Just did some comparison on daigou price VS bellamy TMall price
Tmall price stage 3 per tin: RMB 200 = AUD 38.8
Daigou price on stage 3 (3 tins includes postage) = AUD94 (AUD 31.3 per tin) = RMB 483.6
Daigou is currently AUD$7 cheaper per tin including cost . Chinese buyer can save $21 on 3 tins per order .
From the Chinese buyer perspective - AUD$21 different really means money VS time. If you order from Tmall you get the IF may be in a couple of day. Daigou it can take 2 weeks.
The race is close and Bellamy is gradually selling more tins direct to the Chinese hence they pocket more profit in the expense of the daigou. Daigou's margin is getting smaller by the weeks and there may even be a chance they will get no order if Bellamy is willing to match the daigou price.
Bellamy is in no hurry destroying the daigou , at the moment the ecosystem (the share of the big cake) seems to be in a good balance. Daigou needs to be here as they do help promoting products to the Chinese consumers , this is free advertising and reputation building for Bellamy. However their day of making huge $ and not paying tax are numbered as one of the outcome from the G20 meeting in China is about an agreement with the G20 Tax offices authority to share information to tackle the daigou tax evasion. As you might know if the China government is determined to "clean sometihng up" they always succeed (like the corruption crackdown/reduce gov spending effort in the past). One of the major outcome of this tax evasion crackdown is that the daigou will need to declare their income, the cost will pass on to the consumer, and their sales price will go up . When this happens the daigou price will be less attractive and bellamy's Tmall price will be more attractive. If the tradeoff between daigou and bellamy tmall is only a few bucks but you get the product in a few days VS few weeks , I guess buyer will buy from the TMall store instead.
In my opinion, Bellamy's sales volume and profit margin of their products sold in China will only GO UP . Daigou's day will only be HARDER. ATO will also be the winner , recovering lost revenue will help repair the budget deficit, ATO will be very motivated to catch em all.
BAL Price at posting:
$13.20 Sentiment: None Disclosure: Held
