ULAANBAATAR, Mongolia — July 30, 2019 — During the Mongolian president’s visit to the United States of America, the largest cashmere manufacturer of Mongolia Gobi Corp. is preparing to announce its plans to enter the U.S. market by September 2019. The subsidiary Gobi Cashmere USA will be located in Los Angeles and is launching an e-commerce website specially dedicated to U.S customers.
Gobi currently supplies high-quality raw cashmere products onto the international market however, its presence on the U.S. market has been niche due to the fierce competition from China. As of now, Gobi has its franchise stores in Chicago, Los Angeles, and San Francisco. If the trade bill is passed, this would allow cashmere companies from the young democratic nation to compete with its competitors.
The increased trade between the United States of America and Mongolia will benefit many stakeholders in the supply chain of cashmere including the consumers, nomads, employees and the economical trade between both countries.
The nomads of Mongolia rely on the sale of their raw cashmere to manufacturers for half of the annual income, which is highly needed for the education of their children and other costs that are incurred during the year. As goats are one of the herds that are valued and herded by the nomads, the raw cashmere that is being provided onto the market will be supplied regardless of the demand by the nomads. Besides, Mongolian traditional nomadic way of coexisting with livestock gives the special feature of differentiation to cashmere sourced from Mongolian land, in terms of traditional heritage, care for the goats and humane way of treatment.
Additionally, Gobi has more than 2800 employees and 80 percent of them are females. As a part of the company social responsibility, the national giant company Gobi thrives to be the number one organization that leads others by example by taking good care for the employees well beings, especially for those in need. This is another driver of the company’s expansion to the international market, as the production increase will directly affect the employees’ standard of living.
Mongolia, a landlocked country sandwiched between Russia and China is utilizing its third neighbor policy to its highest potential by expanding its diplomatic relations with countries around the world.
Diplomatic relations between Mongolia and United States of America formally established on January 27, 1987, and it has expanded both in economic and political platforms. On July 26, 2018, Representative Ted Yoho and nine other members of the U.S. House of Representatives introduced a trade bill to the U.S. Congress. The trade bill would seek to promote trade between the United States of America and Mongolia by allowing duty-free treatment for certain imports from Mongolia such as cashmere products and textile materials.
In relation to the trade bill, the president of Mongolia Battulga Khaltmaa is visiting the United States of America on July 31, 2019. By the visit, Mongolian president is expressing his full support for the trade bill and appreciation to the sponsors.
The trade act would be helpful to Mongolian economy for various reasons. One of the major examples is the fact that its ability to open more trade opportunities to export cashmere products onto the U.S. Market. Mongolia supplies around 48 percent of the total raw cashmere to the world market which makes the country the second-largest raw cashmere supplier of the world, yet they utilize only 15 percent of it to make ready-to-wear finished cashmere garments locally. Remaining 85 percent of the raw cashmere is sold as a semi-processed material to other markets with less added value, which is becoming the focus area of the Mongolian government and domestic cashmere manufacturers. The United States of America is considered as the second largest cashmere consumer country. This duty-free treatment would open a tremendous opportunity for Mongolia to diversify its economy.
The world heard about Mongolians’ invasion hundreds of years ago from their rich history, but now, they have prepared to invade the world cashmere market with their silky soft pure cashmere products. And now they are coming to your doorsteps America.
Posted July 30, 2019
Source: GOBI Corp.