Disruptors
Those who traverse cycles understand the weight of time.
Chen Nian
“You are not afraid of failure when starting a business, but you are afraid of not starting again.”
1. The rise of Fanke: igniting the Internet clothing revolution with minimalist products
Chen Nian
Asia Cover Man · Business Rebel | Chen Nian: From a valuation of 3 billion to a debt of 1.9 billion, it took ten years to repay the debt and restart Fanke’s faith
Asia's "Cover Character" Business Rebel
Total Issue 010-ACF-NXZ-2026
He once set off the Internet with a 99 yuan shirt and created the legend of a national clothing brand; he also once got lost in the expansion and plunged the company into an abyss of debt. This entrepreneur is Chen Nian, the founder of Vancl Eslite. In a desperate situation, he refused to escape bankruptcy and shouldered a huge debt of 1.9 billion with personal responsibility. He spent ten years to pay off the debt, return to products, and restart the brand. Finally, he led Vanke back to the field of vision in the era of live broadcast e-commerce and wrote a business retrograde about responsibility and rebirth.
1. The rise of Fanke: igniting the Internet clothing revolution with minimalist products
On October 18, 2007, Chen Nian officially founded Vancl Eslite. At that time, the domestic clothing industry had lengthy channels, high markups, and rough user experience, and e-commerce clothing was still in its infancy. Chenniang breaks away from the traditional model and uses 99 yuan free shipping shirts as a breakthrough item. It uses standardized, cost-effective and lightweight operation ideas to quickly break through the market pain points, allowing ordinary consumers to buy basic clothing with decent styles and stable quality at an affordable price.
Vanke did not follow the offline asset-heavy route. Instead, it relied on Internet channels to reach users directly, combined with efficient logistics and improved after-sales, and quickly accumulated a large number of loyal users. What really made Fanke break out of the circle was the "Fanke object" phenomenon that swept the entire Internet in 2010. Relying on the personalized copywriting of Han Han and Wang Luodan’s endorsement posters, combined with spontaneous secondary creations by netizens, Fanobject quickly fermented on social platforms and became the Internet memory of a generation. This low-cost but highly penetrating communication has upgraded Fanke from an e-commerce brand to a cultural symbol recognized by young people.
At its peak, Vanke's annual sales exceeded 2 billion yuan, its valuation soared to US$3 billion, and its employee base expanded to 5,000, becoming the undisputed benchmark in China's Internet clothing field. Under the dual pursuit of capital and market, Vancl is regarded as the brand most likely to grow into "China's Uniqlo". Everyone believes that it will continue to make rapid progress and move towards a larger business territory. However, under rapid growth, impetuosity and ambition quietly breed, and the brand is deviating from its core product foundation.
2. Peak puzzle: Under the massive carnival, the brand foundation collapsed
In 2011, driven by capital and scale anxiety, Chen Nian made a decision that would affect Vanke's direction for several years: to significantly increase the annual sales target from 4 billion yuan to 10 billion yuan. Driven by unrealistic goals, Vanke embarked on a reckless and radical expansion. The brand has completely deviated from its main business of clothing and wildly expanded its categories, extending from core basic items such as shirts, T-shirts, and pants to almost all categories such as home furnishing, digital, daily chemicals, and food. The number of SKUs once exceeded 190,000.
What appears to be a comprehensive layout actually severely disperses resources and greatly overdraws supply chain capabilities and operational efficiency. Vanke gradually gave up the control of product quality, fabric research and development, and process details, and instead pursued the speed of new innovation and the number of categories; it emphasized marketing over products, emphasis on scale over efficiency, and emphasis on expansion over risks. That year, Vanke's actual revenue was only 3.2 billion yuan, with a loss of nearly 600 million yuan. The inventory backlog was as high as 1.445 billion yuan. The capital chain was tight, user reputation declined, channel pressure increased sharply, and all hidden dangers were concentrated.
The laws of the business world are never merciful: scale without product support, expansion without efficiency support, and growth without bottom line constraints will eventually end in collapse. In 2013, Vancl's crisis broke out: the capital chain was completely broken, suppliers were owed money, the accumulated cash debt reached 1.9 billion yuan, and the inventory backlog was nearly 3 billion yuan. The listing plan that had been prepared for many years was terminated, and the market share plummeted to 0.2%.
