Shavkat Saifiddinov: “You Can Copy a Showroom Design, But You Cannot Copy Institutional Knowledge”

The Palatin Hill  founder on bringing European luxury brands to Kazakhstan, why he invested in employee education when competitors focused on inventory, and how reliability became his path to exclusive distribution rights.  

The global building materials market reached $1.44 trillion in 2024 and is projected to hit $2.04 trillion by 2033, driven by rapid urbanization and a shift toward sustainable construction. Meanwhile, luxury brands are aggressively expanding into emerging markets, with companies like Messika hosting major events in Central Asia and Panerai opening boutiques in Kazakhstan and Uzbekistan. In Kazakhstan specifically, the construction sector experienced remarkable growth of 16.9% in the first quarter of 2025, with completed construction work reaching $2.1 billion, according to the Bureau of National Statistics of the Republic of Kazakhstan. This surge reflects the country’s rapid urbanization and rising living standards, with 3.73 million square meters of residential buildings commissioned in Q1 2025 alone – a 7.4% increase year-on-year.

Yet in 1997, when Almaty was still the capital, quality tiles and plumbing fixtures were scarce, and the concept of premium interior design barely existed in the market.

Shavkat Saifiddinov recognized this gap and spent the next 27 years filling it.

Starting from a single container at Salamat market, he built Palatin Hill into Kazakhstan’s largest network of premium construction materials stores, securing exclusive distribution rights for Versace tiles, Porselanoca, Peronda, Marazzi Group, and Pamesa, other international brands. Under his leadership, the company won first place at the KazBuild international exhibition 17 times, earned the Best Marketing Solution award in 2006, and grew to 220 employees across Almaty and Astana. Since 2016, Saifiddinov has been a member of the Professional TANU Association, which unites architects, designers, and construction industry professionals in Kazakhstan, and is preparing to serve as a judge for the Best For Life design competition.

In our interview, Saifiddinov discusses how he convinced skeptical European manufacturers to enter an unknown market, why he invested heavily in employee education when competitors focused on inventory, and what he learned from visiting more than 100 countries and attending exhibitions from Milan to Hong Kong.

When you started with one container at Salamat market in 1997, Kazakhstan was just beginning its transition. What did you see in the construction materials market that others missed?  

I saw people building homes but settling for whatever materials they could find. Almaty was full of construction, but the aesthetic quality was poor because nobody had access to better options. I had always been interested in design, repair, and trade since my youth, so I understood that people wanted beauty and comfort. They just didn’t know it was available. The country was developing fast, incomes were growing, and Kazakhstanis are naturally hospitable people who take pride in their homes. I realized that if I could bring quality European materials and educate customers about design possibilities, there would be enormous demand. Starting small with tiles on consignment, let me test this theory without huge capital. My first customers were often prominent people in Kazakhstan who appreciated the quality and service, then recommended me to their friends and family. That word-of-mouth became the foundation for everything that followed.

Building trust with European luxury brands from an emerging market must have been challenging. How did you convince companies like Versace and Marazzi to give you exclusive distribution rights?  

European manufacturers were extremely cautious about Central Asian markets. They worried about payment reliability, brand protection, and whether we could properly represent their products. I didn’t try to convince them with presentations; I convinced them through actions. I traveled to Italy and Spain at my own expense, attended CERSAIE, Salone del Mobile Milano, and other major exhibitions starting in 2000. I visited factories, studied their production methods, and learned about their design philosophy. I wanted them to see that I respected their craftsmanship. When negotiations started, I brought detailed market analysis and paid on time, every time. Reliability matters more than promises. Kerama Marazzi became one of our key partners after seeing how we organized showrooms, trained staff on product knowledge, and created demand through education rather than just stocking shelves. They eventually gave us a 37,000$ gift certificate for our marketing campaigns in Kazakhstan. Once one premium brand trusted us, others followed because they could see the results.

You mentioned education as central to your approach. What were you teaching, and why was this necessary in your market?  

Customers in Kazakhstan didn’t have reference points for international design standards. They might walk into a store knowing they needed tiles but having no understanding of how different materials, colors, and textures could transform a space. We trained our staff not just on product specifications but on design principles, color theory, spatial planning, and lifestyle needs. A salesperson needed to understand why someone building a traditional Kazakhstani home might choose different materials than someone creating a modern European-style apartment. We held regular training sessions where I personally taught employees about products and customer psychology. Our best performers earned trips to exhibitions in Italy and Spain, where they visited factories and met designers – this wasn’t tourism, it was education and combined. This investment paid off because our customers felt genuinely helped rather than sold to, and our staff became design consultants rather than order-takers.

