Case Name :      From PPG to Vancl: Business Model Evolution of Online Apparel Retailing

Authors :           Xiaobo Wu, Xubo Bai

Source :             Ivey Publishing

Case ID :            W11172

Discipline :        General Management

Case Length :    14 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

“In October 2005, PPG pioneered a new model for online apparel retailing in China. Targeting low-end men’s apparel, PPG’s new business model met with great initial success due to its responsive supply chain, lighter distribution channel, and the brand established by costly advertising. However, underlying limitations of PPG’s business model led to its eventual failure. Followers learned from both PPG’s success and failure. The best practices of VANCL provided a good example of the evolution of a business model, which made VANCL the new leader in the online retail industry. To show the evolving characteristics of the apparel retailing business model, this case describes a successive two-stage story, in which each company made improvements based on other forerunners.”