Hippophae, or sea buckthorn, has been used for centuries for its reported health benefits. However, there are few places in the world where it can grow.

The small orange berries thrive in sunny areas, but grow best in places that are often too harsh for other plant life. Sea buckhorn thrives on the remote Mongolian steppe which, despite its sub-zero temperatures in winter, experiences an average of 250 sunny days per year.

Khulan Davaadorj, the CEO of Mongolia’s Lhamour organic skincare company, is determined to use her country’s natural abundance to build a sustainable business using these and other ingredients that are less common elsewhere; the company also uses pine tar, yak milk, sheep tail fat and horse oil – products that are sustainable thanks to Mongolia’s climate, bountiful livestock, and long tradition of nomadic herding.

Davaadorj began experimenting with skincare in an effort to treat her own skin, which was suffering in Mongolia’s harsh climate and the damaging pollution that blankets the capital city, Ulan Bator.

After witnessing the transformative effect of natural products, she enrolled in an organic cosmetics programme to learn about using natural ingredients to treat skin issues.

She launched Lhamour in 2014, and her products quickly received the country’s first organic certification and became popular in Mongolia.

In 2015, the Mongolian Chamber of Commerce named Davaadorj entrepreneur of the year, and in 2016, the prime minister named her woman of the year.

Having achieved success domestically, she dreamed of offering her hand-crafted products to the world. However, building an international company in Mongolia is no small task. Because the country is landlocked between Russia and China, products for international markets must be sent by air.

High-value lightweight products such as skincare and cosmetics are therefore more profitable.

In the past year, Khulan Davaadorj has succeeded in making Lhamour an international brand – its products are now available with free delivery in Hong Kong, and are also distributed in Thailand, Taiwan, Australia, and the United States.

Davaadorj is committed to growing her business in an environmentally sustainable way. She says: “[Lhamour] is more about quality than quantity and it is more about sustainability than profit.” The company uses eco-friendly packaging, shipping its products in recycled paper or reusable containers. In its flagship stores, it features “no-waste corners”, where regular customers can refill their tins and bottles.

Five Asian skincare brands promoting clean beauty
Avoiding waste is integral to Mongolian culture. When an animal is killed every part is used. Meat is eaten, hides are tanned to make leather, and wool is made into Mongolian cashmere.

Lhamour is staying true to the roots of the country’s culture, finding new uses for such precious resources.

Those familiar with Mongolia’s exports will recognise that organic skincare is an anomaly. In 2016, more than 88 per cent of the country’s exports were mined natural resources, primarily coal and copper. Because of transport challenges, nearly all of Mongolia’s exports go by train to neighbouring China. This overreliance on a single, highly volatile sector and trading partner opens Mongolia up to high levels of economic instability.

Lhamour’s hydrating facial oil uses a unique blend of plant-derived oils to hydrate and balance the skin and ward off the damaging effects of pollution exposure.
While creating a skincare company may strike some as frivolous work, in making Lhamour products available internationally, Khulan Davaadorj is helping to stabilise her country by diversifying its exports.

In addition to relying too heavily on its mining sector, Mongolia is also at a disadvantage because it exports most of its materials in their raw form rather than refining them or engaging in other processes that add value and create employment.

Lhamour does the opposite – a dedicated team of employees makes and packages all of its products in Mongolia. Davaadorj employs 36 people, nearly all women, and many from disadvantaged backgrounds. Those who were taken on in the company’s early days are still working with her, because, as she says, “they see a purpose in doing something good for the country and other people”.

She hopes that, through international expansion, she will be able to create more jobs in her home country, providing people with sustainable employment.

Davaadorj, who is 31, believes her work can inspire other young entrepreneurs. “We are trying to tackle a universal problem and show people all around the world that even start-ups from developing countries can create impact and lead others by example.”

Published Date:2019-01-28