Palatin Group grew from 3 employees to 220 over the years. Retail typically has high turnover, but your company seems to have retained people. What was your philosophy on building this team?  

People stay when they feel their growth matters. From the beginning, I rejected the idea of employees as interchangeable parts. We built a culture around shared success—when the company won awards or reached milestones, everyone celebrated because everyone contributed. We organized regular team-building events, had our own football team, and gave bonuses for outstanding performance. Managers weren’t brought in from outside – they were promoted from within, so they understood the company culture deeply and could mentor newer employees. We also created genuine growth opportunities. An entry-level salesperson could become a showroom manager, then a regional director, if they showed initiative and commitment. This career path was visible and real, not theoretical. When people see that investing in the company means the company invests back in them, loyalty becomes natural rather than forced.

Your company won 17 gold medals at KazBuild over the years, plus awards for Best Marketing Solution and hospitality. These competitions seem quite different from daily business operations. Why did you prioritize them?  

KazBuild was never about the trophy – it was about positioning. Each year, we treated our exhibition stand as a complete interior design project, combining tiles, plumbing, and bathroom furniture to create aspirational spaces that showed people what their homes could become. We were educating the market and establishing standards for what premium meant. Winning Best Stand in 2006, 2008, 2011, 2014, and 2016 gave us credibility with both customers and suppliers. European manufacturers who were hesitant about the Kazakhstani market saw that we could represent their brands to international standards. Talented architects and designers wanted to work with us because we had the best materials. The hospitality award reflected something deeper; in Kazakhstan, business relationships are personal. When European suppliers visited or architects came to select materials for major projects, we treated them as long-term partners, not transactions. This hospitality became part of our brand and competitive advantage because it built trust that went beyond price or product availability.

Many competitors attempted to replicate your model after witnessing your success. How did you stay ahead when others were replicating your approach?  

Competition validates your model, but copying isn’t the same as understanding. Yes, many companies tried to replicate our concept: the mix of price points, showroom layouts, and service approach. Some even consulted me directly about suppliers and operational principles. I shared openly because I knew duplication couldn’t threaten what we’d built. Our advantage came from relationships and institutional knowledge accumulated over decades. You can copy a showroom design in six months, but you can’t copy 20 years of trust with European suppliers, or staff trained to genuinely understand customer needs, or the network of architects and builders who relied on us for expertise. We also never stopped evolving. While competitors were implementing our 2010 model, we were already adapting to new trends in logistics, customer relationship management, and product curation. The market became more competitive and sophisticated, which actually validated our original vision – we’d helped create an industry where quality mattered.

You recently received recognition from the United States Congress for contributions to real estate development and entrepreneurship. What drew you to invest in American real estate?  

The United States represents a mature, stable market with strong property rights and transparent legal systems – fundamentally different from emerging markets but equally compelling for different reasons. I invest in American real estate through companies like 805 Somerset LLC in South Carolina, where I’m a co-owner, and Roma Invest Group Florida LLC. The Congressional recognition from Representative Kevin Kiley acknowledges the broader economic contribution that international investors make to local communities through job creation and sustainable development. What attracted me to US real estate was the opportunity to apply lessons learned from building businesses in challenging environments to a market with established infrastructure and rule of law. The investment approach remains consistent through due diligence, long-term perspective, and focus on creating genuine value rather than speculative gains.

Looking at where Kazakhstan’s construction market stands now compared to 1997, what’s changed fundamentally, and how are you positioning Palatin Group for what comes next?  

The fundamental shift is from scarcity to sophistication. In 1997, finding quality materials was the challenge. Today, customers research products online, follow international design trends on Instagram, and demand sustainable, durable solutions. They’re educated and discerning. Our positioning reflects this evolution – we’re transitioning from product suppliers to design partners. This means deeper collaboration with architects, more educational content for customers, and curated collections rather than vast inventories. We’re also preparing for the next generation of buyers who value sustainability and smart home integration. My relationships with brands like Versace, Marazzi, and Galassia give us early access to their innovations, which we can introduce to Central Asia before they become mainstream.