Some Kazakh manufacturers of clothing and accessories are relocating their production facilities to other countries while keeping business management and sales operations in Kazakhstan. Entrepreneurs shared with Forbes Kazakhstan that their decisions were driven by a shortage of skilled labor, difficulties in scaling production, and changing business conditions.

Production Moves Abroad, Business Stays in Kazakhstan

Olga Agapova, founder of the free-DA-sagan brand, said that the company relocated its production to Belarus in early 2026. According to her, the main reasons were a shortage of qualified sewing professionals, difficulties in hiring personnel, and the inability to increase production volumes without compromising quality.

At the same time, collection design, brand management, and the development of new projects continue to be carried out from Kazakhstan.

A similar decision was made by Alexander Yermakov, founder of the leather goods manufacturer Alex Hartung. The company moved its production operations to Italy while maintaining its focus on international expansion. According to the entrepreneur, this approach allows the company to benefit from Italy's well-developed manufacturing infrastructure and build an export-oriented business model.

Key Reasons for Relocation

Among the main factors influencing the relocation of production, entrepreneurs cite:
a shortage of skilled workers;
limited opportunities to scale production;
a high administrative burden;
declining domestic consumer demand;
the need to develop export markets.

At the same time, most companies are not leaving Kazakhstan entirely. Instead, they continue to view the country as a base for management, sales, logistics, and the development of new projects.

Industry Perspective

According to the Association of Light Industry Enterprises of Kazakhstan, the sector continues to face a number of systemic challenges. The association notes that many companies are considering contract manufacturing abroad as a way to expand their businesses, although there is currently no widespread trend of fully relocating production overseas.

Industry experts believe that the sector's future development will depend on the availability of skilled labor, improvements to the business environment, and stronger government support for domestic manufacturers.

A New Business Model

Market participants note that as companies expand into international markets, an increasing number are separating management from manufacturing. Headquarters, sales, and logistics remain in Kazakhstan, while production facilities are located in countries with more developed industrial infrastructure and a stronger skilled workforce.