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Company of Mongolia

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Gobi Cashmere

Native name	Говь ХК
Company type	Public
Traded as	GOV
Industry	Fashion
Founded	September 5, 1981; 42 years ago
Headquarters	Ulaanbaatar, Mongolia
Area served	Worldwide
Key people	Amarsaikhan Baatarsaikhan (President and CEO) Gerelmaa Damba (Chairwoman)
Products	Cashmere Products
Brands	Gobi YAMA Gobi Organic Goyo
Website	www.gobicashmere.com

Gobi Corporation (Mongolian: ГОВЬ ХК) is a Mongolian luxury cashmere manufacturer co-headquartered in Ulaanbaatar, Mongolia.

Gobi Cashmere (English: /ˈgəʊ.bi kæʃ.mɪər/) opened in 1981. Since it started operating, Gobi has become one of the five biggest vertically integrated manufacturers specialising in cashmere, camel wool, and yak down products in the world. Gobi was privatized under the legal name FCI LLC in July 2007.

Gobi has official two branch stores located in Berlin and Düsseldorf and 62 franchise stores globally.

History

Gobi opened officially after installing cashmere and camel wool processing machinery, completing its adjustments in 1981. The company's name refers to the Gobi Desert. It is also the main area where the majority of raw cashmere is sourced from.

Within UNIDO project implementation, a cashmere and camel wool processing experimental factory was opened. For three months, 78 engineers were trained in Japan to learn how to process cashmere and camel wool and operate factory machinery.

The state-owned Gobi Company was privatized under the legal name FCI LLC in July 2007. For many years, cashmere has been a vital crop for farmers who live on the move. One of Mongolia's main exports is extremely soft wool, which is combed from the undercoat of goats that flourish in its plains, mountains, and forests. Other top exports include minerals like copper and gold.

In 2012, the mineral boom in Mongolia drove up the cost of Gobi's production. It was due to the fact that Mongolia's newly found mineral wealth drove up the inflation by 12% that year. It had severe side effects to other businesses, especially GOBI Cashmere, that increased the price of raw materials.

As of 2019, Gobi corporation has around 3,000 employees. In September 2019, the company announced the opening of a US office in Los Angeles and an e-commerce website catering exclusively to US customers.

Following the COVID-19 crisis and the drop in cashmere sales, GOBI Cashmere laid off 10% of its workforce. The fall in demand from importing companies decreased the price of raw materials from 90,000 MNT per kg to 55,000 MNT per kg. Despite the lower prices, demand for cashmere fell internationally. This was considered bad news for the Mongolian economy as more than one third of the population lives a nomadic life and cashmere production makes up almost 90% of the household income for these nomadic households.

Timeline

GOBI Corporation reports to the Mongolian Stock Exchange each year with detailed report including timeline, achievements, keynotes, messages to the public to increase their transparency and increase public confidence for the company.

1976 - As part of the UNIDO project, a pilot plant for the processing of goat cashmere and camel wool has been put into operation.
1977 - The Government of Japan granted a grant of 5.0 billion yen to the Government of Mongolia and signed a Mongolian-Japanese Government Agreement on the establishment of a goat cashmere and camel wool processing plant in Ulaanbaatar.
1981 – Gobi Factory opened its door within the framework of the agreement.
1987 - Japan's SET-092 knitting machine with automatic computer control is installed in the factory.
1991 - The international ISO-9000 standard was gradually introduced, and 98 percent of the manufactured products were exported, becoming the first factory in Mongolia to receive the International Quality Cup and Certificate.
1993 - According to the resolution of the Government of Mongolia, state-owned Gobi was organized into the Gobi joint-stock company.
1998 - Expanding its foreign markets, it established subsidiaries such as "Altai" in Japan, "Gobi Europe" in Belgium, and "Gobi-USA" in the United States, establishing partnerships with more than 30 countries around the world.
2000 - Wire dyeing technology was introduced. A STOLL-330 knitting machine connected to a modern computer system was installed.
2007 – FCI LLC bought the remaining shares from the state and made Gobi JSC into a fully private company.
2008 – GOBI Cashmere Factory Store opened its door as the flagship of stores.
2010 - Print technology was introduced in Mongolian cashmere industry.
2011 - The production capacity has been doubled. GOBI Cashmere collaborated with famous Italian fashion designer Saverio Palatella.
2013 – The capacity of the factory has been increased and the new technology of Whole Garment or seamless knitted products has been introduced.
2015 – Started to implement the Amoeba management philosophy by Japanese businessman Kazuo Inamori.
2017 – A new sewing factory commissioned and launched its e-commerce website.
2019 - GOBI Cashmere fully bought Goyo Cashmere from MCS. The company was ranked 19th in the top 100 economic titles that was organized by the Mongolian Chamber of Commerce.
2021 - Collaboration in marketing consultancy with Ogilvy agency, which is the part of the WPP group.
2023 – Giorgio Spina was chosen as Chief Designer for GOBI Cashmere.

Description

GOBI Cashmere owns the title of "The World's Largest Cashmere Store" with a 2,500 square metres (27,000 sq ft) cashmere shopping store in Galleria Ulaanbaatar Mall located next to the Mongolian Parliament Building in Ulaanbaatar, Mongolia.

Approximately 1,200 tons of raw cashmere (and camel wool) are processed annually by Gobi from its Ulaanbaatar factory, yielding approximately 500,000 pieces of knitwear, 250,000 length-wise meters of woven textiles, and 25,000 pieces of custom-fitted clothing. The biggest exporting products are cashmere sweaters and cashmere coats, as they make up almost 80% of the production. The rest consists of cashmere accessories such as gloves, hats, socks and many more. Mongolia produces almost 50% of the global cashmere production. The rest comes from China, Iran and Afghanistan due to its mountainous terrains.

Baatarsaikhan Tsagaach was appointed as CEO of the GOBI in 2008 and is the main decision-maker of the company. As the chief executive officer of the Gobi JSC and he was instrumental in turning the former state-owned cashmere company into the largest cashmere manufacturer in Mongolia. He was awarded the Hero of Labor award from the Mongolian government in recognition of his dedication and hard work towards the Mongolian economy.

GOBI Cashmere has collaborated with multiple famous foreign designers such Martin Parker, Joseph Abboud, Tadashi Shoji, Narciso Rodriguez, Donna Karan, and most recently Giorgio Spina. These designers have designed multiple collections for GOBI Cashmere to present to the world and show its Mongolian cashmere.