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    Bosideng "Sharp Reduction Of 5000 Stores" Main Business Urgent

    2015/8/19 10:50:00 33

    BosidengTraditional Clothing BrandEnterprise Management

      

    Bosideng

    This household name was founded in 1976 in Changshou City, Jiangsu province. It has a history of nearly 40 years.

    Over the years, with the glory of "the biggest" and "the first", every move has been so eye-catching.

    As the most indisputable king of down jacket manufacturers, Bosideng has won the first prize in market share for 18 consecutive years (1995 - 2012).

    However, in the face of the coming of the fast fashion era, the news of Boston's "sharp reduction of 5000 stores" has aroused panic and speculation in the industry.

    Will Bosideng be on the decline? How can Bosten and even the entire garment industry help themselves in crisis?

    "This is not a Bosideng enterprise's problem. For the enterprises that are mainly in the down garment business, and even the entire garment industry, the market pressure must be the same."

    The general manager of a famous down garment enterprise, in an interview with the China enterprise daily, said: "whether it is brand, commodity, marketing means or online breakthrough, we must innovate and change.

    In this regard, I am optimistic about the future.

    Bosteng, who is about to enter the "age of no doubt", appears to be somewhat "lucky".

    After the CEO Liang Xiaoxu, who was expected to play an important role in the four seasons products and retail trade in Bosideng, left the annual performance announcement recently released by Boston, which was not so pleasant.

    Announcements show that in 2015, Bosideng's revenue fell by 23.6%, and net profit fell by 81%.

    "I didn't expect to slip so much. It's beyond my expectation.

    I've followed Boston's stock for many years, so I will also notice its performance and development.

    I was shocked by such a big drop. "

    A Bosideng investor from Changshu said in an interview with the media.

    As for the decline of profits and the 5033 retail outlets, the Boston side's response is to save resources and optimize the layout. Bosideng will have to compress the number of terminal stores again, so as to gather more energy and focus on building a customer oriented, highly effective collaborative supply chain management mode, so as to make the layout of the retail network more reasonable.

    In the light of Xiong Xiaokun, a researcher at CIC light industry, there are two reasons for Bosideng's plunging profits.

    First, the traditional "brand + wholesale" business mode not only leads to low product market adaptability, but also increases the management cost of enterprises, resulting in a decline in gross profit margin of enterprises. Two, the development of e-commerce and the change of consumer habits make some competitive entities fail to perform well.

    It is worth noting that not long ago, Bosideng issued a profit warning shows that as of March 31st this year's financial year, Bosideng's down jacket business income and net profit compared to the same period last year, a serious decline.

    The annual report shows that the sales of Bosideng brand down garments dropped from 6 billion 57 million yuan in 2014 to 4 billion 80 million yuan, among which four brands Bosideng, Xue Zhong Fei, Bing Jie and Kang Bo all had two figure declines, and the main brand Bosteng fell 20.3%.

    The main business is in the doldrums and the inventory remains high. Bosteng has to "seasonally" and start looking for new profit growth points.

    Multi brand, four seasons and internationalization are all means for Bosideng to seek the development of non feather down business.

    According to Xiong Xiaokun analysis,

    Product diversification

    It will increase business risk.

    There is a big gap between fashion and casual wear business and down coats. New products not only fail to improve the company's management, but also drag the development of the main industry.

    Professionalism is a major trend in the development of the garment industry. Bosideng is against the trend or is not conducive to its future development.

    Bosideng should focus on the optimization and upgrading of channels.

    It is understood that since 2011, the growth rate of China's clothing market retail sales has slowed down.

    According to the statistics of the National Bureau of statistics, in the first quarter of 2015, garment enterprises above Designated Size completed 6 billion 615 million garment production, an increase of 3.94% over the same period last year.

    In the first half of this year, although the performance of some garment listed companies has been warmer, China's traditional clothing industry has yet to see "spring" in the face of economic weakness and reduced demand.

    Xiong Xiaokun pointed out that China's apparel industry is facing a new competition pattern and competition.

    Transformation of garment enterprises

    The pressure is increasing.

    The channel of traditional garment enterprises is shrinking, inventory is high, business efficiency is low, and with the development of international brand forces and the vigorous development of electricity providers, the road of garment enterprises is really not easy to go today.

    Taking Bosideng as an example, the traditional clothing brands, which are based on the Chinese mainland, have caught up with the market demand in the period of establishment and development, and the production and sales of the industrial technology base is deep and large-scale. This makes the enterprises grow stronger. However, in the environment of economic weakness, the gradual saturation of the clothing market, the rising cost of labor and raw materials, and the acceleration of the expansion of foreign brand power, how to pform and upgrade the garment enterprises and get out of the bad management mire should become the current important point.

    A clothing trade practitioner in Hangzhou, Zhejiang, said in an interview with the China enterprise daily.


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