Boston'S "Cold Winter" Crisis Is Hard To Understand

Before winter comes, it is time to prepare for cold clothing.

This also provides a good marketing excuse for overloading winter clothing.

But now, things seem to be changing.

International Holdings Limited, the largest local down garment manufacturer in China, is busy contracting traditional channels. From March 31, 2014 to September 30th, it has shut down 3436 down garment retail outlets, but in 2013, it has closed 1357 down sale outlets.

What is the problem of Boston? What is the reason for it? How can we welcome the winter in a large-scale way?

Bosideng group

In the early 1994, the brand of "Bosideng" entered the field of down garment production. After that, three sub brands, including "snow flying", "KangBo" and "ice cream", were launched to form the brand matrix.

According to the data released by China industry and enterprise information center in 2013, the above four brands occupy 37.8% of China's down garment market and are well deserved industry leaders.

Taking down garment as the main business, the biggest problem is the cyclical nature of production and business activities.

In order to balance the performance and hedge the risk of single down clothing business, Bosideng group has diversified expansion, launched the fashion brand "Mogao", the women's clothing brand "Ricky" and "Jesse". In 2009, it entered the commercial men's clothing field as the brand of "Bosideng men's clothing", and bought a six storey building in the west end of London for 20 million 50 thousand pounds in 2011 as the flagship store and office, taking the first step of internationalization.

Over the past few years, the above aims to "de season".

The measures have little effect - the brands of Bosideng group are classified into different categories, and each industry has their own specialties. But because of the excessive brand, the limited marketing resources are dispersed, resulting in low recognition and lack of brand appeal. International business is limited to London, and the top teams are frequent. Nowadays only 20 people are running.

Painstakingly, the development of non down garment business is slow. In the end, Bosideng is also a down garment manufacturer.

As of September 30, 2014, down garment business accounted for more than 85% of Bosideng's total revenue, of which 35.5% of the foundry business accounted for.

The OEM business brings hundreds of millions of revenue to Boston every year. Compared with these visible gold and silver, the loss on the other level is very concealed. Bosideng OEM GAP and BOSS down coat are competing for the market share which originally belonged to Bosideng in China.

As a result, Bosideng has fallen into the dilemma of "made in China". It has provided the international brand with a competitive weapon for the market at the expense of high cost and meager profit, and its own brand has been pushed into the corner by these collaborators.

In the first half of 2014, Bosideng sold 6 million down garments, down 8.2% from the same period last year, and revenue fell by 19.2%.

In contrast, the business income of the down label clothing management business exceeded 1 billion yuan mark, and rose 54.8%.

In the past, local brands built up a complex retail network with localized distributors, forming close contacts with local consumers and keeping international brands behind.

But now, with the rise of e-commerce, international brands can bypass the "hard to swallow" offline channels, directly reach consumers through e-commerce brand, and win the favor of Chinese consumers with more avant-garde, more fashionable and more fashionable designs.

Under the influence of international brands, day by day, Chinese consumers' interests and preferences have shifted, and consumption tastes have been raised and picky.