PPG Men'S Clothing Wins Market Opportunities.

Copy DELL's business model.

But DELL sells computers.

They sell men.

。

Yang Jun was a member of a foreign company in Beijing. When he read the newspaper that day, he accidentally saw a sale of a man's shirt. Although he changed his season, he had no time to buy clothes because he always had to travel and visit customers. So he landed on the website of the company according to the website of the newspaper. There were many kinds of shirts, and trousers and ties, and the prices were much cheaper than the shopping malls. The price of shirts ranged from 99 yuan to 229 yuan.

After picking out their favorite colors and styles, Yang Jun placed an order and paid the money.

Three days later, the shirt was delivered to his hand in accordance with the address left by Yang Jun, which normally takes half a day or even a day to complete.

For men who usually focus on their careers and see shopping as a torment, this shopping mode is really convenient and fast.

This professional website

Direct Selling Company is Shanghai baton Ji dress limited company (hereinafter referred to as PPG).

After less than two years of development, the turnover of PPG increased by 50 times in April 2007 compared with the same period in 2006.

At the same time, the PPG was also recognized by venture capitalists. In April 23, 2007, it received second rounds of investment from TDF, Ji Fu Asia and the three largest VC of KPCB, with an investment of nearly US $50 million.

Copy DELL mode

"The business mode of PPG is the same as that of DELL, but they sell computers, and we sell men's clothing."

Li Yongjin, chief operating officer of PPG, told this reporter.

DELL's concept is very simple: to manufacture computers according to customer requirements and direct delivery to customers.

Similarly, the business mode of PPG is also very simple. It is to hand over the PPG brand men's clothing to the seven cooperative enterprises in the Yangtze River Delta area. The PPG is responsible for product quality management. Then, through the direct selling and call center mode without shops, the products can be handed over to the consumers directly without the traditional retail channels, and the most direct result is to reduce the product cost and reduce the inventory pressure, while reducing the burden and advantages to the enterprises themselves, and at the same time, leaving the real benefits to consumers.

Looking back at DELL's success, this direct selling business eliminates intermediaries and reduces unnecessary costs and time.

DELL's production and sales process is well known for its precise management, super efficiency and standardization. It effectively controls the cost to a minimum level.

"The core of PPG's entire business model is to remove some wasteful and unreasonable costs in traditional industries and deliver better quality products to customers."

PPG is exactly the same as DELL.

Inventory management has always been a major problem for enterprises, whether clothing or computer, directly related to cost control.

"The traditional clothing sales enterprises usually need three months' inventory time to send goods to different retail outlets and different wholesalers throughout the country, and the direct selling mode of PPG can reduce the inventory to a very low level, about 7 days or so. Only in this link can we save a large part of the cost."

When it comes to inventory management in PPG, Li Yong is showing firm self-confidence.

It is with this concept that consumers are accepted by PPG, and the total turnover in 2007 is expected to reach 10 to 1 billion 500 million yuan.

According to the number of sales, PPG men's shirts are ranked first in the domestic men's shirt Market.

It seems that the threshold of online direct selling is not high. There may be a lot of imitators in the future, but competitors can not simply copy the PPG mode. Li Yong Jin said: "the core of PPG is to make brand."

All the products sold by PPG are independent brands, which obviously distinguish them from e-commerce websites such as Mcglaughlin and Dangdang.

"Consumers buy products, brand is very important, each brand has its own positioning and image, competitors can imitate our words, we can not imitate our brand image.

40% of our orders now come from repeat customers, which also proves the success of PPG brand marketing.

Li Yongjin repeatedly stressed that PPG is not a simple e-commerce website, PPG is a clothing brand, and is a direct selling fashion brand.

Once the brand is established, it will be difficult for ordinary companies to cross the threshold.

The establishment of brand was also made by PPG with huge sum of money.

At present, the promotion cost of PPG is tens of millions RMB per month.

Shanghai is a major city of PPG promotion. It can see PPG advertisements in TV, newspapers, Internet, and Focus Media, the buildings with distributed media, supermarkets, stores and subways.

In another one or two months, the advertising campaign in Beijing will also be strengthened. It is estimated that the monthly promotion fee will be RMB 100 million yuan, and it will be gradually promoted from one or two cities to the whole country.

Since PPG is now the only direct selling enterprise for men's clothing brand in China, and is developing rapidly, it is not a day or two days for the latter to catch up with the existing scale of PPG.

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He was asked if he was worried about the scale of the brand men's wear. He also adopted the mode of online sales. Li Yong Jin said that although some manufacturers contacted had this intention, he thought the possibility of success was not large.

Because the most important point is that traditional retail businesses can not sell 100 yuan on the Internet if they sell 300 yuan shirts in retail stores or shopping malls.

For example, ten years ago, Compaq, HP, IBM and other large companies saw the advantages of DELL computer direct selling mode, so they all wanted to apply it, but the final result was not ideal. One of the reasons was that their existing channels had been too big and too strong to abandon all the existing channels.

This directly leads to no advantage in price.

Direct Selling Company's model is very simple, but it is not easy to replicate it practically, and it needs enterprises to make their own characteristics.

Seize the market opportunity

The founder and CEO David Lee of PPG worked in a large US Direct Selling Company before creating PPG, and the direct selling industry in the US was mature.

On returning home, he found that the efficiency of China's retail channels is not high. If the cost of a shirt is 1 yuan, it will become 10 to 15 yuan when it reaches the consumer through retail channels. The same product may be sold more expensive than the United States, which makes David Lee see the great potential of the Chinese market and invest in it.

After two years of research on the Chinese market and analysis of the acceptability of Chinese consumers' direct selling mode, David Lee has chosen a suitable time to cut the online direct selling mode into Chinese market.

According to statistics, 17% of Americans choose to buy clothes by direct selling.

The United States reached $18 billion in 2006 by selling apparel products through the Internet.

Although PPG now occupies only a few percentage points in the clothing direct selling market in China, it will be great to get a small share in the market.

PPG was founded in Shanghai in October 2005. Because of the emergence and success of a number of e-commerce websites such as Taobao, Dangdang and excellent network, the consumers had accepted the direct selling mode, which saved the time and cost of PPG education market.

At the same time, Direct Selling Company's important product distribution problem is also solved by the emergence of professional express companies across the country.

The timing of the establishment of PPG is timely.