Daigou is defined as the purchase of products from outside of China via various grey market channels and their subsequent resale to Chinese consumers on multiple websites or mobile platforms such as Taobao, Weibo and Wechat. In recent years, the Daigou market has been hit hard by the booming Cross-Border E-Commerce (CBEC) but despite this Daigou is still going strong. The most popular products sold include baby products such as baby diapers and infant formula products, cosmetic products and health (functional) foods, etc.
Recently, an on-line Daigou in Jinhua (a city in Zhejiang province) was fined RMB 1.19 million by Jinhua provincial authorities due to unlicensed sale of foreign infant formula, tonic and hyaluronic acid. These commodities were divided into small packages and sent to a warehouse in Jinhua by international logistics.
This trader was found without a food distribution license as required by Administrative Measures for Food Production License (see CL food news on 2 Sep 2015) and his products do not have any Chinese labels and instructions as required under Chinese food Law and cosmetic regulations.
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