The Death Of The Daigou

Market forces must come into play and the phenomenon of being able to post infant formula to China and make big bucks won’t last forever, it’s the efficiency of capitalism.

I’m going to make a bold prediction,

The Daigou’s will be gone by the end of 2016, or perhaps early 2017, well, for infant formula at least, perhaps they’ll move onto sheep nuts or aphrodisiac wallaby knee caps or something.

Four new Synlait made brands plus NZ made Yashili are just now, or about to, hit the Chinese market at discounted price points.

Same Synlait quality, same production plant, same staff, same quality systems, same farming practices.

Akarola brand is the first, it is just now starting to sell, stage 1, 2 and 3 infant formula is selling at Y99, that’s around AUD$21.50.

https://akarola.world.tmall.com/

So, will Chinese mum’s start to buy quality NZ made product within mainland China at these price points ?

I think so, big time, a percentage may be willing to still pay a little more for the a2 wellness benefits, but at this point in time I reckon most are just buying safe NZ product at the best price, the a2 message still needs another year or so to cement in China.

Going forward how will Mr Daigou make a buck, when he is buying a2 platinum at AUD$25.00 (Coles) plus postage, when Chinese mum’s can buy Akarola for AUD$21.50 at home within mainland China ?