Keen to open door to ‘daigou’ market
A RETAILER cashing in on the breathtaking growth of the Chinese “daigou” market in Australia is scouting for new locations, with the Gold Coast on its radar.
AuMake only listed on the ASX a month ago but has already undertaken a major acquisition spree, buying renowned wool product icon UGG Australia and health supplements business Health Essence in the past fortnight – purchases that saw its stocks rise by 25 per cent.
The company opens Australian suppliers to a massive market of Chinese students, visitors and expats who are earning a living by buying Aussie products and reselling them in China.
Daigou, which means to “purchase on behalf of” in Chinese, has hit the headlines in recent years due to shortages of baby formula in Australia, with stores forced to enforce purchase limits to maintain supplies.
AuMake has found a lucrative niche in connecting Australia suppliers with Chinese buyers in four key pillars – wool, healthcare, skincare and infant formula.
The latest data from the ABS says there are 17,016 permanent residents of the Gold Coast who are Chinese, with another 4000 Chinese staying here while they study at the city’s universities and colleges.
The number of Chinese who visit the city as tourists also continues to grow, with 295,000 visiting in the year to June, up 10 per cent from the previous year.
AuMake International Ltd chairman Keong Chan said the company was looking for multiple new locations for its retail stores but had not settled on the specifics.
“AuMake is looking to expand our retail store footprint significantly over the next 12 months to broaden our reach to daigou and Chinese tourists,” he said.
“While AuMake’s immediate focus is on Sydney where the biggest proportion of daigou and Chinese tourists are, we have plans to expand to other east coast locations including Melbourne and the BrisbaneGold Coast region, although no store locations have been identified at this stage.”
Mayor Tom Tate said the Gold Coast was an obvious choice for companies such as AuMake.
“The Gold Coast has distinct competitive advantages for international businesses looking to establish here, including relative affordability in comparison to capital cities and a lifestyle that compares to no other,” he said.
“Within the next two months we will have a city fibre optic system 10 times the speed of the NBN and we have excellent transport and cultural connections with Asia Pacific and China.
“From my dealings with Chinese business, they rightly see us as an exceptional lifestyle city so I would welcome contact from AuMake.”
AuMake chairman Keong Chan wants to set up shop on the Gold Coast and other cities.