Private sector calls for the public to purchase domestic goods


Representatives of small and medium-sized enterprises (SMEs) held a press conference on November 27 to inform the public about the impact of the current economic downturn on SMEs, and to encourage citizens to support domestic manufacturers through the purchase of their products.
The press conference was attended mainly by representatives from food and footwear manufacturers. The representatives underlined that the main difficulty faced by manufacturers is the sharp decrease in sales resulting from the ongoing economic downturn, and appealed to all consumers – from the highest officials of government to regular citizens – to buy products made by domestic manufacturers rather than imported goods. They highlighted that the increased purchase of domestic goods by Mongolian consumers would result in higher quality products.
The attendees also emphasized that even though the government has pledged to support domestic manufacturers, government officials are not taking decisive measures, resulting in a lack of policy support.
The manufacturers touched upon one prevailing sentiment among consumers, that the prices of domestically manufactured goods substantially exceed those of import goods, asserting that domestic manufacturers do not set excessively high prices. An owner of a local footwear company commented, “I don’t think the prices of domestic goods exceed those of import goods. For instance, imported women’s knee-high boots are sold for between 800 to 900 USD under the guise of a brand name. However, citizens can buy knee-high boots as fashionable as those ‘brand’ ones for much lower prices.”
They asserted that a study of retail purchases conducted by manufacturers showed that though entities manufacture import substitution goods, the manufacturing of such goods are driving some companies to the verge of bankruptcy. According to the study, daily sales of SMEs have decreased by around 65 percent, and 60 to 70 percent of SMEs are experiencing declining sales.

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Posted by on Nov 30 2014. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

1 Comment for “Private sector calls for the public to purchase domestic goods”

  1. 800 to 900 USD for a pair of boots? Sorry, but here in Europe you can get a pair of high quality leather boots for 10 to 20 percent of that. Let it be 150 USD after importing them to Mongolia. That’s what Mongolian companies have to compete with, and not some fancy high class designer’s prices. If Mongolian companies are not able to provide the same quality for comparable prices as foreign companies even after importing, they shoud not blame the customers for that, but need to improve their strategy.

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