Chairman Chen: 2011 Target Sales Reach 10 Billion

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Van devotion advertising high input commodity low price goods quality is difficult to guarantee

People in the industry say that once all of them were famous for their advertising, their performance was on the rise, and the pressure on soaring orders was under enormous pressure.

Nowadays, customers are still spending heavily on advertising in order to grow in performance.

If you choose the most popular newspaper, no matter in the Internet or paper media, all guests are the best.

In the subway, outdoor, including the bus, all aspects of the sky dancing is the advertisement of everyone.

The sales volume of fan Ke Cheng products is more and more dependent on fans' advertisements.

Jiang Bojing, a famous IT commentator, said that as an online selling clothing company, its annual advertising amount is even comparable to that of the three major operators. It is astonishing to note that it is even more surprising that customers will pay a huge advertising cost of about 10 yuan for each single item, which can not be regarded as a "luxury" advertising fee for the price of only 29 yuan, 69 yuan, 99 yuan and so on.

However, PPG, the originator of B2C clothing sales, has declared a complete failure. It tells us that it is not wise for everyone to spend money on advertising.

Some media commented that behind the limitless scenery, VANCL's soap bubbles are growing up and the risk is accumulating.

According to the analysis, the cost of a forty yuan T-shirt that throws advertising fees to buy cloth will become very limited. In addition, all customers must contact the foundry factory to produce.

Under the restrictions of product pricing, high advertising fees and so on, clothing texture and workmanship are difficult to be guaranteed.

Quality is no doubt the weakness of customers.

Some consumers complained that Mr. Liu bought a suit and was very thin and did not work well.

The consumer Miss Ling said that she bought all sports shoes only for less than 10 times, that is, the appearance of the upper and sole soles.

Commentators say that behind the craziness of van devotion's high investment in advertising, the negative effects caused by quality problems will also increase.

More media said that the quality behind all the products is tough.

Advertising investment makes it impossible for customers to make profits.

"All the objects" have made a real fire for all customers. Viral advertising has supported the astonishing speed of the growth of 300% in 2010, and this "frightening" speed is the most dangerous game for all customers. It is difficult for all customers to increase their advertising input, and the quality of products under the double squeeze of high advertising fees and low-end prices can not be guaranteed; if the advertising input is reduced, the brand of hard core customers will probably follow Waterloo.

How to share the cost of advertising and marketing? According to the analysis of the insiders, either we should reduce the quality, reduce the cost, or raise the selling price to protect the quality.

But if an e-commerce company sells clothing, if it loses its price advantage, its prospects can be imagined.

Therefore, fans can only sacrifice the quality of products, but this is not what consumers want.

According to another report, although the sales target of this year's sales has reached 10 billion yuan, so far, no customer has been able to make profits.

Commentaries say that the massive investment in advertising also makes it difficult for anyone to make profits.

It is reported that all visitors in Beijing, Shanghai, Guangzhou, three cities online outdoor advertising, an average of 10 million yuan per month, currently has about 70 million yuan of the amount of delivery.

For the 29 yuan T-Shirt, it is estimated that a loss of 5 yuan per item.

In response to this, what will be the response to the product? In an interview with reporters, the chief executive of the company said that the estimated sales volume was 10 billion yuan this year, and the marketing expenses of about 10% would be acceptable.

At this stage, fan is still in the market expansion stage, which is the necessary input of Internet brand.

Chen believes that the current non profit is to gain more profits in the future.

So far, a greater degree of user acquisition is the root of everyone.

In fact, this is the practice of Internet companies. The larger the user scale, the greater the value of an Internet company.