If the word “daigou” doesn’t mean anything to you, or it’s something you don’t know too much about, then you’ve landed on a very important page. Especially if you intend to use your service over the nbn™ network and access to fast broadband speeds to stay local, but go global with your business.

Understanding what daigou means, how it works and what you need to do to get your products involved is a powerful step when expanding into the lucrative Chinese market.

Thankfully, the third free video tutorial in nbn’s Glocals Academy initiative focuses on the daigou and how it can be utilised by Australian small to medium-sized businesses (SMBs) looking to utilise connectivity to expand their customer base into China.

The goal of the Glocals Academy is to empower Australian SMBs with the knowledge to use the connectivity offered by the nbn™ network to help expand their business operations across the world. It’s helpful, free information for all Australian SMB owners.

The face of the Glocals Academy is CT Johnson^, managing director of Cross Border Management. His firm specialises in helping businesses go Glocal and find success in potentially lucrative new markets like China.

He himself has 25-years of experience exporting goods around the globe for some of the planet’s biggest companies, but he is quite familiar with emerging opportunities, like the concept of a daigou.

What is a daigou?

Screenshot taken from Glocals Tutorial video two: Daigous and counterparts

“A daigou is a cross-border purchasing agent,” explains CT, “somebody who buys stuff here in Australia and sells it in China. It is one of the most powerful tools that’s available to Australian companies who want to build their brand in China. It’s exactly what companies like Swisse and Blackmores used to turn themselves into global brands.”

In fact, the word “daigou” translates to “buying on behalf of” and can be a helpful way of testing the virility of your product in the Chinese market, provided this is done in compliance with Australian and Chinese laws and regulations.

There are 467 million digital shoppers in China; if you use e-commerce to help get your brand in front of that audience without ever leaving Australia, why wouldn’t you? Especially when you can leverage the knowledge and experience of local Chinese and Chinese tourists to help understand a foreign market without leaving our shores.

Glocal case study: Austrade

The third Glocals Academy video tutorial not only offers the professional experience of CT Johnson, but also a specialist in the use of a daigou, Bing Liu. Liu is the general manager for Asia at the Australian Trade and Investment Commission, or Austrade.

This government-run organisation’s key remit is to “help Australian companies to grow their business in international markets.” Austrade does this by providing access to information, advice and services, hoping to drive foreign investment, tourism and education.

“China has a gift culture,” Liu explains of the daigou, “and their friends and relatives find it really useful and cheaper to have their products purchased in Australia and brought back to China for them.”

In the video tutorial below, Liu educates SMB owners on the different types of daigous. She runs through the potential advantages for SMBs using a daigou to help grow their brand awareness in the Chinese market, but also some of the risks involved.

There’s plenty more, too, and Liu offers some fantastic advice for SMBs considering using daigous as a tool for going Glocal.

Don’t miss the third Glocal video tutorial below; free as part of the nbn™ Glocals Academy. And don’t forget, as well as enjoying the below video, your small or medium size organisation or business can enter to win a six-month mentorship.

The information contained in this video is general in nature. It is not intended to constitute, and should not be relied on as, commercial or legal advice for your particular circumstances. You should seek independent advice, including through Austrade, before acting on information contained in this video. nbn does not guarantee or warrant the accuracy, completeness or currency of the information provided in this video.

^ CT Johnson was paid a fee for his time participating in this campaign.