Entrepreneurs Organize Buying Club For Asian-Americans New Consortium Open To All, But Many Offerings Specialized
Inside a Fremont, Calif., house crowded with flickering computers, a small group of young Asian-American entrepreneurs has created an Asian-American version of the American Association of Retired Persons.
Only instead of offering discounts on prescription drugs and life insurance, members of this buying club get deals on long-distance phone service, travel packages to Asia and subscriptions to Asian-American magazines.
The Asian Buying Consortium, with headquarters in Fremont and Los Angeles, is designed to capitalize on the buying power of the fastest-growing ethnic population in the United States. Asian-Americans, whose household income exceeds the national average by more than $6,000, represent a collective buying clout in excess of $35 billion annually, according to studies by Asian-American groups.
By paying annual dues of $10 for individuals and $25 for businesses, members get discounts ranging from 5 percent to 50 percent on services from Sprint, DHL Overnight Mail, Carlson Travel Network, Filipinas Magazine, Asian Enterprise Magazine and other businesses.
“By consolidating the purchasing power of Asian-Americans, ABC has negotiated volume discounts with companies seeking access to this growing and lucrative market,” said ABC co-founder Chin Yao. “We are helping Asian-Americans save money on products and services they’re already spending money on.”
Founded in 1995, the business, which is having its official coming-out party this month, already has about 60,000 members nationwide, Yao said.
Unlike the AARP, which has an age requirement, the group accepts members from outside its target audience.
It already has a small percentage of non-Asian-American members and will accept the membership of anyone who wants to join. But its target audience is Asian-Americans, and many of its services have a cultural bent.
“It’s a good idea,” said George Koo, chairman of the Asian American Manufacturers Association, whose 700 members in the Bay Area joined the consortium earlier this year. “A fair number of Asian-American organizations don’t have the buying clout that larger groups may have. ABC is providing a real service by consolidating that buying power.”
Yao, 25, a former financial manager for Baxter Health Care in Chicago and Singapore, started the business with former management consultants Pierre Wu, 27, and Jim Chow, 25, after they attended an overseas exchange program in Taiwan that spurred their interest in the Asian-American community.
Yao, who grew up in Long Beach, Calif., in a predominantly white community, said his 1991 trip to Taiwan was the first time he had a chance to interact closely with Asian-Americans.
“From that program, we really started to appreciate our bicultural heritage more and that’s what caused us to start this business,” Yao said.
As part of that venture, ABC also created a Web site, where users can find a nationwide calendar of Asian-American conferences, art exhibits and theater productions, as well as a directory of Asian-American organizations and articles by Asian-American leaders in business, politics and entertainment.
“They’ve taken on a really good cause in the Asian-American community to provide a network and infrastructure for people to make some valuable contacts and friends,” said Bennet Yen, president of M Society West, a Bay Area social organization of more than 300 young Asian-American professionals.