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So apparently Mongolia is the new kid on the luxury block. What? And naively we thought yak’s butter was as luxurious as it got in the birthplace of Chenghiz Khan. He sure would be proud to know that now you can buy latest Louis Vuitton bags and Ermenegildo Zegna suits in Ulaanbaatar, the country’s capital city.

The Mongolia flagship store of Zegna covers 189 square metres and is located on the ground floor of the Central Tower building in Sukhbaatar Square. The store carries Zegna collections such as Couture, Sartoria and Upper Casual, and a selection from the Zegna Sport collection. One of its initiatives is the Ermenegildo Zegna Cashmere Trophy, a tradition that links Ermenegildo Zegna to the Mongolian territory, which started in 1984. Gildo Zegna was part of the first foreign delegation to visit this region in a quest to source the world’s finest cashmere. This was the start of the Ermenegildo Zegna Cashmere Trophy awarded for excellence in natural fibres. Since then, the ongoing mutual respect and quest for quality has continuously characterised the relationship of the Ermenegildo Zegna Group with the local producers.

French luxury label Louis Vuitton, too has followed suit with its first store in the Mongolian capital adjacent to the Zegna store.

The 5,300 square foot Louis Vuitton boutique with a two-story high, 112-foot wide wraparound façade, is an obvious symbol of luxury in the remote country that is becoming wealthier, thanks to enormous precious metal reserves. The two-level boutique in the new skyscraper Central Tower — which already houses an Ermenegildo Zegna shop that opened earlier this month — features a 30-foot long “bag bar” flanked by men’s and women’s departments, each devoted to extensive selections of leather goods, footwear and accessories.

Upstairs is a circular VIP room, the shape reminiscent of a yurt. A Louis Vuitton saddle was made especially for the store in recognition of Mongolia’s nomadic roots and strong horse riding culture.

Louis Vuitton, always exploring new frontiers, is excited to be among the first to arrive in the region. “Why be first? You have 100 percent share of voice,” enthused Yves Carcelle, Vuitton’s chairman and chief executive officer. “It helps impose your brand as the standard of luxury. I honestly think it’s the right move.”
Carcelle said Vuitton’s 440th store is projected to be profitable within its first year of operation.

Thanks to the Internet and Russian fashion magazines(fashion-savvy Mongolians make the train journey to Moscow and Beijing to pick up stylish wares), Mongolians are already familiar with LV and have been purchasing its products from the brand’s three popular destinations: Moscow, Beijing and Seoul, Carcelle said.
Louis Vuitton is also clearly banking on the vigorous economic development expected in tandem with major mining ventures. Already, the skyline is dotted with construction cranes. “It’s a country that knows it has to modernize but wants to do it in a controlled way,” Carcelle said.

To mark the opening, LV plans to donate more than 6,000 educational books to support some 220 primary schools across Mongolia, still a developing country.

Meanwhile, Louis Vuitton continues its global retail expansion, with major stores slated to bow in December at CityCenter in Las Vegas and One Central in Macau. “Casinos are always a good vicinity for luxury,” Carcelle said. Next year, Louis Vuitton will enter two new countries, Lebanon and the Dominican Republic, he added.

And here we are tightening our purse strings. Not fair!