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.
- Australia’s multi-billion dollar daigou industry struggling amid coronavirus pandemic (Oct 16, 2020, ABC News Australia)
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