Tumpang: One to Watch!
Posted by Andrew | Posted in Startups | Posted on
Tags: Million Dollar Startup Game, one to watch, P2P, Smart, Startup, Startups, Web 2.0
0
As never before the ability of online networks has the potential to shape the world. Tumpang is preparing to take advantage of this dynamic by offering people who come together online the ability to put their joint purchasing power to work.
The Tumpang model is interesting. Manufacturers are asked to discount their products if Tumpang can guarantee a group purchase of a certain quantity of items. Then, within their site, they offer the items for sale at the discounted price providing enough people agree to purchase the item at the discounted rate. As individuals the customers may not be able to get these ‘bulk’ discount prices – as an online mini-purchasing group, they suddenly have more power.
Tumpang is currently focused on the Chinese market…but are making moves to go international. There are two obvious challenges at this point:
Products are often country specific so although they have international plans, this may not translate well for the mini-groups. Will a German purchaser be interested in a kettle for the Malaysian market? See my point?
Most of the products on the site at this point seem relatively low quality i.e. Tumpang does not seem to be striking deals with Apple, Panasonic etc but rather more unknown brands. However, as their purchasing power and traction increases this should give them more negotiation strength with the bigger, more popular manufacturers.
So, Tumpang is one to watch. This crowd purchasing approach could create another shift in online purchasing.
Andrew
Founder -Advisor Garage
http://www.AdvisorGarage.com/community
Related posts:
