'Daigou' impact may hinder e-commerce plans of luxury brands in China

Re-Hub

Re-Hub‘s 2nd Daigou Index report, released in 2021 and partnered with SimplyBrand, assesses the negative impact of 'daigous' (surrogate sellers of luxury products) for luxury handbags in China.
  • The turmoil of the COVID-19 pandemic in 2020 trapped Chinese luxury spending in the domestic market, and accordingly, most brands opened flagship stores on platforms such as TMall, where they found themselves often in direct competition with 'daigou' selling their products.
  • Analysing 28,000 Taobao product listings between 1st to 28th February 2021, a period spanning two major retail moments for luxury products (Chinese New Year and Valentine’s Day), only 8% of listings recorded one or more sales——suggesting many 'daigou' are using Taobao to lure consumers to their own private traffic channel or WeChat.
  • 'Daigous' can potentially cause havoc for luxury...

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