The Case of the Disappearing Daigou

The Case of the Disappearing Daigou

January 10, 2021
Lisa M. Spencer

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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Look, Up in the Sky – It’s a Car!

Look, Up in the Sky – It’s a Car!

September 19, 2020
Lisa M. Spencer

Flying cars by 2023?  That is the hope of Japan’s SkyDrive project which just conducted Japan’s very first manned flight of an “eVTOL,” or electric vertical takeoff and landing vehicle.

The aircraft, dubbed the “SD-03” is the world’s smallest eVTOL developed to date, requiring the same amount of space as two parked cars.  Originally funded by big name companies like Toyota, Panasonic, and Bandai Namco, a video-game developer, SkyDrive just received fresh funds from other groups, including the Development Bank of Japan.

Over 100 flying car projects are in the works worldwide, but very few have gotten off the ground with a person inside.  SkyDrive’s recent test at Japan’s Toyota Test Field lasted about four minutes and flew a few feet off the ground.

Video Spotlight: 

This post is based on the Fox Business article, Japanese flying car company conducts successful test flight, by Greg Norman, August 28, 2020; the CNN article Japanese company successfully tests a manned flying car for the first time, by Lauren M. Johnson, September 1, 2020; and the YouTube video in the Spotlight. Image source: Chesky/Shutterstock

Discussion Continue reading →

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Hasbro Reduces China Sourcing

Hasbro Reduces China Sourcing

September 17, 2019
Lisa M. Spencer

Hasbro continues to reduce ties with China, aiming to source less than 50% of its toys for the U.S. market from there by the end of 2020.  By 2023, that should drop to 33%.

Heading Trump’s call to American businesses to leave China, Hasbro continues to seek new opportunities for sourcing toys from Vietnam, India, Mexico, and back home in the U.S.  Hasbro’s exit actually began back in 2012, when 90% of its toys for the global market came from China.  Today that figure stands at two-thirds.

Video Spotlight: Hasbro CEO on reducing toy production in China below 50% by the end of 2020

This post is based on the CNBC article, Hasbro CEO says moving out of China has “gone very well for us”, by Jasmine Kim, August 27, 2019, and the YouTube video, Hasbro CEO on reducing toy production in China below 50% by the end of 2020, by CNBC Television, July 23, 2019. Image source: Design Pics / Don Hammond

Discussion Questions:

1. Why is Hasbro leaving China, a move which predated the Trump tariffs?

Guidance: In addition to the issue of higher costs because of recent tariff increases, other Continue reading →

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