ASX-listed AuMake just launched a Daigou Hub in Sydney to sell more Australian goods to China

Photo: Johanne Eisele/AFP/Getty Images
  • Experiential retail model for the Chinese market with the opening of a Daigou Hub and Warehouse Showroom in Sydney
  • Face-to-face interaction for Australian suppliers with Chinese consumers via live streaming.
  • Retail model developed in consultation with industry and follows recent developments in Chinese market.

AuMake, an ASDX-listed company connecting Australian suppliers directly with Chinese consumers, today launched an experimental Daigou Hub and Warehouse Showroom where local companies can connect directly to freelancing China sellers and visiting tourists.

Daigou, sometimes Chinese students studying in Australia, buy here and then sell into China via online platforms such as Alibaba, JD.com and Tencent.

These expatriate Chinese, buying direct from Australian supermarket shelves, were responsible for the rapid growth of clean and green Australian infant formula sales into China.

AuMake, which listed on the ASX in October last year, plans further hubs in other capital cities, as part of the company’s strategy to provide multiple channels for Australian suppliers to connect directly with Chinese consumers via the influential daigou and Chinese tourist markets.

The company’s shares first listed at 8 cents. A short time ago, they were at 29.5 cents, up 1.7% today.

The Daigou Hub, a 430 square metre facility at Thomas St in the heart of Sydney’s Chinatown, includes a presentation space for supplier demonstrations, a cafeteria and children’s play area, product displays and an area designed for daigou to livestream their interaction with Australian suppliers to millions back in China.

“This leading edge initiative has been developed following extensive industry consultation with suppliers and daigou, and closely follows recent developments in the retail market in China, which has seen a move away from a pure online marketing model to an omnichannel model which combines engaging offline experiences for customers, coupled with advanced online functionality,” says AuMake’s chairman Keong Chan.

“Livestreaming for instance, is fast becoming a key component of the decision making for consumers in China when they look at the brands and products they are going to purchase.

“Being able to see, in real time, suppliers demonstrating their Australian product and interacting with their trusted daigou is the next evolution of their increasing desire to understand the origins of the product they are purchasing.”

AuMake’s Australian retail model for the Chinese market:

Source: AuMake

AuMake’s new Auburn Warehouse Showroom is designed for high value Chinese tour groups and large scale daigou, with facilities to view and purchase new products and brands, and with regular demonstrations by Australian suppliers.

“Visitors can participate in a tour of the expansive warehouse and safely observe the production of UGG Aus/Jumbuck wool products from the public viewing area,” he says.

“That’s something that’s very appealing to Chinese tourists, it’s all about immersing themselves in the experience while they are here and reinforces the authenticity of the product they are purchasing.

“The Auburn showroom will also provide centralised and VIP services to large scale daigou who typically purchase in excess of $15,000 in product per week.”

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.