After doing a bit of research specifically reading up on the Daigou Channels i noticed an article about Pindoudou, which is China’s largest agriculture and interactive e commerce platform. In prior interviews Peter Nathan said that A2 would not use this channel as it takes away from A2Ms premium branding. However, since he recently resigned maybe this is something A2M is now considering given the high levels of inventory. They might use this channel to sell old inventory at cheaper prices and use it as a marketing opportunity, which they said they would ramp up. This will solve their high inventory levels and replace the domestic daigou channels paving the way for greater cash flows and revenue. My other thoughts were Nathan probably had disagreements with using similar channels and decided to resign or was forced to resign given how bad the trading was doing in the Asia pacific.
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