PPG pattern Yes or No?determine PPG to success, attitude is the founder Liang Wen | staff reporter Zhang Kaifeng early 2007, when the rise of the PPG, it seems nothing can stop the pace of the name of an outsider in the apparel industry forward. Liang waving 'IT' and 'capital' Liangbing razor. Many people believe that he will soon get through NASDAQ Flights to Cotai Strip, e-commerce will create a myth in the garment industry. Suddenly, the warrior's footsteps grew heavy. He no longer indomitable. He was unable to respond to the exposure of vulnerabilities and doubts. People worried about whether he will this disappeared. PPG's business model is not complicated. It no factories, no distribution channels, there is no shop, eliminating the need for most of the traditional garment enterprises fixed assets investment, the production, logistics, quality control and other aspects of all outsourcing, to manage supply chains and call centers, consumers through advertising and mailing list to get product information, order clothing via the Internet or call centers. In theory, a PPG shirt will go through this production process: first-line plant buy line, find cloth factory cloth, let the garment processing enterprises with whom OEM cooperation, after order by phone, online sales the way the clothes sold. The inventors of this model, the founder of Liang PPG has a dazzling resume. He lives in the United States, to study for many years, have had successful experience of Internet entrepreneurs, MBA origin, also worked in a mail-order business of any of the world's leading executives. PPG is no doubt that a lot of these people in the eyes of the investment plus points. However, from the end of 2007 so far, a wonderful model and extensive overseas experience has around it does not contribute to PPG answer several question:? What is a company do care about the quality of PPG's products continue to be exposed rough, easy to shrink, Returns not as good as promised Nike Air Foamposite One readily. 2. This is a great importance to the integrity of the company do? PPG arrears Jiangsu Haw Par Group, Guangzhou excellent weaving payment arrears Shanghai Tang Kuang depending on God and Shanghai, PVI and a number of advertising companies advertising money to court. 3. This is a financially healthy company do? PPG claimed 2007 sales expected to reach 10 billion yuan, but there are a number of market sources, PPG actual sales of less than half the publicity, and even the loss of a company. Representatives of the traditional garment enterprises is often used to compare PPG mode. Younger has 28 years of history, has an area of 700 acres in the Ningbo plant, involved in all aspects including cotton planting, spinning, weaving, designing, manufacturing, marketing and other channels. PPG then saved a lot of intermediate links, claiming the product inventory cycle can be shortened from the industry average of 60-90 days for 7-10 days, the price half cheaper than the traditional garment enterprises, and higher profits. In mid-2007, he was open to the media, said PPG's core competence is to solve the inventory problem, 'Today a traditional garment industry needs at least 90 days of inventory, which is the reason they can not make money. By the end of 2007, PPG basically no inventory, we will do it for real back-end production. 'But this statement Liang PPG's actual performance was overthrown. December 26, 2007, PPG suddenly opened website PPGsale.cn, be sold Nike Kobe 9 EM at a discount in the stock, the price is higher than the 99 yuan a number of products are sold at a minimum price of 29 yuan. PPG's 'seven days inventory', 'zero inventory' this profiling, voices of doubt everywhere, the site was shut down soon. 'The so-called seven days, 10 days, 14 days of inventory cycle does not exist now, the garment industry product cycles are 45 days -60 days, and must give 60 days to the factory orders.' A B2C veteran said. He further tells us to shorten product cycles tricks he knew. Clothing industry indeed some can reduce the period to 10 days, 14 days of practice. At present, China has a large number of garment factories, their maximum profit does not come from the clothing processing fees, but from large OEM customers save fabric. When Nike Hyperdunk 2013 the PPG proposes to get the product in about 10 days, the only way is to dispense with the previous inspection of raw materials, purchasing, directly to get the fabric from the garment factory for the production, and Nike Kobe 8 System MC in this way it is difficult to ensure product quality and consistency because the product has been part of the fabric of a problem. 'B2C is the core of the problem three: product, service and marketing, of which the most important product, it relates to the paste of customers and business, the Nike Air Jordan 8 customer is willing to do the second purchase and product quality and the level of margin depends. enterprise supply chain management and process control capabilities. 'The B2C veteran said. PPG declared sales in 2007 was 10 times in 2006, the highest single-day sales of the shirt of 10,000 or so, and the country has more than 1,500 points of sale Youngor shirt sales in a single day, only 13,000. With the surge in sales of products, PPG to maintain consistency of product quality, the inevitable need and Younger, Shandong Lutai fabric and other large domestic enterprises to strategic cooperation. But informed sources, Lutai PPG did indeed buy the product, and to study its model, the Kevin Garnett Shoes end result of PPG too low-end product positioning, to dispel the idea work with. In addition to the lack of a veil, fabric and other raw materials control, PPG's product cycle is also subject to restrictions factory production capacity. 'A rule of outsourcing is that each Nike Air Jordan 7 foundry will only put their capacity 1/4 points to a customer, and from the development of a new foundry to negotiate procurement, production line testing, product testing, this cycle is difficult and the pace of development of Internet companies to match the supply Nike Air Max chain is very prone to problems. 