New form of parallel trading within Russia-China economic relations

Date

2020-05-06

Advisors

Journal Title

Journal ISSN

ISSN

1463-1377
1465-3958

Volume Title

Publisher

Taylor and Francis

Type

Article

Peer reviewed

Yes

Abstract

This paper investigates the phenomenon of ‘daigou’. Daigou are perceived as harmful in China as they do not pay any import taxes. However, daigou have established well-organised supply-chain channels on the borders between Russia and China and have helped to boost sales for Russian regional businesses. With the help of in-depth interviews, this study provides three core findings. Firstly, it describes the entire supply-chain structure of daigou activity in Russia-China trade relations and the methods used by daigou to bypass border customs controls. Secondly, it explores the key benefits for Russian manufacturers and retailers and shows how they cooperate with Chinese daigou. Finally, it proposes that daigou are not just purchasing representatives but that they also act as consultants to Russian manufacturers and retailers and may therefore have a significant impact on the marketing costs, product development, and internationalisation strategies of those manufactures and retailers.

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.

Keywords

daigou, Russia, China, parallel trading, cross-border mobility, social embeddedness, mobility, virtual community

Citation

Sergey Sosnovskikh (2020), 'A new form of parallel trading within economics relations between Russia and China, Post-Communist Economies,

Rights

Research Institute

Centre for Enterprise and Innovation (CEI)