Cosmetics companies to cluster
The European Union (EU)’s Trade Related Assistance to Mongolia (TRAM) project team established a memorandum of cooperation with Mongolian cosmetics companies to form a cluster.
“EU TRAM is aimed at promoting exports of non-mining products and it will be implemented through March 2021. We will be attentive towards launching products in European market as the project is backed by the EU,” said a senior advisor to the project.
A study, conducted under the project in Mongolia in July, highlighted four sectors that needed more attention. One of them was the export of organic products. The exporting sector was considered propitious as it is rich in raw material resources and is recognized internationally because of the unique features of the Mongolian nomadic lifestyle.
Currently, many cosmetics companies are operating in Mongolia. These companies mainly use organic raw materials including nettle, sheep tail fat oil, sea buckthorn, mare’s milk, and camel bone marrow, among other ingredients. When individually exporting their products, the producers face a number of challenges such as factory capacity, product advertising and packaging to compete against globally recognized brands, as mentioned by specialists.
As a solution, the EU TRAM project team is conducting various activities on clustering and providing essential recommendations to companies.