The Research of Vancl Network Marketing EASTERN ACADEMIC FORUM

EASTERN ACADEMIC FORUM
The Research of Vancl Network Marketing
WU Zhonghua
School of Business Administration, Jiangxi University of Finance and Economics, China, 330013
[email protected]
Abstract: In recent years, the garment industry of China using the network marketing to make
enterprise’s growing, many garment industries have higher credibility, the network marketing and
obtained significant returns through network marketing. Vancl operate in a lot of money, the company
quickly developed into network clothing industry leader, this article analysis Vancl company’s
background and present situation of the marketing, and the concept and theory of network marketing as
well as its development process through the development of garment industry found the company in the
network marketing problems, and puts forward the corresponding solutions.
Keywords: Vancl, Marketing network, Marketing strategy
1 The Network Marketing Concept
1.1 The concept of network marketing
Synonymous with network marketing concepts including Internet marketing, Internet marketing,
network marketing, etc. Said will have the same meaning of these words, that is, network marketing
refers to the enterprises on the basis of network technology, the Internet as the media and means of
marketing activities. Generally, every Internet as the main means, to achieve certain marketing
objectives marketing activities, can be called network marketing. That is to say, the network marketing
enterprises to carry out online throughout the entire process, including the release information, gather
information, to carry out online trading of electronic commerce.
1.2 The network marketing different from online sales
Network marketing is the result of a network marketing development to a certain stage, the network
marketing is carried out in order to achieve the purpose of online sales and a basic activity, a single
network marketing itself is not equal to online sales.
Because of the effect of network marketing can be reflected in promoting the value of corporate brand,
strengthen the communication between the customer and, as a tool to release information, network
marketing is not must realize online direct sales, but is likely to increase sales. In addition, online sales
promotion means not just rely on the network marketing, often have many traditional ways.
1.3 Scope of network marketing is not only limited to on the Internet
The Internet itself is a new thing in our country, the proportion of the proportion of population using the
Internet is very small, for instant access to the Internet, because of the limitation of various factors to
find relevant information on the Internet through some way to retrieval of routine will not be able to find.
Therefore, a complete network marketing plan, in addition to the online promotion, also it is necessary
to use traditional marketing methods and offline promotion.
2 Vancl Company Introductions
Vancl, founder of the company by the original joyo founded in October 2007. Company since its
inception, the rapid development, electronic market brand influence in China, monthly profits for the
first time was in April 2008, with its rich product line and product upgrading, sales continued to rise, in
Sep., Oct. and Nov., 2008 three months are consistently profitable, monthly sales have reached 70
million, at the top of Jingdong mall, Amazon, Dangdang after ranks fourth. Its performance, for a
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company that just a year, has become a clothing industry network marketing a myth.
Vancl B2C network marketing model, stores, production factories and established distribution channels
has ceased to exist, only the telephone, Internet, and advertisements; Vancl is a living in the age of
electronic commerce “light”. Now Vancl of a series of men’s clothing as the core products, through the
modern electronic commerce mode and an innovative blend of traditional retail, with modern network
platform and call center as services core, with advanced direct marketing idea, with excellent way of
supply chain management and efficient distribution system, provide consumers with high quality
clothing products and service. Founded a year every guest received each big risk investment company’s
attention and favor, and get their joint capital. 5 years of establishment of the PPG, create a clothing
industry network marketing way, with only about two years to realize the industry leader, sold more
than traditional shirt young or not, Vancl, 07 continuously mimic the industry leader of PPG and
continuous innovation at the same time, with only five months, Vancl daily sales exceeded the PPG.
According to research consulting has just released the second quarter of 2008 China’s online shopping
market monitoring report research shows that: in the second quarter of 2008 large B2C market
adjustment, Vancl 5.1% of B2C industry market share, far more than the direct selling men’s wear
industry pioneer of PPG 2.0% market share, B2C direct selling apparel first.
3 Vancl Company Network Marketing Strategy Analysis
3.1 Vancl product strategy
Vancl of men’s clothing is not so bright, then they go on the processing and material reflects the trend
and quality can be a major player in the men’s wear. Consumers only need to spend mid-priced can
enjoy good quality clothing, giving the consumers’ mind injected frugality, the idea of environmental
protection, fashion.
For the last 7 years, the early use of “single short line” brand of product strategy, through the
development of a period of time, Vancl began to expand its own products, need to how to improve profit
effect, from the original single product, shirt as the main market, gradually to the development of
underwear, POLO shirts, and household goods and so on.
In the long-term development process, Vancl already is not just in the clothing for a single profit point,
through the expansion of the different products; Vancl category has a new breakthrough in the garment
industry.
Vancl, at the same time of breakthrough products category, has been shaping its own brand. Vancl name
first became one of the important factors that shape the brand, “where visitors” brings to the consumer
sincere first impression, let everybody can deeply remember the name, the concept of the meaning of
mortals are guest more let consumers had a more profound understanding of its services.
Therefore, Vancl by itself on the quality of the product line of product strategy let the customer firmly
remember the advocates of advocating simple and decent way of life.
3.2 Vancl pricing strategy
Vancl products prices for general man belongs to the medium price, in addition, it also has many sales
promotion. Shopping online for long, long time online shopping often can be found in the Vancl
network shopping some favorable activity, get some unexpected harvest.
Vancl under the basis of the guarantee of product quality, also by low price strategy to attract a large
number of consumers to enter, thanks in large part to help it improved the market share. Its overall
strategy is to occupy the market with low price strategy, although the price is low, through the sales
increase greatly improved his profits.