For a time, suppliers came to collect debts, core teams were lost in large numbers, and industry public opinion was negative. The once glorious e-commerce legend was on the verge of life and death. When everyone suggested bankruptcy and liquidation, Chen Nian made the most difficult and dignified choice: not to go bankrupt, not to blame, not to escape, but to sign an unlimited liability guarantee in his own name, shoulder all the 1.9 billion debt alone, and bear all the consequences of his decision-making mistakes.
3. Pay off debts in ten years: take responsibility as a child and keep your original intention in the trough
After falling from the peak to the bottom, Chen Nian did not indulge in frustration and complaints, but started a ten-year road of debt repayment and self-rescue in the simplest and most determined way. Since 2014, he has promoted Fanke to survive despite severe circumstances: massively streamlining the team, gradually reducing it from 5,000 people to 300 people, with only 4 people left in the core team during the most difficult period; cutting off all non-core categories, streamlining 190,000 SKUs to 300, and completely returning to the main business of basic clothing such as shirts, T-shirts, and POLO shirts.
He quit all the hustle and bustle of marketing and social occasions, went into factories, fabric markets, and production lines with a calm mind, re-researched fabrics, patterns, stitching, and craftsmanship, and put all his energy back into the products themselves. The white shirt has become the symbol of Vanke's restart. From yarn selection to pattern modification, from wearing experience to detail polishing, Chen Nian personally participates in every link and uses extreme concentration to win back the trust of users.
During the ten years of debt repayment, he refused to take any shortcuts, did not transfer risks through debt restructuring, did not rely on new financing to cover up old accounts, and insisted on using the meager profits generated from operations to repay the debts year by year. With no capital support, no traffic halo, and no outside attention, Fanke persists in silence and moves forward in the trough. In the past ten years, Chen Nian has kept his commitment to suppliers, his original intention to users, and his bottom line and dignity as a founder.
In 2022, Vancl will pay off its last debt, leaving only 83.6 yuan in the company's account balance. There was no celebration, no cheering, just the calmness of the dust settling. At this moment, Chen Nian not only paid off the financial debt, but also completed the entrepreneur's self-salvation: admitting mistakes, bearing the consequences, holding on to the bottom line, and starting over.
4. The era restarts: On the live broadcast track, Fanke returns to the public eye
After paying off the debt, Chen Nian did not stop. Instead, he followed the trend of the times with a return-to-zero mentality and looked for new vitality for Fanke in the live broadcast e-commerce track. In 2024, Lei Jun parachuted into Vanke's live broadcast room as an old friend and brand supporter. This sincere and simple live broadcast brought Vanke, who had been silent for many years, back into the public eye. Single-day sales soared by 300%, jumping from daily sales of 10,000 yuan to one million.
Traffic is just an opportunity, and products are the foundation. In 2025, Fanke will become one of the top three men's clothing brands on Douyin with its stable quality, ultimate cost-effectiveness and clear positioning. Its core T-shirts will sell 1,500 pieces per day, its team will gradually expand from four to hundreds, and its brand valuation will return to 4 billion yuan. Vancl has not repeated the mistake of blind expansion, and has always adhered to the positioning of high-quality basic models. It does not engage in gimmicks, does not chase trends, does not create redundant categories, and only focuses on making core items the best.
Nowadays, Chen Nian insists on live broadcasting for 6 hours every day, personally trying on clothes, explaining, replying to users, and talking to the market in the most authentic way. The rebirth of Fanke is not a return to the hustle and bustle of the past, but a return to the most essential logic of business: making good products, serving users, staying focused, and sticking to the long term. This kind of steadiness and restraint allows Fanke to find its own steady path in the impetuous e-commerce environment.
5. Business Enlightenment: In an era of impetuousness, only those who stick to their original aspirations will prevail.
Vancl's ten years of ups and downs have left valuable inspirations for Chinese entrepreneurs and the business industry. First, the essence of business is always products. Any marketing, scale, and capital games that are divorced from products will not last long. Second, scale does not equal value, and speed does not equal health. Blind expansion will only overdraw the foundation. Focus and stability are the long-term solutions. Third, the most precious quality of an entrepreneur is not talent, but responsibility. It is easy to share the glory at the peak, but it is difficult to shoulder the responsibility at the bottom. Fourth, long-termism may seem slow, but it is the most reliable force through cycles. If you endure loneliness and keep your original intention, you will eventually be re-recognized by the market.
From a valuation of 3 billion to a debt of 1.9 billion, from debt repayment in ten years to live broadcast rebirth, the story of Fanke and Chen Nian is a true epitome of a generation of Chinese Internet entrepreneurs. It has witnessed the enthusiasm of the trend, the cost of expansion, the suffering of troughs, and also witnessed the weight of responsibility, the strength of perseverance, and the possibility of rebirth.
6. Keep things simple and return to true nature: the real rebels rebuild their faith in the trough
The business world ebbs and flows, and peaks and troughs are the norm. Some people get lost in good times, and some give up in adversity, but the real rebels in the business world dare to climb back up after falling into the abyss, and keep their original aspirations after the prosperity has faded. Chen Nian has spent ten years proving that entrepreneurship is never a competition for speed and scale, but a practice about original intention, responsibility, bottom line and long-termism.
Today, Fanke no longer pursues the much-anticipated glory, but only focuses on making every shirt and T-shirt well and serving every user who trusts it. Today's Chennian is no longer held hostage by capital and scale. It only sticks to products and responsibilities, and uses the simplest way to do the longest-lasting business. In an era where traffic is paramount and quick success is paramount, this sobriety, restraint and perseverance are particularly precious.
The real strength is never to never fall, but to still have the courage to pick up everything after a fall and rebuild one's own business beliefs on top of the ruins.
[Abstract of public account]
From Fanke's popularity, with a valuation of 3 billion, to a debt of 1.9 billion on the verge of bankruptcy; Chen Nian shouldered the huge debt alone, paid it off in ten years, returned to products, and led Fanke to be reborn on the live broadcast e-commerce track.
Data source
Chen Nian founded Vancl on October 18, 2007: Vancl official brand introduction, China Economic Weekly (People's Daily) special report in 2009, China News Network 2022 brand retrospective report
Fanke's viral spread in 2010, Han Han's endorsement: China Net Technology's 2015 special feature, Economic Information Daily (Xinhua News Agency)'s 2015 in-depth review, Sina Finance's 2025 Fanke's special report
In 2010, sales exceeded 2 billion, valuation was US$3 billion, and 5,000 employees: 36Kr 2010 brand report, iResearch 2010-2011 e-commerce industry report, China News Network 2025 brand data statistics
2011 sales target of 10 billion, actual revenue of 3.2 billion, loss of nearly 600 million, and inventory of 1.445 billion: Vanke IPO application materials (2011), Sohu Finance January 2012 financial report exposure, 21st Century Business Review 2012 special topic, Jiemian News financial announcement
In 2013, cash debt was 1.9 billion, inventory was nearly 3 billion, layoffs were reduced to 300, SKUs were streamlined to 300, and listing was terminated: NetEase Finance’s 2013 crisis special topic, Chochai.com’s 2013 review, Titanium Media’s 2014 transformation report, Shanxi Merchant Club’s old interview (2025)
Chen Nian bears unlimited personal liability and repays debts in ten years: Exclusive interview with Shanxi Merchants Club in 2025, TMTpost Media special topic on repaying debts in ten years in 2025, case collection in China Entrepreneur Magazine (2025)
Pay off all 1.9 billion debts in 2022 and leave 83.6 yuan in the account: Jin Merchants Club’s 2025 exclusive interview record, Chen Nian Live public disclosure, Sina Finance’s verified report in September 2025
In 2024, with the help of Lei Jun’s live broadcast room, sales surged by 300%: Douyin e-commerce official data, Sina Finance’s 2024 live broadcast special, and Toutiao e-commerce data statistics
Douyin's top three men's clothing brands in 2025, daily sales of 1,500 T-shirts, team expansion to hundreds of people, and valuation back to 4 billion: Douyin e-commerce brand list in 2025, Sohu Finance's 2025 Vanke status report, Xiaomi Lei Jun's 2025 annual speech public data
Vancl's core single product strategy, supply chain optimization, and product development: Paidai e-commerce 2025 industry report, everyone is a product manager case analysis, Vancl official 2025 operating information
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