The B2C (business-to-consumer e-commerce model) online traffic is beginning to get clogged when the financial tsunami puts traditional channels on the wane. After PPG opened the Shirt and became the pioneer, the direct sales "Big Brother" VANCL, a garment direct selling by the same people, provoked a price war: 38 yuan, 68 yuan, 4 pieces of 199 yuan ... ... Seems to lose money earning trading Staged one after another. Behind the price war, the hidden question is about the price system of shirts: Some people say that VANCL founder and CEO are making huge profits; others say that old people burn at a loss. The Daily Economic News surveyed VANCL's shirt price system and found that the aging Vanke Essence model is actually a model of excellence with PPG. So this model can succeed? Aged 40 million US dollars venture capital can burn how long? Online broke the news 84 yuan shirt production cost 29.5 yuan? "VANCL's ex-factory price is only 30% of the sales price or even less, but they are not fully profitable." An OEM clothing business executives told the "Daily Economic News" yesterday. Recently, the online apparel direct marketing "take the lead brother" VANCL announced the service upgrade, the audience free shipping "4 pieces 199 yuan purchase price", followed by other brands quickly followed up, "buy 200 get 200, buy 200 get 220" and other traditional department stores The usual promotional tools are also competing to launch, the entire apparel B2C industry into price war. Some consumers came to visit a number of foundries concluded that the original price of 99 yuan VANCL cotton short-sleeved shirt ex-factory price may be only 29.5 yuan. "Buy a shirt 99 yuan, buy two 168 yuan," a recent online order to send a single 168 yuan for example conducted by the survey, the calculation formula can be roughly interpreted as: 15 yuan (shipping and collection +4 yuan (packaging materials and accessories fee) +8.4 yuan (sales tax) +6 yuan (inventory loss) +8.4 yuan (storage, office rent) +16.8 yuan (man-made management fee) +50.4 yuan ) = "109 yuan," If you want breakeven shirt production cost of a single piece can not be higher than 29.5 yuan. For the current VANCL large-scale promotional activities, informed sources told the "Daily Economic News," said: "As with the venture capital agencies have an agreement, it can only create low-cost economies of scale, to meet the requirements of investors. "Manufacturers deny mid-range shirt ex-factory price should exceed 40 yuan" A shirt from the fabric to the finished product, involving at least 8 or more processing plants. According to the current production costs, the cost of a mid-range shirt in 40 to 65 yuan. To Japan, Europe and the United States brand OEM more than 10 years, head of textile enterprises, strictly speaking, told the "Daily Economic News": "To find those who have done to Europe and the United States first-class brand made the factory foundry less than 30 yuan, almost impossible. Public information shows that the current three largest supplier of high-grade fabrics in Shandong Luthai, Guangdong Esquel (Vancl had claimed that the shirt provided by the Guangdong Esquel), Ningbo Younger, the regular price of about 100 cotton shirt fabric is about 28 yuan, a single piece of blouse material calculated by 1.4 meters, the net processing fee is about 26 yuan, a basic high-quality cotton shirt production costs will not be less than 66 yuan.According to strict compliance, although most of the direct sales of clothing Businesses are respected independent procurement of fabric, factory processing models, but less than 40 yuan in the production of shirts in line with high standards is almost impossible, "Even the Weihuo, it is impossible to have a large number of lower than the cost price product. "Expert analysis of low-cost advertising space posted profit" VANCL's OEM (OEM) price in million units roughly below 28 yuan. Senior B2C Research Expert (pen name) pointed out that when there is a strong competition in the network platform, the market appeared price war smoke, consumers seem cheaper and complacent, in fact, has slowly jumped into the trap set by the merchant.Started by VANCL Price 135 yuan long-sleeved shirt as the standard to calculate the cost (city distribution): 28 yuan (ex-factory price) +2.025 yuan (courier company collection fee) +6 yuan (courier) +0.4 (box) +20 (Personnel management costs) = 56.425 yuan, if calculated in two pieces, the same order fixed capital investment and personnel management costs, so the cost is: 36.4252 +20 = 92.85 million, plus VANCL has now opened the site Alliance services, alliance businesses can get 15% bonus dividends, relative to the marketing costs can be controlled: 56.425 +13515% = 76.675 yuan. From the starting point, VANCL is currently in major portals, search engines, forums, blogs and other platforms If the ads cost more than 50% of the revenue, then the final cost will be calculated as: 36.425 + 20 + 13550% = 123.925 yuan That, at a price of 135 yuan shirt, VANCL net profit of about 11 yuan, the profit margin of less than 10%. "VANCL in 2008 sales of nearly 500 million yuan, but still not profitable, the key is to Advertising costs. "The starting point is pointed out. Where the customer response to the production cost is underestimated Over-estimated operating costs According to VANCL has publicly pointed out that" 900,000 ads to bring 5 million sales, "VANCL's advertising spending ratio of about 20%, but informed People on the "Daily Economic News" said its advertising spending ratio of at least 30% .A previous marketing agency survey showed that PPG to obtain a new customer costs about 200 yuan, VANCL to obtain a new customer cost is only 25 This cost includes advertising and marketing expenses after advertising, which means VANCL's advertising is much better than PPG marketing.The survey also pointed out that although the acquisition of potential customers VANCL low cost, but does not mean Potential customers are of high value. If an expert helps VANCL improve "post-advertising marketing," VANCL