PPG Fans Sell Copies Of Traditional Clothing Companies.

"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."

According to the analysis of the old age, at present, the root cause of the loss of the clothing direct selling industry is that the return of products is a piece that can not be underestimated. Because of the inconsistency between products and propaganda, or the shortage of quality, the users will return a lot, which will increase the cost of the direct selling shirt website.

Wedding bird Internet

In addition to VANCL and so on, many traditional traditional clothing enterprises have begun to try online sales under PPG's "agitation", among which the most popular concern is the wedding birds.

In April of this year, the bird announced that its listed company spent 122 million yuan from Wenzhou Boni tomorrow Industrial Investment Co., Ltd. to acquire 80% stake in Shanghai Bao bird clothing cable company, thus becoming the sole shareholder of the costumes.

Prior to July 2007, Bao bird clothing set up a wholly-owned subsidiary of Shanghai Bao bird Textile Technology Co., Ltd., the bird of prey launched the BONO brand through the treasure bird technology, began to wade men's clothing network sales, and Wu Zhize, chairman of the news bird group, even personally dug up 263, 3721, YAHOO and Alibaba executives Tian Jian, to take charge of the company's e-commerce business trader.

Under the command of Tian Jian, Bao bird technology has launched online direct selling with brand-new brand "BONO", selling shirts, T-shirts and business clothes. Its main products are priced at around 200 yuan, and high-end products can extend to more than 500 yuan.

It is learnt that unlike PPG, a large number of ads are launched. BONO is only promoted on the Internet, and the way of promotion is mainly based on cooperation with the website.

"BONO and PPG are two different business models.

PPG is driven by venture capital, and we are driven by traditional industries. "

When interviewed by reporters, the summit of deputy general manager of Bao bird technology said so.

At the top of the BONO platform, there are websites, call centers, logistics centers, and at the back end of the platform, the peak is very much emphasized that BONO has its own entity, and that the word of mouth of the PPG will bring some advertising effect to BONO.

The theory of peak has also been recognized by many industry observers.

Analysts believe that although the tail is PPG, the advantages of the two companies are completely different. The strong points of the birds are their deep production, fabric production base, design team and real shops. The advantage of PPG lies in the innovation of the mode. The PPG is also a company with the advantage of innovation.

As a result, BONO has attracted considerable attention in the industry since it was launched.

However, reporters from BONO processing backstage bird clothing in Songjiang, Shanghai factory learned that at present, Bao bird science and Technology Monthly orders here only tens of thousands.

This figure confirms the industry's dismal view of BONO sales.

In addition, the recent news birds confirm that Tian Jian has officially left the company.

Although Tian Jian told reporters that his resignation was due to family reasons, he stressed to reporters that the operation of Bao bird technology was very stable. However, in connection with the unfavorable situation of BONO sales, many people speculated that Tian Jian's departure was directly related to BONO sales.

However, it seems that there is no harsh expectation for BONO sales.

Xiao Xing Dong Fang Fang said that the reason why the birds are involved in e-commerce is, on the one hand, seeing the impact of the PPG sales mode. On the other hand, it is a direction to see that clothing enterprises develop e-commerce.

Fang Xiaobo said that the news bird thinks e-commerce is a trend in the development of the industry, but the company adopts a strategy of steadily advancing the business, and says that the business is not the core of the company's future business development, and the strategy adopted is "making profits while investing in production."

Dilemma of traditional dress enterprises

"Theoretically speaking, the wedding bird is the most easy to get the success of online sales, but in practice, it is the easiest bird to fail."

According to the behavior of the birds entering the network sale, the old traditional clothing enterprises such as the wedding birds could not go all out to the network marketing like PPG and VANCL, so they also restricted their network sales platform.

The old words have been well reflected in another traditional clothing enterprise.

It is reported that in addition to the wedding birds, another leading enterprise of traditional clothing enterprises has begun to quietly wade in the network sales, but compared to the Bono brand's popularity of the wedding birds, the move of the enterprise into network sales can be said quietly.

A B2C industry employee told reporters that YOUNGOR, the top ranked domestic shirt seller, has already started to try e-commerce since the end of last year, and its online sales website has been running quietly for some time.

"For YOUNGOR, excessive promotion of its brand clothing network sales is bound to affect the sales performance of its physical stores, which is not what YOUNGOR would like to see."

The source said.

Obviously, YOUNGOR is also aware of this problem.

Chen Zhigao, general manager of YOUNGOR, believes that the large-scale implementation of e-commerce will inevitably impact the price system of offline channels, and the management of terminal sellers will become more complicated.

It is reported that the YOUNGOR business chain has touched every link of the industrial chain: printing and dyeing mill, cotton mill, manufacturing plant and even cotton field.

In addition, YOUNGOR has more than 1500 terminals in the country, selling about 13 thousand shirts per day, with annual sales of about 1 billion yuan.

Expert comment

"This is definitely a successful model."

Morning Post reporter Cao Minjie Liu Xiaoyang

"PPG has proved that this is a successful model."

Although the PPG is still at the cusp of public opinion, Yu Yangming, a professor at Shanghai Jiao Tong University's Antai College of management, gave a positive evaluation of the clothing direct sales model that PPG first discovered.

"Light assets operation"

What attracts the attention of PPG is its light asset model.

Although "light assets operation" has been known for many years in traditional industries, especially the clothing industry.

But PPG's "light" is still amazing: all the operations of the company are