Vanke Refinanced 30 Million Dollars Of Clothing To Become A Breakthrough For B2C

?? Face difficulties and retreat or continue to move forward? The garment B2C industry has come to a crossroads.

In April this year, Shanghai Zhongrun Jiefang Media published a full page notice on PPG's debt collection on local media, saying that PPG owed more than 1.65 million yuan to Zhongrun. As PPG is the first company to do B2C clothing business in China, this matter has not only led to PPG being questioned, but also the whole B2C clothing industry has been questioned by the media and the investment community.

In the tense period of market jitteriness, VanCEL, also a clothing B2C website, obtained a total of 30 million dollars of venture capital. On August 20, Chen Nian, the founder and CEO of Fanke.com, confirmed this news to our reporter, and said that the new capital injection of Fanke.com made the industry regain confidence.

It is reported that this investment is led by Qiming Venture Capital, IDG、 Lianchuang Ceyuan, Softbank Saifu follow investment. This round of investment is the third round of investment made by Vanke. The first round of investment came from the beginning of the establishment of Vanke. Investors include two investment companies, Lianchuang Ceyuan and IDG, as well as founders Chen Nian and Lei Jun. In addition to the first round of IDG and Lianchuang Ceyuan, the VC participating in the second round of investment added Softbank Saifu. Chen Nian revealed that the funds obtained from the first two rounds of investment exceeded 10 million dollars.

　 The victory of the Internet?

PPG took the lead in creating the business model of B2C clothing, was the leader in this industry, and was the first to win the favor and capital injection of venture capital. From October 2005 to April last year, TDF, JAFCO Asia and KPCB respectively made two rounds of investment to PPG, with a total amount of nearly 50 million dollars.

With the help of capital, PPG has achieved rapid development. According to the data provided by PPG, the annual turnover of PPG last year exceeded 1 billion yuan, an increase of nearly 50 times over the same period of 2006; By the end of last year, PPG had 500 employees and sold more than 10000 pieces of clothing every day, close to Youngor, which has the largest market share in China. Youngor sells about 13000 pieces of clothing every day.

VANCEL also caught up with the expansion period of this industry. Zhong Kaixin, vice president of VANCEL, told reporters that his company has achieved a monthly sales of more than 60 million yuan, and at this rate, the annual revenue will exceed 700 million yuan.

The success of PPG and VANCEL has made the giants of the traditional clothing industry enthusiastic. At the end of last year, Baoxiniao Group announced that it would invest 80 million yuan in its online direct sales website BONO, and then the men's clothing brand Latland of Hong Kong Leader also announced a huge investment in B2C clothing. For a while, the situation of venture capital and traditional garment giants grabbing B2C garments was formed.

"The rapid development of clothing B2C is the victory of the Internet." A person from VANCEL said that clothing B2C does not have any form of stores, factories and assembly lines, but only a few small warehouses. Users can deliver goods to their homes through the Internet and call centers, while Youngor has more than 1500 retail outlets nationwide.

The reporter learned that due to the impact of the PPG incident, Qiming Venture Capital carried out extremely strict investigation and evaluation when investing in VANCEL; The survey found that many young people have become fond of this simple and convenient online lifestyle, and said that they have gradually formed the habit of online shopping, which will change the habit of buying clothes in traditional stores.

Chen Nian believes that the success of the Internet is not only the success of B2C, but also the change of people's behavior habits, which is just beginning.

　　 From Excellence to Ordinary Customers

Although the super rapid growth of B2C clothing has made the industry and capital extremely happy, the PPG advertising arrears event has begun to alert the industry.

In this regard, Zhong Kaixin believes that VANCEL can win the favor of venture capital in a tense period, which has a lot to do with its business model. "VANCEL's model is different from PPG's."

The initial success of PPG comes from the change of user interface. The user interface of the traditional clothing industry is franchised stores, hypermarkets, etc. The products of clothing giants reach users through these interfaces, while the user interface of PPG is plane media, television, and computers. Through these interfaces, you can achieve door-to-door delivery by using the telephone call center.

The main users of PPG are TV and flat media. However, to occupy the two user interfaces of flat media and TV, it is necessary to invest huge advertising expenses. In addition, in order to attract the attention of TV and flat media audiences, PPG also needs to invite stars to speak for them, which also requires a large amount of advertising expenditure. In fact, in the event that PPG defaulted on advertising fees, it was the user interface fees paid to Pingmei.

The increase in operating costs has also raised the threshold for profitability. A person from VANCEL said that with the Internet as the user interface alone, 500 million yuan of sales could be profitable, but with flat media and TV as the user interface, it could not be profitable. "The advantage of VANCEL is that it focuses on the Internet as the user interface, and resolutely does not do flat media and television user interfaces." Zhong Kaixin said.

　　 This model of VANCEL draws on the experience and lessons of previous B2C books.

Before the emergence of garment B2C, there was no really profitable industry in the domestic B2C industry. The B2C model was first developed in the book audio and video industry, which represents excellence and dangdang. But even though their revenue has exceeded 1 billion yuan, they are still in a non-profit predicament. This seems to be printing? script src=>