DHL eCommerce has announced it will partner with Sydney-based daigou AuMake, an Australian Securities Exchange (ASX) listed retailer, which connects Australian suppliers directly with Chinese consumers, to enable deliveries direct from Australia to China. AuMake has a growing database of over 80,000 members who will now be able to ship direct to China with DHL eCommerce Parcel International Direct offering transit times of 5-7 days.
According to a DHL statement, Australian products are highly sought after by Chinese online shoppers, contributing to 20% of cross-border purchases into China in 2017, up 9% from 2016.
Vast number of daigou entrepreneurs
In addition, there are an estimated 400,000 ‘daigous’ operating in Australia who act as an overseas personal shopper to buy and ship products from Australia to China.
A daigou - the word literally means "buying on behalf of"- is a person outside China who purchases commodities for a customer in mainland China, because prices for luxury goods can be 30 to 40% higher in China than abroad.
Thousands of Chinese daigou entrepreneurs in Australia and New Zealand who are often students, are building online businesses by selling high-quality products such as baby formula, vitamins and skincare products via messaging platforms such as WeChat.
Conduit of business
An earlier report in Equity Magazine, quoted Livia Wang, director of Sydney consulting firm Access CN, which specialises in marketing to China, as saying that there are some 1,200 to 1,500 daigou businesses in Australia. Wang believes that not only will the number of daigou shoppers grow, but they are likely to become more sophisticated as a conduit for products into China.
AuMake has a growing number of showroom-style stores, where customers can easily make purchases and arrange a pick up by DHL eCommerce for international deliveries.
Targeting Chinas aging population
Earlier this month, AuMake concluded an exclusive sales agreement with Anhui Tiantong Renhe Culture Communication Co. to distribute both AuMake owned brand and exclusive products via its network of TV shopping channels within China.
Under the deal AuMake will initially work with JiaJia Shopping Co. which is a subsidiary of Chinese state-owned enterprise (SOE), Anhui Radio Film & TV Media Industry Group. Founded in 2007, JiaJia owns 24-hour TV shopping channel, e-commerce platform and distribution network, which targets China’s aged population - a key customer segment for AuMake. JiaJia reported sales of 1.3 billion RMB (US$189m) in FY17 and forecast sales of 1.5 billion RMB in FY2018.
Nol van Fenema