Have you heard of a Daigou (代购)? Well it might surprise you that this little known term packs a big punch in China!
Daigou refers to the practice of buying foreign made goods overseas and selling them in China. This occurs mostly through e-commerce platforms like Taobao and increasingly through social media channels like WeChat. Covering such a wide variety of products, from infant formula, to designer handbags, this term has become a catchall for the huge Chinese appetite for foreign produced goods. In 2015 alone, the luxury Daigou market was worth $7.6 billion.
Wal-Mart sells imported goods in China via a mobile app, InternetRetailer
It isn’t just the small, online shops that are jumping on this bandwagon. Other retails are also keen to capture the consumer demand for overseas goods. Most recently, Wal-Mart launched an app that specifically offers products from overseas to Chinese customers.
The Chinese government has taken notice of the huge growth and stepped in with new taxes and regulations to control and safeguard local industry.
It remains to be seen what impact this will have on consumers and how local brands will step up to show the quality of their products with consumers. We will be keeping a close eye on the developments!