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Fang Xingdong: Internet Clothing PPG Does Not Have The Listing Conditions.

2008/11/8 10:43:00 33

Fang Xingdong: Internet clothing PPG does not have the listing conditions.

Tian Tian, a PPG public relations director of Direct Selling Company apparel, confirmed to reporters that PPG has recently won venture capital investment of one hundred US $100 million, which will help PPG launch a new low price offensive, while PPG is no longer eager to go public.

This is the fourth round of financing for PPG, and the venture capital in the first three rounds of PPG has accumulated over 80 million US dollars.

But Fang Xingdong, an Internet celebrity, seems that PPG is not eager to go public because it is not short of money, but because it does not have the conditions for listing.

Reporter: what do you think is the reason why PPG got such a high risk investment?

Fang Xingdong: according to a report released by Eri consulting, in 2007, the number of apparel Buyers and sellers had taken the first place in 50.1% of the statistics.

The Research Report on the evaluation of China's clothing direct selling website released by the Internet Laboratory also shows that since 2008, a number of new clothing network direct selling brands represented by Van guest and BONO have opened up a new bright spot for the field of clothing e-commerce. The B2C e-commerce operators and the B2C e-commerce online retail market are increasing rapidly, and the volume of pactions is increasing rapidly.

This is an objective factor for PPG to attract venture capital.

Of course, the business mode of PPG itself is also good. When investors' confidence in the Internet is not too high, the e-business model combined with entity can get the favor of venture capitalists.

Reporter: why do PPG, everyone and BONO take men's shirts as the first choice for direct selling of online clothing?

Fang Xingdong: the standard of men's shirt is relatively high, and the gross profit margin of shirt sales is as high as 50%, compared with the gross profit margin of the excellent network and Dangdang only 20%. How to say that direct selling of shirts is a good business.

Reporter: PPG said that after 100 million dollars of venture capital, we need to reopen the price war. How do you think of PPG?

Fang Xingdong: price is the most sensitive factor. Amazon also gained the favor of users by price war at the very beginning.

Apart from the price, PPG and other Internet clothing Direct Selling Company have no killer competitive advantage.

Moreover, in order to enable ordinary people to accept e-commerce sales mode, practitioners must start with price wars, so that consumers can get real benefits.

Reporter: what are the pros and cons of Internet companies listing?

Fang Xingdong: briefly summarize, the main advantages of Internet companies are listed as follows: first, the introduction of low-cost funds.

The capital raised through listing is often much lower than the cost of direct investment or venture capital.

The capital raised by listing does not need to pay interest or pressure on time limit, so that enterprises can expand their business without worry. Two, it can enhance the corporate image; three, it can accelerate business development.

A listed company can merge and acquire other businesses through issuing shares to achieve the goal of expanding the scale of enterprises.

Because the listed company is a symbol of financial strength for banks, these listed companies lend to banks, and interest rates are often low, and the loan amount is also raised accordingly.

But listing also has disadvantages for enterprises. Some Internet companies seem hesitant about listing, mainly because the listed companies should abide by the rules of stock exchange, securities regulations and corporate governance rules.

Some entrepreneurs do not want to disclose internal secret data to the outside world, such as turnover, gross profit margin and competition conditions. They also do not want to share the results of their business with market investors.

The main reason why most entrepreneurs do not intend to list enterprises is because they have to pay a large number of listing fees.

Reporter: PPG also said that after obtaining this venture capital, it will no longer pursue listing in the short term. What do you think is the main reason why PPG is not listed?

Fang Xingdong: in my view, the main reason why PPG said it was not listed was not because it had gained $100 million in venture capital, but because it did not have the conditions for listing.

As far as I know, although the gross profit margin of shirt sales is as high as 50%, but because of PPG and other network apparel Direct Selling Company, in order to open up the market and compete for users, it has invested a lot of promotional expenses.

The media has even reported on the financial crisis that PPG may have involved.

Reporter: people familiar with the matter say that BONO plans to open some physical stores.

If Internet clothing Direct Selling Company really open a physical store, will the cost advantages of these companies still exist?

Will physical stores and online sales face the dilemma of hands and hands?

Fang Xingdong: Internet clothing Direct Selling Company ready to open a physical store can illustrate the fierce competition in this industry.

As far as I know, the cost of clothing channel is very high. A shirt with a market price of 100 yuan, the factory cost may be only 20 yuan, and the rest are all channel costs.

Internet clothing Direct Selling Company must earn part of the cost of the channel. If they open a physical store, the advantages of e-commerce can not be brought into full play.

Since the beginning of PPG, most domestic apparel Direct Selling Company have adopted the "light company" mode of outsourcing the core R & D, design and manufacture. This mode has largely captured large numbers of users in a very short time, mainly due to large-scale brand marketing.

But with the expansion of online shopping scale, product quality problems arise, resulting in the phenomenon of user returns.

Because "Light Companies" are in supply chain management and order management? Script src=>