Cross-Country Comparative Analysis On Cashmere Industry

Soft gold,diamond fiber or cashmere is a fiber obtained from cashmere goats which is one of the rarest specialty fibers in the textile industry.Global cashmere clothing market is expected to reach 3,112 billion dollar and its production outputs 58%is from China and 31%is from Mongolia.This paper analyzed business environment(external situation),financial situation(internal situation),trend(future),opportunities,threats and differences of cashmere industry in China and Mongolia.To analyze,we compared and studied Chinese and Mongolian cashmere industry using broad factor analysis(to analyze external part of industry)and compared Inner-Mongolia Erdos group JSC(Erdos in further research)and Gobi JSC(Gobi in further research)using financial analysis tools(to analyze internal part of industry)and growth(to analyze future of industry)have been prognosed using SPSS program.Our result showed Mongolian and Chinese industries both have various advantages and growing trend in their industries.On the outer side,Chinese cashmere market had stronger base of growing customers,cashnere industry companies and political,legal support which is targeting to possess world cashmere market.On the other hand,Mongolian cashmere market had few strong market players and most of industries outputs are not being fully produced by domestic companies.However,its tax-free export agreements with Europe,Japan etc.and Mongolian cashmeres higher quality of cashmere have given advantage in international market for cashmere producers in Mongolia and companies such as Gobi,Goyo have already started opening their shops in related countries and fully produced cashmere goods production is increasing year by year.After analyzing the outer environment of cashmere industry,inner situation was crucial to make this research more efficient.In Financial analysis,generally Mongolian Gobi had better financial health than Chinese Erdos and it is expected to grow by 74.9%and Erdos is expected to grow by 45%until 2022 according to the Multiple Linear Regression Analysis.In research recommendations for Erdos,Gobi and other competitors in industries have been addressed and policy,taxation,governance recommendation was also given.