can still stay ahead of the industry until it is profitable. Otherwise, another company will replace VANCL in the near future. The company's core competition The advantage is the ability to "post-advertising marketing." VANCL ads tend to attract single-use customers, with very few repeat customers. "VANCL former CEO at VANCL said in response to outside speculation about the cost," VANCL's product is much higher than the rumored production costs, and operating costs and no outsiders Said so high. But Aging admits that certain products are indeed "losing money." Prospects to predict VANCL will become the second PPG According to public reports, VANCL has three rounds of financing, led by Qiming Venture Capital, IDG, Policy sources, such as Softbank Saifu companies with cast, before and after a total investment of more than 40 million US dollars of venture capital funding.It is worth mentioning that, once 80 million US dollars venture PPG burn began to decline in less than a year, then VANCL's 40 million U.S. dollars to maintain the focus of the industry.VANCL had previously announced a high profile, has achieved about 20,000 daily sales of shirts, and beyond the major competitors, including PPG, Bono.But the sales did not An undisputed fact is: VANCL has not yet made a profit as a whole, but it will not take long before it can break even, and VANCL has not given any concrete reply from the media. "Eventually VANCL will become a clothing company or a sales-oriented Light company. If it is the latter, VANCL is likely to re-take PPG's old road to become a rapid rise and rapid disappearance of the company. Some analysts pointed out that if you want to become a clothing company with a strong Internet concept, then there should be sufficient investment in the apparel products themselves, such as fabrics, design, etc .; but if you just do a light company, then most likely To cash in the market for the purpose of this is likely to be the next PPG. Simultaneous broadcast of excellence, Dangdang once again bloody battle Joyo, Dangdang did not miss this summer's price war. Earlier this month, Joyoung provoked "best-selling list of books half price Snapped up "banner, and then Dangdang resorted to" a hundred kinds of best-selling book 4.9 fold, "the magic, the two largest online book sales companies resurface. Cheap gradually evolved into a" burn "game. Dangdang promotional activities will bring nearly 150,000 yuan a day loss: Dangdang daily sales of about 180,000 books, if the current calculation of 120,000, of which the top 100 hot sales list, plus half price promotions pull , Is estimated to account for 60% of all sales, which is about about 7.2 books.If the purchase price is 60% off and sales in accordance with 5% off, will be subject to more than 1 fold The average book price of 20 yuan per calculation, each of the two lost 2. One day net loss is 144,000 yuan.According to the above calculation, this activity if the summer of two months, will bring nearly 10 million yuan to the Dangdang Loss, and its competitors will also suffer a similar loss.In fact, this is not Dangdang, Joyo's first positive confrontation .2008 on October 20, Dangdang had officially launched the audience free shipping activities , And excellence from 2007 onwards, "free shipping audience." In a massive burn, B2C and cost savings to the extreme.One extreme example is that Dangdang Li Guoqing, president has said, reluctant to give customers The default open an invoice, because if the default to the invoice, count the manual invoice labor costs, or the cost of machine-printed invoices and logistics costs, Dangdang found that spend an annual nearly 400000 yuan.In the low price and control costs, Dangdang development for 10 years, has not really profitable News Links B2C cost of confusion In 2007, PPG brought thousands of yuan venture capital turned out, since there is no shortage of news on the B2C industry.PPG in half a year put hundreds of millions of dollars Ads, immediately plunged into a scandal in which the capital chain broke and the founders absconded, while the 40 or 50 apparel direct selling companies that followed PPG broke down more than half instantly.The reality we have to face is: China's earliest B2C website 8848 Has completely disappeared, Dangdang and excellence two veteran companies in the business for 10 years after the loss is still struggling. "After a long period of testing, we found that the serious drawbacks of the B2C industry - high marketing costs, repeat purchase rate low. "An investment company manager who was prepared to invest $ 10 million in the field recently said to The Daily Economic News that the general profit margin of the industry is less than 10%, the platform development cost accounts for 30% and the logistics cost accounts for 10% War two or three months a game, almost all lose money earned. The sources pointed out that after the fever, once abnormal "favored" B2C venture capitalists are beginning to calm down.One obvious sign is that the VC investment in the Internet industry compared with 2007,2008 significant slowdown , For the B2C e-commerce industry is the same. "Every year B2C have to make a few dark horse, not according to common sense cards to low into the spoiler, fame in a short period of soar sales soaring, leading the trend of a year or two very common. However, a little longer time stretched, most of the dark horse has become a flash of tomorrow's yellow flower. Professional e-commerce man Liu Shuang wrote that now is not just a few years ago with low-cost word of mouth can quickly become bigger and stronger era, before taking the successful route of this case, there is reference but not replicable. Liu Shuang believes that because of the chaotic price war and non-profit orientation of the domestic B2C itself and the non-standardization of retail channels, the profitability of B2C in China is quite low, and due to various factors, the cost of B2C in China High, especially operating costs, distribution costs and promotion costs.
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