The popular but risky practice of Daigou

By Dong Fangyu | China Daily | Updated: 2014-12-20 07:39

More haitao shoppers are buying directly from foreign merchants to avoid fake products.

When it comes to haitao, another frequently mentioned term will pop up - daigou, which means "buying on behalf of someone else".

Despite the popularity of cross-border e-commerce in China, agents who make purchases overseas on behalf of Chinese consumers still constitute a big, gray market. And although the practice of daigou is an informal, small-scale, person-to-person business, it still dominates China's haitao market.

Du Lingxue, 23, a Chinese accounting student in Australia, buys products from Melbourne for Chinese consumers in China.

"At first I just bought milk powder for my friends at their request. But I realized it would be an easy part-time job for me to make some pocket money while studying abroad," she said.

"Many of my Chinese classmates and friends are doing daigou. Some of them are doing it on a large scale, setting up an online marketplace on Taobao, or WeChat where people can place orders. Some like me only do small, but regular orders by word of mouth."

Apart from milk powder, Du's main buying category is health supplement products.

Australia has higher regulations or standards for health-related foods, she says, and many Chinese buyers think they are manufactured more safely, and with higher quality natural ingredients.

But the ubiquity of China's fake products makes buying from a daigou a risky game.

Zhang Qi, a 29-year-old college teacher from Henan province, said, "I don't trust any unfamiliar professional buyers from Chinese cross-border e-commerce sites, especially when buying luxury handbags, clothes, and cosmetics because fake products are so rampant in China."

She said that she and her friends all have been asked to buy overseas products on behalf of friends and relatives because they want to know that the goods they are purchasing are genuine.

"Many vendors on taobao claim to buy foreign goods for you. But it is highly possible that they are peddling fake ones."

For some haitao shoppers buying directly from foreign sites is a way to avoid fakes.

Miranda Li, 34, who works for a foreign law firm in Beijing, is still waiting for her Black Friday parcels, which include two overcoats, two pairs of leather boots, and other accessories. "You need patience. But I prefer browsing directly from foreign websites, mailing to US addresses, and having them delivered to China. It's more authentic and reliable than from unknown professional buyers on a Chinese e-commerce site."

In terms of international deliveries and import taxes, Li said, "Some small cross-border express agencies can help you avoid paying the taxes, but at the same time, you take the risk of losing your parcels if they are in their hands."

"My choice is to choose a bigger company. I usually use SFbuy, under Shunfeng Express. I can track the whole delivery process, and if my parcel is lost, I can get full reimbursement."

Where Chinese shop

A glimpse at some popular overseas websites visited by Chinese haitao shoppers

Amazon.com: products ranging from electronics to fashion

Macys.com: clothing, accessories, beauty products, shoes, home and furnishing

Drugstore.com: skincare and bodycare

6pm.com: shoes, clothing and more

Gymboree.com: clothes for children and babies

Windeln.de: babies and mothers

Saksfifthavenue.com: luxury fashion brands

Shop.nordstrom.com: mid-level and high-end fashion brands

Shopbop.com: designer apparel and accessories

Dsw.com: designer shoes warehouse