Brand Trust as Value Chain Governance: How Perceived Consumer Demand Reshapes Profit Distribution in Mongolia’s Cashmere Industry

This study examines brand trust as a governance mechanism within the Mongolian cashmere value chain and explores its impact on profit distribution and business relationships. Using a qualitative methodology involving key stakeholder interviews, document analysis and case studies, the study shows that brand trust acts as a powerful form of soft power. It institutionalises values such as ethical sourcing and sustainability, which simultaneously strengthen consumer loyalty and reconfigure power dynamics upstream. Transparency and traceability are the tools that enforce compliance with brand standards. These findings extend global value chain theory by incorporating intangible factors such as trust and reputation into models of value creation and distribution. Consequently, policies aimed at enhancing brand trust are presented as a viable strategy to promote sustainable and equitable outcomes in similar resource-based sectors.