Viewing the future of network direct marketing from the success or failure of VANCL and PPG

The reason for success is very simple, only two

If you want the same reason for PPG and vancl to get the same success today, then there are only two points: because it's a men's shirt;

More than 20 years of history of China's apparel industry leading Enterprises Youngor's men's shirts daily sales by the new two or three years of PPG surpassed, which business people will not be crazy fascinated?

And when Vancl aged in March 08 to announce the daily sales of more than PPG, there will be more businessmen to explore the mystery, in the end the Shirt Network direct Sales field can also create how many miracles.

But only over time, everyone from the upsurge of calm down, see more thoroughly, we can test the current success or failure, see the future development.

Thinking after high speed growth

Based on strong manufacturing capacity, China is not short of products, if only rely on preferential prices to long-term market, domestic appliances industry, domestic mobile phone industry, the evolution of the history can be a good reference example. Therefore, from the long-term business development strategy, whether only in the area of network direct marketing or spread to the country's shirt sales market, early recognition of this, will make our development more secure. "Low prices" should not be their core competencies and the root cause of tomorrow's success.

Believe that men's shirts suitable for online sales have become a consensus. Because of this consensus, dozens of PPG mode of enterprise has been killed into the men's shirts network direct marketing, and even the strength of the traditional clothing enterprises also can not withstand. Although the Chinese men's shirt consumption market capacity is huge, but in front of the crowds, now choose men's shirts as a starting point may not be a good reason for your success.

The same is the men's shirts, the same is affordable, through the VANCL and PPG two different styles, business strategy in two extreme business comparison and analysis, perhaps we can paint the outline of the winner of tomorrow.

Rookie--ppg at the poker table.

PPG's success is just because it's everywhere!

More than 80% of orders from the call center directly to the "PPG everywhere" the most direct return.

And PPG similar, red children, well-off, Macaulay Three directory of direct sales started to develop the company also has 70%~90% orders are directly through the call center order. However, the three companies have PPG unmatched large customer accumulation and deeper industry precipitation.

Red children rely on the national 16 branches more than 1600 employees support more than 600,000 active customers.

15 years of accumulated and continued operation of the 8 million customer data is well-off "housekeeping of the".

More than 2 million DM per month and the proliferation of offline stores so that Mai Lin become "direct mail, network, store" three habitat strength representatives.

The same is the direct sales model, compared to predecessors, PPG's industry precipitation has a significant gap, and the most missing is actually the soul of the direct marketing model-customer database. Judging from these gaps, there is only one reason to hold up the staggering sales of PPG, which is ubiquitous advertising. But the cost of "ubiquitous" is huge. If the size of the client database cannot be accumulated within a short period of time, if the input output ratio and planned annual sales are seriously deviating from the investor's psychological bottom line, perhaps PPG's figure will slam away. This is also the biggest risk of "light Company". When advertising stops, suppliers quietly dispersed, "light Company" what is left? Empty warehouses and call center calls?

But this is a situation that nobody wants to see. Because PPG not only touched the business nerves of all the apparel industry entrepreneurs, triggered the change of the clothing industry network Direct marketing, PPG is China's business E-commerce jumped to the new stage of one of the pilots. What we look forward to is that PPG brings greater surprise and success to everyone.

The Novice on the "table"--the heavy betting mentality

PPG's advertising costs are at least half wasted, but PPG doesn't know which half to waste. As precision marketing concepts and applications are maturing today, PPG's marketing priorities and most of its money have opted for the relatively expensive TV, newspapers, magazines and outdoor ads that make it difficult to control direct gains. And the advertising appeal to brand awareness and online shopping shirt new life concept of propaganda. PPG popularized the idea of buying a shirt online, but for a long-term direct sales company, getting enough orders is the most important. Moreover, playing Star brand, to create a new life concept driven product sales is the old routine, no longer like two years before the results Zhuo. Today, by burning brands to prop up the development of enterprises, but also rely on the emerging network direct marketing model, such a large risk, is tantamount to betting.

Of course, there will be friends to put forward the "wealth Insurance in the request" point of view. If you are a seasoned "professional business gambler", we have reason to give more support and trust, but from PPG's management and control of suppliers, network marketing strategies and skills, the poor user shopping experience and the jerky handling of the public relations crisis, PPG is more like a "poker table" novice.

The internet has accomplished the VANCL and robustness of the latter.

PPG with more than two years to achieve a man's shirt day sales beyond Youngor, then, VANCL only 5 months beyond the PPG, and I think, this is just old again out of the lake, staged the first act of E-commerce drama.

"68 Yuan" + "aged" business e-commerce in a beautiful case

Early to network marketing as the main channel of promotion VANCL success can be summed up to two points: that is, "68 yuan" and "aged."

In many ways, Vancl and PPG are very similar, but the two two key points of marketing strategy and order source have the opposite performance.

