Yak Yak Part 1: Their Story

At some point, no matter your chosen career path, or for what company you are employed, or for what company you aren’t employed, or where you fall in (or fall off) the corporate ladder, or where you find yourself living — at some point we all have the opportunity to embark on a professional challenge that is life changing. Sometimes it just happens and you later realize the significance of the event. However, occasionally you have an inkling that something special is about to happen.

A few weeks ago I was introduced to a friend of a friend who is doing relief work with a Swedish NGO called Operation Mercy. Sarah Ong, whom I have only met through email, is doing economic development work in Tajikistan with the Pamiri people.

The region where Sarah and her team works encompasses half of Tajikistan, however, it is only 3% (210,000 people) of the country’s population. It is a remote and harsh environment with sparse economic resources. When Operation Mercy first arrived in the region they repeatedly heard talk of the lack of jobs. 76% of the people live on less than $2.15 a day. From talking to people in the area, it is clear many families can only survive by sending sons and husband as migrant workers to Russia. This brings many social challenges but few people have the choice to stay and work in their own country.

Out of this need Yak Yak was born.

The Pamirs have herded yaks for centuries as a source for food (milk, cream, butter, and yoghurt). Each year yaks grow a soft under-down which protects them from the harsh winters. In the summer the down molts or is sheared and thrown away. When Operation Mercy tells the herders about the value of this down – on a par with cashmere – the herders ask: “Why has no one ever told us this before?”

It turns out that yarn made from yak down is warmer than wool and as soft as cashmere. It is both a durable and lightweight fiber that preserves heat in the winter while breathing comfortably in warmer weather. Yak yarn is completely odorless, does not shed, and maintains warmth when wet. The yarn is non-allergenic and non-irritating as it contains no animal oils or residue, and it is easy to care for by being washed with a gentle detergent.

In other words — it’s a pretty incredible fiber.

Yak Yak was formed as a way for the Pamiri herders to benefit from this neglected resource. They are working to source the yak-down directly from the herders at a fair price, bring machinery into the region to separate and clean the fibers, spin the down in local workshops, and even knit garments. All of this is done locally to create a luxury export of yarn and garments to other countries and generate a living wage for the Pamiri people. By creating local jobs and paying fair wages, Operation Mercy is working to create opportunities to keep the Pamiri families together.

Yak Yak is currently working through the challenges of manufacturing in this remote area. They are also faced with the challenge of taking their products to the global market. Out of this, Tenfold has been given the privilege of working with Yak Yak to build a brand that tells their story.

This is why I have the inkling that something special is about to happen.

In addition to exporting the yarn, Yak Yak will produce clothing lines for men, women, children, and babies. They will launch with an accessories line only (hats, gloves, and scarves), but are hoping to move into sweaters once manufacturing and delivery quality is consistent. The biggest cost for them is the production of the yarn. All Yak Yak garments will be made by ‘clusters’ of women working in villages where there are few opportunities for work, and often no opportunities to work for bread winning wages.

Step 1: Kick-off meeting

Usually kick-off meetings take place in our conference room with muffins and drinks, but this one had to be done entirely through email. We began this project with a creative brief to identify who Yak Yak is, what they do, and why they matter. It’s a difficult challenge because so much of why Yak Yak matters isn’t wrapped up in their end-product (though yak yarn happens to have some great features and benefits). We know that Yak Yak matters because of the people behind the product, but will consumers know about the story? And if they do, will they care?

Sarah and her team did a fantastic job of walking themselves through our creative brief.  In the section of the brief where we explore the benefits of the product, Sarah writes, “(Yak down provides the) choice of an exotic, high-quality product with the assurance of a clear conscience… We transform the purchase transaction from a primarily selfish experience to one that is generous and life-giving.”

Building a brand that communicates this is Tenfold’s challenge.

Step 2: Internal Processing

We now have the data. Sarah was able to provide the details about the product and for whom it is intended. Tenfold happens to have a connection with a marketing consultant in the yarn industry who was able to provide more details on the demographics of who would buy a specialty yarn:

In 2006 there was an estimated 913,000 “specialty” (dedicated) knitters who spent $748,000,000 on their craft. The average knitter is 47 with a median income of $60,000 – $100,000. This group is also the highest average spender of knitting supplies at $999 per year, 25% of which is done online with 51% in specialty stores. This group will complete 22.7 projects per year, spending an average of $38 per project, 46% of which will be gifts to other people. That’s the average knitter.

For a specialty yarn like Yak Yak, our consultant’s unconfirmed gut feeling is that our key demographic may be… my wife. Based on observations in the yarn store, these “novelty yarns” are geared to 30(ish) year old hipsters who appreciate something unique and are willing to pay for it – particularly because so many of these projects end up being gifts. It is definitely a product in which all knitters may have an interest, but the general consensus on our team is that the critical mass is with the hipsters.

It’s helpful to live with the demographic.

The garments will be sold primarily online. In the UK the majority of ethical retailers have flagship stores, but generally in London. The demographic for this is broad and will vary between the men’s, women’s, and children’s line. This group ranges from post-college professionals to grandparents buying gifts for their grandchildren, which will be a challenge.

In looking for information about this market, we came across a report from Emerald Insight about marketing Fair Trade apparel . Here is the summary of this report from their website:

Purpose – This study focused on two research questions: How do generational cohorts of fair trade consumers differ in their product attitudes and behaviors, retail preferences, shopping orientations, and socio-political attitudes? How do factors influencing purchase intentions for fair trade apparel differ among generational cohorts?

Design/methodology/approach – Data from 1,055 current customers of four North American fair trade businesses were collected via mail survey and store-intercept. Respondents included generation X (ages 29-40, n=200), baby boomer (ages 41-59, n=589), and swing (ages 60-75, n=266) generations.

Findings – Results revealed that baby boomers and swing respondents differed from Generation X participants in their greater focus on qualities of apparel comfort, value, and quality; preference for authentic products and ethnic attire; and local activism behavior. In contrast, they exhibited more limited interest in wearing fashionable attire. All respondents placed high importance on fair trade philosophy centered on wages, workplace, and the environment. For all generational cohorts, their propensity toward wearing ethnic attire was the strongest influence on future intentions to purchase fair trade clothing.

In the coming week The Tenfold team will be researching the industry to see with whom Yak Yak will be sharing market space. From there we will develop design narratives and explore how to differentiate Yak Yak from the rest of the market.

Continued in Part 2.