daigou, customer relationships

Daigou Relationships

Daigou relationships have become very popular over the last few years. More and more Chinese natives are seeking to purchase high quality products from overseas to provide a better quality of life for them back home. With increasing news about food safety and tainted baby formula disaster of 2008, (x) many Chinese natives are left to seek real and genuine products from overseas. (x) There is a market worth $AU10.5B globally in 2016, according to Bain & Company. (x)

daigou, customer relationships

What is a daigou relationship?

The expectation of a daigou relationship is to “buy on behalf of” someone else,(x) usually a someone overseas who buys things for residents in mainland China, and is a channel of commerce between mainland Chinese buyers and overseas shoppers. Daigou’s are often unauthorised purchasers. They are often family, friends or agents who either bring the products back to China, or courier them via post.

With many retailers and pharmacies wiped clean of infant formula and vitamins, it also puts a strain on our local economy. There has been an increase of daigou relationships with courier services like ChangJiang Express. These services pop up to ease the shipping process of Australian made goods. (x)

daigou, customer relationships

This market is also widely available as a result of WeChat eCommerce, where there is strong use of QR codes to make purchases. These QR codes also facilitate ease of trading between different agents and buyers. One of the most popular daigou products is infant formula, vitamins, and other high quality Australia-made products, often leaving Australian shelves absolutely cleared out.

daigou, customer relationships

Unfortunately, the Chinese government has tightened controls on these imports from “daigou.” This is to protect local retailers by levying import taxes between 15-60% on food and consumer goods (in particular infant formula, vitamins and cosmetics) sent via mail or couriers. (x)

At the end of the day, it’s about forming relationships with customers abroad. These customers need to trust daigou’s to buy genuine products in Australia. It’s imperative with the restrictions on the amount of products that may be purchased in various retailers. It requires a strong relationship between the customer, the daigou, and their trusted retailers, where they ultimately source their Australian goods.

The future of the print industry: Linking the Physical and the Digital

 

The world is sitting on the cusp of the 4th Industrial Revolution (4IR) – changing how industries operate, bringing greater automation and accuracy to a variety of business processes.

 

In this series, we will explore how 4IR is going to affect the industries of our clients, and how we believe the right strategy can empower you to embrace the inevitable.

 

First up: The future of the print industry.

 

Forbes article: Why everyone must get ready for the 4th Industrial Revolution

 

 

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In the last few years, we have seen a proliferation of small and start up label printers leading to increased competition. Good digital presses cost little more than US$45,000 – not a laughable sum, but certainly more than affordable for entrepreneurs with the right idea.

 

Meanwhile in emerging regions, larger multinational corporations are expanding operations and establishing themselves as they navigate the pricing politics of new territories.

 

The LaManna Alliance projects that “In 2017, you should be pushing 20-30% growth rate. Otherwise, you’re lagging.”

 

We recently visited PacPrint 2017, the region’s “premier show for print, sign, display and graphic communications” and with over 150 exhibitors and a rumored 15-20 million dollars in sales taking place on the event floor, it’s understandable that key players in the industry are looking to shake things up and keep this momentum going.

Quick Link: Our CEO, Vivek Aiyer, recently spoke of trust and the Designer Enterprise

 

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How can the future of the print industry be populated with millennials Generation Y and eventually, Generation Z?

Ageing workforce: The growth of the digital industry has meant that younger, computer-literate and tech-savvy employees have been more inclined towards seeking employment outside the print industry.

Companies are increasingly realizing the need to standardize onto the one platform helps with strategic alignment across business systems and broader business processes.

Standardization, Centralization & Flexibility: Most companies in this space have different systems and machines through acquisitions or then, as with most large organizations, inherited implementations of legacy software. These, in turn lead to errors in compliance, alignment, downtime and ultimately, inefficiencies.

How can we prepare audiences for these technologies, bearing in mind that innovation doesn’t always come cheap?

Active & Intelligent Packaging (A&IP): When it comes to product security, authentication and even preservation to some extent, A&IP will grow increasingly commonplace around us. It certainly seems like these technologies for a part of the future of the print industry.

Clients now require “relationships” with “partners” – as compared to “services” from “suppliers – and this is unavoidable!

The vendor/client relationship: Clients of all sizes are becoming increasingly demanding of one-on-one service. The fact of the matter is that there are a number of players who can top quality service, and price competition isn’t the only factor anymore.

 

Previous post: Customer Experience is all about Managing Relationships

Previous post: Culture of Trust – How does your customer feel?

 

Tech-driven process/information management & workflow tools

Have systems set up for verification of jobs, improved reporting and integrated with management tools. Enable remote access of presses – improving efficiency as the press process becomes more computerized. Tech processes can also improve internal processes and stock ordering and tracking. Clients (or Partners) with their increased expectations can now be empowered to track their orders through all stages of production.

 

Customer/Client/Partner engagement & New business

Technology proliferation has led to a variety of methods to increase and improve engagement. For example, QR codes, NFC, RFID, Augmented Reality and randomized designs. Understanding how these technologies serve well as data collection points and having them integrated into information managements systems help track interaction and build insight. In addition, improved traceability and big data enable the client relationship evolve into one of consulting – and partnering for growth and offering unique and individualized experiences.

 

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On the outset – it all seems tremendously exciting and simple. But that is the fallacy of innovation. Installing systems doesn’t just mean clicking one button – it includes change management. Upgrading machinery isn’t just reinstalling software – sometimes it’s training staff who are afraid of failing (or trying). Terms like myopia and pain avoidance are a lot more real than the buzzwords they are dismissed to be sometimes.

 

Opportunities like bundling print and digital ad sales to push greater RoI sounds great, but how does that mean the adsales team needs to be re-structured? For example, having a sales team that also possesses analytical skills and understands programmatic sales becomes critical. In such scenarios – if that’s the preferred mode of linking digital to physical – then print companies must understand marketing requirements, more so than before – as these multimedia experiences reach out to audiences with more targeted accuracy than ever before.

 

 

Innovation is no longer “nice-to-have” but that’s not to say it’s something to jump into. The key remains identifying a larger strategy that can assist with the growth of the clients you work with. Adding value to the labels and packaging produced, but also understanding how these products are being disbursed and the user experience of the final consumer.

 

At Appearition, we understand that the print industry has traditionally operated within certain models – for example, buying hardware outright or leasing systems for slow and steady returns. Crossing the chasm of technology is one that isn’t so simple. Our goal is to enable others success – and finding the neutral state of partnership so we can all grow together. We look forward to hearing from you.