Down Jacket Brand Bosideng Revenue Decline Over 40% Fall In Pition Winter

2015

It is quite appropriate to describe it in the most difficult year of pformation.

Although the shop was closed a few years ago, the number of thousands of closed stores is still staggering from this year's situation.

Closing stores or heralding the market may mean new exploration.

In any case, the advent of closing shop tides is worthy of our consideration and research.

In this regard, the Yangtze River Commercial Daily launched a series of reports focusing on the year of water and fire in the clothing industry, and conducted in-depth in-depth investigation and Research on the garment industry in 2015 to sort out the status quo, challenges and opportunities of all brands.

Revenue fell more than 40%, as the leader of down garment enterprises, this year or Bosideng International Holdings Limited (hereinafter referred to as Bosideng) pformation of the most difficult year.

According to the mid-term earnings report recently released by Boston, as of September 30th, the company's profit plunged by 48.3%, which is the second time the profit slump warning has been issued so far after the profit plunge 33% in March this year.

At the same time, Bosteng's massive closure of the number of franchised stores is also lamented. As of September 30th, the total number of down to wear business outlets decreased by 548 to 6051 year-on-year.

In this regard, the industry said that Bosideng "non feather down business" has not yet seen significant results.

548 stores closed in the first three quarters

"Bosideng has made some orders for women's clothing with enterprises in Hubei, but it has not sold well, and many products have gone back."

In December 9th, Ms. Zhou, who had been doing garment business in Wuhan for many years, told reporters that Bosideng's sales performance in Wuhan was not satisfactory.

"Many enterprises in Wuhan are afraid to cooperate with them now," she said.

Reporters learned that in the past two years, some Bosideng clothing stores in Wuhan have ceased to exist or posted notices of "pfer", which have become a helpless alternative to many traditional clothing stores in the face of market saturation, slowing consumption and the impact of e-commerce.

And the most famous brand down garment manufacturer in the country, which is known as the largest and most advanced production equipment, is also facing the situation of profit slump and store closing.

According to the interim report released by Bosideng, as of September 30, 2015, the total number of retail outlets of Bosideng group down clothing decreased by 548 to 6051 year-on-year, including 123 net to 2404 outlets and third to third retail outlets.

The proportion of retail outlets operated by self operated and third party distributors was 39.7% and 60.3% respectively.

During the reporting period, Bosideng net profit plummeted 48.3%, from 252 million 700 thousand yuan in the same period last year to 130 million 700 thousand yuan, and earnings per share recorded a decline of 48.7% to 1.63 points, 3.18 points a year earlier.

Bosideng group said that the overall revenue has declined as a result of the domestic macro-economic environment, and the group continued to actively clean up inventory and implement more stringent production planning during the period.

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The stock is less than the profit.

The cost of going to stock is the decline in revenue.

At present, Bosideng's main business is divided into three parts: down garment business, OEM processing management business and non down garment business.

During the reporting period, the brand down garment business is still the largest source of revenue for the group, accounting for 47.2% of the group's revenue, while the remaining 37.5% and 15.3% come from OEM business and non down garment business respectively.

To speed up the inventory clearance process, Bosideng set up temporary stores in the first half of the year to sell or sell goods in the first half of the year, which was closed or sub leased by some third party distributors.

The distributor's operating expenses will save the distribution cost for the group as well as increase the sales channel to clean up the inventory.

By clearing inventory and implementing strict production plan, Bosideng's total inventory decreased by nearly 400 million yuan to 2 billion 52 million yuan compared with the same period last year, a drop of 14.8%.

In addition, its average stock turnover days dropped from 271 days to 221 days, greatly reducing 50 days.

In response, a garment industry analyst pointed out that this reflects to a certain extent that Bosideng's series of measures to clean up inventory have been effective, and the speed of inventory realisation has accelerated.

Although goods have been liquidated, they are based on lowering the output of new goods and the prices of second-hand goods. Therefore, the drop in the income of down garment business directly leads to net profit encountering Waterloo.

Bosideng's large-scale closure is only a microcosm of the clothing industry. The beginning of the traditional brand shop has spread to leisure brands, down garment brands and even the whole industry.

"Domestic clothing brands are being sold.

Replace, "a garment industry insider once sighed.

As a matter of fact, the brand of domestic down garment is facing many challenges such as market saturation and electric shock. The price war is becoming more and more fierce, which has led to the fact that garment manufacturers are not as good as they used to be.

According to the insiders, the number of domestic clothing brands is very similar. Most garment enterprises adopt the mode of increasing the number of stores to pursue profits. As the number of stores increases, the clothing market is almost saturated, and it is difficult to accommodate too many stores.

In addition, with the rapid expansion of e-commerce channels, the physical store was once predicted to "completely become a fitting room under the line".

Some consumers choose their physical stores and then buy them online.

As a result, Bosteng, once a storefront in pursuit of profit growth, appears to be "Crazy". It has not achieved the goal of increasing profits by opening more stores. Instead, it has to bear more store expansion costs. With the increasing cost of product materials, human resources and stores, the profit of products is compressed, and the profit situation of Bosideng is also worrying.

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Compared with international brands, Chinese clothing brands are not dominant in sales channels and communication channels, leading to the serious development of China's down garment brand to high-end development.

Insiders admitted frankly that Bosideng stock growth is the main hidden danger, the substantial increase in inventory accounts for a certain extent, indicating that its terminal sales are weak.

"With the continuous upgrading of consumer demand and the increasing demand for personalization, more and more fast fashion brands and foreign fashion brands are going to the Boston down market, which is undoubtedly a great challenge for Bosideng, which is mainly in the business of feather."

A garment industry insider told reporters.

Price war will continue

Non down business takes on the responsibility of pformation

Bosideng, the boss of the down jacket, is also aware of the "crisis".

Bosideng has told the media that Bosideng's goal is to become a multi brand integrated apparel operator. On the brand development, the future goal is to increase the proportion of non down garment business. At present, the sales of women's clothing brands have obviously improved. In the future, women's clothing will not be excluded from the form of cooperation or even purchase.

Because of the seasonal characteristics of down jacket, Bosideng's down garment business seems difficult to support the important task of enterprise development, so Bosideng began to explore more development and growth points, so as to enhance the development and development of non feather down areas.

In 2008 Bosideng set up a non feather and four seasons fashion team and embarked on the road of pformation. In May 2009, Bosideng international investment, which was listed in Hongkong, wholly acquired Jiangsu Bosideng Clothing Development Co., Ltd., and entered the men's clothing business field. In early 2011, Bosideng successively held 51% shares of Mogao brand and 51% of Shanghai's Rambo children's products through the way of increasing capital and expansion, expanding the business of casual wear and children's clothing, and then established the "3+1" strategy with the down jacket as the core and realizing the multi branding, four seasons and internationalization.

However, the strategy of "four seasons" does not seem to be much effective now.

In the eyes of the industry observers, Bosideng aims to "seasonally" reform measures to achieve little effect. Bosideng group's sub brands are classified into different categories, and each industry has its own specialties. But because of the excessive brand, the limited marketing resources are dispersed, resulting in poor recognition, lack of brand appeal, and the development of non down garment business is slow. In the end, Bosideng is also a down garment manufacturer.

However, Bosideng has great expectations for non down business.

In the future, the group will also actively seek new business and opportunities for external cooperation, including introducing strategic investors who are helpful and enhancing the business of the group, so as to further enhance our group's strength in operation, management and acquisition and merger, and move towards the goal of developing multi brand integrated apparel operators.