New regulation requiring unofficial overseas importers, or daigou, to sell goods on licensed shopping platforms subject to tax could be a windfall for foreign brands in China’s fast-growing consumer market, the Financial Times reports.
Many Chinese shoppers have leveraged personal contacts abroad to send or buy foreign goods on their behalf, due to a lack of trust in domestic brands and poor availability of foreign products. Some analysts estimate the daigou market to be worth tens of billions of dollars a year.
The new law, to take effect in January, would mean all daigou with online advertising to register with the central government and pay full import taxes. The aim of the legislation is encourage e-commerce sites to take greater responsibility for fake goods sold on their platforms, according to the FT.
For foreign retail brands, the move could boost sales in China as taxes reduce the competitiveness of daigou-peddled products.