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Social Commerce replaces Daigou model
2019-09-17    Publisher:AlpineCabin

For many years, individuals, known as Daigous (Daigou means "shopping on behalf of someone else"), have been buying products abroad, privately importing, and reselling them in China primarily through Taobao. In recent years, the Daigou business has grown enormously; in 2018 only FMCG products worth several Mia USD were sold in China via Daigous. For many international brands Daigous became a noticeable sales channel to China over recent years.

For the Chinese tax authorities, however, this was too much and so they forced the introduction of new regulations taking effect beginning of 2019. Since then, all Daigous have to register as a company, thereby transferring applicable sales taxes to the state. Many Daigous have given up their business since then because it is too complicated for them to register. Many foreign brands are thus losing a noticeable share of sales and a network of consumers who have bought their products via Daigou.

However, Alpine Cabin offers its partner brands the ability to continue to legally serve their Daigous with their products without the need for Daigous to register as a company. Thanks to the Social Commerce Module integrated in the Alpine Cabin WeChat Store, Daigous can register as "ambassadors" for a product and receive freely definable sales commissions for the procurement of buyers.

With Alpine Cabin's Social Commerce Module, both Daigous and partner brands benefit equally: Daigous don’t need to register and no longer need to procure, transport, store and ship any physical goods, since all this is done by Alpine Cabin. Partner brands can continue to benefit from the network of their Daigous and at the same time keep up the high quality of their products and customer service towards the consumer.



King Nature (www.kingnature.ch), a Swiss Manufacturer of high quality food supplements who is actively selling their products in China already, is one of the first partner brands that uses our WeChat social commerce modul in order to further take advantage of their daigou and sub dealer network. 



Please contact stefan.altorfer@alpinecabin.swiss for more information.