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With our cashmerebusiness, we would like to integrate thattraditional family closure into our business. Wewould like to provide a family friendlyenvironment for the whole family shop atthe same place, and they could even spend awhole day at our store with together, and leavewith a special, enjoyable, unique experiencefrom our retail store.
Government involvement can beinfluential by owning the processing infrastructurethat might be proved detrimental to the industry.
Mongolian economy isdeveloping day by day and the living standard ofpeople has been improved to a huge extent over a fewdecades. More people are able to have a better lifeand they have the ability to buy more things forthemselves now. So this is a good opportunity to gointo that market and try to get maximum marketshare.
must be kept in mind because somepeople might stand up against the killing of animalsfor the production of cashmere. This is a big socialissue that might cause to stop the production if notaddressed properly.
Currently in Mongolia, thetechnology used in the production methods ofcashmere is not up to date and if a company couldcome with the latest production technology, thatwould be a good chance for that company becausetechnology increase the efficiency and effectiveness.The existing businesses can also adopt newtechnology methods to improve the manufacturingprocess.
Due to Global warming,the whole structure of the Earth is being changed. Theproduction of grass is affected by that and grass playsan important role for the production of Cashmere, asgoats need grass. So the environmental changes arecausing problems for the industry. The weather inMongolia is usually cold which suits the business ofcashmere because the cashmere products are mostlyused in a cold weather or winters.
There are many legal issues that couldaffect the Mongolian Cashmere industry includingFavourable tax regime, existence of export processingzone, law and regulations favourable or against freetrade or quotas. It depends on the governing bodiesthat how they control there issues.
As Mongolia is a developingcountry so the labour cost is low there. Because of theunemployment, people agree to work on the lowlabour cost. Due to the perfect weather conditionsand the production of Capra Hircus Laniger goat,Mongolia is the best place for good raw material toproduct cashmere.
The transportation costs aremuch higher so that is the weakness because somepeople might not go for shopping to other places tosave money.
There is a great marketpotential for hand woven style carpets made ofcashmere in the country so this is a big opportunity.The required investment is not that much ascompared to other industries in Mongolia and there isless competition in the cashmere industry in thecountry. Mongolia is very famous for cashmereproduction so any company can take advantage of thisby going to that country and making most of it. Thespinning capacity could be increased in productionwhich could offer new opportunity and variety foryarns.
As china has a very famous name incashmere production so Mongolia might face directcompetition from China in near future because theChinese companies could dominate.There are also threats from the local competitorswhich sell their products at a cheap price.
Ulaanbaatar Central• Where mostTower of the high-end retailers are locate• Contained a mixture of luxury of retail outlets and dining options• Designed to be the highest international standards office towers in the world
Features• Warehouse size• Family Friendly Theme Environment• An experience which could not experienced anywhere else
Our products are targeting for all ages ofman, women, children and even their pets,from clothes, sweater, to fashion accessories,other items are included carpets, bedroom’sproducts, and more which all made fromcashmeres.
In our store location, Ulaanbaatar hostsabout 40% of the population, but only with one mainroad, Peace Avenue – which runs east westthrough the city, and there are not other option todelivery the goods there. Peace Avenue is often stuckwith cars, trucks, and buses most of the time. So forproducts delivery may cost longer time.
According to The ReportMongolia 2012, Mongolia is facing a challenge of therising number of goats; the upside is that Mongoliacan sell more cashmere product, but the downside islack of plant due to the over load of goats (OxfordBusiness Group 2012). If the goats are not gettingenough food for storage before winter comes, itmakes them in harsh conditions, which couldaffect the quality of products.
with the followingtop 3 cashmere companies; Altai,Goyo, and Gobi
Recommendation• Should advertise their high quality to trigger positive reactions.• All advertisements should be adapted to the Mongolian Language and not standardized.• Direct marketing is the key to building long term relationships.• Personnel from UK and Mongolia will help the process of building brand loyalty.