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    Selling T-Shirts At An Old Age: Cost Performance Is King

    2010/6/9 17:26:00 37

    T-Shirt

    AmericanApparel (hereinafter referred to as AA), when most garment enterprises are struggling to cut costs and desperately wring the cost of towels, they spend their money on raw materials and manpower costs. When most companies invest in marketing, they are so indifferent. This brand name sounds straightforward and almost dull, but it eventually wins many consumers with its high quality and parity products.


    In May 4th, the official micro-blog of fan Ke Cheng (Beijing) Technology Co., Ltd. (hereinafter referred to as Fan Cheng pin pin) launched such an activity: netizens released a photo with billboards to micro-blog, and the first ten bloggers who had reproduced more than 30 times were awarded a shirt from a guest of all sincerity.

    And in the software client, Baidu and other page ads, fan's sincere T-shirt advertising is also "pervasive."


    For a time, the T-shirt war burned to the Internet, and the low price of the $29 yuan that was handed down from the old age made the smoke more intense.


    "This (T-shirt scheme) has been planned since last year."

    Xu Xiaohui, assistant chief executive of VIC, told our reporter that this year's 500 T-shirt scheme is similar to that of the famous clothing retail brand UNIQLO.


    "Achieve more than 10% sales."


    For nearly three years, the sale of shirts is known as a Internet Co, and its CEO age is described as "an outsider in the apparel industry".

    One of the reasons is that unlike PPG's traditional media marketing methods such as television and peace media, it is mainly driven by internet marketing to promote sales.


    This is related to the old experience.

    Chen was the founder and executive vice president of excellent network. He had rich experience in online sales and learned a set of skills to find a standardized product and expand it rapidly.

    So, at the beginning of the year, Chen began to sell shirts that are easier to "standardize" and have advanced experience.


    But selling shirts is just an introduction to this net business story.

    Over the past three years, from all other categories of men's clothing to women's wear, children's wear and even some household products, van customer has expanded its product line.


    Tong Shihao, the founder of Qiming venture, is responsible for following up the case of Vic.

    When he chatted with reporters about fan Ke pin pin, he said that with the accumulation of word-of-mouth products and the increase of trust at the end of consumers, it became a brand with the characteristics of SPA (Speciality Re-tailer of Private Label Apparel) and Chinese "self brand clothing retailer".


    At the same time, the marketing idea of van customer service has also changed.

    Public media reported that in April of this year, Fan Cheng Cheng signed tens of millions of Han Han and Wang Ludan as spokesmen for the image.

    Subsequently, fan Kai Cheng began to step out of the line and did the advertising in Beijing bus stop. The marketing department confirmed that the entity experience shop will open in the second half of the year.

    According to the analysis of the industry, the main reason for the investment is likely to meet the requirements of the investors for sales assessment.

    It is reported that in addition to its previous investment of more than ten million dollars, it has gained more than $40 million from Tiger Fund and plans to list abroad next year.


    "A new product decision can occupy more than 10% of the sales volume of the future, which is worth doing."

    Chen also told reporters last year about some ideas about product line development.

    With the launch of the T-shirt this summer, the determination and ambition of the kingdom of deep clothing online shopping are coming out.


    It is easy to understand that T-shirts, as a "regular single product" in summer, are no exception to students or office workers. "Everyone has one or two cultural vest vests". It is the popularity characteristic of T-shirts, which fits well with the market thinking of van Kirk.


    More importantly, T-shirts are more standardized products than shirts.

    "T-shirts are more standardized in terms of cloth and type, and easier to produce in a short time than shirts."

    Xu Xiaohui explained.


    Cost performance is king


    When the T-shirt was included in the product plan of last September, the development of this single category is basically the same as that of other products.


    This is what Chen has been insisting on. As an Internet sales clothing brand, the cost advantage brought by the concentrated production and sales links should be given to consumers.


    Under the price control baton, the project of T-shirt plan begins with pattern collection.

    But what kind of designs do you have to sell the products? The Xu Xiaohui team has had a lot of trouble.


    They once talked with the anime brand, but the licensing fees still made the decision to give up.


    So they turned their attention to the literature and art circles in the mainland, and the film and TV stars were listed as the alternative. They even went to find Jiang Wen, director of the bullets.

    The idea of fan Ke Cheng is to enable the stars of the literary and art circles to take up the designer's design plan and authorize the production of the shirt.

    However, such a way of thinking obviously does not meet the requirements of "cost performance".


    Finally, nearly 60 anime, painting artists and designers in the mainland have become signposts of van customer's products.

    The cost of signing the contract is relatively low, and it can offer more independent design requirements.

    In this way, on the basis of realizing the price ratio, van Jin can adjust the pattern randomly to achieve the right market.

    After all, it was the first time to work on T-shirts, and Xu Xiaohui's acceptance of the pattern was still "bottomless".


    "29 yuan pricing mystery"


    Although the bottom of my mind is not enough, Chen made the producers "enlarge to do" when placing orders.


    The products of fan Ke Cheng are always delivered to the producers who are outsourced.

    These external production lines are not always ready to empty the production line to van customer's product, the 500 pattern of T-shirt production plan, multiplied by the coefficient of different colors of different sizes, multiplied by the sales volume of roughly every thousand pieces of each magnified forecast, once the number of orders has been made, it once felt that it was "too late" for fan, and it was only 2 months from the date of on-line sale.


    Fortunately, T-shirts are also standardized products that are easy to mass production. The first batch of T-shirts eventually sold on schedule.


    The price of fan T-shirt was 39 yuan from the beginning.

    Compared with the average price of 79 yuan UNIQLO, or with the average price of more than 70 yuan "latecomer" Metersbonwe, from the price attractiveness, fan Ke Cheng pin has won the latter one.


    But Chen was still not satisfied with the price of 39 yuan. He asked the team: can he continue to move downward? After repeated calculations, Xu Xiaohui finally gave the answer to the old age of "29 yuan approaching the cost price".

    They told Chen that the price of 29 yuan was already no longer low.

    In fact, the old age felt that if it could be set at 19 yuan, it would be more lethal.


    So a few days later, the "29 yuan" big logo began to be "magnified" in marketing promotion.

    "Even if we go to the zoo (a well-known clothing wholesale market in Beijing), it's more than 29 yuan to buy a T-shirt to go to a fancy shop or something."

    Xu Xiaohui said.


    At the very beginning, Xu started to track orders, and found some interesting phenomena: many orders came from the university campus, and there were "signs" of the collage list. Seven or eight orders of T-shirts were placed in the order; and because of the 200 yuan free shipping policy, some T-shirts were carried in orders for other products which were not much higher than 200 yuan.


    Xu Xiaohui told reporters that the first time in the first week, the sales of T-shirts sold by fans were around 600 thousand -70 units, and the subsequent sales volume remained at that level.


    "We don't know how attractive the design is, but the price of 29 yuan is enough to make consumers happy."

    Xu Xiaohui describes, "when he (consumers) enter the website to pick, 500 patterns always pick up one or two of them."

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