This presentation is analysis cashmere fashion retail expand to Mongolia

1. Mr. & Mrs. Goat
Mongolia Retail

2. Mongolia Yurt

3. With our cashmere
business, we would like to integrate that
traditional family closure into our business. We
would like to provide a family friendly
environment for the whole family shop at
the same place, and they could even spend a
whole day at our store with together, and leave
with a special, enjoyable, unique experience
from our retail store.

4. Situation Analysis

5. Government involvement can be
influential by owning the processing infrastructure
that might be proved detrimental to the industry.

6. Mongolian economy is
developing day by day and the living standard of
people has been improved to a huge extent over a few
decades. More people are able to have a better life
and they have the ability to buy more things for
themselves now. So this is a good opportunity to go
into that market and try to get maximum market
share.

7. must be kept in mind because some
people might stand up against the killing of animals
for the production of cashmere. This is a big social
issue that might cause to stop the production if not
addressed properly.

8. Currently in Mongolia, the
technology used in the production methods of
cashmere is not up to date and if a company could
come with the latest production technology, that
would be a good chance for that company because
technology increase the efficiency and effectiveness.
The existing businesses can also adopt new
technology methods to improve the manufacturing
process.

9. Due to Global warming,
the whole structure of the Earth is being changed. The
production of grass is affected by that and grass plays
an important role for the production of Cashmere, as
goats need grass. So the environmental changes are
causing problems for the industry. The weather in
Mongolia is usually cold which suits the business of
cashmere because the cashmere products are mostly
used in a cold weather or winters.

10. There are many legal issues that could
affect the Mongolian Cashmere industry including
Favourable tax regime, existence of export processing
zone, law and regulations favourable or against free
trade or quotas. It depends on the governing bodies
that how they control there issues.

11. As Mongolia is a developing
country so the labour cost is low there. Because of the
unemployment, people agree to work on the low
labour cost. Due to the perfect weather conditions
and the production of Capra Hircus Laniger goat,
Mongolia is the best place for good raw material to
product cashmere.

12. The transportation costs are
much higher so that is the weakness because some
people might not go for shopping to other places to
save money.

13. There is a great market
potential for hand woven style carpets made of
cashmere in the country so this is a big opportunity.
The required investment is not that much as
compared to other industries in Mongolia and there is
less competition in the cashmere industry in the
country. Mongolia is very famous for cashmere
production so any company can take advantage of this
by going to that country and making most of it. The
spinning capacity could be increased in production
which could offer new opportunity and variety for
yarns.

14. As china has a very famous name in
cashmere production so Mongolia might face direct
competition from China in near future because the
Chinese companies could dominate.
There are also threats from the local competitors
which sell their products at a cheap price.

15. High End Retail

16. Ulaanbaatar Central
• Where most
Tower 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

17. Features
• Warehouse size
• Family Friendly Theme Environment
• An experience which could not
experienced anywhere else

18. Our products are targeting for all ages of
man, women, children and even their pets,
from clothes, sweater, to fashion accessories,
other items are included carpets, bedroom’s
products, and more which all made from
cashmeres.

19. Material Department

20. In Store Classroom

21. Challenges

22. In our store location, Ulaanbaatar hosts
about 40% of the population, but only with one main
road, Peace Avenue – which runs east west
through the city, and there are not other option to
delivery the goods there. Peace Avenue is often stuck
with cars, trucks, and buses most of the time. So for
products delivery may cost longer time.

23. According to The Report
Mongolia 2012, Mongolia is facing a challenge of the
rising number of goats; the upside is that Mongolia
can sell more cashmere product, but the downside is
lack of plant due to the over load of goats (Oxford
Business Group 2012). If the goats are not getting
enough food for storage before winter comes, it
makes them in harsh conditions, which could
affect the quality of products.

24. with the following
top 3 cashmere companies; Altai,
Goyo, and Gobi

25. Budgeting

26. Budgeting

27. Budgeting

28. Budgeting

29. Budgeting

30. Budgeting
Scouring and dehairing plant
Establish – 900,000 USD
raw cashmere – 360,000 kg @ USD25/kg
annual interest – 1,350,000 USD
capital investment – 1 million

31. Pricing
GREY PURE CASHMERE THROW SIZE
Women cashmere sweater - 498 pounds 130cm x 170cm - 250 pounds
Cardigans - 120 pounds Scarves - 60 pounds

32. Pricing
V NECK CASHMERE SWEATER 100% CREW NECK CASHMERE SWEATER
PURE CASHMERE - 125 pounds 100% PURE CASHMERE - 120 pounds
SOCKS - 30 pounds
and 50 pounds

33. Recommendation

34. 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.

35. Mr. & Mrs. Goat
Thank you for watching