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- Daigou Relationships - July 24, 2017
Daigou relationships have become very popular over the last few years. More and more Chinese natives are seeking to purchase high quality products from overseas to provide a better quality of life for them back home. With increasing news about food safety and tainted baby formula disaster of 2008, (x) many Chinese natives are left to seek real and genuine products from overseas. (x) There is a market worth $AU10.5B globally in 2016, according to Bain & Company. (x)
What is a daigou relationship?
The expectation of a daigou relationship is to “buy on behalf of” someone else,(x) usually a someone overseas who buys things for residents in mainland China, and is a channel of commerce between mainland Chinese buyers and overseas shoppers. Daigou’s are often unauthorised purchasers. They are often family, friends or agents who either bring the products back to China, or courier them via post.
With many retailers and pharmacies wiped clean of infant formula and vitamins, it also puts a strain on our local economy. There has been an increase of daigou relationships with courier services like ChangJiang Express. These services pop up to ease the shipping process of Australian made goods. (x)
This market is also widely available as a result of WeChat eCommerce, where there is strong use of QR codes to make purchases. These QR codes also facilitate ease of trading between different agents and buyers. One of the most popular daigou products is infant formula, vitamins, and other high quality Australia-made products, often leaving Australian shelves absolutely cleared out.
Unfortunately, the Chinese government has tightened controls on these imports from “daigou.” This is to protect local retailers by levying import taxes between 15-60% on food and consumer goods (in particular infant formula, vitamins and cosmetics) sent via mail or couriers. (x)
At the end of the day, it’s about forming relationships with customers abroad. These customers need to trust daigou’s to buy genuine products in Australia. It’s imperative with the restrictions on the amount of products that may be purchased in various retailers. It requires a strong relationship between the customer, the daigou, and their trusted retailers, where they ultimately source their Australian goods.