Name: Plukka
Quick Pitch: Social shopping with a group buying twist -- more jewelry buyers means a lower price for everyone.
Genius Idea: Applying the group-buying model to the manufacturing process, not just the final product.
Plukka founder Joanne Ooi says that its test-demand-before-you-create-supply model means that the designs are riskier and more creative, since the company isn't investing in manufacturing until sales are locked in. Traditional jewelry designers have to predict trends and hope people will like the designs -- Plukka knows there's interest before the gold is melted down. The jewels are designed by Plukka's in-house team, but the spring collection will feature collaborations with fashion bloggers, too.
Because manufacturing cost-per-unit drops as the number of units increases, the site can pass the production savings onto the consumer, thus making high-end jewelry more affordable. Plukka's patent-pending sliding scale calculator determines how the price should lower as more people purchase the item -- and everyone gets the same final price. The minimum is around 25 units, and if that threshold isn't met, the item isn't manufactured -- so there's no unwanted inventory lying around. Plukka's tagline is "what we make is what you want," and its business model reflects that.
And unlike Gilt and other sites, where you only reap the benefits of a referral if the person makes a purchase, Plukka offers 10% for the mere act of referring five friends to a particular sale, and then another 10% off for each friend who buys the item (the discount maxes out at 40%).
Plukka hopes to have a mobile app on the market by the end of 2012.
Series Supported by Microsoft BizSpark
