Vancl.com, one of the largest own-branded apparel e-commerce websites in China, has announced that its sales in 2010 will reach CNY2 billion, a year-on-year increase of 300%.
According to Chen Nian, chief executive officer of Vancl.com, the company needs to maintain some losses, so it is currently unacceptable to make profit. Chen said that Vancl.com has made losses for three years, and it will maintain this situation next year to accelerate its expansion.
Chen revealed that Vancl.com focused on the Beijing market in the first three years of its expansion, but the company will greatly expand markets outside Beijing in 2011. It plans to expand its warehouse in Shanghai from 30,000 square meters to 100,000 square meters. Therefore, Vancl.com will not consider making profit in 2011, either.
Vancl.com started as an Internet shirts retailer and it began to expand product lines in 2009. The website now has 20,000 products of six categories, including men's apparel, women's apparel, children's apparel, accessories, shoes, and home textiles. Chen said that the website may be established as a fashion lifestyle platform in the future.