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  • Published on: 14th September 2019
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Cashmere is the softest and one of the most durable materials, excellently ability to keep in shape, luxurious products and constant demand in the market today. Also it's eight times warmer and softer than wool of sheep.  

Mongolia is the second largest producer of cashmere in the world with about 20 percent of world production, likened to China's 70 percent and 10 percent South Africa, Afghanistan, Iran, US, and Australia. Our country's net exports of cashmere products were $57 million 10 years ago.

Now Mongolia has over 19 million goats and exports are increasing day by day.  Also every year our country process 6700 tons of raw cashmere and today they provide world's 30 percent of needs. By this can weave approximately 9.6 million cashmere sweaters.

Why cashmere is more expensive than others? The answer is it is costly production process and scarcity. Every spring the raw material is combed out of the goats. First it's sorted by color and roughly by grade. Dirt and the coarsest hair are removed by hand.  Cashmere comes from the soft undercoat of goats raised to create the wool. It takes more than two goats to make only a single sweater. Also it takes long time to create new product and require so much hardworking.  An average of 250 grams of cashmere comes from one goat and only one gram of pure cashmere is integrated by 9-10 meters wire.

Background and Details of the industry

Goyo LLC is one of the first private cashmere industry and Wool Company in Mongolia. They are operating the business with creative new ideas and innovative products for the last 20 years continuously. The company was established in 1993 only with 50 employees and has developed over the periods into a vertically integrated enterprise, which is a domestic market leader in completed quality regular fiber knitwear and an exporter of fine cashmere goods to Asia and Europe. Today the company has over 500 hundred workers and employees from basic sewing to great quality raw materials, they do right manufacturing by following delicate stages on the latest technologies and equipment from Italy, USA and Germany. Also they have lots of branches in some countries such as Australia, Canada, Germany and Czech Republic and other areas with 100 percent well qualified cashmere, yak wool yarns and camel wool. Goyo started to export to England Japan and USA in 1999. In 2005 100 percent of the ownership shifted to MCS group. Today Goyo is integrated enterprise with the most progressive clothes manufacturing   ability in this country with a yearly production capacity about 160 tons of camel wool yarn and cashmere more than 300,000 parts of fine cashmere and camel wool clothes.

There are many competitors which are Buyan, Altai, Blue sky, Evseg and etc. but the strongest competitor is Gobi, which owns fifty percent of domestic economy. Now, Gobi's management is changing and their employees' management Gobi and Goyo are both top companies in Mongolia and famous cashmere industry around the world. Goyo has good strategy of management and marketing than the others.

Export Shares of Mineral and Non-Mineral Goods

  2007 2008 2009 2010 2011 2012

Mineral products 66.8 67.9 66.4 81 89.2 89.2

Non mineral products 33.2 39.7 33.6 19 10.8 10.8

textile 13.5 8.9 10.2 7.4 5 5.3

Non mineral products percentage is decreasing 2007 until 2012 but mineral products' are increased by 23.2 percent. In this case textile's minimum percentage of exporting is in 2011 by 5 percent and in 2012 is increased by 0.3 percent.  

Source: Mongolian Authorities, WB staff estimates

Production, capacity, and capacity utilization in the value added chain

Source: Project research by the Textiles Institute

Production, exports, and imports of cashmere by stage of production, 2002 - 2004 (All units in metric ton)

Source: based on data provided to the project by the Textiles Institute

Questionnaire of Cashmere industry study

Ulaanbaatar Mongolia 2015

Date: ………………………  Gender: …………………… Place: ……………..............  Age: ………………………

Dear sir/madam

1. Do you use a cashmere product made in Mongolia? If yes continue with Q2, If No, go to Q12

a. Yes  

b. No

2. Which company do you prefer?

a. Gobi cashmere

b. Blue sky cashmere

c. Altai cashmere

d. Goyo Cashmere

3. How much do you spend for buying a cashmere product?

a. Less than 100,000₮

b. 100,000₮- 200,000₮

c. 200,000₮- 400,000₮

d. More than 400,000₮

4. Do you know about “Goyo” cashmere?

a. Yes

b. No

5. If yes, what is the “Goyo's” advantage?

a. Service

b. Product quality

c. Design of the products

d. All of them

6. How often do you visit to Goyo?

a. Every week

b. Once a month

c. Twice a month

d. Only on celebration day

e. Others

7. Do you agree that Goyo has lots of choices and good products?

a. Strongly agree

b. Agree

c. Neutral

d. Disagree

e. Strongly disagree

8. In what occasion is the best to give cashmere as a gift?

a. Birthday

b. New year

c. Lunar new year

d. Woman's day

9. Which cashmere product do you think people buy the most from Goyo?

a. Silk cashmere

b. 100% cashmere

c. Camel wool and yak yarns

10. In what seasons do customers buy the cashmere product mostly?

a. Summer

b. Autumn

c. Winter

d. Spring

11. What type of cashmere do the customers choose mostly?

a. Organic cashmere

b. Colored cashmere

12. What are the reasons for not using the cashmere product?  (You may tick more than one)

a. Expensive

b. Uncomfortable to wear

c. Not fashionable

d. Material is not good

e.  Don't interested cashmere

13. Your monthly household income?

a. Less than 300,000₮

b. 300,000₮-500,000₮

c. 500,000₮-1,000,000₮

d. More than 1,000,000₮

Thank you for your patience and time for filling the survey


gender Serial no used preference buy cashmere Goyo advantages frequency variety gift material season organic income

