What is PPG mode? Please make a brief analysis with Dell's direct selling model.

The core business model of PPG is the innovative integration of modern e-commerce model and traditional retail industry. The marketing model of PPG is the integration and re-innovation of various marketing models. PPG innovatively integrates the modern network e-commerce mode with the traditional retail industry, so as to be different from the traditional channel distribution mode, adopt a more optimized direct selling mode, supplemented by an excellent supply chain management system, and present a brand-new and efficient management mode under the unified brand strategic management concept. The core business model of PPG is the innovative integration of modern e-commerce model and traditional retail industry. In September, 2007, at the Best Business Model China Summit of Business Forum, Ji Clothing (Shanghai) Co., Ltd. was recognized as the third runner-up of the best business model of the year. The classic award-winning comment given to PPG by the conference is the "server" clothing company model. The reason for winning the award is that PPG, which focuses on men's shirts, is called a server company, relying on the website, not an internet company. Without factories and stores, PPG's ultra-low sales cost has launched a subversive impact on the industry. Structurally, the core of PPG model lies in production, sales and supply chain management. Both come from different "prototypes": the former is Dell, a computer manufacturer known for its direct selling; The latter is Hongfeng Group, which is famous for its "supply chain management". From the production mode, PPG's business model is similar to Dell's direct sales model. Dell's philosophy is to manufacture computers according to customers' requirements and deliver them directly to customers, eliminating the intermediate logistics links. The business model of PPG is similar: the PPG brand men's wear is delivered to seven cooperative enterprises located in the Yangtze River Delta region for OEM production, and PPG is responsible for product quality management, and then the products are delivered directly to consumers through online direct sales and call centers without stores, instead of traditional retail channels. The core of this production mode is to improve production efficiency and market reaction speed by shortening the "production chain" between producers and consumers. After years of development, Dell has also formed a set of mature management mode with efficiency as the goal, which makes it difficult for other imitators to cross this "management threshold" and often offsets the benefits brought by shortening the production chain due to the sharp increase in management costs. For Li & Fung Group, which has transformed from an export trader to a "global supply chain manager", the profit base of the enterprise is in the process of commodity circulation, and its supply chain management is essentially the management of information and relations. Different from the "efficiency first" management mode of manufacturing enterprises, Li & Fung Group is actually a "resource allocation" enterprise: its core competitiveness is to have rich experience in seeking various products for various retailers, and to formulate the best resource combination according to the specific situation of customers to meet their needs. In this sense, Li & Fung sells not products, but value-added services of the "supply chain" itself. After entering the era of e-commerce, traditional manufacturing enterprises often choose "dell model", such as Youngor (28.29, -0.88, -3.02%) and Birdie who announced good news. E-commerce enterprises based on network platform tend to "supply chain management" mode, such as Dangdang and Alibaba. In a sense, the clothing company PPG, known as the "server", tries to integrate these two modes: on the one hand, it adopts "dell model" in production management to improve efficiency; On the other hand, implement brand-centered "supply chain management" to find the "best resource combination" between customer base and production enterprises. But for competitors in different fields, this bat-style compromise choice also allows them to see opportunities: for online retail enterprises close to "department stores", they have obvious advantages over PPG, which only sells men's shirts, in terms of the breadth of resource allocation and the efficiency of network management; For traditional manufacturing enterprises, "Dell Production" is also easier to implement in their own enterprises. However, this does not mean that PPG itself has no advantages. Choosing "brand" as a breakthrough and combining "Dell-style production" with "Mo Lifeng-style sales" have not really appeared. As a pioneer, with the support of venture capital, PPG seems more likely to create its own "PPG model" in this respect. Compared with the "lightness" of supply chain and channels, PPG spends a lot of money on brand promotion. In just over a year, PPG has been known by consumers and covered by newspapers, direct mail magazines, television, websites, outdoor media and other forms of advertisements. In addition, it also has a unique way of promotion: all kinds of websites can join PPG, paste the advertising banner of PPG, and you can check the traffic brought to PPG at any time through your account and password. As long as the products are ordered, PPG will return 5% of the sales to the franchisees. It is estimated that the monthly publicity expenses of PPG should be around10 million yuan. A venture capitalist who pays attention to it says that the annual publicity expenses of PPG account for more than 50% of the total cost. Although the industry has different views on the model of PPG, its concept still attracts the attention of venture capitalists. Li Yongjin, its chief operating officer, was the first investor of PPG, when he was the director of Jifu Asia. He chose PPG for three reasons: first, the business model is good; Second, the market is large enough; Third, the management team is very capable. These three points are also the core competitiveness of PPG.