effectiveness of the use of various methods of advertising. In your article you consider the problem in the context of the property market. What trends can you note in this area for the marketing industry as a whole?
When the growth in demand for marketing went up very sharply, almost four times, the market took a risk. We all risked ending up in an abyss of drained, inefficient budgets, because there was no regulation of the advertising market in Uzbekistan. The first ratings of TV advertising platforms appeared, and they solved the problem of pricing for TV advertising. Now I know that international agencies are planning to digitise ratings and traffic of outdoor advertising in order to increase its efficiency and systematise the market. A system for assessing the effectiveness of sites has appeared, and as a consequence, market mechanisms have started to work, and these are certainly positive trends.
What are the current dynamics in advertising figures? In terms of marketing budgets, where would it be strategic for international companies entering Uzbekistan to invest?
The advertising market in Uzbekistan is growing at a very high rate, if according to the National Marketing Centre of Uzbekistan in 2017, the advertising market was $21-22 million, then in 2021 this figure has increased to $60 million, and in 2024 we expect the advertising market to exceed the mark of $100 million. All niches have positive growth - fintech, banks, FMCG, services, all these have shown great growth in the last 3-4 years.
What would you, as a leading marketing expert, recommend to foreign businessmen and companies planning to invest in Uzbekistan? Is it worth investing in our market today or is now not the best time to do so?
Now is the time to invest in emerging markets. Against the backdrop of economic crises in the West and the underperformance of the technology sectors, there will be a significant surge in demand for investment in developing countries due to more affordable labour and the potential for increased purchasing power of the population. This includes Uzbekistan. The market is open to investment, experiencing rapid development. With a population of over 35 million, there are numerous untapped niches where competition is minimal. And even in sectors where numerous local and foreign brands operate, there remains unmet demand. For instance, despite the abundance of laundries, statistics from the Agency under the President of the Republic of Uzbekistan indicate a substantial demand for laundry and dry cleaning services in Tashkent. Overall, with a robust product, a well-defined strategy, and a grasp of marketing principles, investments can yield quick returns. Although risks are elevated, they are mitigated by short investment return periods. For instance, in the real estate sector, one of the largest markets, the payback period for residential construction is less than 6 years.
Malika Akhmedovа
Azizbek, over the past years you have played an important role in companies such as Worldwidemedia, Imcon plus and Lebazar. How has the changing advertising and marketing market influenced your work in these companies?
Marketing has undergone a significant transformation, evolving from a stage where it was primarily associated with international brands seeking to expand their presence in various markets to becoming a crucial component of business operations today. Throughout my tenure at companies such as WorldWide Media, where I serve as the founder and CEO, Imcon Plus, and Lebazar, where I held the position of marketing director, I have been deeply involved in crafting marketing strategies. Our focus has been on elucidating the fundamental roles of marketing to our partners—highlighting why it is essential for businesses to heed the insights of marketers. Marketing plays a pivotal role in determining product development, market positioning, and demand. It encompasses everything from engaging with the target audience to conducting thorough analytics and ensuring commercial profitability.
As an example, I can tell you about my successful case study at Imcon plus, the largest ice-cream producer in Uzbekistan. Since the company's main product is ice cream, it is obvious that we were experiencing a significant shortage of profit during the winter period, as our main product was not in demand at that time. Prior to my arrival, the company made its major profits during the summer period, with limited sales in the winter. However, when I took over the marketing department of the company, I decided to conduct a market research study where we came to the conclusion that a product category such as frozen desserts could attract the interest of the audience. I came to the top management of the company with the idea of expanding the product line by introducing a new product to the market. This gave the company an innovative product called "Dessert" - a series of frozen desserts. The product was a great success with consumers, and we were able to increase winter sales by 12%. In this way, well-built marketing had an impact on the success of the entire company.
In 2019, you were honored at the Brand of the Year Marketing Awards in the Personality of the Year category, triumphing over formidable industry heavyweights. What specific business qualities do you believe contributed to your success?
In fact, the competition in marketing is always tough and I am proud to have been able to win this award in 2019. To achieve such a successful result, I believe several factors played a crucial role.
Firstly, my constant striving for self-improvement has helped me to stay in the rhythm of the changing industry and find new ideas, implementing successful cases time after time. I have always tried to stay ahead of the trends by studying new marketing tools and methods and applying them in practice, in particular by developing a fundamentally new approach to property marketing.
