Why Daigou wipe out Australia market?

Costy Williams is a mother who is living in Sydney, she published a post on the Facebook and said she could not find any Bellamy milk power in Coles around 20 kilometers. Some Australians complained Chinese ‘Daigou’ and buyers bought all the milk powder from supermarkets, even some people posted several pictures about Chinese people ‘wiped out’ Bellamy and Aptamil milk powder in the supermarket.

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Generally, for buyers, Daigou is to find other people who lives in other countries or cities to buy the products that they need. For sellers, they buy the products with cheap price and sell to buyers with high price to earn profits, especially for the sellers who are living in foreign countries.

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Australia is famous for their milk industries, and the price is not very expensive, so it is popular in China. With the rise of Chinese population, the demand of milk powder also increases rapidly. After the melamine-contamination scandal was reported, it has shaken Chinese people’s faith in the safety of the nation’s food supply. Thus, they target at foreign markets. Thus, Chinese people began to earn the profits by bulk-buying baby formula.

More and more local people reflect the lack of milk powder has impacted their daily life, Australian Government began to recognize this serious situation, so they stipulated that small exports of baby formula are legal but those over 10kg must be sourced from registered export establishments, have a health certificate and meet all of China’s import requirements. Failure to meet these standards can incur penalties of up to 12 months’ jail, while providing false information can result in five years in jail.

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Among the Daigo people, Chinese students in Sydney occupy a huge part in it. You can always see lots of Chinese students bring many baby milk powder to Daigou store and post to China. In Daigou stores, the customers always students. In Sydney, the price is higher than China, so in their spare time, some students may find part-time jobs to earn money, but comparing with other jobs, Daigou Australia products seems like it is a good and fast way to earn more money to support their life.

The feature mainly focuses on why they want to do Daigou under the high-risk, what people treat Daigou, is all Chinese people’s fault about laking of baby formula and is the regular really work for Daigou?

I plan to interview some students who are doing Daigou and telling what they are thinking about Daigou. Besides, I also want to interview the boss of Daigou store to find out who are providing baby formula to them. Also, if it is possible, interviewing the staff of Coles and Woolworth is a good way to know how they treat about lacking of milk powder.

The story target at local people and Chinese students, maybe government staffs can be interested in this report to know more about Daigou. Therefore, target online publication could be the newspapers which have high circulation, such as the Sydney Morning Herald and ABC news.

Xuan Guo

SID: 440411668

Word count: 504

Reference:

Liz Burke (2016).Trade secrets: The inside story of the baby formula grey market. Retreived from http://www.news.com.au/finance/business/retail/trade-secrets-the-inside-story-of-the-baby-formula-grey-market/news-story/b2c022dd26522e051e5c56ee61b3a58a

Commonwealth Department of Health and Ageing (2003). Marketing in Australia of Infant Formulas: Manufacturers and Importers Agreement – The MAIF Agreement.

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4 thoughts on “Why Daigou wipe out Australia market?

  1. Firstly, I like your idea about Daigou. As one of Chinese students living in Sydney, in my mind, “Daigou” is really common. This situation is really tricky, for the Daigou people especially for students, they need to earn money for living. Daigou might be better than some low-paid part time jobs, such as waiter in the restaurant. For the customers in China, at first, the quality of milk powder in China is not credible. Parents do not like their kids to have that kind of “substandard milk powder”. In addition, the price of imported milk powder in China is really high, by contract, Daigou provides the reasonable price and credible quality of milk powder for customers. For the local customers of milk powder, the lack of milk powder in the local market which caused by Chinese Daigou is serious. You could develop the feature more in this aspect as well. Looking forward for your feature.

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  2. This post was a really interesting read for me- I’ve never heard of Daigou before, and as a full-time student trying to juggle studies with work, I understand the temptation this sort of ‘easy money’ can hold. I look forward to reading your feature article. One thing that I thought I should point out is your plan to interview students who are doing Daigou. Do you plan to keep them anonymous? And how will you approach a source that is engaging in illegal behaviour? Obviously with the risk of 12 months in jail, I doubt your interviewees will be willing to go on the record using their real names!

    This story is very newsworthy, and I agree with your choice of media outlets. Maybe you could also look at The Guardian (http://www.theguardian.com/au), The Conversation (http://theconversation.com/au) and because students seem to be a major player in the Daigou game, perhaps the student newspaper Honi Soit? (http://honisoit.com).

    One last thing- while your post makes perfect sense to read, there are a few grammatical errors and issues with present/past tense. I think it would be worthwhile to proofread your feature article a bit more before you submit it.

    Otherwise, really good job!

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    • Thanks for your suggestion. Some of my friends have done Daigou for several months, but considering of our friendship or their safe, I must write their name anonymous. I also have worked in Daigou store for one month, so maybe I can interview the boss as an employee. You give me some useful websites, thanks again!

      Like

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