Dangdang two years invested $200 million hit clothing electricity supplier market


technology news July 18th morning news, Dangdang clothing category for new business growth, dangdang.com vice president Deng Yifei said today in an interview, given the hitherto unknown dangdang.com capital for the clothing category, smashed 200 million dollars this year in the clothing category, half of these costs from the books, half from clothing.

dangdang.com clothing began to attract attention, largely due to the tail collection of flash purchase of rage. In March last year, where the customer, Tmall, Jingdong and other electricity providers have launched flash sales channels, dangdang.com also launched on May 7th with vip.com. The tail collection of flash purchase.

data show that Dangdang clothing to more than 100% growth rate has been more than a quarter of the growth rate of more than six books, becoming the fastest growing category. Dangdang clothing business started in 2012 from 560 million to 2013 in 2 billion 700 million, an increase of nearly 5 times. Whether from sales growth, or yield, are far more than other platforms.

"we lost $200 million a year in the apparel category, half of the costs from books, and half from clothing." Dangdang vice president Deng Yifei said. When will the whole chain of clothing sales opened, through the tail collection of flash flash purchase + New + purchase clothing mall layout, new products, in season, Weihuo sales service.

and 3C digital and food and other electricity providers compared to the bulk of the apparel market, greater profit margins. According to the disclosure of the relevant corporate earnings data, 3C digital gross margin of only 3-5%, while the apparel gross margin of more than 25%. Tmall is currently the largest clothing business platform. The poop sale started vip.com sales in the past two years the scale and stock price soaring. Dangdang has also benefited from the positive layout of the clothing market, clothing has replaced books, become the target of high growth strategy is now the category.

successful apparel category dangdang.com is full of confidence, although some criticized that vip.com’s gross margin of 24.9%, dangdang.com only 18.2% gross margin, huge investment pulled dangdang.com gross margin, but dangdang.com vice president Deng Yifei do not think so.

if Dangdang only books, gross margin will be as high as vip.com. Clothing category is an important step in the successful transformation of Dangdang integrated shopping mall, so it is necessary to invest fully worthwhile." Deng Yifei said. (Lin Ming)

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