Secondly, I have never been afraid to pass on my knowledge and secrets, in particular, from 2017 to 2020 I taught marketing at Alpha Education training centre. Some of my students later became my subordinates and contributed to the success of my projects.
Thirdly, effective leadership and teamwork played a huge role in my success. I have always endeavoured to create an inspiring and motivating atmosphere in the team, where each member felt valued and effective as a member of the project. My desire to constantly develop horizontal links between marketers was also evident in my interaction with the Marketing Association of Uzbekistan.
Azizbek, speaking about the Association and your active participation in it, how in your opinion has its creation influenced the field of marketing in Uzbekistan?
The Marketing Association of Uzbekistan is the only and unique Association in Uzbekistan, and one of the largest in Central Asia according to Eplus Marketing. Every year the Association organises the Tashkent Advertising Festival TAF, the Makon Marketing Conference, the Yil Brendi (Brand of the Year) brand competition, and the Tashkent Digital Marketing Forum digital conference.
Local agencies from Uzbekistan - Evos, Akfa, Murad buildings and others - started to participate and win prizes at international festivals. As far as the market is concerned, in addition to openness, due to improved economic indicators, we have seen advertisers' budgets grow, companies have started investing more in marketing, and there is more money in the media market.
Due to the association in our market, the marketing profession has started to attract more attention from the youth and also conservative brands have started to focus more on marketing their products.
Also, all the activities conducted by the Association allow attracting external players to the Uzbek market, and this in turn improves both the prestige of the market in the international arena and the investment attractiveness of our market and the companies operating within it. It is important because thanks to the fact that we are not afraid to change the rules of the game and pay attention to non-standard methods, we can actively develop and find new creative approaches to marketing.
Speaking about my first experience of interaction with the Association, I can recall that in the years when it was established (2014-2018), I held the position of marketing director in a large company IMKON and badly needed the opportunity to communicate with colleagues from Uzbekistan and neighbouring countries, in the period of active growth it is one of the drivers of the company's growth.
Together with the Association, we also launched several practical workshops, and I taught in Uzbek-language forums and courses.
Returning to your experience of scientific and teaching activity, I would like to touch upon one of the topics of your scientific works, namely the evaluation of the effectiveness of the use of various methods of advertising. In your article you consider the problem in the context of the property market. What trends can you note in this area for the marketing industry as a whole?
When the growth in demand for marketing went up very sharply, almost four times, the market took a risk. We all risked ending up in an abyss of drained, inefficient budgets, because there was no regulation of the advertising market in Uzbekistan. The first ratings of TV advertising platforms appeared, and they solved the problem of pricing for TV advertising. Now I know that international agencies are planning to digitise ratings and traffic of outdoor advertising in order to increase its efficiency and systematise the market. A system for assessing the effectiveness of sites has appeared, and as a consequence, market mechanisms have started to work, and these are certainly positive trends.
What are the current dynamics in advertising figures? In terms of marketing budgets, where would it be strategic for international companies entering Uzbekistan to invest?
The advertising market in Uzbekistan is growing at a very high rate, if according to the National Marketing Centre of Uzbekistan in 2017, the advertising market was $21-22 million, then in 2021 this figure has increased to $60 million, and in 2024 we expect the advertising market to exceed the mark of $100 million. All niches have positive growth - fintech, banks, FMCG, services, all these have shown great growth in the last 3-4 years.
What would you, as a leading marketing expert, recommend to foreign businessmen and companies planning to invest in Uzbekistan? Is it worth investing in our market today or is now not the best time to do so?
Now is the time to invest in emerging markets. Against the backdrop of economic crises in the West and the underperformance of the technology sectors, there will be a significant surge in demand for investment in developing countries due to more affordable labour and the potential for increased purchasing power of the population. This includes Uzbekistan. The market is open to investment, experiencing rapid development. With a population of over 35 million, there are numerous untapped niches where competition is minimal. And even in sectors where numerous local and foreign brands operate, there remains unmet demand. For instance, despite the abundance of laundries, statistics from the Agency under the President of the Republic of Uzbekistan indicate a substantial demand for laundry and dry cleaning services in Tashkent. Overall, with a robust product, a well-defined strategy, and a grasp of marketing principles, investments can yield quick returns. Although risks are elevated, they are mitigated by short investment return periods. For instance, in the real estate sector, one of the largest markets, the payback period for residential construction is less than 6 years.
Malika Akhmedovа
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