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entreVersity | Design Entrepreneurship – Lean Start-Up | Howard Frederick

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Thursday, Aug 22, 2019
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Big Apple Buddy business process
Here’s the innovative business process that Big Apple Buddy created. https://www.bigapplebuddy.com/how-it-works/

In many countries, it is nearly impossible to get the latest products introduced in the US market until they ‘diffuse’ down.  One Australian couple spotted lucrative global opportunities delivering US-introduced (but not yet internationally introduced) products to customers wanting it all now.  Melbourne’s Phillis Chan and Ben Chaung picked up stakes from Melbourne and moved to consumerlandia, she leaving law and he his ops manager for Blue Apron.  Their friends back in Oz were constantly asking them ‘Can you get us’ this or that product and mail it.  They figured right that they were not the only people in the world who had friends that wanted things

In 2014, they launched Big Apple Buddy, a ‘shopping concierge’ service, helping customers across the globe get the latest laptop, smartwatch or gadget as soon as it is released in the US.  Shoppers fill out a form about their desired product and ask for a quote.  The concierge’s job is to locate the gadget at the best price, purchase it from a reputable store and ship it, via courier, directly to the shopper.  They have pivoted their business model several times.  At first, they offered anything the customer wanted.  But they soon realized that they should narrow their product list. 

The company now serves customers in 110 countries, turning over AUD low millions a year from the demand of customers desperate to get their hands on the latest gadgets before they are released in their own countries.  ‘Immediacy’ is the customer’s greatest need, Chan noted,  ‘the majority of the site’s consumers are tech-enthusiast male professionals in their 30s and 40s who would likely stand outside a store in a line for hours just to be first to own a new iPad or iPhone’.

For shipping, they charge USD50 for the first box and USD15 for subsequent packets.  Through partnerships with FedEx, DHL and UPS, each shipment takes approximately two to four business days to ship globally.  Unfortunately, they also charge New York sales tax.  But that is the magic of their business model:  They appeal to customers who will pay the top US retail price plus nine per cent New York sales tax plus delivery – all to satisfy the urge to have it first. 

As sophisticated as their hometown Melbourne is, say Phillis, ‘I too completely understand the frustration of delayed product releases and international shipping barriers.  There’s nothing worse than reading a glowing review on the latest gadget, only to find out you have to wait months or even years for it to launch in your country.’  Ben says the most popular products include virtual and augmented reality headsets and voice-activated ‘smart home’ tech – such as the Amazon Echo and Google Home.  Games manufacturers and universities have become their customers since they want to develop competing software before the product is launched in Australia.  Another pivot was to pitch the ‘empty shelf’ market.  For example, US cosmetics giant Sephora’s stores in Australia simply did not carry all the brands available in US stores.  To address customer concern about counterfeit products, Buddy only purchases from reputable retailers.

Questions about lucrative global opportunities

  • How would describe Buddy’s target customer? What pains and needs do they have?
  • Imagine an analogous business, say, in golf products, drones, or purses? What lucrative global opportunities can you spot?
  • While the US might be consumlandia central, which other locations/countries might serve for a different product offering?

Sources: Rahman, K. (2016, December 13). Couple’s idea for business delivering US products makes them $3.3m. Retrieved December 25, 2017, from http://www.dailymail.co.uk/~/article-4026800/index.html; Chan, P. (2017). Big Apple Buddy – About Us. Retrieved December 25, 2017, from https://www.bigapplebuddy.com/about-us/; Cheng, H. Z. (2016). NYC Startup, Big Apple Buddy, Reinvents Online Shopping for Early Adopters in Singapore. Retrieved from http://www.thetechrevolutionist.com/2016/05/nyc-startup-big-apple-buddy-reinvents.html; Courtenay, A. (2015, August 26). Get the latest gadgets now. The Sydney Morning Herald. Retrieved from http://www.smh.com.au/small-business/smallbiz-tech/get-the-latest-gadgets-now-20150817-gj0pmy.html; Courtenay, A. (2016, December 12). Australian couple make $2.5 million delivering hard-to-get American products. The Sydney Morning Herald. Retrieved from http://www.smh.com.au/small-business/entrepreneur/australian-couple-make-25-million-delivering-hardtoget-american-products-20161208-gt6jug.html; Dudley-Nicholson, J. (2017). Australians are beating technology import restrictions. News.Com.Au. Retrieved from http://www.news.com.au/technology/gadgets/how-australians-are-beating-tech-restrictions-importing-the-best-gadgets-not-available-down-under/news-story/b516fad3d76d5830563a6b563bb5ac41; Lui, S. (2016, November 25). How To Get Online Deals That Only Ship To The US. Retrieved December 25, 2017, from https://www.lifehacker.com.au/2016/11/how-australians-can-access-black-friday-deals-from-the-us/; Sacco, D. (2015). New eBay rival hopes to combat counterfeit tech and expensive delivery charges. Retrieved December 25, 2017, from https://www.pcr-online.biz/retail/new-ebay-rival-hopes-to-combat-counterfeit-tech-and-expensive-delivery-charges; Taylor, G. (2016). Big Apple Buddy Concierge Connects U.S. Tech Retailers With Global Shoppers – Retail TouchPoints. Retrieved December 25, 2017, from https://www.retailtouchpoints.com/features/retail-success-stories/big-apple-buddy-concierge-connects-u-s-tech-retailers-with-global-shoppers; Zaharov-Reutt, A. (2015). iTWire – Big Apple Buddy: new luxury service to buy from the US. Retrieved December 25, 2017, from https://www.itwire.com/your-it-news/home-it/69564-big-apple-buddy-new-luxury-service-to-buy-from-the-us;

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