A new way to tap into the China market

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A new way to tap into the China market

A Sydney startup says it can help Australian businesses sell into China via WeChat and bulk-buying daigou.

DaigouSales says it can connect Australian businesses with the China market via the country’s hugely popular social network, WeChat.

The Sydney-based startup’s website also taps into the daigou (“buying on behalf of”) community – Australia-based Chinese or tourists who purchase products here to ship back to China. Daigou have achieved a degree of notoriety, largely due to the practice of buying large quantities of infant formula from supermarkets, flouting limits such as “two cans per customer” imposed by store management.

DaigouSales.com founder Mathew McDougall said his company “allows Australian brands to sell directly into China via locally based Chinese WeChat users who buy on behalf of their friends and relatives back in China. DaigouSales.com handles the eStore management and cross border shipping so Australian businesses can concentrate on creating great products.”

He said daigou are expanding from products such as infant formula, vitamins and supplements to categories including clothing, essential oils, uniquely Australian skin care and cosmetics, and jewellery.

“We found in our [2017] survey the most crucial points of trade considered are the quality of the products, the price, followed by the brand awareness,” McDougall said.

The company found that the daigou community is mostly made up of women aged between 30 and 39 (closely followed by the 20-29s) who purchase and ship products from Australia on behalf of their personal contacts back in mainland China.

More than 75 brands have used DaigouSales.com to export to China, according to McDougall.

“Not only does DaigouSales.com it make it easier for Australian businesses to position themselves in a WeChat eStore, it also provides local Australian based daigou with easy to use ‘store fronts’ to make the buying process simple,” he said.

“The DaigouSales.com store front innovation allows daigou buyers to focus on growing their Chinese network and profit as it automates much of the purchasing, money collection and shipping processes.”

DaigouSales.com charges suppliers a $500 store setup fee, a $249 monthly service fee, and a 2.5 percent commission is added to each transaction. Merchants must provide stock on consignment, and are charged a $50 monthly warehouse fee, and a $1.70 pick-and-pack fee per order.

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