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

Facebook
Twitter
VW Partners with Amazon Web Services

VW Partners with Amazon Web Services

Volkswagen (VW) is in partnership with Amazon Web Services to link more than 120 VW factories to 1,500 suppliers and 30,000 plants worldwide via a cloud-based software and data portal.

The “industrial cloud” digitizes factory processes from stamping to painting to maintenance.  Supplier partners use an app store approach to share and contribute software applications.  Amazon provides support services, including data analytics and computing.


Video Spotlight: VW and Amazon team up to create an industrial cloud (Mar 28, 2019, Arirang News)


This post is based on the IT News article, VW sees Amazon-built ‘industrial cloud’ as future B2B marketplace, by Paul Lienert, July 24, 2020, and the YouTube video in the Spotlight. Image source: Shutterstock / vectorfusionart

Discussion Questions:

1.  What are the strategic implications of VW’s industrial cloud?

Guidance: The industrial cloud integrates VW factories with its suppliers and plants to digitize processes and improve supplier relationships.  The cloud technology better positions VW to compete on responsiveness, quality, and flexibility.

2. What role does VW’s industrial cloud play in its supply chain operation?

Guidance: The industrial cloud enables VW to address the barriers to integration of suppliers by sharing data Continue reading

Facebook
Twitter
Hershey’s To Manufacture Its Own Masks

Hershey’s To Manufacture Its Own Masks

Hershey is investing $1 million to acquire new production capabilities to make face masks for its employees and their families as a response to the COVID-19 pandemic.

Unlike other food and beverage companies that retrofit existing equipment for personal protective equipment (PPE) production, Hershey is expanding its capabilities to keep both chocolate and PPE manufacturing operations running.  This way Hershey ensures a safe and clean working environment for continual operations as well as providing relief for much needed face masks to protect health workers and general public against the highly contagious coronavirus.


Video Spotlight: 


This post is based on the Food Dive article, Hershey to acquire facility to manufacture face masks, by Jessi Devenynys, April 28, 2020, and the YouTube videos in the Spotlight. Image source: Shutterstock / Dech St

Discussion Questions:

1. What capacity decision has Hershey made in response to the COVID-19 pandemic?

Guidance: Face masks are in short supply as they are a key personal protective equipment (PPE) to combat the COVID-19 pandemic.  The masks are also Continue reading

Facebook
Twitter