Bosideng: The Cost Of Production Is Higher Than That Of &Nbsp, And The Network Sales Will Reach 1 Billion In The Future.

In the first three quarters of this year, the textile and garment industry maintained a relatively high industry boom. In January -8, the apparel industry realized a total profit of 41 billion yuan, up 41.4% from the same period last year, 5 percentage points higher than the average level of the whole industry. However, the factors such as raw materials, manpower costs and RMB appreciation have brought great pressure to the garment enterprises.

As the largest brand down garment manufacturer in China, Bosideng group improves the added value of products from various aspects, and regards network sales as the focus of the market. The network sales in the next 3-4 years are expected to reach 1 billion.

Higher pressure on production costs

Gao Dekang, chairman of Bosideng group, said in a recent interview that the prices of raw materials such as eiderdown and fabric had gone up sharply, and the price of eiderdown was even 2-3 times that of last year.

After the financial crisis, the demand for the down garments in the global market has increased, the order and processing fees have increased, and the wages of skilled workers have increased. These have increased the processing and manufacturing costs of enterprises, and the operating costs of logistics, warehousing, rentals and so on remain high.

Judging from the international market, he believes that after the financial crisis, the international trade environment is more complex and difficult than ever, and the labor costs continue to rise. The labor cost of clothing industry in Vietnam, Kampuchea, Bangladesh and Indonesia is still very low, which poses great challenges to Chinese clothing enterprises (000902).

Chinese clothing has been invincible in the thirty years of low value-added products in the international market.

"Cost is bound to rise, and it is more necessary to improve the added value of products and win new competitive advantages by technological innovation and design creativity".

In recent years, Bosideng has continuously enhanced its technological innovation capability and promoted the core competitiveness of enterprises. From 2008 to 2010, its investment in R & D and technological pformation reached 316 million, 343 million and 658 million respectively, and now it has 43 national patents.

Over the years, it has persisted in implementing the famous brand strategy and fostering its own brand. It has become the only enterprise in the field of consumer goods that dominating the "world famous brand", "National Quality Award" and "China Industrial Award".

In order to digest the cost, it also innovates in the sales mode.

"Consumers buy a down coat. Now we can buy jeans and sweaters, not one, but a combination, which is helpful to the cost of digestion."

Gao Dekang said.

At the same time, Bosideng further moved towards high-end products with high added value this year, and has launched 10000 yuan products.

And through mergers and acquisitions, and comprehensively enter the four seasons of clothing.

Just this month, it acquired 70% stake in Di Hui and Lang Hui world at 892 million 500 thousand yuan, and the latter two had women's brands such as "JESSIE" and "Le Mauve".

Gao Dekang also revealed that he was also considering pferring some of his processing business to areas with lower labour costs, such as Vietnam, Kampuchea and Indonesia.

"There may be different ways of making clothes, but we must operate by ourselves, so that we can save at least 40% of the cost."

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Internet sales will reach 1 billion in 3-4 years.

Clothing is already a popular category in e-commerce. The rise of e-commerce websites has brought great impact on traditional clothing sales, but huge business opportunities have also attracted traditional clothing companies to get involved.

Data show that in the past 2007-2009 years, the domestic apparel and apparel online retail market has reached a compound growth rate of 174.88%, far higher than the annual growth rate of the online retail market as a whole 106.32%. In 2009, the apparel apparel online retail market scale has reached 50 billion 600 million yuan, and the online retail business of domestic apparel and apparel products is expected to maintain rapid growth in the future.

However, judging from the current development situation, the traditional brand clothing enterprises are generally cautious about e-commerce, and some are still exploring step by step due to concerns about the brand conflict and the balance of channel interests and the integration of different supply chain systems on the offline offline.

"I am very optimistic about the development of network sales in the future. We can say that if we do not make a big block, we will continue to do this." Gao Dekang's thinking is very clear.

He said that at present, Bosideng network sales mainly come from other distributors, and products and ground products are also different. The styles are succinct and clear, and the color choice is more, which is more suitable for young people to buy.

Besides the down jacket, men's clothing in other seasons is also added. Next year, women's wear and children's wear will be introduced.

He said that network sales this year is expected to exceed 300 million yuan, the next 3-4 years, network sales to strive to reach 1 billion yuan, has now established a separate network sales company.

But industry analysts believe that traditional clothing enterprises are still facing many difficulties in the pformation of e-commerce. At present, there is no retailer in China successfully realize the real multi-channel retail experience, multi-channel inventory, logistics services, product exchange and cross channel promotion coordination will be a great test.