{"id":36313,"date":"2017-09-25T00:56:30","date_gmt":"2017-09-25T00:56:30","guid":{"rendered":"https:\/\/marketingtochina.com\/?p=36313"},"modified":"2024-01-31T04:26:39","modified_gmt":"2024-01-31T04:26:39","slug":"marketing-selling-australian-products-daigous-china","status":"publish","type":"post","link":"https:\/\/marketingtochina.com\/marketing-selling-australian-products-daigous-china\/","title":{"rendered":"Marketing & Selling Australian Products with Daigous in China"},"content":{"rendered":"\n

Intelligent Daigous Marketing for Australia; How To Drive Chinese Sales <\/strong><\/h2>\n\n\n\n

The China-Australia Free Trade Agreement (ChAFTA<\/a>) marked huge changes for Australian exporters to China. Selling<\/a> online in China became far more straightforward, allowing the simple shipment of goods through logistics providers or the procurement center of an affiliated e-commerce market.<\/p>\n\n\n\n

Despite these opportunities, the most popular Australian exporters to China aren\u2019t brands, they\u2019re buying agents or \u2018Daigous\u2019 (often translated as \u2018Re-Sellers\u2019).<\/p>\n\n\n\n

Daigous is a Powerful Infrastructure <\/strong><\/h3>\n\n\n\n

There are an estimated 50 000 Daigous now operating in China, they are essentially users who buy & source products to then re-sell to their personal networks. They are unauthorized, to purchase goods on behalf of consumers abroad & then often sell through their social media accounts on platforms such as Weibo<\/a> & WeChat<\/a>.<\/p>\n\n\n\n

They then post products to their clients in China, they are entrepreneurs and powerful middle man for Australian businesses.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

A Daigou Purchasing Goods from A Store in Melbourne.<\/em><\/p>\n\n\n\n

Re-Sellers are Big Business in Australia <\/strong><\/h3>\n\n\n\n

 <\/strong>There are over 4,500 re-sellers based in Australia. On the largest C2C marketplace, \u2018Taobao\u2019 unauthorized re-sellers make up over 90% of all Australian products and services listed on this e-commerce platform. There is therefore a strong market for connecting with re-sellers to promote your product.  We\u2019ll explore a more effective strategy to do this later.<\/p>\n\n\n\n

Daigous are Dominating Search Engines<\/strong><\/h3>\n\n\n\n

There are more Chinese web searches looking for Australian buying agents than those directly searching for Australian products. The most-searched keyword associated with \u201cAustralia\u201d was \u201cDaigou\u201d, according to data from the Chinese search engine Baidu, from January to July 2016.<\/p>\n\n\n\n

Daigou reputations also dominate search engines, poor quality Daigous that have a poor reputation and may damage the brand should be avoided at all costs, with a Chinese review and feedback culture as strong as it is negative re-sellers will have a poor online reputation which could be transferred to your brand.. More on this later.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

Why is Daigous so effective? <\/strong><\/h3>\n\n\n\n

Daigous <\/a>add a strong social element to sales, they sell into their own communities and networks. Quality Daigous have built up a strong reputation which is then associated with the product, a good method for branding.<\/p>\n\n\n\n

In addition, they utilize Chinese networks<\/a> to personally message and promote products on their news feeds on platforms such as WeChat & Weibo. They speak your consumer’s language and have pre-built connections, something that can take months if not years to build up. They also allow for direct Chinese payment and faster shipping if they are based in Mainland.<\/p>\n\n\n\n

Brands from Down Under are turning to Re-Sellers <\/strong><\/h3>\n\n\n\n

In 2016 only 58 Australian brands had flagship stores on China\u2019s biggest e-marketplaces, with an additional 85 Australian brands sold through authorized Chinese online resellers on Alibaba-owned shopping platforms Tmall and Tmall Global.<\/p>\n\n\n\n

Expensive retail prices, high set-up costs, and low trust in individual stores in China also encourage Chinese online shoppers to approach Australian Re-Sellers directly.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

Are Daigous just a \u2018magic bullet\u2019… No. <\/strong><\/h2>\n\n\n\n

Despite this powerful infrastructure turning to Re-Sellers for sales results is not necessarily enough, why? Because despite personal recommendations the Chinese BUY BRANDS, they are often searching for known brands with a reputation, Daigous is also, therefore, looking for well-established brands.<\/p>\n\n\n\n

The Danger of Daigous <\/strong><\/h3>\n\n\n\n

There are also a number of dangers when it comes to selecting Daigous. When using re-seller networks you are no longer in control of your brand, you outsource to the sales tactics of third parties you may know nothing about.<\/p>\n\n\n\n

These Daigous can actually harm your brand, and your BRAND IS EVERYTHING in China.<\/strong><\/p>\n\n\n\n

There can be issues with inaccurate product information, ruthless sales tactics, poor customer service, no customer support network, and variations of product translations.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

Attracting Quality Daigous<\/strong><\/h3>\n\n\n\n

The answer then is you need to be selective, you need to source and build relations with a professional network of re-sellers. As a rule of thumb..<\/p>\n\n\n\n

Quality Daigous: <\/strong><\/h3>\n\n\n\n