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On December 22, a report titled “VANCL Risk Accumulation Alleged: Channel Costs Exceed Those of Physical Stores†sparked discussions about the Chinese online clothing retailer VANCL (Fanke Eslite). In response, the company issued a statement emphasizing its commitment to cost-effectiveness as a core mission.
The article referenced earlier also touched on the recent closure of PPG, another e-commerce brand in the B2C apparel sector, which led to widespread speculation about the sustainability of similar models, including VANCL and other industry players.
In recent days, media reports suggested that VANCL was not working with top-tier garment manufacturers and questioned its ability to maintain quality while keeping costs low. However, VANCL addressed these concerns directly, stating that it has long maintained partnerships with renowned factories, focusing on producing high-quality products.
The company highlighted that its online model allows for direct factory-to-consumer sales, eliminating middlemen such as agents and distributors. This approach reduces overheads like rent and store decoration, enabling lower markup rates. VANCL emphasized that while it offers products at various price points, it never compromises on quality.
Additionally, VANCL clarified some misleading data from previous reports, explaining that gross margins mentioned were often misinterpreted. It pointed out that traditional retail channels typically involve higher costs, including store operations and staff expenses, which are not present in the online model.
VANCL also shared insights into its production strategy, noting that large-scale orders with key suppliers help reduce costs further. While some product categories may see slight price increases due to material or process changes, the company remains focused on delivering value without sacrificing quality.
In terms of customer experience, VANCL has introduced several services, such as cash-on-delivery, trial periods, and a 30-day return policy, all aimed at building trust and satisfaction. The brand views user experience as central to its success.
Finally, VANCL expressed gratitude for the attention it has received, acknowledging both the recognition and the pressure that comes with being a relatively new player in the market. Its mission remains clear: to provide Chinese consumers with affordable, stylish, and high-quality clothing.