Advertisements
Small Australian companies can get millions into the huge Chinese daigou market in less than a year - and can help supermarkets buy insane baby food

Small Australian companies can tap millions on the huge Chinese daigou market in less than a year.

Advertisements

More brands taking part in the promotion can also help prevent supermarkets from buying crazy baby food that Australian mothers leave empty-handed.

Chinese consumers are so fond of Australian products that there are now 80,000 friends and family sending them home to a billion-dollar market.

Small Australian companies can get millions into the huge Chinese daigou market in less than a year - and can help supermarkets buy insane baby food

Small Australian companies can get millions into the huge Chinese daigou market in less than a year – and can help supermarkets buy insane baby food

Mathew McDougall, an expert on the daigou market, said that any company could grow its sales many times through Chinese sales with the right strategy.

& # 39; China offers a huge opportunity for small businesses in Australia & # 39 ;, he told Daily Mail Australia.

Advertisements

& # 39; China has a population of nearly 1.4 billion people and their middle class is growing … we are exporting more than $ 93 billion worth of goods and services there. & # 39;

Seven steps to success

1. Work together with an experienced export consultant. This prevents money from being placed in the wrong places and errors being minimized.

2. Ensure that your product is suitable for the Chinese market and that there is a demand for your product.

3. Get to know Chinese culture. Discover which products are doing well and why and understand their social media platforms.

4. Increase brand awareness in the Australian market, first to build brand credibility and trust in China.

5. Build a good online presence through a good website and social media.

6. Protecting your IP is important not only in Australia but also abroad. Make sure your products are clearly marked and IP registered in Australia

Advertisements

7. Be patient, flexible and scalable

Dr. McDougall said the idea seemed daunting to mom and dad operators, but it was only about attracting recommendations.

& # 39; Chinese rely much more on recommendations from friends and family (than Australians), & # 39; he said.

& # 39; If my partner in the pub tells me about a product, I probably won't do anything about it.

& # 39; In China, they will at least look for it and be more likely to buy it. They think "my friend used this baby formula and her child is really smart".

Advertisements

& # 39; And if it comes from their parents, they have no chance, they have to buy it. Family units are not just direct family in China and the older members dictate a lot of buying. & # 39;

Australian goods are popular because they are considered high-quality, clean, green and in highly regulated environments.

& # 39; The Australian government has done a very good job over the last 20 years building the Australia brand & # 39 ;, said Dr. McDougall.

& # 39; It is seen as a stable place to do business and is associated with quality. & # 39;

Dr. McDougall said that the first thing to do was to get advice on whether your product or company was suitable for the Chinese market.

Advertisements

A lot of research was then needed to know how the market works and how your product could fit into it.

Mathew McDougall, an expert on the daigou market, said that every company could grow its sales many times through Chinese sales with the right strategy

Mathew McDougall, an expert on the daigou market, said that every company could grow its sales many times through Chinese sales with the right strategy

Mathew McDougall, an expert on the daigou market, said that every company could grow its sales many times through Chinese sales with the right strategy

& # 39; Discover which products do well and why. Understand their social media platforms such as WeChat and how they are involved and shopping, & he said.

& # 39; China is a large country with different markets. Be clear about which part of the market you are targeting and the potential for sales and growth. & # 39;

Advertisements

The key was to let Chinese buyers trust your product enough to recommend it to others, who would then tell their own family and friends.

& # 39; Chinese consumers purchase brands based on reputation, trust and credibility, & # 39; he said.

& # 39; If your brand is known in Australia and has a good reputation, Chinese people are likely to buy your product in or from China. & # 39;

Dr. McDougall said the biggest mistake companies made was underestimating how long it would take to enter the market and give up after six months.

& # 39; Many companies have achieved explosive growth by exporting to China, while others have found the trip a bit slower & he said.

Dr. McDougall said that scenes from organized daigou's baby food supermarket shelves gave Chinese Australians a bad name

Dr. McDougall said that scenes from organized daigou's baby food supermarket shelves gave Chinese Australians a bad name

Dr. McDougall said that scenes from organized daigou's baby food supermarket shelves gave Chinese Australians a bad name

Dozens of customers (pictured) stand in line to buy baby food from a Woolworths in Melbourne on Sunday

Dozens of customers (pictured) stand in line to buy baby food from a Woolworths in Melbourne on Sunday

A lady in Woolworths on Sunday (photo) starts a baby food on Sunday morning

A lady in Woolworths on Sunday (photo) starts a baby food on Sunday morning

A video recording at a Woolworths in Chadstone and posted online to the shock of many who have watched it

Advertisements

However, they also had to be ready to dramatically increase production if sales were to start soon.

& # 39; Sometimes strategies and tactics need to be adjusted and this is normal, the key is to be patient and dedicated – and be ready when things change quickly, & # 39; he said.

Most popular Aussie products in China

• Skin care products with multiple functions such as hydration, whitening and anti-aging

• Health and wellness products

• Pregnancy, baby care products and baby food

Advertisements

• Male care

• Make-up, color cosmetics and hair care

• Clothing, shoes and jewelry with unique and modern designs (diamond, Pentium gold, pearl, etc.)

• Milk powders (including infant formula and adult milk powder), UHT and pasteurized milk, yogurt, cheese and butter

• Seafood (especially saltwater shellfish such as oysters, crabs, lobster and abalone)

Advertisements

• Fresh fruit and natural fruit juice

• Oats and other breakfast cereals

• Chilled, frozen beef and processed food

• Wine and craft beer

Source: Austrade

Chinese buyers can also be fickle, as evidenced by daigou sales of supplements from Swisse and Blackmores that have fallen sufficiently to harm their stock prices.

Dr. McDougall said that scenes from organized daigou's baby food supermarket shelves gave Chinese Australians a bad name.

& # 39; They tell me that they feel demonized and that people look funny when they legitimately buy a formula for their own children, & # 39; he said.

He said the sales frenzy was the result of the phenomenal marketing success of a2 and that other brands involved would improve the situation.

Dr. McDougall said the trade war between China and the US did not harm sales, but could be a problem if things got worse.

& # 39; Chinese in Australia are confused by what's going on at the moment, but it hasn't affected their view of the brands, & # 39; he said.

& # 39; If it escalated considerably, the image of brands would not change, but China has several poison levers that can take revenge to restrict trade or increase taxes, which can affect the buyer experience. & # 39;

. (TagsToTranslate) Dailymail (t) news