E-COMMERCE  /  SME

By FedEx | November 11, 2025

China’s booming daigou trade is evolving as online shoppers become more discerning. If your e-commerce brand is entering China, here are some strategic lessons you can draw from daigou.

• From luxury goods to cosmetics, daigou has expanded across a range of industries in China.
• As regulations tighten and new e-commerce platforms gain favor with Chinese shoppers, daigou is becoming more transparent.
• Daigou’s evolution shows that Chinese consumers crave personalized, authentic, reliable shopping experiences – and brands need to deliver these to succeed.

Have you ever asked a friend traveling abroad for help with purchasing an item? It could be a popular snack not sold in your country or a limited-edition bag that’s more affordable overseas. If so, you’re already familiar with daigou – an informal type of cross-border trade that has become a USD 81 billion industry in China.

The term “daigou” is literally translated from Mandarin, meaning “to buy on behalf of.” It refers to Chinese buyers who purchase coveted goods abroad and resell them in China at a profit. Since 2019, the daigou market has grown by over 40% – fueled by Chinese consumers’ appetite for global goods that are hard to find or more expensive at home.

While daigou has been thriving for over a decade, it has rapidly evolved in recent years. Changing government regulations and innovative cross-border e-commerce platforms have made this “gray market” more transparent, enabling global brands to tap into Chinese demand.

So, what does the rise of daigou teach us about what cross-border shoppers want – and how can brands use these lessons to drive growth in China?

Understanding daigou, the informal trade fueling cross-border sales

The rise of daigou can be traced back to a spate of infant milk scandals in 2008. Baby formula from one of China’s largest dairy producers, Sanlu Group, was found to contain the toxic compound melamine, causing six infants to die and hundreds of thousands more to fall sick.

This led Chinese consumers to begin buying milk powder from overseas, perceiving international brands as safer and more trustworthy. Since then, daigou has expanded rapidly beyond food products to encompass a wide range of industries.

Luxury goods are a major segment for China’s daigou trade, spurred by consumer demand for premium products at lower prices. For fashion and leather goods brands, daigou could drive as much as 25% to 70% of total sales in China.

Cosmetics is another key sector. Global cosmetics brand Estée Lauder estimated that travelers, including daigou shoppers, accounted for up to 40% of its pre-pandemic sales to Chinese consumers. Vitamins are also popular among consumers seeking high-quality supplements from overseas. Health supplements giant Blackmores reported that daigou trade made up a third of its annual retail sales in Australia.

Today, daigou sellers can range from students and workers living abroad who resell goods as a side hustle, to professional shoppers and firms running large-scale operations. Typically, they use social media platforms like WeChat or Xiaohongshu to build their customer networks. They take orders and make purchases on behalf of customers, then either hand-carry the goods back to China or ship them across borders.

The evolution of daigou

While daigou may have started out as an informal network, it is now evolving into a regulated industry. As regulations tighten and new e-commerce platforms gain popularity with Chinese shoppers, daigou is moving toward greater transparency and legitimacy.

In 2019, China introduced an e-commerce law that requires daigou merchants to formally register as businesses and pay taxes, closing the tax gap between daigou and official retailers. This removes the loophole that daigou sellers previously used to avoid import duties and offer lower prices. Not only does this regulation increase daigou’s transparency, it also gives global brands a pathway to connect with Chinese consumers through authorized channels like cross-border e-commerce platforms.

At the same time, the rise of e-commerce sites like Dewu is changing the game. Unlike the informal operations of traditional daigou sellers, Dewu is reshaping daigou trade with an “authenticate first, ship later” approach.

Teams of authenticators thoroughly examine all products on Dewu, from jewelry to cosmetics, before shipping them to buyers. This unique model has enabled the platform to build trust with both consumers and daigou sellers. It’s now China’s fourth-largest import e-commerce platform and hosts nearly three-quarters of the country’s luxury cross-border daigou trade.

Lessons from daigou: How can brands win hearts in China?

