THE STATE OF RETAIL IN MONGOLIA – 2024

While much of Asia reveled in the warmth of summer, I jetted off to Ulaanbaatar, the capital of Mongolia to set up a Retail Sales & Store Management Training Academy & Certification Program for the largest retailer in Mongolia called Nomin Holdings.

Touching down at Chinggis Khaan International Airport, I braced myself for Ulaanbaatar's bone-chilling temperatures of minus 15 to minus 20 Celsius, Ulaanbaatar (UBE to locals) is known for being the coldest capital city globally.

Nomin Holdings was founded in 1992 and boasts over 6,000 employees engaged in retail, distribution, and import/export ventures. With a retail portfolio featuring 3 Department Stores, 22 Supermarkets, 31 Hypermarkets/Wholesale Centres, 2 Large DIY Building Centres, and renowned fashion stores like Mango and The North Face, Nomin Holdings stands as a retail powerhouse in Mongolia.

Mongolia Demographics & Economy

Mongolia nestled between China and Russia is the 18th largest country by size in the world has a population of around 3.5 million and has more than 70 million livestock comprising 32.3 million sheep, 29.3 million goats, 4.7 million cattle, 4.2 million horses, and 0.5 million camels. Mongolia ranks second globally in the production and export of cashmere after China.  Other valuable exports encompass copper, coal, molybdenum, tin, tungsten, and gold.

According to the World Bank Mongolia has a GDP per Capita of US$14,260, a notable contrast compared to the USA of US$76,329 and Australia of US$ 63,216.

The population is mainly Buddhist (52%) or no religion (41%). I found Mongolians to be welcoming, and friendly, and when together they laugh a lot and enjoy life. My wife and I plan to travel back in the summer to experience the vast lands and hospitality.

Mongolia is a democracy having broken away from Russia in 1990 when the communist regime in Russia disintegrated and is not to be confused with Inner Mongolia which is a satellite of China though both Mongolia share a common language.

Ulaanbaatar the capital has a population of 1.5 million that expands during winter to accommodate students from the countryside. Around 30% of the population derives their income from livestock and herding.

The Retail Scene

Retail in Mongolia is thriving with many of the same retailers and brands we see in Asia and the West. Local retailers have adopted Western retail concepts and often license and distribute many global brands to position alongside their local brands.

The lower GDP per capita translates into a large range of brands in the budget and moderate price range and fewer high-end brands. There are also black markets that operate on the peripheral.

Supermarket/Hypermarkets/Wholesale

In food retail, Nomin is number one with 53 shopfronts followed by Orgil supermarket  (local) with 11 and EMart (South Korea) with 4. Recently Carrefours has entered the market with a store. Emart is a US$22B bemouth from South Korea and would not be out of place as a competitor for Walmart, Dairy Farm International, or Woolworths. They have brought a highly competitive edge to the market.

Department Stores

The largest department store in Mongolia is The State Department Store in Ulaanbaatar which is similar to a large-sized Parkson or Nordstrom

Shopping Malls

The Shangri-La Mall is located at the heart of Ulaanbaatar, a prime location for a wide range of shopping, dining, and entertainment. It delivers a relaxed yet world-class shopping experience. Retailers include Balmain, Celine, and Cole Haan. Columbia, Crocs, Gant, Gucci, L’Occitane, Levis, Mac, Nike, Pandora. Reebok, Rolex, Swisse amongst others

Naran Mall is a world-class shopping mall located in the center of the city. It is a modern shopping center for Mongolian consumers including fine dining, a food court, and retailers including Adidas, Adidas Originals, Delsey, Esprit, Kenzo, Longines, Mattel, Swarovski, Swatch, Sony, Samsonite, Tag Heuer, Timberland, Victorinox, Zara and many more

Lonely Planet, one of the world’s biggest and most popular travel guides, has named Mongolia the best tourist destination for 2024. Mongolia's unique combination of natural beauty and cultural heritage make it an increasingly popular destination to which I recommend you can now add a day or two exploring Ulaanbaatar retail, eateries, and museums.

One other piece of advice, avoid the winters