PPG Shirt Creates Network Sales Miracle

On the outskirts of Shanghai, there are several small white buildings standing on the open lawn of the Xujing central road. The 3 blue walls of the buildings on the outer walls of the buildings are PPG.

"We have two buildings as warehouses, and one office building."

Baton clothing (Shanghai) Co., Ltd. (PPG) CEO David Lee, only 3 seconds to show reporters the whole family of the shirt business.

If you visit YOUNGOR, the leader of the domestic shirt Market, you will know how big the body of a garment enterprise is.

We should know that YOUNGOR invested about 1000000000 yuan in the textile and retail distribution network respectively. It even owns 500 acres of textile industrial city for textile production and textile printing and dyeing.

By contrast, PPG, which focuses on the men's shirt business, is challenging the limits of light assets: the total number of employees is less than 500, including 206 call center staff, no factory buildings and production lines, only 3 small warehouses, and no door faces in shopping malls.

It can be said that the company is almost concentrated in such a small yard.

But PPG, which is only one and a half years old, is vibrating the whole industry: it can sell about 10 thousand men's shirts every day on the basis of the call center and the Internet, while the number one YOUNGOR in the domestic market occupies the average number of shirts sold every day in the country last year, but it is only 13 thousand. But YOUNGOR now has more than 1500 retail outlets. Last year, the investment in the channel was 35 million yuan, while PPG did not have a physical store, but it has quickly entered the top three in the domestic shirt Market.

According to PPGCOO Li Yongjin, the sales volume of PPG is expected to reach 1 billion yuan this year.

There are two magic weapons for PPG: one is almost half the price of shirts with the same positioning and quality.

And these shirts, which sell at an average price of only 150 yuan, have miraculously maintained a higher profit than others.

On the other hand, PPG has never produced its own shirts and has outsourced logistics, but has created a fast response supply chain. Its inventory turnover time is only 7 days, and the average level of the same industry is 90 days.

"We are neither a garment enterprise nor a Internet Co, but a data center, and even you can think of it as a Server Co."

David said so.

The supply chain of virtual management, e-commerce, JustInTime, and carefully thinking about every component of PPG mode is not avant-garde, but it can integrate these concepts together and create scale revenue and sustain growth. PPG embodies its own uniqueness.

In the eyes of David, the flow of information in the more than 20 servers of the computer room, and the IT platform that PPG closely matches the business, is the key catalyst for making a pile of concepts finally become banknotes.

This is the heaviest asset of this "light company".

Li Yongjin believes that traditional channels need to store inventories at every store, with too many links and high costs.

When a garment is produced from a factory, the price is often increased by 6~7 times after passing through the channel to consumers' hands.

PPG has eliminated physical channel investment, "the price of shirts is half the price of similar shirts in the market."

There are usually 3 kinds of channel modes in China's apparel industry: agency system, direct operation and franchising.

Agency system is the development of general agents in the main sales areas, and then the development of two or three tier dealers. The seven wolves and nine herd kings are developing regional markets through agents. YOUNGOR mainly develops direct business mode, and now has more than 2000 sales terminals, including shopping malls and direct stores over 40%.

Hai Lan's home and Metersbonwe have adopted franchising to develop rapidly.

Regardless of which mode, they will invest huge channel construction costs. Although franchising funds are more quickly recovered, they need more resources in brand building and franchisee management.

In PPG, the first "sales place" is the product catalog and website. In order to attract consumers, PPG's product catalog and website are dominated by the international trend. People in the clothing industry point out that PPG's website is similar to the old GAP website page.

Such a "store decoration" obviously corresponds to the positioning of PPG, because unlike other shirt brands in China, PPG shirts are mostly made of warm colored cloth, especially Oxford spun fabrics, all shirts are all cotton texture, emphasizing the European and American style.

Another important channel for PPG, the call center, has been unable to meet the needs of the 206 people due to the continuous strong advertising and sales volume of PPG.

The person in charge of the call center told reporters that the expansion will be extended to 300 seats.

This is the first stop for PPG to contact customers. Through telephone communication, PPG can directly ask customers for detailed information, including geographical, age, consumption habits, occupations and other information. These are the analysis and prediction of the market department, and then feedback to the upstream production and purchase provides important backstage support.

Compared with traditional clothing enterprises, PPG's light channel also has an advantage that it can save a lot of inventory costs.

When the online stores sell clothing, every retail end will always shop and have adequate inventory. A traditional clothing company with large retail outlets will have an astonishing amount of stock in all stores. There is no need to shop online under the Internet and call center direct selling mode.