Vanke Eslite: B2C Winner Sales Increase 300 Times in Three Years

In the fast-changing e-commerce industry, companies with a geometric growth in sales may already be commonplace, but the success or failure is often the moment. However, all the passengers valued by Lei Jun are not only the creation of the entire industry chain, but also the maximum value that national brands can embody in the context of China's consumption upgrade.

"LOVE the Internet, love freedom, love late, love the food in the evening, love racing, and love T-SHIRT of 29 blocks. I am not a flag bearer, not a person who speaks for me. I am Han Han. I only represent myself. Like you, I am a guest."

This advertisement for Han Han’s VANCL endorsement is now flooded with billboards on Beijing’s subways or buses. Another advertisement for Vanke’s endorsement is Wang’s work.

It is understood that where passengers are currently in contact with the major video advertising companies ad placement, Beijing, Shanghai, Guangzhou, outdoor LED will also appear in a large number of Vanke Eslite test ads.

This is three years ago, Lei Jun's investment, "the customer Eslite." Today's Vanke, just like "extraordinary", has grown from less than 10 sales per day to more than 20,000 pieces of daily sales, which is a nearly 300-fold growth.

In the fast-changing e-commerce industry, companies with a geometric growth in sales may already be commonplace, but the success or failure is often the moment. However, all the passengers valued by Lei Jun are not only the creation of the entire industry chain, but also the maximum value that national brands can embody in the context of China's consumption upgrade.

Clothing industry gross profit is not lower than software

Le Jun, who once sold Joyos to Amazon for $75 million, sells Joyo. It's just as uncomfortable as selling children. It's good that he has the founder and partner of the Joyo. One day in 2007, I saw another opportunity for e-commerce, which is the PPG website endorsed by Daniel Wu.

PPG does not have stores and dealers. It mainly sells medium-priced men's shirts through the Internet. Its biggest feature is that the brand of shirts is all PPG instead of selling different brands like Taobao Mall or Jingdong Mall. The former can Said to be a brand boutique, while the latter is a department store.

To weigh the pros and cons, the old man decided to learn the PPG model, and copied a Vanke Eslite. This idea was approved by Lei Jun. He believed that “in the apparel industry, Maori is definitely not less than software.”

At this time, Lei Jun, in addition to seeing the development of PPG, saw the success of UNIQLO. This is a famous Japanese casual brand. Its strategy is to provide consumers with fashionable casual clothes at a low price. By virtue of this, Uniqlo after the chain quickly defeated the entire middle and low clothing in Japan, and the founding partner of Uniqlo became the richest man in Japan five years after its establishment.

Seeing the success of Uniqlo and the development of PPG, Lei Jun decided to act as an angel investor. In fact, as early as a few years ago, Lei Jun was very concerned about the mobile Internet and e-commerce. Driven by the consumption upgrade, the huge e-commerce market is undoubtedly, once the excellence network let Lei Jun out of Kamakura, now the customer Raise the courage of Lei Jun to fight again.

Divided into promotional control costs

In fact, the registered capital of Vanke Eslite is only a few million yuan. Although the company was given millions of dollars in venture capital when it was established, these funds simply cannot pay for high television advertising fees. To expand the market and start advertising on portal websites, we adopt the method of dividing sales into sales. That is to say, advertisers take a certain percentage from the middle of each sale.

It is precisely this way of splitting into promotion. Where the customer controls the cost investment well and realizes the market demand, this is where the PPG has a lot of TV commercials.

From the perspective of the time, PPG’s real sales can only be about one-third of the advertising costs. For a company, this is a big gap. Once it is not well controlled, it can fail instantly.

Unfortunately, PPG collapsed after the capital chain broke. Fortunately, Vanke Eslite successfully survived due to its proper cost control and experience marketing, and successfully linked e-commerce to the traditional retail industry.

