Huge Potential Enjoyed by China's B2C Clothing Industry Seen as Key to Company's Growth

BEIJING, Sept. 28 /PRNewswire-Asia/ -- According to the latest "Research Report (2009-2010) on Online Clothes Shopping in China," released in Beijing on Sept. 27 by iResearch, an authority in China for Internet research and consulting, China's online clothes shopping market is expected to achieve trading of RMB30.87 billion, up 81.5% year on year. Of all self-operating B2C clothing websites, VANCL.com ranks first with 28.4% market share, becoming the leader in China's B2C clothing industry, and only two years after its founding.

From 2007 to 2008, China's e-commerce clothing industry witnessed an explosive growth whereby clothing and accessories became a key focus of online shopping, with trading volumes ranking the first of all kinds of commodities. According to the statistics of iResearch, online clothes shopping currently accounts for 12.8% of the total online shopping volume, of which, the B2C clothing trading volume is about RMB2.4 billion in 2009, up 99.8% year on year.

VANCL.com ranks the first of all direct-marketing B2C clothing websites with 28.4% market share. Offering women's dresses, canvas shoes, jeans as well as other high quality goods at reasonable prices, the company has provided many bargain products to Chinese netizens, causing a great sensation in China's clothing industry in 2009. As a result, it quickly became a symbol for online fashion with Chinese netizens. Thus far, the product lines of VANCL.COM include men's wear, women's wear, shoes, accessories, and home furnishings. In the List of "Future Stars -- Top 21 Emerging Enterprises with the Most Potential for Growth," selected by the magazine 'China Entrepreneur' in 2009, VANCL.COM ranks first in terms of its average annual growth of 1475.48%.

VANCL.com's rapid rise has drawn extensive attention from both the media and the public. Founded by Chen Nian, who also founded of Joyo, and funded by top international VC companies, VANCL.COM is mainly operated by the core team of Joyo. The company realizes cost effective operations by selling clothes on the internet.

VANCL.com's founder and CEO, Chen Nian, also founded Joyo, China's oldest e-commerce businesses. In Sept. 2004, Amazon acquired it at a cost of USD75 million. Joyo was then renamed Joyo Amazon and has become one of China's most well known B2C websites. Most of the management of VANCL.COM are from Joyo, boasting rich practical experience in online marketing. Also, VANCL.COM has quickly made itself a familiar name to netizens in China under a special marketing model utilizing plentiful online advertisements.

It is known that VANCL.com, founded on Oct. 18, 2007, has achieved annual turnover surging from RMB1.12 million in 2007 to RMB300 million in 2008, and is expected to realize a 100% increase in 2009. With 20,000 orders completed and about 50,000 garments sold every day, VANCL.com's fast growth has won the favor of many investors, including SAIF, IDG, CEYUAN VENTURES, Qiming Venture Partners and other well-known, international venture capital companies. They have made three rounds of investment in VANCL.com, totalling tens of millions of dollars. According to the data of iResearch, there are about 80 million (estimated for 2009) online clothing shoppers in China. Because there are 338 million netizens in China (as of the first half year of 2009) and clothing is one of the most basic consumer goods, the potential consumer base is enormous. As predicted by IResearch, the trading volume of online clothes shopping may account for 9.7% of total clothing retail in 2009, and near 17% with sales over RMB80 billion in 2012.

    Background information:
    http://www.vancl.com/news/0909271510.htm

About VANCL.com

VANCL.com was founded in October 2007, and is led by its founder & CEO, Chen Nian (founder and former executive vice president of Joyo Amazon). In October 2007, VANCL.COM was set up and earned its first venture capital investment. In December 2007, the Company received its second venture capital investment, followed by a third in June 2008. Company sales in December 2008 reached about RMB300 million (including both online and offline channels), becoming China's first B2C brand for men's clothes. In June 2009, the Company entered the women's clothing industry and in August this year it also started to market footwear products, continually expanding its product lines.

Currently, the company has more than 800 employees, and sales are expected to reach RMB600 million in 2009, with an average consumption of RMB240 per customer.

    For more information, please visit http://www.vancl.com .

    For more further information, please contact:

    VANCL (Beijing) Technology Co., Ltd.
    Brand Management Division (PR)
     Xu Xiaohui
     Tel:   +86-10-8381-5061
     Fax:   +86-10-8360-7699
     Email: xuxiaohui@vancl.cn
     MSN:   xuxiaohui2008@gmail.com

     Jack Lee
     Tel:   +86-10-8381-5039
     Fax:   +86-10-8360-7699
     Email: lijianxiong@vancl.cn
     MSN:   lijianxiong1314@yahoo.com.cn

SOURCE VANCL Chengpin (Beijing) Technology Co., Ltd.

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