Chinese students in Australia are purchasing Australian products and selling them back to people in China, by either selling them directly to customers in China or shipping them to Hong Kong, where traders carry them across the border, avoiding mainland tariffs. These students call themselves daigou (purchasing agents – I’m not sure if this is a direct translation or industry specific term).
This industry has grown to a point where Australian businesses meet with these sellers directly to share new products. It appears these individuals are successful because they are quick to spot new trends, and customers trust them. They sell directly to friends and family.
I think this has implications for trade worldwide. How much could individuals like these profit from circumventing official trade routes? Could the future of global trade rely on individual trendsetters more the multinational corporations? This article caught my eye because a Baruch alum named Marlon Willie -he was speaking at a panel the other day – has a sort of similar business called MangoErrands. It helps Jamaicans overseas run errands in Jamaica and purchase products they can’t find outside of the country. (His business of course is official and not evading taxes, like some of the daigou business are 🙂 )