spot_img

The Genuine Article

spot_img
spot_img

Latest News

spot_img

As can be seen blow, 2015 was not a good year for exports from Australia to China. That is why the recently signed Free Trade Agreement between the two countries is such great news.

The Nanjinger got the grips with some early adopters of the new agreement that will see import tariffs drop to zero across the board over the next 10 years.

Daigou (代购), meaning “purchasing agent”, is the most recent wave of entrepreneurial spirit spreading like a bushfire across Australia and China. Due to a deep harbouring of suspicion over Chinese product quality control, Chinese buyers now implicitly trust certain products imported directly from Western developed countries. As Australia has a reputation for being clean, green and health conscious, the Chinese are flocking in swarms to buy up reserves of baby milk formula, health and beauty products, while a new addition to the trend is fresh produce.

While the USA and Europe are obvious alternative choices, Australia’s proximity to China and reduced political tensions are a good incentive. Meanwhile, Australia maintains excellent relations with China in relation to trade. With Australia’s Chinese student population at approximately 50,000, this provides room for opportunities in trade and business with China. In addition, Australia houses a steadily growing number of housewives skilled in the arts of shopping and Mandarin.

It may seem obvious but cottoning on to what the Chinese need at a trendy pace is something maybe only natives can handle at this point. “One Melbourne freight company revealed last year it was sending 20 tonnes of shopping to China every week”, claimed the Sydney Morning Herald.

Difficult as it may be to distinguish if anything in China is genuine or not, the new middle class certainly is not willing to take the risk. Australians are oblivious to the quality of the milk they buy or the vitamins from the local pharmacy, focusing instead on fashion and travel. For new Chinese mums on the mainland, however, the highest quality of “essentials” is what they are after. “The most-searched keyword associated with ‘Australia’ was ‘buying agent’, according to data from Chinese search engine Baidu, from January to July 2015”, reported ThinkAsia.

The worry does not stop there when it comes to consumer safety in China; there is much mistrust in many of the online shops set up by companies such as baby formula making giant Bellamy due to counterfeiting problems. These are the driving reasons behind Daigou success.

Utilising WeChat, Daigous based in Australia and China work a cooperative; the Australian based purchasing agent will shop around pharmacy warehouses and cheap supermarkets in order to secure the lowest price, while the China based seller generates good customer relations. Some Australian based agents will also sell directly from Australia to clients. Transactions are made through WeChat’s in-built wallet function with no tax being paid on either side.

Speaking with the Nanjinger, Nanjing based Rebecca explains why she does it; “I am a full-time mum at home, I take care of two children, it is not convenient to go out to work, so I find it very convenient to do micro-channel purchasing and it is also more suitable for me.

“I started out purchasing British products, mainly baby products; including milk powder, health products … two years ago I started working with friends in Australia and sourced all the products locally there”, she went on to say.

“I never add strangers to my WeChat. Initially I sell to friends and relatives I think it’s good to have introduced my friends, later I can expand further”, concluded Rebecca.

Thanks to the new Free Trade Agreement, Nanjing’s centralised checkpoint of inspection, quarantine and customs clearance for imported goods in Jiangning has enacted new laws which will allow for the passing through of raw materials and fresh foods a great deal faster. “This means that it only takes five days for a bottle of milk from Australia [to reach] Nanjing … Transferring the imported products directly through customs will save the cost of distributors and at least one third of the logistic time, this is beneficial to consumers”, reported web portal JS China.

As a result, Australian and Chinese customs are working efficiently enough to bring popular mangoes, cherries and peaches from the land down under into the middle kingdom in under 72 hours. “Daigou[s] have told Fairfax Media that there is a growing demand for fresh food and, with it, a potential bonanza for farm-gate producers”, revealed the Sydney Morning Herald.

Of course the demand for fresh produce is felt by sellers here in Nanjing as well but as Rebecca alludes, there doesn’t seem to be a problem getting it to her customers, “From Australia, domestic shipping usually takes about two weeks or faster, if the goods are special of course it can take up to a month… Chinese customs checks are generally quite good, there usually isn’t a problem!”, she said.

In the beginning, Daigous were met with tension and were tainted with snide remarks from angry Aussies, claiming they were “wiping out” milk supplies. On the other side, a growing number of Australians are in favour of this new trend as it not only supports homegrown businesses but also creates jobs. Channel Nine News reported that, “In April, Australia’s first ever Daigou conference was held in Sydney and saw up to 5,000 of these shopping agents coming together as some of the country’s biggest brands tried to spruik their wares…worldwide, Daigou businesses are worth a staggering $15 billion annually and there are an estimated 200,000 Daigous in Australia alone”.

As China begins to battle new health problems that include obesity, an ageing population plus economic and environmental difficulties, a green food phase such as this coupled with the idea of globalisation and free trade might well turn out as win win for all.

This article was first published in The Nanjinger Magazine, October 2016 issue. If you would like to read the whole magazine, please follow this link.

- Advertisement -

Local Reviews

spot_img

OUTRAGEOUS!

Regional Briefings