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Daigou were once ‘make-or-break’ for Australian brands in China – where are they now?
- Daigou, personal shoppers for mainland Chinese consumers, used to account for billions of dollars of products sold by Australian businesses
- But changes in online shopping habits and Chinese spending power have led to a drastic drop in their numbers in Australia and New Zealand
Reading Time:6 minutes
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Su-Lin Tanin Singapore
The power of the daigou, personal shoppers for Chinese consumers, was on full display in a recent class-action lawsuit launched against the a2 Milk company, one of New Zealand’s biggest milk exporters.
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Disgruntled shareholders sued the listed company after its share price sank heavily in 2020, claiming it had misled them about the loss of daigou sales.
For a2 and other exporters of baby milk formula, daigou play a key role in helping them succeed in the Chinese market.
a2’s sales took off when these personal buyers – mainly Chinese students, tourists and migrants – scooped up tins of its and other brands’ formula from supermarket shelves in Australia and New Zealand to send to friends and family in China.
Overseas baby milk formula was highly sought after by Chinese consumers following the milk contamination scandal of 2008.
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Former and current daigou told This Week in Asia that such personal shoppers were the most active in Australia and New Zealand between 2012 and 2017, when consumption and brand consciousness of China’s middle class boomed, while masses of Chinese tourists and students – many of whom became daigou – flew to countries around the world.
The daigou phenomenon was not limited to baby milk formula – vitamins, supplements, skincare and even UGG boots all became part of their shopping haul.
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