Fan Guest Apocalypse: Vertical Business Model Defects Starting From PPG

< p > < strong > Chen guessed the beginning but did not guess the ending. < /strong > < /p >.
< p > < < a href= > http://sjfzxm.com/news/index_x.asp > > < /a > unlike PPG. They will fight so much money that they will soon burn up. When Chen talked about PPG in 07 years, the company was advertising Daniel Wu's endorsement in streets and alleys, but it has been revealed by many media that its sales data are not satisfactory and cash flow is tight. Li Liang, founder and CEO, is constantly responding to media queries and appeasing suppliers like today. When PPG went bankrupt, it became an object of ridicule in the company. < /p >
In 2005, Amazon bought P, an old Chinese e-commerce website (Joyo.com). At almost the same time point, Chinese American Li Liang started her PPG (YesPPG.com) from the US internet clothing Brand Company Land 's End. Due to the background of Li Liang's years of deep cultivation and the maturity of the model abroad, he quickly attracted the capital of internationally renowned funds including Kai Penghua Ying (KPCB) and pioneered the Chinese Internet clothing mode. < /p >
< p > PPG was born with the "high-tech" aura at the beginning of birth. The founder Li Liang said that their supply chain technology is much better than traditional enterprises: the market terminal response period is 7~10 days, through the front-end ordering, the back-end production rapid response mode, to achieve Just In Time (JIT). Li Liang prefers people's evaluation of PPG: the DELL model in the field of clothing. < /p >
< p > at certain a > /a >, PPG has promoted the development of vertical electric business in China. Its monthly sales amounted to 1 million yuan in 2006. In 2007, it announced its sales target of one billion yuan. This amount seems insignificant today, but at that time, the electricity supplier had not yet broken the ground, which attracted the attention of many business operators and traditional clothing enterprises. < /p >
After the failure of "P" and "I have a net", Lei Jun and Zhu Linan, Lenovo's investment president, found Chen, hoping he could set up a vertical e-commerce provider for clothing. At that time, the dilemma of PPG had gradually spread in the investment circle, and the industry began to interpret the failure of PPG. In the discussion with Zhu Linan at that time, Lei Jun believed that PPG relied too much on advertising and catalogue marketing, and did not choose Offline stores, which led to its reliance on advertising investment. Once advertising stopped, sales would drop sharply. < /p >
Like P, like Lei Jun's conclusion, PPG, which had gone through four rounds of financing, invested a lot of high priced TV commercials at that time. However, online advertising has not received enough attention from the industry. The Internet age has discovered the underestimation of Internet advertising. In the early stage, CPS Internet advertising, which relies on pay for effect, has gained organic growth. < /p >
< p > and it is generally accepted that PPG's clothing quality is also one of the main reasons for its failure. DoNews in the past 07 years, he has made a poke fun at PPG: "30 yuan of goods stalls, in all major office buildings, advertising can be sold to 198?" and after the establishment of a customer, the first thing is to grasp the quality. The original PPG gave quality inspection to the manufacturer. < /p >
< p > to explore the initial intentions of customers, Chen said later that although we are a brand, we do not want to make a high premium. We hope to make UNIQLO so cheap and quality. At that time, there was a huge demand for the market. As the largest electricity supplier website at that time, Taobao was the most chaotic period. Such a background has hatched a number of B2C websites, such as Jingdong and customers. < /p >
< p > < strong > heading for the clouds > /strong > /p >
< p > "Whoever moves quickly will choose whom." In 2007, New Zealand Softbank Sai Fu partner, who was opening an internal conference in New Zealand, received a call from fan Lei Jun. At that time, Softbank Sai Fu was competing with another big fund to invest in all customers. In the end, the goat seized the case. < /p >
< p > total financing is 42 million in the 9 months after online. At the same time, PPG had gone out of the room; there was news that Li Liang had taken the last 20 million dollars to the United States, and the domestic public relations caliber was controlled by investors. Jiang Nan Chun called Li Liang in his office: "in the end, if you don't pay the money, you will have so many advertisements." Shanghai appro ads advertise to PPG. < /p >
The sales volume of P has been growing rapidly. After 09 years, it has seen an explosion, a compound growth rate of 150%, and a 300% increase in 2010 compared with 09 years. < /p >
< p > interpretation of the background of the rapid growth of the year. The external cause is Mcglaughlin and Dangdang listed. Taobao has promoted the first "singles day" boom. The energy explosion of these industries has affected many ordinary people to do online shopping, and the capital market is also more optimistic about the development of e-commerce in China. < /p >
Less than P, the internal reason is that in 2010, there were two major products in the year: canvas shoes and T-shirts. And in line with the first bold attempt of Internet idol Han Han and Wang Luodan to lay the underlying line advertisement, the network linkage has brought a hot "all object" craze. Old age later said that just beginning to see netizens adapt to objects, worried that it would have a bad impact on the brand, but soon, the sales of the hot season had dispelled worries. < /p >
At the end of the year P, the total sales target of 2011 was 6 billion. The benefits of the 2010 issue remain unheard of. The growth rate in the first quarter is still considerable. After replanning the company, it will repair the target 10 billion! /p
< p > today, China's e-commerce has entered a stage of growth when it broke out in 2010. In the 09 year, Jingdong mall has only more than 100 employees, and today it is close to 30000 employees. The low starting vertical e-commerce websites are springing up like mushrooms. But the bad thing is that the development process is not smooth. In 2010, many e-commerce websites lest people lagging behind and begin to leap forward. The tight flow of cash that Jingdong has repeatedly issued has also had a lot to do with the wrong estimate of 2011 and 2012 at that time. < /p >
In 2011, P started the great leap forward. First, the platform of shopping website V+ was rapidly expanded in May 2010. The SKU expansion caused the difficulty of supply chain management. In January this year, Chen talked about the supply chain management problem in 2011 in an interview. It said that many new products that had nothing to do with clothes and products under 10 yuan were also entered into V+ at the time. You could not tell users that they could not be bought alone, but those products with 3 or 4 yuan were basically selling one piece, and the cost of management was quite large. < /p >