Want To Play E-Commerce &Nbsp; No Miracle Of Monopoly.

1, PPG

Recently, the scenery was boundless. Internet clothing Direct Selling Company PPG has been pushed to the cusp of a series of bankruptcies and debt crises. Once the darling of venture capital has been completely abandoned.

Many people should remember the peak of PPG in 2007. The advertisements of YES PPG are all over the world. At the same time, the so-called clothing companies that sell clothes as the main mode of operation have been popular all over the world for a time. So relying on this kind of brand promotion method of bombardment, the sales volume of PPG will soon be over 100 million, which is considered to be a huge innovation for the traditional garment industry management mode, and there is no limit to the future development. But the myth of PPG lasted only two years, and the e-commerce company, which pursued light assets and was once known as "DELL of garment industry", did not create business legend after all.

except PPG The huge imbalance between the cost of advertising investment and sales profits, PPG was later criticized, another important aspect is that the quality of clothes is not guaranteed. The product quality inspection of PPG is concentrated on the stage of garment processing, which controls the quality of purchased fabrics, resulting in product quality defects. At the same time, due to the lack of a comprehensive after-sales service mechanism, resulting in problems can not be resolved in a timely manner, accumulated over time, eventually leading to the customer's negative word of mouth continues to spread, a large number of customers abandon PPG. Without credit, losing the customer base for survival, it is already a matter of time for PPG to close.

From a deeper perspective, PPG did not realize that unlike the standardized products such as digital home appliances, clothing products belong to a kind of perceptual consumer goods, and customer experience is one of the bases for their survival. Relying solely on advertising effect can only bring a temporary burning pleasure, and ultimately decide whether the key factor for consumers to pay is quality and service.

2, ITAT

ITAT is the abbreviation of International Trademark Agent Trader, translated into Chinese should be "international brand clothing club store". ITAT integrates garment producers and commercial real estate idle resources, and reduces the cost of goods by reducing intermediate links, so as to achieve brand dress parity.

　　 ITAT Shopping in the mall is not like prepayment of rent or payment of points by traditional brands. Instead, it is divided into sales and shopping malls. In the traditional fashion brand operation mode, store rentals are the main business cost, and inventory is the most important business risk. According to the business mode of ITAT, ITAT does not need to pay the store rent, and does not need to bear the risk of commodity inventory. ITAT is responsible for integrating resources. It looks like a property (shopping mall), supplier, ITAT win win business model. As a result, venture capital at home and abroad came one after another.

But in the actual business location, the core of the ITAT mode is to use idle commercial real estate resources. Most of these resources will not be located in the core business circle, but in some marginal areas or commercial circles with poor popularity. Although ITAT can offer more than 2000 square meters of shops in such a place, sales are naturally not satisfactory because of lack of popularity.

Because of the supplier's choice and the cost of supply, the price of civilians that ITAT positioned at the same time was also unsatisfactory. A considerable portion of ITAT's clothing unit price was even higher than that of the mainstream leisure brand in the market. In the absence of brand advantages, two no product advantages, and three no lot advantages, customers will certainly not buy it. So listing became the only life-saving straw for ITAT.

Due to the failure to submit the listing plan to the HKEx, venture capital began to treat ITAT business model rationally, and the speed of ITAT's closing was the same as that of the original shop. The ITAT shop in Tibet Road, Huaihailu Road, Shanghai, has already changed hands. Occasionally, when we stop here, we can still recall the brilliant brilliance of the huge ITAT neon store. Now, everything has vanished. Unlike PPG, ITAT has already begun to deal with a series of crises and actively respond. Apart from proprietary shops, a large number of cooperative shops have begun subcontracting or resale operations, thereby reducing operating costs, and at the same time, trying to start the FASHION ITAT store nationwide. No matter what the outcome is, we still wish ITAT can get rid of the crisis early and continue the legend of differentiated business models.

Integrating the experience of PPG and ITAT operation, this impetuous mentality is a common problem faced by many Chinese entrepreneurs. A good business model can only grow healthily if it has a good entrepreneurial mentality. Entrepreneur All I want is to throw money into the market, and not to create value and responsibility for investors, society and employees. Such an enterprise is doomed not to go too far. As a traditional industry, the entry threshold of clothing industry is relatively low. In recent years, it has become a paradise for investors and entrepreneurs to enter. However, we deeply believe that wealth does not exist in myths, and that wealth that is full of myths will eventually become a myth with the collapse of myths. I would like to share with you the gold diggers of the garment industry.