You probably haven’t heard of Vancl, unless you follow the Chinese internet space closely. However, a clothing e-tailer called Vancl is an interesting?bellwether?for the space.
Vancl is – in some ways – trying to be the Gap (GPS) of China – except with no stores, just online only.
To grow their brand – like a lot of Chinese e-commerce players like Lashou, Jaiyun (DATE), and Dangdang (DANG) – Vancl is spending a bunch of their revenue coming in each month on marketing their site and for the back-end distribution to deliver their goods. ?They’re also living in the shadow of their e-commerce big brother: Jack Ma‘s Taobao and T-mall. ?Ma’s traffic is so much bigger that many merchants like Vancl – desperate for revenue, so they can keep spending on marketing – will gladly pay?usurious taxes to Ma for any additional sales his platform can bring them.
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