Small Business Owner Exports Mongolian Handicrafts – and More - to World Markets

  ULAANBAATAR, Mongolia – When I met Telmen Luvsandorj at his office in Mongolia’s capital, he quickly defused any notion that he was a stereotypical business owner.

  Cerebral, soft-spoken and thoughtful were my initial impressions of the man who founded Mongulai, a Mongolian version of Etsy focused on selling the country’s handicrafts to global markets, in particular the U.S.

  Mongulai’s office, surprisingly, is a small apartment in a neighborhood of utilitarian residential buildings in central Ulaanbaatar. He lived there with his parents and sister from age 9 to 24. Now, he works there by day with three employees – wife, Sarnai; sister, Bulgan; and cousin, Huslen.

  As our discussion moved along, it became clear that at 33, Telman had found his happy place in a country where financial success is more the exception than the norm.

  “This company,” he said, “gives me a freedom to be myself.  I can do whatever I want every day.”

Live and Learn

  Telmen’s journey to this point has been filled with a remarkable number of turns for someone so young. The son of a government worker and university professor raised during Mongolia’s Socialist era, he was born the year the country affirmed its transition to a free-market economy and democratic rule. For Telmen, the timing was ideal. Unlike his parents, he had the freedom to experiment with different careers.

  He earned two engineering degrees, electrical and aircraft. At 20, Eznis Airways, a domestic carrier, hired Telmen to work on its prototype Q400 turboprop, designed to handle the country’s blustery winds, mountains and unpaved runways. After two years at Eznis, he moved on to the country’s largest copper and gold mine, employed as a quality inspection engineer and living in the Gobi Desert. A dispute between the mining company and the government slowed operations, costing Telmen his job after a year.

  Upon his return to the capital in 2014, his parents encouraged him to consider self-employment, an idea he embraced.

  “In Mongolia, if you do not do business for yourself, you’re barely surviving,” Telmen said.

  His experience as a corporate engineer triggered an idea. Manufacturers struggled small computer and general IT issues, so Telmen and a college friend signed up clients to provide those services. Gradually, their business grew. Telmen envisioned a bright future. But for his partner, married with children, the future didn’t arrive soon enough. He bailed. Telmen closed up shop.

Sometimes, when one opportunity vanishes a better one emerges. In this case, Telmen had taken a job with a struggling tire-recycling company. He worked alone. He had time to think.

  “I [was] always wondering how to make more money and how to make a life for myself.”

  One day, early in 2016, a friend visited Telmen at work.

  “He told me his girlfriend was buying stuff from Etsy.”

  Telmen checked it out and discovered Etsy was a multi-billion-dollar, global business involving artisans selling their handicrafts online. As he studied the company’s formula, he recalled visiting a local artisan’s exhibition a month or two earlier. Telmen marveled at some of the handicrafts being sold, particularly apparel made from renowned Mongolian camel, yak and sheep wool as well as cashmere.

  He thought: I could be an online sales rep for these people.

  “That was the moment,” he said, “when the light bulb went off.”

Onward

  Telmen gradually built a network of craftspeople, nomadic artisans, cooperatives and boutique manufacturers who loved the idea of selling their unique wares to global consumers.

  He targeted the U.S. as his primary market. But, after choosing a few products to test market on Etsy, he learned that Mongolian banks did not accept payment apps like Pay Pal. He also needed an easy access phone number for his customers as his Mongolian line would not do.

  Telmen, whose quiet demeanor masks a confident, can-do attitude, solved the problems by designing his own website, and signing up for the U.S.-based online payment app, Stripe, and international phone service, Tello.

  By the end of 2016, Mongulai was up and running. Its success was immediate.

  “From 2016 through 2020, we were doubling our business ever year,” Tellman said, noting that about 60 percent of his sales are to U.S. customers with the rest divided between Europe and Australia.

  Since then, Mongulai’s growth has plateaued but, overall, the business remains solid.

  “We’re making money,” he said.

The Big Picture

  Income, while important, has become a lesser focus as Telman pursues a more altruistic path.

  On his website, Telmen says Mongulai was built on three pillars: authentic craftmanship, natural luxury and cultural preservation through modern design.

  In person, he details another mission: “These artisans have a limited market in Mongolia, so we want to show off these products to the world to help these small businesses reach their potential.”

  Woolen accessories are Mongulai’s best sellers in the U.S., especially in areas with long, cold winters, according to Telmen. Around 60 styles of gloves, socks and scarfs are listed, with Yak socks the most popular buy.

  Among the exotic offerings are the treasured “morin khuur”- a two-stringed, bowed instrument with a horse’s head carved into its neck [$300-$1800]; a smorgasbord of skin care products, including sheep tail fat oil soap [$15] and horse oil balm [$30]; and ready-to-assemble yurts [$2,000-$36,000], the traditional home of Mongolia’s nomads.

  Telmen points to several factors that separates his company from a few competitors and boosts his bottom line. He offers a wider, more unique selection of products. Using the paid-for apartment as Mongolai’s office slashes his overhead. And his adherence to Toyota’s “Just-in-Time” management philosophy means Telmen keeps his inventory low, with many of his products arriving at the office and shipped to customers the same day.

  Where Mongolai has really gained traction is in its streamlined receiving and shipping system forged by Telmen as well as lower shipping costs because of his long-term relationship with DHL, a world-wide shipping company. Products arrive daily by Ulaanbaatar’s version of Uber. Mongolian post and DHL offices are a few blocks away.

  The result: “We can get a package to Chicago in three to five days.”

What Next?

  It’s a quiet day at the office. Bulgar, Telmen’s sister had been there earlier but was out running errands. Ditto Hulsen, his cousin. Telmen’s wife, Sarnai, has a day job as an auditor. She handles Mongolai’s books in her free time. The couple have two children, ages 3 and 8.

  The nature – and success - of his business affords Telmen considerable free time. He works 8 hours a day and is off most weekends, when the family visits its vacation home in the country.

  Reflecting on 9 years in business, Telmen said the money and freedom he has earned are amazing but they are secondary to a larger goal: “My main purpose is to leave a positive legacy for my country. In order to do that I need to export products that promote our culture and heritage.”

  Still, Telmen’s ever-active mind can’t stop conceiving new ideas. He’s well-along developing a travel platform that will, he believes, streamline and enhance the experience of visitors to Mongolia.

  He laughed when I mentioned the juxtaposition of his two enterprises.

  “Yes, it looks like I’ll be exporting products and importing tourists,” he said.

Editor’s note: Fifth in a series from a reporting trip to Mongolia July 27-August 2, 2025

__________________________________________________

Reported and written by: George J. Tanber

Edited by: Michael Gordon

Photo editor: David Kozy