Since last year, there have been reports of people in Hong Kong going “up north” (北上) to shop. Large warehouse clubs such as Walmart’s Sam’s Club have become popular destinations for the Hong Kong middle class to spend their days off and shop for affordable yet high-quality items, much like their Mainland counterparts. Also, since last year and surging as a trend in Hong Kong this year, is the idea of “reverse daigou” (代购, shopper/reseller who buys in one region for customers in another). What is it and why did it go viral on Weibo?
Not only are Hong Kongers doing their grocery shopping at Sam’s Club, but Aikangjian Dental, K Party karaoke, HeyTea, Master Bun Pastry, and others are also among the favourites of shoppers in Shenzhen. In a similar vein, the daigous charge a small fee to get your shopping or takeaway to Hong Kong, and as the brands suggest, food is one of the most popular items.
- #香港人开始反向代购 Hong Kongers start to “reverse daigou”: 11.44 million views on Weibo, ranking number 43 on the Hot Search list
The reason, of course, is either that the brand has not yet expanded to Hong Kong or that it’s much cheaper in Shenzhen. The daigou, then, is like DoorDash, but cross-border to Hong Kong. Due to exchange rates and price wars in the Mainland, as well as the high costs for food and beverage brands to maintain a presence in Hong Kong, cross-border delivery has become a cheaper alternative for shoppers who do not wish to spend a day in Shenzhen but still want to taste local delicacies.
This is a far cry from the days when Hong Kong had all the international brands, whether in skincare or luxury, that were either unavailable or too expensive in Mainland China, and daigous were essentially smuggling cheaper goods from Hong Kong to the Mainland.
Need to boost your China strategy? Dao Pro delivers bespoke insights on marketing, innovation, and digital trends, direct from Chinese sources. Find out more from our Dao Strategy Team here.
