AuMake International, the Sydney-based daigou hub, enjoyed fast growth prior to the Covid-19 crisis, achieving sales of AUD$60 million during the 2019/20 fiscal year.
The company operated 15 stores, selling Australian and New Zealand brands in four major categories – skincare, healthcare, baby formula and wool – to daigou shoppers and Chinese consumers.
Following the departure of international students and the closure of national borders, AuMake has been working overtime to re-position its business.
The company quickly re-focused on its online sales channel, notably Broadway Online, and also introduced buy-now-pay-later services from two of China’s major providers – Alipay’s Huabei and Tencent’s Fenfu.
Keong Chan, executive chairman of AuMake International recently told the Australian Financial Review that he is confident of a return of international students and tourists by the end of the year following the rollout of vaccines against Covid-19.
China-based investor, Steven Hu, has led a consortium to invest AUD$7 million in AuMake International.
The injection of funds will help AuMake attract new users in Mainland China to boost sales growth and also invest in direct marketing campaigns for new Australian and New Zealand brands.
Going forward, there will be less emphasis on daigous and more on social e-commerce. China’s social e-commerce market is expected to reach AUD$500 million by the end of this year, led by giants such as TikTok and Pinduoduo.
Mr Chan believes that Chinese consumers remain very interested in the clean, green products produced in Australia and New Zealand, particularly skincare.