Daigou Index 2.0: The biggest threat to China luxury in the next five years

Thomas Piachaud, Charlsy Zhang, Max Peiro

This Rehub paper highlights how the Daigou market in China represents an estimated US$81bn dreadful problem for luxury brands like LVMH, La Mer and Estee Lauder.
  • The Daigou channel was stimulated further in China in 2020 by surplus stock from drops in demand as the pandemic undulated around the world; leading to leftover bad habits from brands' sales associates looking to maintain targets.
  • A typical Daigou now is more than likely a large organization with significant buying power that can access products at volume, rather than your average Chinese international student making a bit extra cash on the side.
  • However, luxury brands are not always aware of this grey market in China, and the driving forces that drive Daigou’s businesses (price differentials across borders, scarcity, exclusivity,...

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