Fans: Try Vietnam To Expand Overseas Market

Unlike domestic implementation of the strategy of increasing revenue and reducing expenditure, all customers move abroad frequently.

Van guest announced that its independent domain name website in Vietnam was trial run, and everyone's assistant president Luan Yi Lai said that everyone's website operation in Vietnam was in cooperation with Vietnam ECPAY company, which provided technical support and other soft inputs to all customers, and the specific operation of storage base and call center was operated by ECPAY company.

As a matter of fact, van customer's South Vietnam has been preparing for a long time.

Fan insiders said that according to previous studies on local consumption in Vietnam, it was found that the brand reputation and price of all customers were already called white-collar consumer brands. "Between the high-end and the low-end, the price can be slightly higher, and a larger profit margin can be obtained."

"Cross border logistics costs, brand awareness, policy risks and cultural differences will affect the expansion of overseas markets. If we can cooperate with local enterprises to explore this overseas localization mode of operation, we can avoid these risks."

Luan Yilai said.

Overseas efforts

In fact, the overseas test of water has already started.

In 2010, fan Ke set up a cross border full English website for global sales.

Luan Yilai said, compared with Vietnam's local independent domain name now, although the previous website is

Mainly, but the warehouse and call center are set up in China, foreign customers can not enjoy a complete customer service system.

Moreover, due to the continuous use of eBay and other channels, there are many obstacles to the promotion of cross border brand clothing products.

But this did not affect the overall strategy of domestic customers to continue to push overseas layout.

Luan Yi Lai revealed that although the sales volume of English websites is still relatively small, the potential of overseas markets has become a strong basis for overseas expansion.

"Overseas business started in the second half of 2010, accounting for 12% in Southeast Asia, 48% in Russia, 65% in Russian, and less than 8% in Vietnam, but it grew by 100% in the first half of 2012. This shows us the potential, and the negotiations with Vietnamese partners are also very successful, so Vietnam is the first choice."

Hu Haishen, an assistant to the chief executive, said that customers would consider setting up a sales market around the foundries or locals, which would also be a combination of the next expansion.

An insider also confirmed that "our initial overseas projects are mainly due to the needs of the foundries themselves."

In the slump of the domestic environment, compared with the traditional sales mode, the number of orders for electricity suppliers is still slightly better. "So even if there is less benefit, the manufacturers are more willing to pick up our orders. We have now tried to make shirts and denim products in Bangladesh."

Luan Yi Lai also pointed out that "the next step will be more in-depth cooperation, will try to manufacture locally in Vietnam.

And sold locally, hoping to realize the localization of Vietnam in the whole industry chain.

For everyone, the ambition of overseas expansion is much more than that.

"The next area is Russia, which is currently under preparation."

Luan Yi Lai revealed.

Van guest is also trying to replicate the Vietnam model and expand it to other countries. "If there is a chance in the future, it will probably include Brazil, Argentina and Australia in South America, where customers have a certain brand awareness."

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Expansion or redemption?

Since the second half of 2011, everyone has been at the cusp of the storm.

From the IPO suspension to the unprecedented scale of inventory, and then to the recent self built logistics, the customer has been cutting costs.

For the South Vietnamese, the industry pointed out that "seemingly expansion is actually its cost reduction."

By means of overseas production and sales, part of the stock will be settled on the spot instead of adding to its large inventory. "

In fact, large-scale inventory is no longer the secret of everyone.

The reporter learned that from July 2010 to June 2011, the revenue of customers was close to 2 billion yuan, up 300% from the same period, but the stock pressure was also increasingly prominent when the scale continued to expand.

According to the reporter, from the 2010 fiscal year to the 2011 fiscal year, the loss of all customers has risen from 68 million yuan to 486 million yuan, an increase of 600% over the same period last year.

In March this year, the market was once rumoured that the stock of customers has climbed to 1 billion 400 million.

As for the overseas trial operation, the information from inside the customer said that it is now scheduled to achieve $10 million in revenue within one year.

"Although it is not clear that the inventory will be improved, it will not be worse at least."

The industry insiders said.

Under the high pressure, everyone's self redemption has been launched.

Since this year, customers have begun to integrate suppliers and select supplier resources. Up to now, their suppliers have been reduced from more than 200 to more than 100.

However, the industry insiders said that the inventory of all customers and the suspension of IPO have made their capital chain difficult to meet. Therefore, in supplier integration, it is only one aspect for customers to optimize their suppliers.

After last year's IPO suspension, fans were confident and declared the slogan of "operating cost will be controlled within 20%, gross margin reached 40%" in 2012.

Insiders confirmed that the gross profit margin has reached 40%, of which Vietnam's sales price can be independent because of its cooperation with ECPAY. "It's more like ZARA or UNIQLO's positioning in China."