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From Australia to China: ‘Daigou’ shoppers do big business

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In 2013, student Na Wang began shipping fish oil capsules to China from Sydney to help pay the rent. Now, she’s in business, part of a growing army of Chinese shopping agents sending Australian food and diet pills home to feed rampant demand.

Wang, 33, is one of up to 40,000 Chinese ‘daigou’ in Australia, retail consultants say, using social media and mobile payment apps to buy goods to order for mainland China customers. While ‘daigou’ first made waves in the West shipping luxuries from Europe like Gucci handbags, the new Australia breed deals in ‘white gold’ – baby milk formula – and other consumer staples.

SEE ALSO: Alibaba expands presence to Australia and New Zealand

More affluent, health-conscious Chinese shoppers want safe Australian goods, a trend stoked by tainted China food supply scandals. This year, brands like formula maker A2 Milk have begun exploring ways to harness the growth of daigou, rather than compete with them, targeting cross-border e-commerce that’s seen by consultancy ThinkChina at $1 trillion this year.

Daigou – meaning ‘on behalf of’ in Chinese – establish a network of prospective customers on popular online messaging app WeChat, owned by internet giant Tencent Holdings Ltd.

Some, like Wang, even broadcast their shopping live via WeChat’s video service to show buyers the products are genuinely from stores in Australia, not counterfeit Chinese goods.

Wang and her daigou competitors typically charge premiums of about 50 percent above the sticker price on Australian store shelves. But even allowing for shipping fees, that still means the buyer pays much less for the same product in a Chinese store – assuming it is available.

(Source: Reuters)

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