Luxury outlets in Russia selling anything from designer handbags to jewelry, watches and cosmetics are seeing their shelves emptied during the Christmas holiday season. The great sale in Russia is not your usual phenomenon and neither are these stores making sale to the locals. Although no discount are offered for goods priced in roubles but Chinese shoppers from across the border is flooding Cartier and Louis Vuitton stores thanks to the huge drop in the Russian currency.
The Chinese shoppers include tourists who came for the bargain often making purchases for themselves, friends or family back home but there is also an entire segment of agents know as “daigou,” or literally means “buying on behalf” that took advantage of currency differential by buying at lower prices and smuggling these luxury goods back into China to avoid duties and profiting from it.
While it is true that luxury brands maintain their prestige by not actually offering any discount for their in-store goods in Russia, daigou purchases has the advantage of helping drive up sales for these companies in the short term but the set-back is that they are being offered by unauthorized agents that could not offer proper after sales service. Shoppers looking for bargains may also end up being conned into buying counterfeit goods.
Read more: http://jingdaily.com/will-daigou-die-in-2015/