Your introduction to getting started in the Mongolian Market – from your first steps to export, to setting up a business here, to establishing yourself in the market
Wherever you are on your market journey into Mongolia, you’ll need advice on getting started – whether that is entering the market for the first time, finding the best route into market or setting up a business in Mongolia.
Finding out your Market Potential in Mongolia
The key first step for any business is to find out whether it is worth putting the time and resources into a market like Mongolia. It is very small economy. You may have an inkling your products and services will work in the market, you may even have had some intermittent interest from Mongolian buyers or consumers. So how do you go about finding out your market potential in the easiest way possible to help make a decision about market choice for your company.
There are four ways which may help you:
- Do desk-based research: A lot can be done with some dedicated and expert searching online – and in English. Find out which of your competitors are in Mongolia already, what they are doing here, how have they changed their market strategy (if at all). Have a look on some online shopping sites to see which product lines are on sale, which ones aren’t.
- Test your products: Again, use some online shopping web sites to test out your products on the market in a low-cost way. Do Mongolian consumers like them? Do they buy them?
- Speak to Mongolian buyers at international trade shows: Mongolian buyers may be reluctant to approach you, so approach them. They are the experts. Ask questions about potential in Mongolia. Show them what you have, ask their opinions about whether they think it will work in Mongolia.
- Get an initial market assessment from experts: The Department of International Trade in Mongolia can provide you with our initial assessment of the chances for your product in the market. Although only a snapshot based on our experience of the sectors and other foreign companies, it may save you valuable resources to put into other markets. You can Contact a Market Specialist here.
Finding the Best Route to Market in Mongolia
When you are confident of your market potential in Mongolia, you will want to find out the best way getting to market. Here we cover the general information you will need to consider when you plan your market entry strategy.
The key question most exporters ask themselves is can we do this ourselves, or do we need a local partner to make it in Mongolia. Although in the past Mongolian traditional business culture would have usually involved multiple layers of intermediaries between your products or services and end-users, this business style has changed dramatically over the past decades. Appreciation of cost cutting, easier communication and a rise in English-capable employees has increased the potential for entering Mongolian directly yourself. That said, the majority of small and medium overseas companies enter with the support of local partners.
See the full article on Finding the Best Route to Market here.
Setting up a business in Mongolia
Setting up a business in Mongolia is not as onerous as one might think. With the need to promote start-ups, the government even lowered the required capital for setting up a joint stock company (KK) to 100,000 USD. Theoretically, it is possible to set up an entity in 14 days.
There are the 4 main ways for setting up a business in Mongolia:
- Representative office
- Mongolia branch office
- Mongolian subsidiary
- Limited liability partnership (LLP)
See the full article on Commencing Business here.
