Previously you’ve only got 1 China official online store selling premium Chinese label and Daigou running the underground network of English label at no Capex , no logistic cost, no cross border cost , no promotion cost to A2. Now they’ve opened the Tmall international . The price looks high on the Tmall shop for a good reason. The additional cost mentioned above. A2 will have to run campaign to drive customers to the new Tmall shop. So whether this new Tmall shop for English label can beat Daigou on margin ? May be. On volume? Not immediately . The tmall shop sales is gaining a lot of traction that’s for sure. It takes time to ramp up the sales on the Tmall shop and the Daigou cannot be phased out just yet. And I think A2 also need to tread carefully here on pricing not to let this new online outlet squeeze Daigou’s margin. Daigou will one day become the story of the past but not in the immediate future , that’s my take.
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