Y&R Unveils First Ever Study For Brand Success In Mongolia
WPP and Y&R Mongolia today released BrandZ’s first ever Spotlight on Mongolia report, exploring insights into the country’s unique and progressive business environment. It also offers valuable advice for brands looking to make their mark with Mongolian consumers.
Mongolia’s rapid transformation in the past decade, largely driven by a mining boom, has resulted in huge leaps in technology, brand consumption and the media landscape. Key factors affecting marketing and brands include the rapid penetration of mobile technology, with 4G LTE connectivity introduced in 2016.
“Mongolian consumers and the businesses that cater to them are hurdling stages of development that took years to pass in other markets; they are bypassing bank branches in favor of smart phone apps, and many emerging local brands are putting their advertising spend straight into social media,” said David Roth, CEO at The Store, EMEA and Asia.
The report highlights 10 key factors for brands looking to establish themselves in Mongolia, including:
- Inform and inspire. Consumers are looking for emotional connection with brands. Mongolians are well-travelled and have been exposed to brands not yet officially launched in-market.
- Expect contradictions. Mongolia is different from other Asian or Central European markets. A largely Buddhist population with a strong Russian influence, consumers are diverse and live with seemingly contradictory values. While consumers have traditionally looked West for inspiration, national pride is causing growing interest in quality, locally-made products.
- Technology is on the rise. In Ulan Bataar, technological infrastructure is on par with many developed nations. ‘Leap-frogging’ is prevalent in certain sectors, straight to mobile internet over laptop or desktop, internet banking is rolling out fast and e-payment is commonplace.
- TV still dominates as an advertising mass-medium, but online and social are growing rapidly and remain a largely untapped opportunity for marketers. Facebook dominates social media.
- Consumers are keen to try new things, which is great in the short term but can make building long-term loyalty problematic.
“BrandZ’s first country spotlight on Mongolia identifies the challenges of building a strong brand in this unique and rapidly-developing market, and has been developed to provide essential insights into Mongolians and their worldview, not only for international brands looking to enter Mongolia but also brands currently operating in Mongolia,” emphasized Tuul Purevsuren, Managing Director of Y&R Mongolia.
Download the full report here