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The Mongolian Brand “Gobi” announced today the launch of the largest product line: coats. Within eight years the company had increased its production by 330 times and coat production. The company made a strong statement today quintuple production of coats in the next five years to lead the global market.

The name “Gobi” is well known among Mongolians and globally for its luxurious cashmere products. And this time they are taking the disruptive path to create the exclusive solution – 100% coats. The marketing solution is very unique.

The pure cashmere coat starts from US$299 but it would be tagged at the global market as US$3000, which means that visitors to Mongolia can take an advantage of this flexible price. This is perhaps a very patriotic initiative to attract tourists to Mongolia and support travel sector.

Since its privatization, the Gobi invested so far US$38 m to modernize and expand the factory with additional investment of US$22 m in the next five years, which shall allow the company to increase the capacity and process 1000 tons of cashmere to produce the final luxury.

We have interviewed D.Naranbaatar, first deputy director of Gobi factory.

- Why have you choose coat?

- About 75% of clothes are ready made garment, which means that consumption of knitwear is comparatively low. So based on our research, we have concluded that we can supply knitwear and supply the demand. And we have an opportunity to stage our coats at the global market to be #1. Large brands manufacture coats, but there is no single manufacturer making coats only and they have no raw materials. So based on our available cashmere we are here to create this brand.

- Gobi is one of the few manufacturers promoting Mongolia at global markets. Do you partner with the Government and is there any support provided from the Government?

- We are indeed very much delighted for the policy support from the Government promoting domestic manufacturers. In 2011, the Government had issued bonds in cashmere sector along the low interest long term loans. It has issued over MNT 300 billion loans for 888 projects.

This investment of the Government is a great support to buy raw materials and purchase required equipment. Nomads, our core suppliers of raw materials receive around US$313 m in cash. The VAT is comparatively low around 10% is added to the final product. Comparatively, 90% of all cashmere is exported with added value of only 5%

Ch.Gerel

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