female 1 1 4 b 1 3 5 3 NY 2 A 1 more than 1,000,000₮

female 2 1 4 c 1 3 5 2 LN 2 A 1 more than 1,000,000₮

female 3 1 4 b 1 2 4 3 NY 2 W 1 500,000₮-1,000,000₮

female 4 1 1 d 1 3 4 2 BD 1 A 2 more than 1,000,000₮

female 5 1 4 d 1 3 5 3 LN 2 W 2 more than 1,000,000₮

female 6 1 1 c 1 3 5 3 LN 1 A 2 more than 1,000,000₮

female 7 1 1 b 1 3 4 3 BD 2 W 1 more than 1,000,000₮

male 8 1 3 b 1 4 5 2 WD 2 W 2 300,000₮-500,000₮

female 9 1 4 c 1 3 2 3 WD 2 A 1 500,000₮-1,000,000₮

female 10 1 1 d 1 2 4 2 LN 2 W 2 more than 1,000,000₮

female 11 1 1 d 1 3 5 2 LN 2 W 2 more than 1,000,000₮

female 12 1 4 d 1 3 2 4 NY 2 A 1 more than 1,000,000₮

male 13 1 4 d 1 2 4 4 WD 2 A 2 more than 1,000,000₮

male 14 1 4 d 1 3 4 3 BD 2 A 1 more than 1,000,000₮

male 15 1 1 c 1 3 2 3 WD 2 S 1 more than 1,000,000₮


gender serial no non purchase reasons income

male 16 2 5 500,000₮-1,000,000₮

male 17 2 5 300,000₮-500,000₮

female 18 2 2 more than 1,000,000₮

female 19 2 3 more than 1,000,000₮


gender Serial no used preference buy cashmere Goyo advantages frequency variety gift material season organic income

female 20 1 2 b 1 3 1 2 B 1 3 1 more than 1,000,000₮

female 21 1 4 c 1 4 1 1 WD 2 2 2 500,000₮-1,000,000₮

male 22 1 4 c 1 2 1 1 WD 2 3 1 500,000₮-1,000,000₮

Analysis of Excel work

There are 13 simple questionnaires if people use cashmere product and know about Goyo LLC. Twenty two people answered the questions who are owners of the company, customers and nonusers. The survey is taken from Raffles students and my family members about 19-46 ages. The most of them are females because women have more desire to buy a cashmere product.   

Preferences: From the survey customers' and owners' percentage of preference is 61% which is 11 people have chosen Goyo cashmere. It means it's more profitable company than others and operating their business with lots of customers excellently.   

Advantages: The most of the customers chosen the design of the product of Goyo which is 66%. In my opinion, I agree that they have more fashionable and lots of new updated designed product. The reason is that their designers are well experienced in foreign international design school and they are very professional people.

Willingness to buy cashmere: In this case generally, 7 people buy cashmere product more than 400,000₮ out of 18 people which is 38 percentages of the individuals

Purchasing product: The most of the people usually buy cashmere product on celebration day because it's more fashionable to wear in Lunar New Year or other traditional day. It looks more elegant and stylish.  


Variety: Half of the 18 people agreed that Goyo has lots of choices and good products. Probably other people have the same answers because Goyo is well recognized by having good products not only in Mongolia, even in some foreign countries.   

Gift: 6 individuals out of 18 people chosen the best occasion is Woman's day. I think cashmere industry has lots of choices of woman's clothes such as shirt, dress, scarf blouses etc.

Material: Customers have more desire to buy cashmere that is 100% rather than silk and camel wool and yak yarns. It probably has reasonable price, various choices and good quality.


Season: Goyo sells their product in 4 seasons and it's very comfortable to wear because they design suitable products in each seasons. The most of the people has chosen winter because they usually wear cashmere to be warm and convenient.

Organic vs. colored: The most of the people prefer that they have more desire to buy organic cashmere because it's healthier and better quality than colored cashmere.

Income: 13 people earn more than 1,000,000₮, they have more capability to buy cashmere because it's relatively more expensive than other products.


According to the report, you can see that cashmere business has great potential in current and further timelines of the organization.

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