More than 80% of VANCL's shirts are sold directly through the Internet. So far, Vancl's advertising and marketing channels focus on the Internet, and marketing costs far less than PPG. This is the biggest difference between Vancl and PPG.

"68 Yuan" is VANCL all advertising strategy, marketing strategy, product strategy core. 68 Yuan a piece of, quality and grade to reach a considerable level of the shirts in the country is almost unique, in the same quality grade than PPG also want to benefit the shirt thoroughly broke the psychological price of the potential customer base, but also fit the consumer subconscious online shopping than offline shopping cheaper mentality, Vancl gives you a reason to order immediately.

Of course, many experts in the line will also point to many of the necessary conditions for success, for example, the quality of the shirt control and protection, timely replenishment of products, logistics and distribution of timely and good service attitude and so on, but I believe that these factors have become the basic conditions, direct sales enterprises to achieve long-term development of the most basic requirements, In recent years, we continue to explore, through differentiated marketing, differentiated products and differentiated competition in the current diary of the fierce competition in the market to achieve success? I think in so many shirts network direct sales enterprises, many of the management team have considerable industry experience, in some basic, common sales factors will not have a short-term impact on the overall gap exists. Therefore, "68 yuan" is one of the core reasons for Vancl's success. Admittedly, we know through the media information, VANCL product quality is better than PPG, and VANCL logistics and distribution is really good.

Network marketing becomes the core impetus of business

The second reason for Vancl's success is "aging." VANCL's core team consists of a team of former CEO aging leaders, most of whom are the backbone of the original network of excellence. The aging team's accurate grasp of network marketing and China's Internet environment and the actual operation experience are the main reasons for VANCL to create the business miracle. Taking the network advertisement as an example: the depth, breadth and degree of VANCL Network media advertisement are the few successful examples in recent years. To the country's largest three major mainstream portal banner advertising to achieve coverage, to the most concentrated working-class people, the use of the most frequent mainstream communities, forums and instant communication tools to achieve the depth of the target population infiltration, of course, indispensable is the use of search engine keyword ads and search engine content ads on the "long tail "On the scattered potential customers to catch a wide net, through these appropriate delivery strategies and methods, the site traffic alone on this indicator, VANCL traffic is higher than ppg6~9 times. And another more effective network marketing strategy is large-scale network Alliance marketing. Giving full play to the dispersed marketing power of the Internet value chain is the best way to rapidly multiply the sales scale. High sales commission makes many personal stationmaster become vancl part-time salesman. When thousands of people help you sell products, your success is obvious. We can see that PPG has also begun to grope and try the Network Alliance sales method, but from the CPS sales commission percentage ratio, Vancl 16% and PPG 10% has enough reason to allow more site owners to choose Vancl, not to mention, in the Internet, VANCL sales are almost 9 times times that of PPG. There are several other factors, such as logistics distribution, site design and other infrastructure, under the experience of the "aging" business team led less detours.

A person full of confidence and look forward to the network of direct sales

In the recent period of market layout and strategic adjustment, VANCL is moving towards the steady and mature China's first shirt direct marketing enterprises.

To improve product quality, enrich product grades and varieties, strengthen logistics and warehousing system construction, open up new marketing channels is VANCL recently started work. In order to improve their own long-term development strategy for the main show VANCL solid pragmatic business style.

VANCL, which has a good internet gene, is likely to become a new milestone in China's online marketing industry in 2 years ' time.

Find a few reasons to make Vancl and PPG successful.

At the beginning of the article we mentioned two reasons why Vancl and PPG were successful today. So what are the reasons for tomorrow's success?

1, tightly grasp the soul of the direct marketing model-customer database. If you have a large customer database that is willing to accept and choose a direct sales model to buy products and can well tap the customer resources, we can take the "affordable" and "Men's shirts" as we are used to attract and impress some of the consumer groups to meet their part of the sales demand means. When we have the customer data to tap into their more needs, it becomes natural to extend the product line to meet these needs, and the size of the business is growing.

2, cement, mouse, envelopes, telephones, television have been proven to be very effective direct marketing model, and there are always many potential customers can only contact or choose only one channel. Therefore, according to the process of enterprise development, the focus of open up new marketing channels can allow the traditional direct marketing enterprises to break through the bottleneck of development.

And about "Zero inventory" in today's circulation industry, the environment and conditions of maturity is not enough to hold up this marketing model. From the reality, VANCL continuously carry out the construction of the offline Logistics Center, the red Child firm implementation of the branch development strategy, these are explained, in the direct marketing industry, the customer's impulsive consumption patterns, logistics and distribution of timely degree should be seriously concerned about direct marketing enterprises.

Whether it is based on the network, or the main phone and envelopes, only to grasp the nature of the direct marketing industry, and firmly carry on, such as Vancl and PPG, such as the new direct sales enterprises will be more powerful and more robust development. (Probiz.com Business Research channel by: Yehai)