Bosideng Dilemma: Trapped In The Four Seasons Mire

Trying to explore beyond the main business of down jacket.

For example, women's clothing is a challenge that they have to face.

After last year's suspension of its own dress brand Rui Qi, Bosideng began to explore the field of women's clothing once again, trying to further develop its own non feather down business and break through seasonal restrictions.

Recently, Bosideng insiders said Bosideng had begun to intensify its efforts in the construction of women's wear, and invited Japanese trainers to train women's clothing department to enhance their product operation and brand management capabilities.

"New starting point, and then start a business", this is the slogan of the development of the women's wear brand, but also the "four seasons" strategy to further promote the symbol.

Bosideng group's main business is represented by "Bosideng" brand.

According to the 2013 fiscal year's report, as of March 31, 2014, Bosideng earned 8 billion 238 million yuan, of which the income of the brand down clothing was 6 billion 57 million yuan, accounting for 73.5%.

But this core business is facing enormous challenges.

Not long ago, Bosideng's earnings warning showed that in the financial year ended March 31st this year, the income and net profit of the company's down garment business had a serious decline compared with the same period last year, because the performance of the traditional down jacket sales season before the Spring Festival did not meet expectations.

Another reason is to sell stocks, and the company consciously reduces the production of new products.

The main business is in the doldrums and the inventory remains high, so Bosideng finally began to push forward the strategy of "four seasons".

Independent analyst Ma Gang analysis believes that Bosideng's revenue structure has been too single, and its down season has strong seasonal and substitutability. In order to reverse the declining trend, the strategy of "four seasons" is inevitable.

In fact, Bosideng's "four seasons" strategy began in 2010. At that time, in order to find new profit growth points, Bosideng began to increase the proportion of non feather down sales.

Reporters visited Bosideng financial report shows that in fiscal year 2013, Bosideng non feather down business sales amounted to 1 billion 300 million yuan, accounting for 15.8% of the company's total revenue, compared with the 2012 quarter of fiscal year 10.2% increased slightly.

However, as a new business line of the group, the down business is not so stable.

In the first half of fiscal year 2014, the proportion of Boston's non feather down business in the company's total income dropped to 14.7%.

It is understood that Bosideng non feather plate is mainly supported by Bosideng men's clothing, Jesse, Mogao three brands, of which Bosideng non feather plate is the largest contribution to Bosteng men's clothing.

According to Boston's interim results in 2014, its men's business revenue was 112 million yuan, up 16.4% over the same period last year.

However, compared with the two brands of Mogao, the contribution of Jesse and Mogao was somewhat poor. The former's income increased by 9% compared to the same period last year, while the latter decreased by 2.7% over the same period.

In order to further realize the strategy of "four seasons", Bosideng began to plan the development of children's clothing business when the development of women's clothing was uncertain.

4 at the end of the month, after the introduction of new investors, Bosideng CEO Gao Dekang announced that the brand of children's clothing would be listed by the end of this year.

In the face of frequent seasonal movement of Bosideng, the outside world seems to be not optimistic.

Ma Gang said that before carrying out external expansion, Bosteng first needed to solve the problem of internal management. "We can clarify our current management problems before we talk about expanding other businesses."

It is understood that in addition to Boston CEO Liang Xuhui before, Bosteng has left several executives, family management family management, "airborne" professional managers are very difficult to put a good idea down.

It is understood that after Liang Xuhui left, the 63 year old Gao Dekang was re appointed as Bosideng CEO, and he said he would cultivate successors in the enterprise in the future.

Reporters repeatedly contacted the interview, but as of press release, Bosideng did not give a reply.

In Ma Gang's view, "if the enterprises use people who are familiar with themselves, not those who have the ability and dare to reform, then the problem of Boston will never be solved."

According to the Research Report of Zhao Yin international, the whole non feather business department will have a net loss in the 2014 fiscal year of Boston.

This also means that Bosideng has a long way to go to break through the bottleneck and achieve "four seasons" development.

Xiaobian believes that the down market of the down garment is in a slump, especially for the down garments that lack fashion and shape.

It is a difficult situation. Moreover, fast fashion brands have also developed a down jacket production line to make the environment for Bosteng and other old brands worse.