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SCHOOL UNIFORM COST REDUCTION STUDY: STANDARDIZATION, SIMPLIFICATION AND SUPPLY POLICY
Нийтэлсэн: Бүрэнжаргал
Огноо: 2014-01-20
 SCHOOL UNIFORM COST REDUCTION STUDY: STANDARDIZATION, SIMPLIFICATION AND SUPPLY POLICY

SUMMARY

Background
The primary goal of this Financial Crisis Response Project’s component (thereafter “Project”) was to gain insights into the school uniform related issues and inform the Ministry of Education, Culture and Science (“MECS”) on the ways to lower the school uniform cost in the Mongolian market. This study drew on the data collected via 20 interviews and focus groups with students, teachers, parents, manufacturers, and educational officials, as well as data gathered by surveying 462 teachers, students, and parents in Ulanbaataar, Dornod, and Bayan Ulgh provinces.In addressing the main points of the Project’s ToR –b, c, and d – the data analysis discussed key descriptive statistics and cost simulation scenarios(24 Scenarios, each including 4 Sub-Scenarios). This Summary reviews the key findings and recommendations aimed at improving the school uniform quality, supply, and pricing. Descriptive Analysis
At the present time, manufacturers in Mongolia compete based on product differentiation. Producers are focused on capturing the school uniform market by opting to differentiate themselves through detailed tailoring and complex designs. However, complex uniform designs, whose production often depends on outsourcing to China, are associated with excessive costs that are ultimately transferred to the end-consumers.

The incentive behind differentiation is to gain exclusive relationship with each individual school and become the school’s destination supplier. As a negative consequence of this
process, poor students are often unable to afford the specific uniform selected by the school and its supplier and are, instead, left to search for cheaper alternatives. For instance, 44.4% out of 462 surveyed parents, teachers, and students stated that students buy uniforms in the black market, indicating that the official suppliers – given the current pricing and quality issues – are unable to capture close to half of the market. In fact, some schools have already moved towardssimpler alternatives by askingtheir students to wear white shirts paired with pants or skirts.Suppliers’ focus on investing in relationships with schools rather than improving the quality and price competitiveness for the end consumers. This approach – coupled with the outdated sizing standardsand poor design –is the key problem in the Mongolian school uniform market.
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