Thanks werdplaya I think your thoughts are good.
Supplying daigou direct at say slightly above wholesale price is a good idea.
Personally I don't worry too much about margin erosion, I like to see high volume sales.
There will be a point where extra sales will make up for loss of margin.
Probably someone at a2 has fired up an excel spreadsheet to do some "breakeven analysis" to work out an optimal price for the corporate daigou.
We need to have confidence in a2 management to work through this challenge. The end result from all of this may be extra profit to a2.
Thanks.
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