A new consumer electronics venture, based in the Seattle region, is launching this week with a factory-direct model — selling straight to technology consumers online, and promising prices significantly lower than those for similar products from traditional retailers.
The company, KeeProduct, headquartered in Bellevue, Wash., will manufacture and sell a variety of technology products online under the brand name TikTeck, starting with a smart LED lightbulb, a telepresence robot, and a rolling smartphone camera rover.
TikTeck started today by offering the smartphone-controlled LED lightbulbs for pre-order for $9.99 each.
The new venture is led by four veterans of the Chinese manufacturing company Adition, where they previously designed and manufactured electronics sold through retailers including Walmart, Tesco, JCPenney and others.
The executives established the new company through a management buyout three months ago, with the goal of pursuing the new direct-to-consumer model, said Rex Chen, the founder and CEO. He said prices charged to consumers will be 40 percent to 70 percent lower than comparable products, as a result of cutting out the profit margins normally taken by retailers and distributors in the supply chain.
“We believe that’s what consumers should be getting,” Chen explained, demonstrating the company’s initial lineup of products during a recent interview. He compared the approach to factory outlet stores for fashion brands. “That should be the new retail business model,” he said.
In addition to the TikTeck smart lightbulb, the company plans to launch a $499.99 telepresence robot and a $69.99 camera rover this quarter. The company aims to have a total of 10 to 12 products launched in 2016, capitalizing on technology that was in development before and during the management buyout, Chen explained.
Ultimately, the company plans to sell products from other manufacturers, as well.
Chen, a native of China, was exposed to the Seattle area through his work with another consumer electronics technology company, Pivotal Living, and said he decided to base the company here in part for the ability to access the region’s pool of engineering talent as TikTeck grows. The company is funded so far by its management team and one outside investor who has worked with the executives on financing in the past.