The daigou-approved ‘most popular’ handbags in China in February
Shanghai-based technology firms Re-Hub and SimplyBrand have come together on a joint, artificial intelligence (AI)-enabled report, which highlights the top five “most iconic and popular” handbags in China, as of February 2021.
AI and machine learning algorithms were used to scan over 28,000 Taobao (a popular e-commerce platform powered by Alibaba) product listings from February 1-28, spanning significant shopping periods such as Lunar New Year (or “Chinese New Year”) on February 12, plus Valentine’s Day (February 14).
Listings were selected based on their machine identification as daigou listings.
Daigou (which means “buying on behalf of” in Chinese) are professional substitute or surrogate shoppers, who most commonly purchase items ranging from luxury handbags to infant formula abroad in places such as South Korea, Europe, Australia and the United States for less than the items’ retail price in China.
They may list their wares on Taobao and other websites or advertise products to their personal WeChat (China’s largest messaging app) following. Other daigou business is conducted through companies, who, according to the South China Morning Post, work with travel agencies which have negotiated rebates from retailers.
Although the gap has decreased over the years, many luxury items, in particular, are still more expensive to purchase in China than in other countries, owing to the country’s import tariffs, which it has steadily lowered in recent years in order to encourage domestic consumption. (What is more, an e-commerce law was passed by the state in 2019, further marginalising professional shoppers such as daigou by requiring them to register as companies and, therefore, pay taxes.)
This has served to squeeze out the daigou (who have traditionally exploited the value-added tax gap by shopping abroad and then smuggling their goods into China via Hong Kong and other channels) to some extent, though they still remain a grey market force to be reckoned with within the Chinese shopping ecosystem.
There is also the trust issue. Though the situation has improved somewhat, some Chinese consumers prefer to shop (either in-person or via daigou) abroad, in order to ensure the authenticity of their purchases. The prevalence of unofficial merchandise in China, plus stories of official goods being swapped out for fakes at designer stores in the past due to in-store staff corruption, has led to suspicion.
While many foreign luxury brands are still learning how best to navigate the Chinese e-commerce landscape, daigou know the market well. Especially trusted daigou even influence purchasing decisions, less as barometers for taste than respected sources of detailed product knowledge.
With this in mind, Re-Hub and SimplyBrand’s so-called five “most popular” handbags for the month of February, according to Taobao daigou listings, is interesting to China watchers.
The list is as follows, in descending order:
5. Balenciaga ‘Hourglass’
4. Celine ‘Box’
3. Prada ‘Hobo’
2. Loewe ‘Puzzle’
1. Gucci ‘Marmont’
Across the above five products, around $4.3 million was spent (via daigou) on a single platform in one month.
Image: Gucci via Instagram.