'Li Ning is providing e-commerce services to online companies Continental CEO Liang Kay,' said Entrepreneur 'magazine. PPG to quality control is outsourced to a third party - quality monitoring company SGS-CSTC, and in-house quality control personnel organized jointly with the SGS-CSTC all stages of the production process Air Jordan Women checks to ensure product quality. However, in July 2007, PPG product is exposed rough, faded seriously; early in 2008, PPG has been discovered in arrears Guangdong, Jiangsu Haw Par Excellence woven clothing and money, because the former provides the wrong size products, formaldehyde, after shirts produced by serious shrink, fade. Its ability to manage and control the supply chain process can be seen here. In the mouth Liang, PPG's product cycle from the initial seven days continuously extended to 10 days, 14 days, or even longer, but the obvious was 34 years old, he is a man the pursuit of speed. The rear end of the PPG, he was 'trying' to shorten the supply chain cycle; at the front, he hopes through the explosive to quickly pulled ad sales. A long-term concern PPG grow and do a person related data collected indicated that by 2007, PPG advertising is indeed the key to open up the situation effectively.年 2006, PPG's advertising strategy carefully, functioning fine, put is entirely in their own hands, and are concentrated in the 'Youth Daily', 'Metro style' and other local urban Shanghai, consumer media. Readers of these media in line with PPG's target customers, customer conversion rate is higher, the effect is very good. April 2007, KPCB has invested in Google's joint TDF, JAFCO Asia, $ 50 million investment to PPG. In this case, the presence of a legend Liang has never recognized the gambling agreement emerged: Annual 2007 PPG to complete the sales of 700 million yuan, otherwise, may affect the funds into the follow-up, or both will redefine the shares. Liang and KPCB has publicly denied the existence of gambling agreement. But the fact is that in 2007, PPG has changed in the past careful, cautious style of operation, beginning in the newspaper, magazines, television, Internet, outdoor media and other media put huge advertising. Data show that in May 2007 PPG on media advertising costs nearly 10 million yuan, much higher than the average for the previous 3 million yuan / month. Informed sources, initially, PPG in the 'Youth Daily' invested 10,000 yuan, the sales amount increased to 15,000 yuan; in the 'Metro style' put 9000 yuan on advertising, to bring 18,000 yuan in sales. 'But not conclude that, Nike Air Jordan 5 Women ad delivery and sales volumes increasing Cheap Nike Free Outlet amount proportional to that investment 100 million yuan advertising is bound to bring 180 million yuan in sales.' The person said. Data show that in March 2007, PPG's advertising costs 12 million yuan, 15 million yuan in sales; in May, market promotion costs 28 million yuan, 24 million yuan in sales. Year 2007, PPG's ad spending up to 230 million yuan, while its real sales has never officially announced. A person in close contact with the inside of PPG, said in November 2006, PPG's monthly sales reached 10 million yuan. In the past year, PPG monthly sales up to more than 3 million yuan. When PPG internally generated 2007 sales target of 7 million, has not the annual growth of monthly growth, but growth of 10% according to calculations week. Informed sources estimate PPG2007年销售额不会超过 300 million yuan, and may be one in a serious loss of business. An interesting phenomenon is that when faced with broken foam PPG danger, the market is surging as the emergence of more than 30 and the PPG has a similar mode of followers, such as network optimization shirt, VANCL, CARRIS and Nike Air LeBron EE so on. Interview with our e-commerce and the traditional garment industry sources have said:. 'PPG mode is not much problem, but they can not stand too hasty management time costs that must be paid in this industry, would like to use some of the short-term behavior quickly pulled sales and eventually themselves the aftermath of these practices. 'Pursuit Liang according to published statement, Liang was born in Shanghai in 1974, in American life since high school, graduated from New York University and worked in the United States mail and network marketing clothing company Lands`End work, the top job as vice president of Asia Air Jordan Outlet Purchasing Department. In 1999 during the height of the Internet, Softbank Masayoshi Son Liang $ 1,000,000 in venture capital, opened a wedding supplies website, and in March 2000 to $ 160 million in the site for sale at high prices. Liang profit $ 60 million, then moved to California, to study MBA. October 24, 2005, to create a PPG in Shanghai. 'If you have a website in 2000 created a Chinese man sold $ 160 Nike LeBron ST II million, I do not think I do not know, who heard of this site?' Asked an Internet veteran. After twists and turns, we learned a dazzling resume and public access is not a small Liang Shanghai, a gift from the company's head office. Around 2000, the Liang worked with his father in a unique way in the gift business: the buyers to vendors under a single identity, and then to the small gifts to the identity of the wholesaler supplier to earn them the difference. At that time father and son had been in the name of 'American PPG company' on the deal between the upstream and downstream partners, involved gifts including mugs, bags and T-shirts. The mystery is that due to the small gifts to purchase too often not directly close manufacturing plants, while Liang is a collection of a number of gifts to the demand, once the next bigger orders. Liang from smaller scale under 'trial order' began, hoping to slowly expand. This way both ends of lack of control, available room for maneuver is very small, difficult to balance supply and demand, a slight mistake that could lead to funding strand breaks. In fact, since the capital chain tension, when the PPG does appear to supplier payment arrears situation. Since Nike Lebron 10(X) this business is not successful, PPG and Liang gradually fade out gift business circles. 'Seeing him again, is selling PPG shirt,' the gift company official said, 'It looks very successful. We feel very unexpected now and then to make a gift of PPG business is somewhat similar, but then a little empty glove White Wolf of meaning. 'Which is the real Liang? We have no further confirms channels. In response to a variety of questions when Liang said: 'We do not talk to each skeptics explain how we think.' He himself is the core competitiveness of PPG's competitors 'to beat PPG, unless a regeneration Liang.'