Australia Post targets 'daigous' with test stores

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Australia's postal service has opened a series of concept stores that ship only to China. They're aimed at tapping into the country's "daigou" trade, where people buy Australian goods and send them to China.

"Every year the logistics volume in terms of dollar amount into China is around 450 million U.S. dollars, so we saw that as an opportunity for international trade which is a new division within Australia Post where we are able to capture a logistics solution as a logistics provider," said Australia Post International Sales and Marketing General Manager Lincoln Wong.

The stores, located in Sydney and Melbourne, are not like most post offices. They don't sell stamps or envelopes, but they do have shelves lined with everything from baby formula to healthcare and beauty products that are popular with consumers in China.

Concept stores sell Australian products that are popular in China. /CGTN Photo

"Customers are looking for natural or organic, they are looking for this nurtured by nature which is so Australian," said Wong.

It's estimated there are up to 200,000 daigous operating across Australia, and the industry is believed to be worth billions of dollars in sales each year. Despite China's new e-commerce rules, the industry continues to grow.

People preparing daigo orders bound for China. /CGTN Photo

"A lot of corporations have come to realize just how important this group is. At the same time, daigous are growing too, they start to understand how to operate their business in a corporate way so that makes it easier for both of them to work with each other," said Access Corporate Group Australia CEO Livia Wong.