The Secret Behind Cashmere's Price

Culture
04 AUGUST 2023
Ariunzul Enkhbaatar
Ariunzul EnkhbaatarHead of Sustainable Development Division
Ariunzul Enkhbaatar
Ariunzul EnkhbaatarHead of Sustainable Development Division
As the Head of the Sustainable Development Division at GOBI Cashmere, Ariunzul is involved in every step of cashmere production and works closely with herders to support good herding practices.

Passionate about Mongolian culture and the lives of the herders who make cashmere possible, she shares stories about their traditions, the craftsmanship behind cashmere garments, and how GOBI Cashmere upholds its commitment to quality.
Author Profile

Understanding Cashmere Price

Before delving into GOBI's exceptional pricing strategy, let's first understand why cashmere has traditionally been considered a high-end luxury item.

Rarity: Cashmere comes from the soft undercoat of cashmere goats, which are mainly found in specific regions such as Mongolia, China, and parts of Central Asia. These goats produce a limited amount of precious cashmere fiber each year, making it a rare commodity.

Labor-Intensive Production: The process of gathering cashmere is labor-intensive, requiring delicate hand-combing of the goats during their shedding season. Afterward, the collected fibers must be meticulously sorted to remove impurities and ensure the highest quality.

Craftsmanship: The manufacturing of cashmere garments involves skilled craftsmanship, including spinning the delicate fibers into yarn and carefully knitting or weaving them into luxurious products.

Factory worker at a sewing machine beside piles of dark cashmere garments, shown in black and white

Demand and Branding: The allure of cashmere has driven high demand, and prestigious fashion houses have capitalized on their reputation, setting premium prices to match the exclusivity.

Hand combing a goat with a wooden-handled metal comb, lifting a soft tuft of raw beige cashmere down

GOBI Cashmere: The Affordable Luxury

GOBI, a renowned cashmere brand, stands apart from the rest by providing affordable cashmere without compromising on quality. Their secret lies in their unique business model, which eliminates intermediaries, allowing customers to enjoy luxurious cashmere at a reasonable price.

Here's how GOBI manages to achieve this:

Direct Sourcing: GOBI sources its cashmere directly from the herders in Mongolia. By bypassing middlemen, they establish close, transparent relationships with the herding communities. This not only means the origin of every batch is recorded but also guarantees that customers get authentic and premium quality cashmere.

Vertical Integration: GOBI follows a vertically integrated approach, meaning they control the entire production process from sourcing to manufacturing and distribution. By owning their factories, they can maintain quality standards and keep production costs in check.

Minimized Markup: Traditional retail involves several levels of markup, each contributing to the final retail price. With GOBI's direct-to-consumer model, unnecessary markups are avoided, allowing the savings to be passed directly to the customer.

Careful Practices: GOBI places great emphasis on careful practices. Their direct involvement with the herders ensures delicate hand-combing of the goats during their shedding season. Furthermore, their vertically integrated approach keeps quality consistent at every stage.

Transparency and Customer Trust: GOBI believes in complete transparency, providing customers with insights into their sourcing and manufacturing processes. This level of openness fosters trust and loyalty among customers.

Rows of workers in blue uniforms and caps sewing cashmere garments at machines on a large factory floor

While cashmere has long been perceived as an exclusive luxury, GOBI cashmere is breaking barriers and making this exquisite fiber accessible to a broader audience.

By adopting a direct sourcing-to-production model, GOBI successfully eliminates middlemen, oversees every step from herder to garment, and delivers premium-quality cashmere at affordable prices.

Their commitment to quality, coupled with transparency and craftsmanship, ensures that you not only look and feel good in their cashmere products but also get lasting value from your purchase. So, if you've been yearning to embrace the comfort and elegance of cashmere, GOBI is the brand that offers an enticing combination of affordability and luxury.