One of China's largest online book sellers has surrendered its plans to launch its own branded clothing line.
Li Guoqing, chief executive officer of Dangdang.com, revealed during a media communications meeting that the company has suspended its own brand apparel plans and instead the products sold in their online apparel channel will be all from third-party vendors.
Dangdang.com launched its own brand in May 2012 with products covering basic apparel products and home supplies. However, in the second half of 2012, the company stopped the design and manufacturing of its own branded apparel, and now it has formerly stated it will cease selling the goods. The company said it is still too early to launch its own branded apparel.
Meanwhile, Dangdang.com adjusted the positioning of its apparel channel. When its own brand apparel was launched, the company said the brand was to be positioned as a medium- and low-end brand. However, with this latest termination of its plans, the company's apparel channel will focus on the medium- and high-end market in the future and the number of vendors will be limited to 3,000. After the adjustment, Dangdang.com's own brand will only cover home supplies and cosmetics products.
Li revealed that for 2013, Dangdang.com aims at apparel sales of CNY3 billion; and the goal will be raised to CNY6 billion within five years. After achieving that goal, they plan to introduce independent designers to their online retail mix.
According to the company, they plan to turn their existing white collar users, who are loyal buyers of books on the website, into buyers of apparel. At present, only 20% active users who previous bought books purchased apparel from this website, and the company aims to raise the ratio to 50%.