Driving daigou to Chemsave

Joshua Chan (Au Make Managing Director and CEO), Michael Dixon (CEO Chemsave), Anita Dimetriou (Chemsave Marketing Manager), Keong Chan (AU Make Executive Chairman).
Joshua Chan (AuMake Managing Director and CEO), Michael Dixon (CEO Chemsave), Anita Dimetriou (Chemsave Marketing Manager) and Keong Chan (AUMake Executive Chairman)

Chemsave and AuMake have announced a partnership aimed at reaching out to daigou and Chinese tourists

AuMake is a retailer that connects Australian suppliers directly with Chinese consumers (“daigou” and tourists) via its online e-commerce store.

It currently has eight retail stores across Sydney and plans to expand across the country over the next 18 months, but will now also supply Chemsave pharmacies with its own branded products.

At first, these will include Health Essence health supplements and Medigum Honey, with other products to follow.

The two groups say that having AuMake products available in a well-known and trusted pharmacy chain reinforces the credibility of the AuMake-owned products with daigou and Chinese brands.

AuMake plans to actively promote the Chemsave brand to the daigou and Chinese tourist markets as a destination of choice, and an alternative to other pharmacy networks targeting these customers.

Chemsave CEO Michael Dixon told the AJP that Chemsave took its time to consider how to best move forward with the daigou market for the benefit of member pharmacies.

“A small proportion of our members do business with daigou already and have done for a number of years now,” Mr Dixon says.

“There’s a great majority that don’t; some do a very small volume, but we’ve never done anything group-wise.

“Daigou are definitely becoming important, and the volume that some pharmacies are doing with them are mind-blowing, really. And there’s more Chinese people coming to live in Australia – that’s not going to slow down, nor is the tourist market.

“Certain events in China meant that people turned to non-Chinese products, and they’ve turned to Australian products for confidence in our quality, and that the products aren’t counterfeit.

“And it’s not going to slow down, so the biggest problem for us has been working out the best way to do it with minimal risk.”

He encouraged Chemsave members to look at what the banner is doing with daigou and “embrace the concept”.

“Give it a go, it’s low risk, it’s not a big investment and you may be pleasantly surprised by the results you get – and hopefully a new category in pharmacy that you’ve never had before.”

The two groups plan to invest in cross-promotional marketing initiatives such as print, advertising in Chemsave catalogues and live-streaming in pharmacy using AuMake video streaming capabilities.

Cross-promotional activities are aimed at driving daigou and Chinese tourists to Chemsave pharmacies and increase awareness of the banner group in China.

The initial term of the Heads of Agreement is on a two-year basis, with an option to extend for another two years.

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