From PPG to Vancl: Business Model Evolution of Online Apparel Retailing

Case Solution

Xiaobo Wu, Xubo Bai
Ivey Publishing ()

“In October 2005, PPG launched a new model for online clothing retailing in China. PPG’s new business model, targeting low-end menswear, was initially due to its responsive supply chain, channel easier distribution and established brand through costly advertising very successful. However, the underlying limitations of PPG’s business model ultimately led to its failure. Followers learned from both success and failure of PPG. VANCL best practices provided a good example of business model development, VANCL industry became the new market leader in online retail. To illustrate the changing characteristics of the apparel retail business model, this case describes a successive two-step story in which each company made improvements based on different predecessors. ”

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