It was because a BAL's direct supplier into China selling via JD et al discounted the local online price as BAL had to stuff product to live up to take or pay supply agreements. This heavily killed the margin for Daigous. No customers would buy from Daigou and there was no margin in it for them. Problem for BAL was net volume went against them so had to fix the channels. Things returned when it was fixed until the ran up against the SAMR issue thus making them reliant on Daigou now.
Ann: Half Yearly Report and Accounts, page-72
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