VANCL Analysis - 2159 Words

VANCL: Problem Within the period of 2007 to 2009, two major retail companies emerged in China: PPG Apparel (Shanghai) Co., Ltd. and VANCL Technology (Beijing) Co., Ltd. Though both had similar business models, VANCL was able to excel and profit in places where PPG Apparel suffered tremendously. These included creating a successful supply chain with effective quality control, adopting a variety of improvement measures to ensure a positive customer experience, and shifting most of VANCL’s advertising dollars towards internet marketing. Though successful when first established, PPG eventually collapsed in late 2009 due to their inefficiencies in such areas. Owner of VANCL, Chen Nian stated that VANCL has passed its most risky period†¦show more content†¦Market Analysis: VANCL is a leading Chinese internet-based apparel retailer that has successfully established dominance in the e-tailing world. Their approach to elevating the customer experience includes improvement measures such as online commenting threads and try-on activities. VANCL’s services have helped them diminish any skepticisms the Chinese market had in regards to shopping online. Known for its â€Å"fast fashion†, they have expanded their market range to include most kinds of men’s and women’s apparel, specifically casual-wear such as canvas shoes and graphic tees. In China alone they have captured over 25% of market share in the apparel market and are the 6th largest B2C company in China in terms of revenue. VANCL’s channels of distribution are exclusively their online website as well as their small call-center. Because they are only an online retailer, VANCL uses their own logistics company, Rufengda, and other third party companies to ensure speedy delivery of their products. Their apparel is made from top fabric manufacturers such as Luthai Textile and go through countless quality checks to ensure the best apparel for their customers. In China alone th e market for apparel including clothing, shoes, hats, and textiles has grown by a staggering 18.8% in 2009 according to the