In a strategic manoeuvre aimed at capitalising on the burgeoning Daigou community and post-Covid market resurgence, Aumake Limited (ASX: AUK) has unveiled plans to revive the iconic ‘Kiwi Buy’ brand. Through binding agreements with four established Daigou-focused stores, Aumake is set to rebrand these outlets as Kiwi Buy stores, bolstering its position in the Australian retail landscape. This article delves into the strategic partnerships, minimal capital outlay, product diversification, and financial boost driving Aumake’s resurgence, poised to reshape the cross-border commerce paradigm.
Understanding the Daigou Community
The Daigou community refers to a network of individuals, primarily Chinese expatriates or tourists, who purchase goods overseas on behalf of consumers in China. This practice has gained popularity due to concerns over product authenticity, quality, and availability in China. Daigou shoppers often play a significant role in facilitating cross-border commerce, particularly in sectors such as skincare, cosmetics, and infant formula.
Strategic Partnerships: Four Licensed Kiwi Buy Outlets
The four licensed stores, strategically located in Auburn, Bankstown, Chatswood, and Parramatta, are positioned to cater to Chinese tourists and students, aligning perfectly with Aumake’s vision of connecting Australian brands directly with Chinese consumers. Leveraging the Kiwi Buy brand, Aumake aims to offer a curated selection of established Australian products and Original Equipment Manufacturer (OEM) goods, thereby strengthening its foothold in the lucrative Daigou market.
Minimal Outlay, Maximum Impact: Licensing Agreements
Under the terms of the licensing agreements, each store will operate under an exclusive territory-specific license, further cementing Aumake’s presence in key locations. Additionally, licensees will receive five million options in Aumake, subject to shareholder approval, offering them a stake in the company’s future growth trajectory. Importantly, this venture entails minimal capital outlay for Aumake, as the existing Daigou stores will continue to operate independently under the Kiwi Buy banner.
Product Diversification: Focus on Tier-1 Products and OEM Offerings
The Kiwi Buy stores will maintain their focus on tier-1 baby formula and health products while introducing Aumake’s OEM offerings, thereby diversifying their product range and enhancing revenue streams. Moreover, the reactivation of the Kiwi Buy brand is poised to bolster Aumake’s cross-border distribution capabilities, facilitating smoother access to the mainland Chinese market.
Optimistic Outlook: Driving Growth and Profitability
Managing Director of Aumake Limited, Joshua Zhou, expressed optimism about the venture, stating, “We warmly embrace this new chapter in the Aumake turnaround post-Covid.” He emphasised the company’s confidence in the success of the initial four Kiwi Buy stores, highlighting their potential to drive growth and profitability through increased focus on OEM products and enhanced supply chain efficiencies.
Financial Boost: $2 Million Funding Package
The announcement comes on the heels of Aumake’s recently unveiled $2 million funding package, earmarked to support the reintegration of Kiwi Buy and accelerate the company’s revenue profile. With a clear focus on sustainable growth and operational excellence, Aumake is well-positioned to capitalise on the burgeoning demand for Australian products among Chinese consumers.
Reshaping Retail Landscape
As Aumake embarks on this transformative journey, all eyes are on the Kiwi Buy stores, poised to reshape the retail landscape and redefine the paradigm of cross-border commerce.
Disclaimer: This was developed in collaboration with Aumake Limited. Aumake limited is a sponsored partner on The Executive Edition. The Executive Edition may hold a financial interest in it’s sponsored company at the time of publication.
