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Profits of yak milk business
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Despite its touted health benefits, yak milk remains a tough sell outside of Tibet, Wang says.

"So far, the real challenge for us is how to sell it throughout China," says Wang.

So, Treasure of Plateau has budgeted 100 million yuan from 2008 to 2010 to explore the domestic and international markets.

It also hired Shenzhen-based China Winwin Consulting to be its branding and marketing agency to make "Feifan" the name to know when it comes to fresh yak milk products.

Three core sales offices have been set up in Beijing, Shanghai and Guangzhou. The company is also making efforts to branch into second-tier cities.

Liquid milk consumption in China reached 17.5 billion liters last year, 1.7 billion liters more than 2006, according to Tetra Pak's latest survey. However, the average per capita milk consumption in China is just half of the level in Asia and one-fourth of the world, which implies huge potential in China.

The suggested retail price for a 250-ml box of Feifan yak milk is 24 yuan, quite high compared to China's two leading brands, Mengniu's Deluxe and Yili's Classic at around 7 yuan.

Yet Wang is confident at targeting the high-end milk-drinking Chinese consumer. "With our unique product, clear market direction and a highly efficient sales network we can achieve success," he says.

Hsu of Ventures in Development says Langdu faces a similar challenge with its yak cheese in China where cheese in general is seen as an "exotic" import or foreign fad that many Chinese find simply distasteful.

In 2003, China's cheese market was worth just $30 million. The same year, France consumed cheese valued at $7 billion.

At present, Langdu people are marketing the cheese at tourist destinations in Yunnan where locally made products with a Tibetan theme can fetch a premium. Zhongdian, the nearest town, was renamed "Shangri-la" in 2001 after the imaginary Himalayan paradise in the 1930s novel Lost Horizon and Langdu presents its products in some stores there.

(China Daily August 4, 2008)

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