The daigou channel — how a handful of Chinese shoppers turned into a billion-dollar industry

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Whether it's parents furious over baby formula shortages or military personnel loading boxes onto Chinese warships — chances are you've crossed paths with a phenomenon that's shaken businesses across the country.

Even Australia Post — led by former Blackmores CEO Christine Holgate — is getting on board, having opened a handful of China Direct stores over the past year that are stocked with duty-free goods that can only be shipped directly to China.

As Australia Post is government-owned, the ABC asked the Ministries of Finance and Communications for comment on how the China Direct stores were related to its principal function of providing postal services for Australians. "Australia Post has flexibility and discretion in its operational and commercial decisions within the parameters of the Australian Postal Corporation Act 1989.

Beijing has also implemented e-commerce laws to ensure professional daigou are registered as businesses and pay tax on the products that they're importing — there are reports some smaller daigou operators have already exited the market, but the laws will be relatively limited in effect as significant portions of the daigou trade take place on platforms like WeChat."But it's not really going to dampen down anyone who seriously wants to continue the trade.

 

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