Shoppers team up for better deals

  The power of groups, the clout that crowds can exercise to get what they want, is nothing new. What is new, however, is the dizzying ease with which likeminded, action-ready citizens and consumers can now go online and connect, group and ultimately exert influence on a global scale. Our sister website trendwatching.com just published a briefing about crowd clout, and defines the trend as follows: "Online grouping of citizens/consumers for a specific cause, be it political, civic or commercial, aimed at everything from bringing down politicians to forcing suppliers to fork over discounts."

  A fun example of consumers aggregating their intended purchases to get a bargain is tuangou, or team buying, which involves strangers organizing themselves around a specific product or service. Think electronics, home furnishings, cars and so on. These likeminded consumers then meet up in real-world shops and showrooms at a coordinated date and time, literally mobbing the seller and negotiating a group discount on the spot.

  Popular Chinese sites that are enabling crowds to first group online and then plan for real world shopmobbing are TeamBuy, Taobao and Liba. Combined, these sites now boast hundreds of thousands of registered members, making money from ad revenues and/or commissions from suppliers who are happy to have the mobs choose their store over a competitor's.

  So who's going to introduce this concept in San Francisco, Toronto, Sao Paulo, Barcelona or Sydney? The PR value from being the first to do this outside China will be priceless. And may we suggest that the future founders turn it into a hybrid online/offline model, going for maximum reach and visibility? For more business opportunities related to consumers ganging up to get what they want, check out trendwatching.com's briefing.

  Websites: 020.teambuy.com.cn/english, www.taobao.com/vertical/groupbuy, www.liba.com

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The phenomenon of mob shopping descends on Shanghai

  Remember flash mobbing? That's when an otherwise sane group of people converges on a specific place to perform some random act. Such acts included people bowing to leather sofas in London, gymnastics in Berlin, applause for books in Rome, and bizarre nature calls in New York ' s Central Park. But in the land of the bargain-hunter, flash mobbing has turned savvier, in the form of mob shopping.
  Mob shopping evolved through forums where individuals organised group shopping trips, as well as via the websites www.teambuy.com.cn and www.51tuangou.com. The principles are the same as flash mobbing: an organiser contacts people through the Internet and those who wish to participate then descend on a specific location. But instead of performing pirouettes, mob shoppers collectively haggle like hell. The result: a hefty discount.
  The good news is that this practice is coming to Shanghai. TeamBuy develops partnerships with businesses that are happy to offer discounts for bigger sales. When enough canny shoppers are interested in a particular product, a store and date is fixed via TeamBuy website and SMS texts. Then the shopping begins.
So far everything from ovens to tickets and from furniture to electrical goods has been snapped up in the mob shopping events.
  Some stores open to TeamBuy members only on certain days so that only they get their discount. The company makes money by taking a cut of the price of goods sold.
And thus far, it ' s been a great success. Since opening in Guangzhou in March 2006, TeamBuy has grown fast; it now has 14, mostly local, operations all over China, including Beijing, Kunming, Hebei and Hunan. Shanghai shopping events are scheduled to begin in May this year.
  But TeamBuy ' s Investor Relationship Director Lina Zhang says the company is in the process of building a nationwide network so members can take advantage of bulk discounts all over the country.
  In short, it ' s time to sharpen your elbows.

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China's newest shopping craze: 'team buying'
GUANGZHOU, CHINA ?`C Last month, Fiona Li did what millions of Chinese shoppers do to find a bargain: she went online.
A few clicks later, she had a lead on where to buy the consumer goodies her brother wanted for his new apartment ...
"Online shopping has been around for a few years, and Chinese people realize that it's quick and easy, but there's a crisis of trust and honesty. How do you know whether to trust the seller?" asks Ouyang Jixing, deputy director of www.020tgw.com, a team-buying website in Guangzhou... The answer, says Mr. Ouyang, is to join forces with other team buyers using a website like his, which has signed up 20,000 members since it launched last year. The aim is to bring together distributors of branded goods with potential customers and earn commission from successful team buys. It also hosts several web forums, which is how Li found her team.
By joining a trip arranged by the website, shoppers have a much higher chance of success compared with unannounced team buys, says Liu. The camera buyers already knew the likely discount, so there was less friction at the store. He plans to replicate his website in other cities in China and wants to eventually list on NASDAQ. "This is a new concept. Those who are brave enough to take on the new ways can reap the rewards," he says.

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