Skype Ad Vancl’s Multi-Faceted Attack: While many global retailers are speculating about the “cooling” or “hard landing” of the Chinese economy, one domestic online retailer is on the attack and is gaining market share quickly. Should international players have a higher sense of urgency?
Everywhere you look, bus stops, metro stops, TV and internet, one of China’s largest and most successful online retailers, Vancl, is executing a multi-faceted attack to capture more share of the Chinese apparel market and beyond. Although most Chinese companies admittedly lack in marketing savvy, Vancl has demonstrated a mastery of integrated marketing communications. With parallel objectives of raising awareness through brand building, as well as shaping brand attitude and facilitating a rise in purchase intention, the company has launched customized campaigns, which all work together to achieve higher market share.
Everywhere you look, bus stops, metro stops, TV and internet, one of China’s largest and most successful online retailers, Vancl, is executing a multi-faceted attack to capture more share of the Chinese apparel market and beyond. Although most Chinese companies admittedly lack in marketing savvy, Vancl has demonstrated a mastery of integrated marketing communications. With parallel objectives of raising awareness through brand building, as well as shaping brand attitude and facilitating a rise in purchase intention, the company has launched customized campaigns, which all work together to achieve higher market share.
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 Metro Ad |  Metro Ad |
The most important step the company took, however, was before they even thought of advertising. Prior to approaching their marketing communications strategy, Vancl carefully chose its target market segment – young and independent consumers who reject the ideas of carrying knock-off luxury products in a futile attempt to be perceived as part of the country’s rich elite. Contrary to one segment of Chinese marketplace that aspires to be perceived as luxurious and rich enough to own premium brands, Vancl’s target segment is comprised of the masses of Chinese who have little interest in paying extra for brands that might “enhance their status” in society. Rather, Vancl was astute in identifying an under-served segment that just wants simple modern style at low prices, no frills. This segment, filled with many of the country’s young, was a wise choice because of younger generations’ elevated usage the internet, even for common purchases like clothing.
Though there are many online retail sales portals for apparel in China, most have a poor sense of fashion and many of them are mistrusted due to poor quality of clothing, wrong sizes being sent to customers, poor customer service, non-existent return policies, as well as outright scams. Vancl knew that they could meet their segment’s demand for stylish and low cost clothing by leveraging e-commerce, but they also knew that the brand would have to overcome significant barriers to gain the trust of its segment.
Now comes the brilliance of their marketing communications strategy. First, the company hired well-known, young, and at times almost counter-culture figures, such as Han Han 韩寒, a famous young writer, Li Yuchun 李宇春, a singer famous for winning the equivalent of “Idol” in 2005, and Huang Xiao Ming 黃曉明, an actor popular with younger generations (shown below) to be their brand ambassadors. These young celebrities capture attention immediately, as they wear Vancl clothing in simple and crisp campaigns that raise brand awareness and mold its brand attitude. Second, Vancl puts promotion heavy ads on websites and online applications like Skype’s partner Tom.com (used primarily by young professionals) to facilitate more visits to the e-commerce platform. Third, in online ads, it includes a price for the clothing featured in the ad in order to convey the message that not only is it a quality apparel provider, but it’s cheap as well! Finally, delivering on the brand promise, the company launched its own distribution network which allows customers to try purchased items and return them absolutely free if any aspect did not meet expectations – the in-house delivery person would simply return to the buyer's residence, pick up the products, and a refund would be issued.
Seeing examples of Chinese e-commerce companies employing marketing fundamentals as well as Vancl, while also supporting them with supply chain efficiencies and sound customer relationship management brings about the question, “Is it too late for global retailers to catch up?” Vancl has found its sense of urgency and is investing heavily amidst speculation that the Chinese economy might fall on hard times. But guess what, Vancl has emerged as a leader in a mid-margin, high volume, low overhead sector that will endure any movement the economy takes. Vancl is here to stay. So, the question becomes, “When will fashion retailers who have overlapping target customers begin to realize that they’re being left behind in the Chinese market?” The likes of H&M, Forever 21, GAP Inc. and others may wish they would have focused more on online instead of sitting on the sidelines.
Though there are many online retail sales portals for apparel in China, most have a poor sense of fashion and many of them are mistrusted due to poor quality of clothing, wrong sizes being sent to customers, poor customer service, non-existent return policies, as well as outright scams. Vancl knew that they could meet their segment’s demand for stylish and low cost clothing by leveraging e-commerce, but they also knew that the brand would have to overcome significant barriers to gain the trust of its segment.
Now comes the brilliance of their marketing communications strategy. First, the company hired well-known, young, and at times almost counter-culture figures, such as Han Han 韩寒, a famous young writer, Li Yuchun 李宇春, a singer famous for winning the equivalent of “Idol” in 2005, and Huang Xiao Ming 黃曉明, an actor popular with younger generations (shown below) to be their brand ambassadors. These young celebrities capture attention immediately, as they wear Vancl clothing in simple and crisp campaigns that raise brand awareness and mold its brand attitude. Second, Vancl puts promotion heavy ads on websites and online applications like Skype’s partner Tom.com (used primarily by young professionals) to facilitate more visits to the e-commerce platform. Third, in online ads, it includes a price for the clothing featured in the ad in order to convey the message that not only is it a quality apparel provider, but it’s cheap as well! Finally, delivering on the brand promise, the company launched its own distribution network which allows customers to try purchased items and return them absolutely free if any aspect did not meet expectations – the in-house delivery person would simply return to the buyer's residence, pick up the products, and a refund would be issued.
Seeing examples of Chinese e-commerce companies employing marketing fundamentals as well as Vancl, while also supporting them with supply chain efficiencies and sound customer relationship management brings about the question, “Is it too late for global retailers to catch up?” Vancl has found its sense of urgency and is investing heavily amidst speculation that the Chinese economy might fall on hard times. But guess what, Vancl has emerged as a leader in a mid-margin, high volume, low overhead sector that will endure any movement the economy takes. Vancl is here to stay. So, the question becomes, “When will fashion retailers who have overlapping target customers begin to realize that they’re being left behind in the Chinese market?” The likes of H&M, Forever 21, GAP Inc. and others may wish they would have focused more on online instead of sitting on the sidelines.
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