TsinKaz reveals sauce of its success

With a 40 percent market share in tinned tomato products, TsinKaz is Kazakhstan's market leader, while its products can be found in 15,000 supermarkets and in 42 regions of the country.

At first, it just specialized in tomato ketchup, but now it has 100 canned fruit and vegetable products as well as six varieties of tomato sauce developed especially for Central Asian markets. These include Tatar, garlic and barbecue flavors.

TsinKaz has also picked up numerous awards in the country such as "No 1 Tomato Paste" and "Faultless Products of Kazakhstan". Last year, its ketchup was voted "Best Product of Kazakhstan" at a regional exhibition.

But then, Chen has attributed the company's success to his "HPFM" theory of management.

H is HR management localization, while P refers to product R&D. F means financial budget management, while M is about establishing a marketing network, he explained.

"By executing the model, a local management team has been formed, as well as an excellent technical base in Kazakhstan."

Most of his staff have regional backgrounds. Many are Kazakhs, Russians, Tartars and Uzbeks. In 2014, there were only four Chinese employees on the payroll.

"We will continue to make use of local resources in the future," Chen said. "We also plan to develop local produce as part of our localization strategy."

Another key driving force will be the Belt and Road Initiative, which was proposed by President Xi Jinping in 2013.

This is a trade and infrastructure network that includes the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

It will connect Asia, Europe and Africa, and passes through more than 60 countries and regions with a population of about 4.4 billion.

"We must take our excellent technology, equipment and management methods abroad," Chen said. "Meanwhile, increased economic cooperation between China and countries along the Silk Road Economic Belt will create a better business environment for us."

TsinKaz's rise is mainly due to Chen's determination and his knowledge of the marketplace he is operating in, according to Liang Zhongkang, director of the China Canned Food Industry Association.

"The company has adopted a complete localization strategy, integrating with the culture," Liang said. "This has involved hiring local employees, developing products and catering to the taste of local people."

Still, there are challenges ahead for the canned food industry.

"The tomato sector has shown rapid growth in recent years, but this means there has been oversupply," Chen said.

"About 90 percent of ketchups are exported as raw materials, with very low additional value. This is something we must look at."

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