With over 800 million online shoppers and counting, China is indisputably the world’s largest e-commerce market. The rise of daigou – and its recent evolution toward greater transparency – shows that these consumers have a huge appetite for international products they can trust.

Overseas brands that successfully reach and engage Chinese shoppers can expect massive growth. If your e-commerce business is expanding into China, here are three valuable lessons from daigou to guide your strategy.

1. Consumers crave personalized experiences

One key reason for daigou’s widespread appeal is the personalized shopping experience it offers. Like personal shoppers, daigou sellers often tailor their purchases to suit each client’s tastes. Many also livestream themselves trying on clothes and makeup, giving customers a candid and personalized look at the item’s quality and fit.

To succeed in China’s e-commerce market, brands need to deliver such authentic experiences and build deeper relationships with customers. Forward-thinking global brands are increasingly partnering with Chinese online marketplaces to achieve this.

The rapid growth of Alibaba Group’s Tmall Luxury Pavilion reflects this trend. Tiffany & Co., Chaumet, and Hublot launched online stores on the platform in 2024, joining over 200 global luxury brands already there.

Tmall Luxury Pavilion offers digital capabilities that empower global brands to engage Chinese shoppers on a deeper level. With innovative features like AR-powered try-on services and one-on-one livestream consultations, brands can provide an immersive shopping experience that blends convenience with personal connection.

2. The right influencers can expand brand reach

Daigou sellers aren’t just merchants – they often act as micro-influencers as well. Professional daigou shoppers have huge networks of contacts and customers, ranging from 100 to 100,000. What’s more, they usually have in-depth knowledge of their clients’ preferences, making them highly influential when recommending brands or products.

Daigous also excel at reaching consumers in emerging markets, such as third-tier cities where global brands have less presence. With their extensive networks, they’re effective in using word-of-mouth to introduce global brands to new customer segments.

If your brand aims to expand into China, incorporating local influencers into your marketing strategy can be highly impactful. In such a vast and increasingly sophisticated consumer market, the right influencers will provide insight into the specific preferences of your target audiences.

Consider working with top content creators on Chinese platforms like Douyin and Xiaohongshu to craft messaging that’s tailored to different regions, cities, and age groups. This strategy can help your brand build a more personal, authentic relationship with local customers. 

3. Brands need to deliver transparency and reliability

Customer trust is the heart of daigou’s success. Daigou first emerged when Chinese consumers sought out trustworthy products from abroad. The popularity of platforms like Dewu, which operates on rigorous authentication processes, highlights the ongoing demand for secure and reliable online shopping.

Hence, brands entering China must build a reputation for transparency and reliability. Consumers expect clear and accurate information at every step of the shopping journey – from browsing to shipping.

To win over shoppers discovering your brand, provide honest and comprehensive details about your products. You can also share authentic customer reviews, create 360° product imagery, and offer efficient support for customer queries.

It’s also important to be upfront about delivery and return policies, including any costs involved. Work with a reliable logistics provider to give your customers the reassurance of on-time delivery and real-time tracking, especially for high-value products. A transparent shipping experience not only boosts customer satisfaction, but also encourages repeat orders.

Reaching Chinese shoppers with seamless, secure logistics

China offers immense growth potential for ambitious businesses, but it’s important to craft an e-commerce strategy tailored to local consumers. As the phenomenon of daigou shows, Chinese consumers want a shopping experience that is not only convenient, but also secure and trustworthy.

Smooth shipping plays a crucial role in that experience. When you consistently meet customers’ delivery expectations and provide proactive updates about their purchases, you earn the trust and confidence that keeps them coming back.

At FedEx, we’re committed to supporting businesses with reliable cross-border shipping capabilities. Designed for e-commerce shipping, FedEx International Connect Plus offers day-definite delivery within two to three business days worldwide. This solution also features end-to-end tracking for more visibility and control of your shipments.

For high-value packages like luxury goods, FedEx Surround provides near-real-time data about your shipments, including predictive delay alerts, enabling you to give customers the transparency and reassurance they expect.

With the right logistics support, your business can tap into China’s growing demand and turn cross-border opportunities into long-term success.