Vancl, on the basis of price advantage, also pays attention to user experience, through his humanized
web page Settings, bring different experience to the user. Such as, the “favourable activity” on the
navigation, can see inside the ongoing activities, in order to attract new people at the beginning of the
experience mode, to accumulate more popularity of Vancl. And through the promotion, let consumer to
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purchase products, it also helps Vancl make a lot of advantages in the market expansion.
3.3 Vancl advertising strategy
Vancl first made clear their target group: Internet users therefore did not have the traditional media
advertising, mainly through search engine marketing strategy, mainly including: SEO and PPC.
Vancl SEO by search engine optimization, website structure, content of ourselves and related external
links in a optimization, make more consumers favor with its own search engine, in order to gain the
advantage on the search engine, more have a certain position in the market.
PPC is refers to the purchase of the search results page advertising to achieve marketing purposes. Vancl
by launching its own advertising system, and in the major search engines do the brand keyword search
advertising, has boosted its advertising effect, make the customer conversion rate is higher.
In addition, Vancl on image speak, looking for some business star, industry leaders, IT elite and some
other social celebrities as Vancl clothing. It will be very well VACNL distinguish with other brands, do
different but also attract consumer attention.
4 Vancl Network Marketing Strategies of the Existing Problems and
Countermeasures
4.1 Vancl network marketing problems
4.1.1 Have a famous brand is not equal to the brand
Vancl after the brand, through advertising, price, channel, sales of more than the PPG network
construction, behind its rapid success, however, can see a mundane passenger eslite use a lot of money
to create a famous brand. And the brand is to point to in popularity through the basis of improve their
competitiveness, creativity, and meaning. Brand is just as increase awareness of the primary stage, and
the brand is a higher form. Vancl only call on famous brand, not a brand, mainly has the following
reasons:
(1) The lack of time to precipitate
Vancl depends on a lot of publicity, popularity is higher and higher, the final will be the myth of PPG
beyond just a year, but compared with many excellent companies such as IBM, its influence has no
brand effect, investigate its reason probably passenger eslite lack an awareness of the brand, the lack of
a time precipitation to the establishment of a brand, a lack of a long-term accumulation process of
enterprise culture construction to the company.
(2) Ignore branding marketing strategy
Internet advertising can indeed Vancl driving a lot of market demand. Vancl, however, the marketing
strategy, they only think just from low-cost way to get the customer’s trust and recognition, too much in
the advertisement emphasizes the idea of low prices. Then ignores its own brand shaping. When Vancl
such low trust in the customer’s purchase many times after the excitement into exhaustion, then perhaps
Vancl market demand will be a big impact.
4.1.2 Industrial chain integration is weak
(1) Upper clothing supplier integration, clothing quality and speed of supply the lack of security
Vancl adopts the network marketing mode, does not have its own processing plant, does not have its
own entity sales channels, and are outsourcing their products to other companies. This makes Vancl
development faster, then when faced with a large number of market demand, Vancl need to make a lot
of products, probably in a short time not guaranteed product quality or delivery time not guaranteed, this
makes the supply greatly affected.
In addition, the diversified development of Vancl makes the diversification of its products, the types of
clothing are continually increased, the upper garment quality supervision also caused great difficulties,
not only that needs to be made within the prescribed time a large number of orders, cause the quality
cannot be guaranteed.
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(2) The lack of downstream of the third party logistics integration, the imperfection of the distribution
services
Vancl is a team does not have Distribution Company, its product distribution are solely responsible for
by the third party logistics company. Customers in apparel online purchase via the Internet or phone
order, to the goods delivery to this process, customers are enjoying the service. So the third party
logistics company staff quality to become the consumer to the proposition that passenger eslite too for a
measure of the service. Personnel quality, service, delivery timeliness constitutes the influence
consumer the decisive factor for the Vancl satisfaction. Logistics distribution system brought
inconvenience to consumers, for the company’s image, reputation and brand image caused a certain
influence.
In conclusion, it seems, from raw material suppliers, clothing processors, shopping sites and logistics
distribution business constitutes the Chinese B2C marketing clothing industry chain structure. In this
industry chain, Vancl is only responsible for the duties of managing the site, the link of other all cannot
by Vancl is responsible for the control and management. So in this a monitoring coordination
management process, Vancl will appear the upstream supply shortages or poor quality, the downstream
logistics distribution is not timely, service attitude is bad all sorts of problems, this is bound to affect
consumers’ purchasing psychology and affect the company’s image.
4.2 Vancl network marketing countermeasures of the problem
4.2.1 Increasing brand management
Vancl through a lot of advertising and product sell way to attract a large number of consumers, as a
result, customers will have to buy impulsively not long to attract consumers. So only change this kind of
marketing strategy, through to build their own image, rich cultural connotation, attract customers on
spiritual level is the enterprise sustainable development. Vancl allows the origin of the name give every
customer a spiritual impulse, make every customer feel the enterprise culture connotation, trigger a
desire, facilitate the operation, purchase and use of mental enjoyment.
4.2.2 To strengthen the industrial chain integration
Vancl in the process of development, must pay attention to collect information of each department,
through the analysis of information, to a more ready to market analysis, forecast in advance to the next
cycle of market demand, and arrange the production scale, and market forecast cannot be limited and the
number of consumers, must consider the problem of every link, only accurate predictions, the industrial
chain risk.
5 Summarizes
In short, Network Marketing is the key of the success to Vancl in broad market demand, after the first
imitate innovation product positioning, effective network marketing strategy. Of course, Vancl should
also pay attention to brand building, further enhance the independent innovation products. So, in the
fierce competition of the network environment cannot be easily surpassing rivals.
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