China craves foreign goods; students in Australia supply them

Melbourne

ZHANG Yuan's business started with favours for relatives: an aunt who wanted baby formula, a cousin looking for Ugg boots. She was a college student in Australia and every dollar helped, so she mailed the items back to China and charged a bit of a commission.

But then, through word-of-mouth, her business just kept growing. Between classes, she would shop for whatever was popular that week: vitamins, brand-name jewellery, a fake erectile dysfunction drug called Kangaroo Essence. And when she could not find a more lucrative job after graduation, she stayed in Melbourne and in the booming grey market for selling Australian goods to Chinese consumers.

Her business now employs two buyers, two packers and two people in customer service, with offices in Melbourne and Han…