Beijing, China – Nov 1st – As long time players in the fashion and technology arena, we have not yet really seen many starups with a revolutionary approach. This season however presented several great initiatives at the TechCrunch Disrupt in Beijing with the winner of the startup competition offering a unique new disruptive approach to the fashion industry filled with middle men in the middle kingdom (China).

The winner of the startup competition was China Accelerator‘s own OrderWithMe with a Group Buying business model in China. Founded by an American couple, husband and wife team Jonathan and Danielle Jenkins, based in Hangzhou, China. When the Jonathan Jenkins was a child his grandfather read him a story of the middle-kingdom and he fell in love with the country. Later he visited China with his grandfather and decided to form forge a life there. Coming from a family of entrepreneurs, he started a business in fashion by selling handbags sourced in China in his Texas store. They sold 75,000 dollars in the first year and they expanded with stores all over America. His success came because he sourced the inventory directly from China and cut out all the middle men.
The “problem” is that American small business owners spend 110% of their time running their business and rely on layers and layers of middle men to get the small quantities of products that they need for their small stores in middle America. The founders know the small American business taste so they have American buyers that visit all the factories, selecting the best, most fashionable products, suitable for the middle American market. They have an American customer service team that can answer calls and questions about the group buying process.
On the OrderWithMe website, you can see the high quality photos, all the details of the product, the minimum purchase orders, with a video from the American buyer explaining why they chose that product as opposed to the other 100 styles, plus a time limit of 5 days to have the product open to reach the minimum number for the buyers. Clients can upload photos of the products in the “Request a Deal” area they are looking for so OrderWithMe to learn and understand their tastes better, and to source the product in China. There is a 100% OrderWithMe money back guarantee.
They have already processed $125,000 Dollars in sales from their first 40 beta users. By cutting out the middle men, they are able to increase the profit margin of the small businesses. Small businesses the CEO argues, don’t want a handout, they want to be able to make their businesses profitable and run well. Their target market is middle America and they know how to find their customers and target them directly for their service, however they do plan at a later stage to expand to other markets as the company grows.
The group buying concept comes alive and the transaction only goes through if the minimum order is met in the allotted 5 days for the product. If the minimum is not met, there is no cost to the buyers. If the sale goes through, then the products are packaged up and shipped to America in one big shipment, then broken up into individual packages and shipped to each store. The reason there is no charge to the companies is that OrderWithMe doesn’t hold any stock and therefor have no warehouses to house the products, it’s all sent directly from the manufacturer in China when the order minimum is reached. By using the group buying model, businesses can save up to 70% in costs which they can then use for their own markup. A great way to aid the suffering American economy.
OrderWithMe presently has $250K of angel funding and the nine person team (with six Americans and two Chinese employees). Http://www.orderwithme.com