Monday, 25 June 2012

25th June 2012 'Tuangou', A New Way Of Shopping

June 25A
(I posted this soon after I first started blogging,in Yahoo's 360,towards the end of 2007. Naturally many things have since changed or even become obsolete, but I feel that perhaps the denominated 'Tuangou' shopping still makes a lot of sense and I just wonder whether it had continued to flourish, improved further, or what ...)
 
The phenomenal " tuangou " started in China less than a year ago has now caught on in a big way in Spain. The word means " Group Purchase " in Chinese. The idea or system works in several people, whatever the number, who want to buy the same product or Service on line to get together as a group, so as to get a considerable discount for themselves & a big sale for the suppliers.

It started off originally in China when a group of people met up at the agreed hour in the shop that sells domestic appliances, & the selected spokesman asked for a substantial discount for a purchase of 27 TV sets & 19 washing machines. The director of the establishment looked puzzled & stunned for just a brief moment, then the decision was made, a quick one, when he realised that he was going to make the biggest sale in his life at that very instant. 35% was granted. In most cases, according to the report, the commodity or service could result in 30% to even up to 70% cheaper.

Through word of mouth & with instant Internet connection, this " tuangou" has been multiplying in both number of people taking part as well as establishments claiming happily that they are now doing more " wholesale " than retail. The best part is, everybody is happy. A win win system.

Mr, OUyang Jixing, director of the pioneer project, & the company on line as : 020tgw.Com said that the biggest registered group has 500 people, with 10,000 having joined this iniciative in 6 months.

The possibilities are endless. Buyers organised pre-agreements with shops, transportation, deliveries, & companies responding readily include Ikea for example. From cosmetics to clothing, school & hospital uniforms, Household appliances, furniture..... The added advantage is that these discounts are all the year round, no need for buyers to wait for summer sale, end of the line sale, etc.

In Spain, Mr. Alfonso Belmonte, based in Murcia, was the first to establish the web site : www.tuangou.es 4 months into the business, instant success as predicted, has such sales in many fields, gymnasium membership, driving schools, travel agencies, including even apartments in newly built blocks. The latter considered a real boost to revitalize the declining property market.

Although this concept is not exactly new as several similar systems have been operating on line, like www.ventee-privee.com, www.buyvip.com, www.privalia.com, or www.dreivip.com But Belmonte insists that the " tuangou " is different, in that they are not exactly dealing in virtual shopping, where customers often have doubts about reliability, quality, security issues, but it's " physical " shopping directly through traditional distribution channels or points, just like shops in the street, no waiting for deliveries. One can also compare with group members & exchange experiences, to narrow down to the best product in the best shop with the highest discount.

However, there are rules & limits. Recently in China, luxury firms like Estee Lauder & Cartier, had to keep back prospective customers at their doors, explaining that all their prices are firmly fixed, no concessions. But, now this is interesting, they agreed to " negotiate beforehand, not automatically. " I translate that to be " yes, discounts, but prearranged."

Jean de la Fontaine, the famous French writer & poet said: " Any power, if not based on team effort, is weak ."
 

Prev: 25th June 2012 Truth, Lie, Hypocrisy, Flattery

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