However, having just spent a week in China, conducting channel checks, our analyst feels that he is in a unique position to address this issue.
One of his major findings in China is that consumers are particularly uneducated when it comes to a2 Platinum, with most believing that A2 is just the name of the company rather than the type of milk used in the product.
While this may seem bizarre, we had enough people say it to us in China that we believe it may be true.
This would suggest that the majority of people are buying a2 not because of the A1-free milk used but instead for other factors, which may include: NZ source of the milk, the premium price, word of mouth from daigou or the scarcity of supply in the channels.
This would mean that increased consumer awareness about the benefits of A2 milk would add another favourable proposition to A2’s brand.
Having spent a fair amount of time with Management at our Forum it is clear that the issue of competition was often raised and Management have always argued that they saw competition as an opportunity, especially if it came from the global brands, as they would then help to drive awareness of the A2 product and in turn grow the category for A2M."
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