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AuMake emerges as another link between Chinese and Australian consumers
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  • AuMake has announced two new brand development channels for Australian and New Zealand (ANZ) products with JD.com
  • AuMake can now provide ANZ brands and products with streamlined access to JD.com's online platform in China — a website boasting an active customer base of 300 million customers
  • ANZ products recommended by AuMake —including their own brands — will be bought and preferentially marketed on JD.com's massive online store

AuMake continues to market Australian and New Zealand (ANZ) products to Chinese cross-border shoppers with two new development channels today.

The brand development channels are part of a relationship AuMake is growing with global ecommerce company, JD.com.

The channels streamline ANZ brand access to JD.com's online Chinese platform. As a result, AuMake can now provide ANZ brands and products with streamlined access to JD.com's online platform in China — a platform boasting an active customer base of 300 million customers.

JD.com acts as a supplier somewhere between a daigou and a regular online store. Daigou, directly translated, simply means "buying on behalf of", and is a popular practice among Chinese tourists and immigrants.

Essentially, it refers to a network of shopping agents who buy products from overseas — from luxury goods to infant formula — and then sell them via direct postage back to China.

While the practice can sometimes be illegal, generally it simply takes advantage of legal Chinese import loopholes to avoid tariffs and taxes.

The daigou market is often referred to as the "grey market" because of its moral ambiguity.

This is where stores like JD.com come in; taking advantage of a more straightforward and transparent sort of daigou for the peace-of-mind of both suppliers and consumers.

With AuMake's new brand development channels, ANZ products recommended by AuMake —including their own brands — are chosen and purchased by JD.com at commercially attractive gross margin rates.

These products are then marketed on JD.com preferentially. This simply means that when products are searched for on the massive JD.com online store, the brands recommended and sold by AuMake will appear first.

Furthermore, delivery times for these brands are improved to less than five days to anywhere within China, making JD.com a more attractive option than an independent daigou for Chinese customers wanting shorter wait times for overseas products.

AuMake management said the company's relationship with JD.com is an incredible opportunity for both companies to mutually incubate and build their brands.

AuMake shares are unchanged today, continuing to trade for 15 cents each in a $47.28 million market cap.

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