Mongolia is a nation rich in natural resources and traditional industries, with great potential to compete in the global market. Increasing export volumes and supporting domestic production are key foundations for economic growth and sustainable development. Here, we explore how Mongolia can develop its in-demand export products to seize these opportunities.
Mongolia is a major supplier, providing 40% of the world’s raw cashmere. However, the insufficient processing of cashmere limits the country's ability to fully capitalize on its market potential.
Cashmere products hold significant potential as Mongolia’s flagship offerings in the global market. In recent years, global trends in sustainable development, organic, eco-friendly, and traditional lifestyles have created tremendous demand for Mongolian cashmere products. Unfortunately, the country prioritizes the export of raw cashmere over finished goods, which is regrettable.
Mongolia annually produces an average of 10,000 tons of cashmere. Of this, 70-80% is exported as raw material, while only 20-30% is processed into combed or finished products. The export structure is as follows:
84.4% raw washed cashmere,
7.7% combed cashmere,
7.9% knitted and woven cashmere products.
This structure demonstrates that Mongolia is losing significant opportunities to create value-added products and produce globally competitive goods. If Mongolia fully processes its cashmere and produces high-quality, competitive products, export revenues could double.
Technology and Innovation: Introduce modern technologies in cashmere processing plants to improve quality.
Brand Development: Establish national and international brands that highlight the uniqueness of Mongolian cashmere.
Export Policies: Reduce the export of raw materials and support policies promoting value-added products.
With the right policies and organizational efforts, Mongolia’s cashmere sector could become a key driver of economic growth. This is not only an economic opportunity but also a significant step in showcasing Mongolia’s brand to the world.
To begin with, let's delve into the first solution for unlocking Mongolia's cashmere potential:
Technology and Innovation
Mongolia can introduce modern technologies in cashmere processing plants to significantly improve the quality of its cashmere products. By leveraging advanced technology, the country can ensure its cashmere is not only ethically sourced but also meets the highest standards of quality and consistency. This is crucial for competing with established cashmere brands and appealing to a discerning global market.
One such technology is the German-engineered "e-spinning" machine. This innovative tool can create yarn directly from raw cashmere fibers, bypassing the combing process. Not only does this produce a stronger and more uniform yarn, but it also reduces waste and increases efficiency. By investing in cutting-edge machinery like the e-spinning machine, Mongolia can enhance its production capabilities and cater to the growing demand for high-quality cashmere products.
Brand Development
In addition to technological advancements, Mongolia should prioritize brand development as the second key solution. A strong, recognizable brand is essential for standing out in a competitive global market. By establishing national and international brands that highlight the uniqueness of Mongolian cashmere, the country can capitalize on the growing appreciation for sustainable, ethically-sourced, and traditional products. This includes promoting the rich heritage of Mongolian cashmere production and the country's commitment to environmental stewardship.
One approach to successful brand development is to emphasize Mongolia's unique selling points, such as its free-range goats and the sustainable, time-honored techniques used by local herders. By weaving this narrative into marketing materials and product labels, Mongolian cashmere can distinguish itself from competitors and appeal to consumers who value authenticity and craftsmanship. Collaborations with well-known fashion designers or brands can further elevate Mongolia's presence in the global market.
Export Policies
Lastly, Mongolia must address its export policies to unlock the full potential of its cashmere sector. This means reducing the export of raw materials and supporting policies that promote value-added products. By prioritizing the development of domestic processing facilities and encouraging the production of finished cashmere goods, Mongolia can maximize its revenue and bolster its economy.
This shift in export strategy requires a combination of incentives and regulations. For instance, the government can offer tax breaks or subsidies for companies investing in local processing plants. Simultaneously, stricter regulations on raw cashmere exports can push the industry towards value-added production. Incentivizing local artisans and cooperatives to produce high-quality cashmere products can also create jobs and stimulate economic growth in rural areas.
Embracing these opportunities and solutions will not only propel Mongolia's cashmere sector forward but will also serve as a significant step in showcasing the country's unique brand to the world. By combining technological innovation, strategic branding, and supportive policies, Mongolia can claim its stake in the global cashmere market and drive economic growth for years to come.
For more www.blog.butengoointernational.com
.png)