Shoppers or smugglers? China crackdown on tirai jendela cantik ‘daigou’ boom – CNN.com
I provide companies with go to market, expansion, consumer engagement, and supply chain strategies and implementation in China. Key areas of concentration are consumer products, retail, luxury, healthcare and automotive. I have completed projects and campaigns for more than 200 multinational as well as small and medium sized enterprises in China. I was previously managing director of China BrightStar, a china-focused consulting firm, and VP at Beijing Gongmei, a Chinese manufacturing conglomerate. I regularly appear in the media and am a frequent speaker at conferences, universities and special events providing insight on Chinese business, politics and culture.
China Fashionistas Get Best Deals on Gucci, Hermes Bling: Retail – Bloomberg
Last year 67 percent of luxury products purchased by mainland Chinese were acquired outside the country, according to Bain. Sales Contribution Keeping mainland consumers spending is key for makers of luxury brands because China now accounts for a major portion of their sales. LVMH Moet Hennessy Louis Vuitton SA got about 30 percent of its 2013 revenue from Asia , excluding Japan , while Kerings luxury unit got 31percent of sales from the region, according to data compiled by Bloomberg. Neither company breaks out China sales. About a quarter of fiscal 2014 sales at Cie.
“Luxury goods help Chinese fit in socially and professionally,” he said. Smuggling or shopping? With large amounts of money changing hands under the official radar, the trade has also caught the attention of China’s customs authorities. From August 1, the General Administration of Customs has stipulated that all individuals engaged in “cross-border e-commerce” must provide a list of imported and exported items to customs. “Those who do not play by the rules will be seen as lawbreakers or even smugglers,” Lu Zhenwang, chief executive of Shanghai-based e-commerce firm Wanqing Consultancy told The China Daily .
Shoppers or smugglers? China crackdown on ‘daigou’ boom – CNN.com
Zhang, however, is not splashing her own cash. She is one of China’s growing ranks of “haiwai daigou,” or overseas personal shoppers, that source luxury items for customers back home. It’s a booming business that was worth 74.4 billion yuan ($12 billion) in 2013, according to the China E-commerce Research Center. Graduate student Zhang Yuzhu makes extra money by buying designers bags for customers found through social media “Usually I can earn $200 to $300 for a Chanel handbag, but I will get more for a Hermes,” Zhang told CNN. Zhang’s customers get designer goods for less than they would at home by circumventing China’s steep taxes on luxury items. She says they cost 30% less in the United States. Chinese are the biggest buyers of luxury goods globally, making 29% of all purchases, according to consultants Bain & Company , and these purchases are increasingly being made abroad, mostly by tourists, but also by people like Zhang. Many young Chinese studying in places like New York, London, Paris and Tokyo have started ad hoc businesses, with Bain saying that Chinese luxury sales will become increasingly reliant on this kind of “parallel trade.” Zhang finds her clients through Chinese social media like WeChat and Weibo, where she posts pictures of the latest items about once a month.