The Case of the Disappearing Daigou

The Case of the Disappearing Daigou

January 10, 2021

Disappearing daigou are causing sales in Australia to plummet in key industries like infant formula, personal care and beauty, and nutritional supplements.

Daigou in Australia are personal shoppers who ship products to China. In this multi-billion dollar industry, millions in revenue have been lost by dairy and supplement brands because of changes precipitated by the pandemic.  Australian baby formula companies like Bubs, Nuchev, and A2 join others in daigou-driven markets to find new distribution strategies to get their products into the hands of Chinese consumers.

Pandemic-related issues are causing major shifts in this dynamic market and how it operates.


Video Spotlight: 


This post is based on the ABC News Australia article, Chinese personal shoppers and Australian brands devastated by impact of coronavirus, by Bang Xiao, October 17, 2020; the Sydney Morning Herald article, A2 Milk to boost direct China sales as daigou market sours, by Dominic Powell, December 18, 2020; the AFR article, Disappearing daigou pull rug from Bubs and Nuchev (requires subscription), by Simon Evans, November 3, 2020; and the YouTube video in the Spotlight. Image source: Continue reading

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Stay-At-Home Improvements Mean Appliance Shortages

Stay-At-Home Improvements Mean Appliance Shortages

December 16, 2020

A surge in home improvement projects and new home construction has created a strong demand for appliances from refrigerators to washing machines. As a result, manufacturers, retailers, shippers, and raw materials suppliers are struggling to keep up with the strong demand.

Amid item shortages, retailers like Lowe’s are shifting from in-store showrooms to direct-to-customer deliveries.


Video Spotlight: 


This post is based on the Business Insider article, Kitchen appliances and washing machines are in short supply as families stuck inside turn to home-improvement projects, by Graham Rapier, October 23, 2020; the Consumer Reports article, How to Get a Deal During the Appliance Shortage, by Tobie Stanger, December 10, 2020, and the YouTube video in the Spotlight. Image source: Corbis/Superstock

Discussion Questions:

1. How does the surge in demand of appliances affect inventory management for manufacturers such as Whirlpool?

Guidance: Appliance manufacturers maintain a low level of inventory to begin with. The level of inventory has remained low despite high production, resulting in order backlog and item shortages.

2.  How does the surge in demand of appliances affect its supply chain?

Guidance Continue reading

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Dock-to-Arm: A Tricky Challenge for the Coronavirus Vaccine

Dock-to-Arm: A Tricky Challenge for the Coronavirus Vaccine

 

We have three promising vaccines. Now the challenge is to distribute them to the masses.

Public health officials and health systems around the world are gearing up for the distribution of the vaccines to their populations. There are opportunities for error at every step of the distribution process, from transportation of the Pfizer vaccine at extremely cold temperatures to final distribution in remote or rural areas. This massive undertaking is going to require synchronized efforts among many different parties. Success will depend on seamless coordination and trust.

 


Video Spotlight: The Race to Move a Cold Chain Vaccine to the Masses


This post is based on The Washington Post article, Now Comes the Hardest Part: Getting a Coronavirus Vaccine from Loading Dock to Upper Arm, by L.H. Sun and F. Stead Sellers, November 23, 2020, and the YouTube video, Inside the Cold, Complex World of Getting a Covid-19 Vaccine into Arms, by The Washington Post, November 24, 2020. Image source: LightField Studios / Getty Images.

Discussion Questions:

1. What are the challenges posed by this colossal distribution effort?

Guidance: There are many challenges associated with this effort. The Pfizer vaccine needs to be kept Continue reading

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