CHEMSAVE DEAL BOOSTS DAIGOU-FOCUSED AUMAKE

SHARES in daigou-focused retailer AuMake surged after the company formed a partnership with the Chemsave pharmacy chain that will put AuMake branded products in 150 stores.

AuMake shares were 1.5 cents, or 6.1 per cent, higher at 26¢, in early trading, before closing up 1¢ or four per cent at 25.5¢.

As part of its alliance with Chemsave, AuMake will promote Chemsave pharmacies as a destination of choice to daigou – the increasingly important army of so-called suitcase shoppers who buy goods offshore and send them back for resale to customers in China. AuMake executive chairman Keong Chan said the Chemsave partnership would significantly expand the reach of his group in Australia and “reinforce the legitimacy of AuMake products with our customers via a well-regarded pharmacy network”.

Australian-owned Chemsave, which was founded by pharmacist-turned CEO Michael Dixon, has pharmacies in Queensland, NSW, ACT, Victoria and South Australia as well as an online platform.

Mr Dixon said the deal would boost business at Chemsave pharmacies and increase awareness of the group among Chinese consumers. The Chemsave brand will also be promoted in China, which AuMake hopes will further the AuMake brand’s exposure..