For Chinese local products yes of course, people buy heaps on these giants, but for foreign products it's a totally different story, people do have concerns of trust deep in their mind and they are willing to pay a few more bucks to buy from a regular daigou who provides receipts, photos or even FaceTime, this level of peace of mind and personal connection can't be easily replaced in any way and this is the thing that Bellamy's board needs to understand. Daigou is more than a "channel" they are doing free + targeted advertising for a business 24/7, they reach out there and establish that one on one connection with every single customer and push these product to them, and more importantly, they will become customers friends and earn the trust.
Another classic example is, pyramid sale is extremely popular in china. People are willing to buy these expensive "medical supplements" simply because a upstream friend introduces to them, and they will then develop their downstream connections and sell them the useless expensive crap. In the end, a lot of people paid a lot of money and end up with a lot of crap that they will never fully consumed, but that's it, that's the power of "word of mouth" and "people's connection" in China.
