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What is a daigous?

I was watching one of the A Current Affairs programs the other day (something I don’t do very often) and came across a new money making venture that many Australians have caught onto and that is being a daigous. What is this you may ask? 

Daigou is a Chinese phrase that roughly means “buying on behalf of”. According to Taiwanese-born public relations specialist Livia Wang daigous are small business people, including international students and stay at home mums, who buy products here and sell them back into the Chinese consumer market. 

Sales of products such as Australian baby food, cosmetics, vitamins, honey, Ugg boots and other products have put Australia on the map in China; with such sales representing 20 per cent of the market in sales of some of these products to the Chinese market.

Wang had over 2,800 people registered for her latest Sydney and Melbourne conferences. At these conferences she puts individuals in touch with large companies whose products are in demand by Chinese buyers and teaches them how to market to their family and friends overseas. There are over 4,000 daigous currently in Australia marketing and exporting Australian products to their family and friends in China using Blogs, social media channels and WebChat. 

A 2015 survey of Chinese online luxury shoppers found that 35% have used a daigou to purchase luxury goods online, while only 7% used the brand’s actual website. Approximately 80% of Chinese luxury purchases are made abroad. Daigou sales across sectors (including health and beauty, baby products and luxury items) total $15 billion annually. In 2014 the value of the daigou business just among luxury goods increased from USD $8.8 billion to $12 billion).

How does this work?

Once you become a personal daigou agent you get a network of people who want Australian products, they will give you their personal shopping lists and make a down payment. Your daigou will then purchase the products and you will make a payment in full to them plus commission (anywhere from 10%-30%) of full retail price). These items are then shipped overseas. Chinese buyers prefer this purchasing method due to the increase of counterfeit and tainted products (including baby formula) in China and the import taxes charged by stores. 

I am not advocating that everyone quit their jobs and become one of these personal sellers but it is definitely a unique opportunity that is a sign of the times, with sales and purchases of goods and services becoming easier in this modern day of technology. 

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