Promise of Mongolia Mining Boom Lures Consumer Brands

Burger King has opened its first store in landlocked and sparsely populated Mongolia, joining companies from Pizza Hut to Porsche in anticipating an economic boom from the Oyu Tolgoi copper and gold mine.
Sandwiched between China and Russia, Mongolia has long been dependent on mining and animal herding and still has no McDonald's or Starbucks. But it has begun to see an influx of foreign fast food and other brands. KFC came in 2013, then Pizza Hut last year, and now the world's second-largest burger chain.
The interest in the country of 3 million people comes despite a deep deceleration in growth rates to about 3 percent in the first half of this year from 17.5 percent earlier in the decade. However, after years of deadlock over taxes and royalties, a deal reached in May between the government and mining giant Rio Tinto over the $5.4 billion Oyu Tolgoi mine could help spur renewed growth.
"Now is a good time to be coming in," said Jim Dwyer, executive director of the Business Council of Mongolia.
On the edge of Chinggis Square in the capital Ulaanbaatar, luxury brands Louis Vuitton and Ermenegildo Zegna already have set up boutiques. While these stores are largely empty now, they and others are banking that better times will come.
International car brands that have trickled into Mongolia include Volkswagen and BMW. Porsche opened a showroom in Ulaanbaatar in February with models ranging in price from $70,000 to $300,000.
Jason Broome, in charge of Porsche's Mongolia business, said the local franchise now serves 30 customers.
Burger King has partnered with Mongolian franchisee, Max Group, one of the country's largest conglomerates, engaged in mining, food and beverage, agriculture and real estate. Meal prices range from about $2.5 to $5.5, less than 1 percent of the average monthly salary of $734.
Media company worker Banzragch brought his son to the launch of the Burger King store because he remembered sampling the chain's food overseas and being happy with both the taste and the price.
"Even during harder economic times like now, the price is reasonable," Banzragch, who gave only one name, said at the outlet that opened earlier this month in a busy commercial district of Ulaanbaatar.
Max Group President Ganbaatar Dagvadorj said it plans to open 10 Burger Burge stores in Ulaanbaatar and then expand elsewhere in the country.
"By bringing Burger King here, we are providing jobs for hundreds of people and looking to expand it to employ thousands," Ganbaatar said.
Also at the launch was student Nyamdavaa, who said she first went to a Burger King while studying in France. "It tastes as good here as it did there," she said.
ULAANBAATAR, Mongolia — Oct 26, 2015, 2:23 AM ET


Post a Comment

Facebook page

Powered by Blogger.


Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive


Live Traffic