CJ NowCJOShopping Signs MOU with GOBI, Cashmere Provider
- One-year exclusive contract for fashion clothes with GOBI, a global cashmere provider
- Product planning by Italian designers with 48 stores around the world, including Berlin and Tokyo
- One-stop production from cashmere yarn to finished product...premium products for reasonable prices
- Gradual launching of items such as shawls and knit pullovers
On September 7, CJ O Shopping signed an MOU with GOBI at GOBI's headquarters located in Ulaanbaatar in Mongolia for the exclusive supply of GOBI cashmere products worth KRW 20 billion. (From left) CJ O Shopping CEO Heo Min-heoi and GOBI CEO Baatarsaikhan Tsagaach
CJ O Shopping (CEO Heo Min-heoi) signed an MOU with GOBI, the world's largest cashmere provider and will begin to off a wide range of premium cashmere products from this F/W season.
CJ O Shopping signed the MOU with GOBI at GOBI's headquarters located in Ulaanbaatar in Mongolia on September 7th for the exclusive supply of finished clothing products such as cashmere knits and coats. The volume of GOBI products to be introduced this F/W season is worth KRW 10 million and the company plans to increase sales to KRW 20 billion accordingly.
Cashmere products are high-end fashion products that used to be seen mainly in department stores, and with the recent trend of premium home shopping fashion, they began to appear on TV home shopping channels from last year. Last October, CJ O Shopping sold cashmere products from 12 brands, including VW Vera Wang and Catherine Malandrino, for one month and this resulted in a big hit, receiving orders worth a total of KRW 13 billion. In particular, a cashmere shawl of GOBI, with whom CJ O Shopping signed the MOU, recorded sales three times larger than expected during a broadcast on October 25 last year.
Dubbed as "Jewel of Textile", cashmere is made only from soft wool sourced from mountain goats through combing, unlike normal wool, which is collected by shearing. The amount of cashmere that can be obtained from a goat is just 200 grams a year. In particular, as the winter temperature in Mongolia gets as low as minus 40 degrees, Mongolian cashmere made of wool from goats raised in Mongolia is soft and light and features superior moisture absorption and insulation, which makes it a premium winter outer material.
The cashmere business is Mongolia's major industry. Mongolia is the world's second largest cashmere producer and supplies to over 40% of cashmere users around the world. Established in 1981, GOBI is an affiliate of GOBI Group, Mongolia's third largest company engaging in finance, hotel and food industries, and produces more than 60% of Mongolia’s cashmere exports. GOBI, which produces premium cashmere at a volume of 1,200 tons a year, possesses the world's most advanced production capacity and technologies which make it capable of producing everything from yarn and fabric to finished products.
In particular, GOBI has supplied its cashmere materials to over 150 high-end brands in over 30 countries around the world, including Prada, Colombo and Ermenegildo Zegna, and it has recently been selling finished products under its own brands through collaboration with renowned Italian designers. GOBI's brand, GOBI Mongolian Cashmere, is currently being sold at 48 stores around the world, including locations in Tokyo, Berlin and Brussels.
"We are honored to work with CJ O Shopping, Korea's major home shopping," says GOBI CEO Baatarsaikhan Tsagaach. "This will prove to be a good opportunity to present GOBI products that combine superior Mongolian cashmere and hot trendy designs to Korean consumers."
CJ O Shopping said, "In the past, cashmere prices were overly high because cashmere yarn and finished products were produced in different regions. These GOBI premium cashmere products can be presented to our customers for reasonable prices because they are produced at GOBI throughout the entire process from yarn production to finished products."
CJ O Shopping plans to launch various products one by one, starting from "Cashmere Gradation Shawl (KRW 258,000)" which will be launched on the 15th, followed by "Cashmere Metal Yarn Knit Pullover (KRW 158,000)".