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Milk powder maker Yashili showcases ‘made for China’ products Release date: 2018-10-11

Today’s guest:

Zhao Libo, Vice President of Sales at Yashili International Holdings Ltd

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The Food and Agricultural Products exhibition area is popular among exhibitors at the first China International Import Expo (CIIE), which will showcase overseas products ranging from dairy, beverages, liquors, meats, aquatic products, snacks, condiments, fruits and vegetables to grains and oil. Two exhibition halls are designated for this sector.

Yashili International Holdings Ltd has signed up for a booth of 200 square meters in the exhibition. The milk powder maker said that its main purpose of participating in the expo is to promote its overseas brands, including formula milk made in its plant in New Zealand. With an accumulative investment of 1.4 billion yuan, the plant is a large manufacture base equipped with the latest technology and automatic control system for high-quality milk sources in New Zealand.

Q: As Chinese people’s income rises, the dairy products are on the front line of people’s upgrade of their daily consumption. How is Yashili responding to this trend?

A: I think there are four aspects to the consumption upgrade. The first is about the demand of product quality. Take food industry for example, instead of just securing adequate food for living, people are looking for finer food with better quality now. The second is about consumption pattern. Consumers, who used to buy products, are turning to services recently. The third is about purchase channel. These days, people can buy products online in addition to offline stores. The last is about consumer behavior. People now are becoming eager for customized products and services.

In the dairy market, consumption upgrade is pushing producers to provide finer, high-end and multi-category products. Founded in 1983, Yashili Group has always been committed to expanding its global presence by utilizing international capital, building quality control system at international standards, investing in research and development across different countries, and seeking quality milk sources around the globe.

Located in the Yangtze River Delta, Shanghai is one of China’s three major dairy consumption bases, and its market size is much larger than that of neighboring cities. Therefore, it is of great strategic significance for us to expand our business in Shanghai’s dairy market.

Our dedication to Shanghai market shows great confidence of the market and demonstrates our strength in operating business in the whole domestic market of China. In the days to come, we will offer diverse products catering to Shanghai’s consumers at all levels through accurate marketing and branding.

Q: What products will appear at the CIIE? What are the features and selling points of Yashili’s products compared with other dairy companies?

A: Five of our brands will be staged at the expo, namely Yashily, Ruibuen, Dumex, Doraler and our partner’s brand Arla. Some of them are imported from New Zealand with original packaging. Some of them are imported from organic pastures in the Alps with more than 95% usage of organic raw materials. Some boast double European patents, and some come from the natural pastures of Northern Europe.

We are looking forward to the implementation of related customs clearance policies, and hope our booth can be the go-to place where people unleash their purchasing power to bring some cans of milk powders back home.

Q: Since Yashili International has established a manufacturing base in New Zealand, which is a pivotal place in China’s 21st Century Maritime Silk Road initiative, could you share some of the lessons learned in Yashili’s oversea expansion? What are Yashili’s intentions of cooperation and investment in countries involved in the Belt and Road Initiative?

A: Since the country’s reform and opening up, Chinese industries have gone through a long way from attracting foreign investment to making overseas investment. In early years, many Chinese companies have benefited from the partnership with foreign counterparts, who brought investments and innovations.

Then it comes to a time when more and more Chinese companies are going global, and the current Belt and Road Initiative offers new opportunities for Chinese enterprises’ overseas investment.

Yashili International has sped up its progress of internationalization since the launch of the New Zealand project in 2012. In 2013, Mengniu Dairy Company took a large stake in Yashili International and became its largest shareholder. In 2014, Mengniu, Danone and Yashili struck a deal, which allowed the French food company Danone became our second largest shareholder. In 2016, Yashili International acquired the infants’ nutrition company Dumex.

As more Chinese dairy companies expand their operations abroad, we are looking forward to wider, deeper and high-level partnerships between domestic and international dairy companies in the future. “Made in China” is becoming “made for China”.

In the days to come, Yashili International will continue to introduce high-end research from overseas, and to learn experiences in high standard quality control system and latest production process from Danone and Arla. We will strengthen our strategic alliance with the COFCO Group, Mengniu, Danone and Arla in research and resource sharing on a global level. We hope to showcase our overseas products to domestic consumers through this import exhibition.

Q: A growing number of domestic dairy enterprises are going global. As an early bird in overseas expansion, what suggestions can you share with others? What policies do you hope the government to provide?

A: As cultural, political and legal systems vary from country to country, Chinese enterprises will encounter many challenges once they start expanding overseas.

While doing business in a foreign country, Chinese companies should care for the local dairy farmers, pay attention to enterprise management, capacity building and the compliance of foreign laws, as well as absorb advanced technologies.

On the policy level, we hope the government can provide favorable policies, especially in financial area, for Chinese enterprises in New Zealand, and strengthen policy coordination with the relevant departments in foreign countries for the convenience of domestic enterprises investing in a foreign land.