Retailing & Franchising Case

1. From PPG to Vancl: Business Model
Evolution of Online Apparel Retailing
Group 5
A Presentation for the course of Retailing and Franchising

2. Case Overview
2
11/16/2019
ADD A FOOTER
PPG and VANCL
The Innovator and The Follower
Business Model –
Light Asset Company – Outsourced Production – Reliance on
powerful IT Systems – Responsive Supply Chain
Differentiation factors –
1) Supply Chain Management
2) Customer Experience
3) Marketing (Traditional vs Online)

3. What were the main differences
between PPGs business model
and those traditionally
employed in the apparel
industry? Why did these
differences allow PPG to
achieve initial success?

4.  Reach
 Product range
 Advertising
 Low capital leading to high margin
 Low inventory
 Door-step delivery
 Opened doors for new trends
 Web traffic analysis
4

5. Which value chain link did PPG
neglect or make mistakes in
while making improvements to
the traditional business model
of apparel industry? Why did
these mistakes cause trouble
for PPG?

6.  Heavy investments in advertising and
promotions
 Quality check was neglected due to high
demand
 No tangible elements in the value chain
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7. Which value chain link did
VANCL make improvements in
based on the performance of
PPGs business model? How
did these improvements
enable VANCL to surpass PPG?

8. Advertising
Tangible elements
Customer service
Reverse logistics
Quality control
Own logistics for faster delivery
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9. In the context of increasing
number of followers and imitators
which value chain link should
Vancl make improvements so as to
achieve a balance between virtual
and physical operation and
maintain sustainable
development?

10. Physical:
 Improving reverse logistics
 Maintain location database
 Flexible delivery timings
Virtual:
 Personalized recommendations
 Vote for design
 Stock Clearance Sale
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11. Sustainable
Development
 Maintain Quality Control Checks
 Focus on improving customer experience
 Customer Loyalty Program
 Expanding their own logistics company
 Regular Feedback
 To invest in R&D
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12. Thank you!
Abu Taher – 18PGPM064 | Abhijit Sahoo – 18PGPM061 | Atul Saxena – 18PGPM078
Srikanth BV – 18PGPM051 | B Sai Sasank – 18PGPM104 | Shreeya Singh – 18PGPM047