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    Dangdang Made Its Own Clothing Brand &Nbsp; It Failed To Imitate PPG 5 Years Ago.

    2012/3/30 21:46:00 19

    Dangdang Clothing Manufacturers Create Their Own Brands

    5 years ago, following the failure of PPG to create a clothing brand, Dangdang recently launched its own clothing brand, and its products will be launched in April 5th.


    To this, Dangdang public relations Wang Fan told reporters, "we are indeed making some attempts now, but the specific details can not be disclosed."


    At present, Dangdang is expanding from the book oriented network mall to the multi class integrated platform, but if it launches its own clothing brand again, it means that Dangdang has another identity at the same time, that is, clothing brand business.

    Yesterday (March 22nd), CEO Zhang Xuejun, an excellent e-commerce platform for shoes and clothing business, said in an interview that "the business platform and the clothing brand are two concepts. The way of making profits is totally different."

    At the same time, he said that although the platform will continue to open, it will not develop in the direction of brand players.


    Industry analysts say Dangdang is committed to its own brand of clothing.

    Clothing business

    In the background of "deep winter", we may be looking at "beautiful" but very cold.


    Dangdang did not follow the example of PPG 5 years ago.


      

    Dangdang

    What are the reasons for re creating the clothing brand?


    Data show that in the next few years, the scale of clothing B2C pactions will continue to grow rapidly. It is estimated that by 2012, the volume of pactions will exceed 18 billion yuan.

    Although the pattern of garment B2C industry is developing rapidly, it is still in a state of separation.

    In addition, domestic garment enterprises are not deeply involved in the field of e-commerce, and have not placed them in an important position.


    According to Dangdang CEO Li Guoqing's statement before, Dangdang will develop clothing brands, home textiles and household brand products this year. Clothing will involve different kinds of underwear, shirts, T-shirts and so on.

    It is reported that Beijing copper cattle is one of Dangdang clothing suppliers, and it is also a fan foundry factory.

    At present, Beijing copper cattle have undertaken the design and production of Dangdang's own brand clothing.

    Li Guoqing also revealed that Dangdang clothing brand will take the route of GAP and UNIQLO.


    However, Dangdang is not the first attempt to enter the field of clothing brand.


    As early as 2007, Dangdang launched the BondStreet brand in the form of PPG and van guest mode, but it soon went offline, and then ended it.

    Chen Shou Shou, an international analyst at Analysys International, said that Dangdang once again claimed to launch its own brand. The success of this market depends on the market environment.


    A vertical clothing electricity supplier's internal staff told the daily economic news reporter that unlike traditional enterprises engaged in electricity providers, the Dangdang, who started business in electricity providers, first faced the problem of integrated supply chain.

    "We spend a lot of money on recruiting people every year."

    The insider said.


    A few days ago, AI consulting announced China's B2C online retailer TOP30 in 2010. In the list of pactions, only clothing suppliers occupy the 1/3 share of the entire list, and half of them are private brand e-commerce providers.


      

    Vertical clothing electric business department "deep winter"


    Once the brand is created, it means that it will face fierce competition from many vertical clothing suppliers.


    Chen Shou delivers, "we should do it now."

    Own brand

    This is not particularly consistent with its own strategy.


    At present, vertical clothing business is not easy.

    The insiders told the daily economic news reporter that since the second half of last year, the cold winter of clothing business has begun, and now it has been caught in the "winter".


    "As long as we observe the advertisement that the electricity supplier plays, we can see that the industry is not booming."

    According to the insiders, the advertising locations of major portals in past years were stolen by the brand of e-commerce, but now the advertising positions of many portals are doing their own brand promotion.


    "Dangdang's current integrated platform has gradually matured, through its own platform to flow into the independent clothing brand, can save a lot of promotion costs."

    The insider revealed.

    However, because of the clothing brand, the electricity supplier has to face the inventory problem caused by the change of market supply and demand. "Dangdang's gene is a department store, that is, an open platform, and lacks the experience of engaging in clothing brand."


    The PPG, the first crab eating consumer in vertical clothing business, has gone bankrupt. All customers are somewhat bleak after the hot season. The combination of clothing and electric business presents a trend of high opening and low going.


    The insiders believe that trying to re create clothing brand may be derived from Dangdang's unsatisfactory performance.

    According to the financial report, the gross profit margin of Dangdang net in 2011 dropped from 22.2% in 2010 to 13.8%. However, one of the main reasons for the loss is daily general merchandise.

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