Advertising Creates PPG Myth, Where Does Traditional Clothing Enterprises Go?

"Yes!

PPG ", this simple slogan can be said to be a popular weathervane in 2007. From the establishment of 2005, it began to cut into the field of men's shirts direct selling, and sales increased by 50 times in 2007. The direct selling clothing website (PPG) of the shirt direct selling website created the myth of clothing direct selling. It also led to a fashion trend of clothing network direct selling." selling clothes like PPG "has become the dream of many garment enterprises." PPG "

However, there must be a crisis in the prime of life. PPG's negative news of arrears of advertisers, suppliers, capital chain, and companies on the verge of collapse has been coming this year. There are more and more opinions about the development and questioning of PPG. Even the blue ocean, which was first discovered by PPG, has begun to be questioned.

Many followers of PPG have disappeared.

Whether there is a definite development prospect of clothing network direct selling has become a problem that lies in front of many people.

Industry analysts pointed out to reporters that rough statistics showed that the company that had followed PPG into men's direct selling industry had reached a scale of more than 30, but with the exposure of PPG problem, many companies are now hard to find.

"Last year, Latland, a website that sells high-end custom shirts, was also very popular when it was launched, but now it has almost disappeared."

The source pointed out.

But there are exceptions.

VANCL:PPG catch-up?

"The development of VANCL is faster than I expected."

In the office on the 20 floor of spark technology tower in South West Ring of Beijing, CEO, VANCL, was interviewed by reporters.

"Look, at the end of last year, we were still working in the small building opposite to it. Now we have twentieth floors of the whole building, and eighth layers will be launched in September."

Pointing to an obscure office building across the street, I said carelessly.

Chen said that although VANCL was formally established in November 2007, it has only been 8 months to date, but orders have been up to more than 6000 per day, and clothing sales are as high as 15 thousand.

"From our experience, we can basically achieve profitability by selling more than 10 thousand items per day."

Chen said that as early as May, VANCL had already started to make profits, and sales in 2008 were expected to reach 300 million to 400 million yuan.

In contrast, there is such a set of data, the peak of PPG, its sales performance is selling 10 thousand shirts a day.

At present, the sales performance of PPG, an industry insider who asked not to be named, told reporters that about 1000 orders per day, and more than 3000 shirts sold every day.

Previously, PPG said that its annual sales amounted to 1 billion yuan, although the figure was proved to be false at last. However, analysts said that at that time, as long as PPG stopped advertising, it would be profitable immediately.

"However, this is obviously impossible for PPG, which is purely driven by a large number of advertisements to boost sales."

The person complements this.

Advertising is challenging sales

Therefore, although the situation seems to be developing rapidly, VANCL, which also relies on advertising investment to stimulate sales, has been questioned.

Some analysts claim that VANCL sells 800 shirts for every ten thousand shirts sold.

"At the beginning, it was PPG's model that attracted me, and I found the breakthrough point."

Chen did not hide the original pursuit of PPG mode. However, after 8 months of development, he believed that VANCL is now a mixture of PPG and excellence.

"The most difficult period for VANCL is the Spring Festival this year, when PPG was exposed to a series of problems."

Chen said that it was the PPG problem that made it aware that the full copy PPG mode had not worked and started a new exploration.

"95% of PPG's sales come from print ads, which are too expensive for print media. Besides, PPG also has websites, but it doesn't focus on Internet sales, nor does it carry out online promotion. Its main sales are still from telemarketing."

Chen said that the biggest difference between VANCL and PPG is the difference in sales carriers and the different contents of sales.

"PPG only sells shirts, but we have 68 yuan Polo shirts besides shirts, and related products, including pants and socks. Besides, we pay more attention to the promotion of the Internet. Our advertising on the Internet accounts for more than 60% of all our advertising, and our main selling channel is our website."

Chen said, to the present scale, VANCL's investment in advertising is less than 1/10 of PPG's.

Data show that last year, the advertising expenditure of PPG was as high as 300 million yuan.

Reporters also learned that after two rounds of investment, VANCL has already finalized the third round of financing targets, but the specific amount of financing has not yet been finalized.

It is reported that this will be the last financing of VANCL before its IPO.

In the past three years, sales of VANCL will reach 2 billion to 3 billion yuan, Chen said.

No physical stores return difficulties

Whether it is PPG or VANCL, they insist on adopting strict management system to avoid the similar quality of product quality. However, because there is no entity selling shop, consumers who purchase products through telephone or Internet can not personally experience the specific products at the time of purchase. Neither PPG nor VANCL can guarantee consumers' satisfaction one hundred percent.

"It is not easy to try and buy clothes that are not suitable for their own size, and besides the size of the clothes, the color difference of the clothes is also a problem. Every time you buy different colors, you may be distorted."

A consumer who had bought experience in PPG said so.

In fact, it is customer dissatisfaction that directly causes PPG and VANCL to take a high risk of return.

According to data, the return rate of PPG is as high as 15% to 20%.

However, with the warning from PPG, followers of PPG began to enhance product quality control and pay more attention to customer experience.

"Reducing user returns and improving user satisfaction is the key."

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