Jenny – 47 – works full time at a bank, but has been boosting that income by hitting the shops after work and on weekends. She puts in an additional 20 hours a week sourcing products like skin care, health supplements, breakfast cereals and chocolate products. Jenny knows that there is a big demand for these items in China.
She started off working as a Daigou by default, as her family in China were always requesting items to be posted back to them. They thought the quality of Australian products are better than China, and as time went on, word spread like wildfire. Her reach went beyond her immediate family and friends to a wider network in China – her WeChat followers increased by the day.
From there, business exploded to where she was earning AUD 2000 each week. Jenny posts images of products on her personal social media, WeChat, offering to purchase Australian products in-store for her clients and post them to China.
Demand for Australian products
Some of the products Chinese buyers are looking for are only available in Australia.
Some products, like baby formula and some health care products, are subject to Australia’s stringent safety regulations – making them highly appealing to Chinese consumers.
To alleviate safety concerns regarding China-made products, consumers are looking to Australian Daigou to help them find alternatives.
Trust is the key to good sales in China, and Daigous are often highly trusted. “Word of mouth plays an important part of Daigou activity,” Jenny said. As Jenny walks into a pharmacy, preparing to fill her basket with health supplements and skin care products, she will Skype with her friends, family’s friends and friends’ friends in China from her phone. She said video calls with clients are crucial when purchasing items, to prove that the products are genuine as they are from a legitimate store.
Since joining MultiConnexions as a Client Servicing Executive, I can see the huge potential of utilising the Daigou market for our clients.
Chinese consumers depend heavily on product recommendations from online reviewers. Peer reviews that they read on social media are very important when it comes to making a purchase decision.
In particular, WeChat, the most widely used chat app in the Chinese community, has opened up great opportunities for multicultural marketers. Sharing feedback and recommending products to friends has become substantially easier, due to the fact that the app allows sharing on a platform that is more private in nature between individuals and small groups. The Chinese community generally will only take the step to purchase a product after getting consent from their peers via social media and ecommerce forums. Hence, the most popular Australian exporters to China aren’t the brands – they’re the relationships and the unique marketing initiatives that Chinese enjoy.
5 Daigou Facts
1. Daigou are often entrepreneurial Chinese students living in Australia or Chinese visitors, who wish to send a number of Australian products back to China.
2. In China, the most-searched keyword on the web associated with Australia is Daigou.
3. Popular products among Daigou: Baby milk formula/powder, medications, health supplements, body lotion, face lotion, hand cream, body wash.
4. Reasons the market exists:
• High quality, well known Australian brands
• Fear of non-genuine Chinese products
• Expensive retail price in China compared with Australia
5. It is widely acknowledged that there are between 40,000 to 60,000 Daigous in Australia advertising Australian products on WeChat, Weibo or C2C e-marketplaces in China.
Today, as a MultiConnexions team member, we help our clients to adopt the most appropriate strategy on a grass-root level to target various multicultural and diaspora audiences.
We can utilise WeChat social media platform to its fullest, increasing your brand’s exposure, in order to target buying agents and generate new business opportunities.
Whether it is setting up a client’s official WeChat account, creating unique and culturally tailored content, organising interactive competitions to increase your followers, or having our creative team to design artworks for display advertising, we know how to reach the hearts and minds of Chinese customers.
If you have a product, we have the answer.
This blog was written by Anabelle Yong, MCX’s Client Servicing Executive – a.k.a. Anabelly, the food lover.