PPG, the shirt direct sales company, first discovered a "blue sea", but soon, this "blue sea" would become "the Red Sea" because of Youngor and the Annunciation.
According to informed sources, Youngor and the Annunciation Birds, which rank first and fourth in domestic suits and men's shirts, are testing direct sales on the Internet. Compared with PPG, which has just attracted two rounds of investment in international capital, the addition of Youngor and Baoxin Bird, which has taken up more than 10% of the men's market, should not be underestimated.
From entity to virtual
According to an insider of the online direct selling industry, Youngor has already set up a direct sales team in Shanghai. The new website is under close preparation. The fastest will be at the beginning of the month and the beginning of the next month. The investment funds come from the balance of funds raised in the previous paragraph.
The statement made by the Young Secretaries to reporters is rather vague. "I'm not quite sure about this matter. I'd better ask the marketing company." The marketing company is the leading company of Youngor's apparel, but the company’s staff also said on the phone that the matter was unclear.
The insider of the Annunciation Company told reporters that they had heard of Youngor's advancement into online sales. However, he said that the newspaper's current test of online direct sales is also cautious. He said: “The matter is still in the planning phase. Once the quasi-direction is reached, there will be a big move next year."
At present, Baoxi Bird’s investment in online direct sales is small, but a website named BONO has attracted the attention of the industry. Not long ago, Baotuo Textile Technology Co., Ltd., an enterprise of Annunciation, changed the name of Baoxi Bird's professional wear brand from Baoniao BAONIAO to BONO, and at the same time tried direct sales on the BONO website. If there are 777 yuan "5 shirts and 2 T-shirts" package for sale, another 169 yuan shirt and 109 yuan T-shirt sale, the transaction can be completed online.
Although the product line is not abundant, from the perspective of its pricing range, it is obviously within the price range of 99 to 229 yuan for PPG shirts.
Bao Bird Textile Technology Co., Ltd. was established only in July this year. The investment parties are Baoxi Group and Baodi Clothing Company. Baoxi Bird holds 20% shares of Bao Bird Clothing Company.
Quality VS Marketing
Almost all reports on PPG will mention a set of data comparisons: "PPG's current sales performance in the industry is - selling 10,000 shirts a day. Last year, Younggor sold shirts with the highest domestic market share. It is 13,000 pieces."
However, industry observers pointed out that the advantages of the two companies are completely different, and Youngor’s strength lies in its deep-rooted production, fabric production base, design team, and real shop. Youngor currently has more than 2,000 stores and a group of strong brand recognition and purchasers.
PPG's strength lies in its model innovation. This company is known as the "Dell" of the shirt industry. Because there is no factory and store burden, "light company" PPG sales growth in 2007 is 50 times that of 2006, good market performance, not only to TDF, JAFCO Asia two venture investment companies in 2006 for their first investment Afterwards, the second additional investment made it more attractive to KPCB Ventures for the first time.
Different from the steady development strategy of the old brands such as Youngor and Baoxi, the new brand PPG is launching the most extensive and powerful marketing campaign. Their advertising can be seen everywhere, industry observers pointed out that because there is no technical barriers, PPG hopes to create barriers to marketing, in the short term quickly build brand, expand the scale, and ultimately maximize the benefits through the capital market.
"Now that advertising has stopped, PPG can already make money, but they certainly will not do so. This is the biggest difference between them and Youngor." This person said. It is reported that although PPG claims to have no need to spend traditional costs such as stores, the current marketing cost accounts for about 50% of the cost. Recently, a large number of online menswear sales companies such as "BBS", "51 shirts" and Dangdang.com have failed to do so.
The Annunciation Secretary told reporters: "If we enter the network direct sales, we will insist on high quality practices."
However, there is considerable controversy over the testing of Youngor and the Annunciation. The investors of the two companies mentioned above are all involved in the real estate industry. Will they go all out for Internet marketing like PPG? How do they solve the problem of horizontal competition between online and offline stores? This will test the two men's predecessors.
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