Business
What does China have to do with the a2 Milk (ASX:A2M) share price? // The Motley Fool Australia
The A2 Milk Company Ltd (ASX: A2M) share price dove over 22% last week, although it has regained some of its losses today and is up 1.13% at the time of writing.
The company’s recently released financial guidance revisions, paired with a dip in Daigou sales, seem to have spooked investors and pummelled the a2 Milk share price.
What does ‘Daigou’ mean and why does it matter?
The term Daigou refers to the act of purchasing goods overseas to resell in mainland China. The impact of Daigou activities on the a2 Milk business is nothing new. The company mentioned the influence of “reseller channels” on its third quarter FY20 revenue back in April — Daigou falls into this category.
At a glance, Daigou’s impact on…
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