Nowadays, the daily sales amounted to more than 6 million yuan, and the monthly sales can reach 200 million yuan. According to this speed, in 2010, the sales of Vanke Eslite products should reach 1.5 billion yuan. At the end of last year, after the Beijing Municipal Committee was invited to visit Vanke, it was even more shocked at this two-year-old company.

It is the prospect of room for growth that many venture capitalists have thrown “olive branches” one after another. With the help of Lei Jun, it takes only 9 months for the customer to complete the third round of financing from its establishment to the completion of the third round of financing. The United States International Data Group (IDG) invested 2 million U.S. dollars. Two months later, Softbank Saifu invested 2 million U.S. dollars. In 8 to 9 months, Qiming Venture Capital invested 10 million U.S. dollars.

Clothing B2C into the winner behind

Looking at China’s e-commerce industry, Jingdong Mall’s sales are close to 4 billion yuan, and it still hasn’t gotten rid of losses. Dangdang has not realized large-scale profits for more than a decade. The world-famous e-commerce company, Amazon, continued to lose money for 8 years. It just focused on doing large-scale. Until 2003, Amazon began to make profits. In 2009, when Amazon’s sales reached 25 billion U.S. dollars, Profit is only 2%, which is about 500 million US dollars. Despite this, Amazon is still seen as the "original ancestor" of global e-commerce companies.

For an e-commerce company, if the emphasis is on profit, then it is very likely that investment will be limited. In this case, even if the gain is obtained, it is very likely to lose market share. In today's fast-growing market environment, many entrepreneurs in the e-commerce industry are likely to choose to lose 1%, but the market share will reach 80%, and they will not choose gross margin of 10% or even higher, while market share Only 1%, in other words, most of them will tend to market share rather than profit.

Therefore, for all customers who are not yet making money, his investors and CEOs are not worried. Lei Jun sees long-term value, not short-term profits. Only by expanding the scale and nurturing the market can Lei gain Greater value. And now, they have predicted that they will be able to achieve profitability in the next one to two years, because with the geometric growth of market share of Vanke, the future marketing costs will become lower and lower. If this year's marketing costs account for the total revenue, 30%, then as the market share doubles next year, the marketing cost can be reduced to 15%. According to this kind of development speed, the marketing cost in the following year is 7.5%.

As far as the segmentation apparel industry of Vanke Espin is concerned, the development prospects in China are even more important. According to the forthcoming quarterly monitoring of China's online retail market in the first quarter of 2010 conducted by the Enfodesk Analysys think tank, the first in 2010 In the quarter, China's online retail market reached 95.97 billion yuan, a year-on-year increase of 18.7%. The year-on-year increase of 101.7%. Sales of apparel and apparel products reached 21.5 billion yuan, accounting for 22.4% of the market; 3C (communications, computers, and digital consumer electronics) accounted for 17.5%, and publications accounted for 1.1%.

As a result, with the gradual development of online shopping habits for users, especially women's awareness of clothing online shopping continues to improve, clothing e-commerce B2C website is likely to become one of the fastest growing e-commerce subdivision.

Vanke was very fortunate to walk on this avenue, and resolved Lei Jun’s worries that “the e-commerce industry lacks a complete industrial chain. To succeed, we must have three conditions: the first is the high unit price, and the second is the gross profit. Gao, and the third is the high degree of purchase.” Nowadays, Vanke is already building a complete e-commerce industry chain, from design to production, from product to logistics, where customers can do everything they see as ordinary. it is good.

This is exactly what Lei Jun invests in. As it stands for, “all customers are provided with products that they sincerely build.” Lei Jun believes that Louis Vuitton may not necessarily be the best luxury goods are not necessarily fair prices, and driven by the consumption upgrade, where passengers can not only fight to spread the goods, the future in the middle and low clothing market can also occupy a place.

On the surface, Vanke is yet another masterpiece of e-commerce in the Internet era. In fact, it is the winner behind the huge space for consumer upgrades. In Lei Jun’s view, the customer is not the problem of becoming the next Alibaba or the next Taobao, but the change in the e-commerce field caused by the consumption upgrade.

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