A2M 0.07% $6.88 the a2 milk company limited

FY21 full year results discussion, page-28

  1. 6,681 Posts.
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    If only 100 million then why do it at all?

    I don't think people understand how important daigou has been for A2M. It provided not only FREE marketing and distribution channel for the company, but it has also been safeguarding the company from Chinese government's control due to the fact that daigous are independent agents. Without the daigous, A2M would have to operate at far lower margins and would have to spend big on marketing just like any other companies, all of which effectively strips any advantages that it had over other companies. Furthermore, without the daigous and also due to the fact that A2M operates virtually in one market, A2M would have to rely solely on the benevolence of Chinese state-controlled logistic providers, which puts its sovereignty at extreme risk.

    The stake is high for this upcoming report.






    Last edited by aniesbaswedan: 24/08/21
 
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