Despite the fact that China has made ââgreat work to support domestic markets and to decrease the smuggling of foreign goods, a new business has blossomed and is known as Daigou.
Daigou literally means „buy for you“ or „buy on behalf“. The Daigou agents take orders from domestic customers, and then buy them from overseas. They then either drop ship orders directly to customers, or hold stock and delivery from their own place.
Items that these agents Daigou selling are primarily items that are either unattainable or too costly in China because of customs tariffs. Individual purchases of the Chinese people from year to year is rapidly increasing, and their desire for luxurious goods leads most individuals to Daigou marketplace. This organization “blooms” every year, 10 days before Christmas and 10 days after the New Year.
Daigou organization is really a excellent way to earn, some even make it a great online business with an yearly turnover of millions. Source from the Hang Zhou-based China E-Commerce Research Center shows that Daigou industry has developed by over 100% in 2010, and they predict the total trade to 48 billion in the year of 2012.
How does the Daigou works?
First and foremost, the Chinese government places significantly larger tariffs on luxurious goods like perfume, bags, skin care products, or even cloths. The same Gucci purse might cost three times more in China than in America. 2nd, some worldwide brands are not available on the Chinese market. For example, baby formulas from New Zealand are hardly to be seen in some Chinese stores, and after the Tainted Milk Powder Accident, demand for imported baby formulas are rocketing. These two factors have combined to create a thriving Daigou marketplace in mainland China.
The daigou companies operate in one of two ways: Bulk buy of what is in style overseas and sales on the China domestic market, or making buyers to pay a premium for a product, which will then be bought overseas and returned to China, often illegally.
With a little bit imagination and a couple of contacts in China, you can make an excellent business for the upcoming holidays!