Bosideng Closed 1572 Stores Last Year, Kangbo Brand Withdrew From The Market.

After three consecutive years of decline in operating revenue and net profit decline for a long time,

The overall performance has finally improved.

In June 29th, Bosideng announced its fiscal year ending 3 at the end of 2016.

Data show that Bosideng's revenue in the fiscal year was 5 billion 787 million yuan, down to 8% compared with the same period last year, and net profit rose 112.5% to 281 million yuan.

In the past two years,

The industry is facing overcapacity.

The problem of competitiveness decline and more and more overseas brands accelerating the pace of business expansion in the Chinese market have made the domestic garment industry still facing a serious situation.

For many reasons, Bosideng has been carrying out the adjustment of retail outlets and cleaning up its inventory.

In June 30th, the executive director and chief financial officer of Bosideng Mai Yun Quan, in an interview with reporters, said that the company will continue this year in terms of stocktaking.

In addition, in the down jacket business, it has decided to let the design style bias the traditional KangBo brand to withdraw from the market so as to concentrate its resources on other brands.

More than 1500 shops have been closed last year

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

According to the latest performance report, the brand down garment business is still the largest source of revenue for Bosideng, accounting for 68.7% of the group's revenue. The remaining 14.3% and 17% come from non down garment business and OEM processing business respectively.

In the past fiscal year, these three businesses have declined, but the situation has improved over the past year.

Take the brand down garment business as an example. As for the fiscal year ending 3 in 2015, Bosideng's revenue dropped by 32.6%, but the decline in the past fiscal year has narrowed to 2.5%.

Bosideng said that the company inherited the previous business strategy, and further intensified its efforts to optimize the retail network and clean up inventory during the year.

"During the year, the Group actively cleaned up inventory through temporary marketing, large supermarket chains, factory stores and other targeted sales channels, so as to avoid overlapping with new products and affect the sale of quality stores."

Reporters noted that in order to carry out inventory control, Bosideng's down jacket brand snow flew and ice clean, only a small amount of new development was developed during the year.

According to the report, Bosideng's total inventory and finished goods inventories in this fiscal year both declined in double figures, 14.7% and 17.9% respectively.

Bosideng's stores are still shrinking.

It is understood that, in line with the group's brand pformation strategy, at the end of the fiscal year, the company began to adjust the sales network of snow flying, and gradually put some of the high quality sales outlets directly into Bosideng to continue its operation and close some sales outlets.

By the end of 2016 3, the total number of retail outlets in its down garment business has decreased by 1328 to 5271.

Among them, the number of self operated retail outlets decreased by 833, and the retail outlets operated by third party distributors decreased by 495.

In the non feather down business part, the company's revenue dropped by 18.3% to 826 million yuan.

Besides Jesse's brand income increase, Bosideng men's clothing and Mogao's income all declined.

In the store, Bosteng men's clothing, Jesse and Mogao respectively reduced 175, 8 and 61 respectively.

With the down jacket part, Bosideng reduced 1572 stores last year, which is much lower than that of more than 5000 stores in the previous financial year.

Reporters noted that the company's net profit rise is mainly due to effective control of overall expenditure.

Specifically, administrative and distribution expenditure accounted for 38.8% of total revenue, down 3.2 percentage points from 42% in the same period last year.

Repositioning the deployment brand

Over the past few years, Bosideng's performance has been affected by many factors.

As of March 2015, fiscal year performance data showed that Bosideng revenue fell 23.6% to 6 billion 293 million yuan, net profit fell 81% to 132 million yuan.

However, as early as 2013, Bosideng launched the measures of pformation and upgrading and deepening reform.

At present, the effect is basically apparent.

On the morning of June 30th, Mai Yun Quan told reporters in the performance conference call that Bosideng will continue to go on inventory and brand adjustment.

"When the market environment is bad, our confidence is not to expand the market, but to adjust itself, and find the right position in this process."

Turning to the future direction of brand development, Bosideng said that the future is the new stage of Bosteng brand remolding. Enterprises will continue to study the consumption characteristics of the consumer market in order to enhance product differentiation and conform to the market consumption trend. Through in-depth analysis of the retail data, more precise arrangements will be made for the production of all kinds of products, including trial marketing of some main products and styles in the shop before making the production plan, so as to test and understand the market reaction and formulate corresponding production and sales programs.

The reporter noted that Bosideng plans to launch a brand pformation strategy that is more in line with market demand to avoid brand overlap in Bosideng's main business.

It is reported that the original Bosideng brand will continue to be positioned in the high-end fashion design, and the icy business focus will gradually shift to online sales.

Considering the increasing demand of the market for the down garment design, the company decided to let the design style bias the traditional KangBo brand to withdraw from the down garment market, so that the group can concentrate its resources on other brands.

In addition, taking into account the increasing number of consumers involved in outdoor activities in recent years, the focus on the sport sense design of the snow flying brand will become an all-around outdoor clothing brand.

In order to achieve the goal of becoming a multi brand integrated apparel operator, Bosideng's diversified development plan is still in progress.

In terms of brand development, Mai Yun said that the performance of women's clothing brands has been good in the past year. In the future, women's clothing will be the main consideration in the acquisition and merger.

However, details can not be disclosed.

In April last year, Bosideng had announced that the ITC SPC jointly established by Itou Tada group Affiliated Companies and CITIC Securities (16.230, 0.07,0.43%) was jointly invested with New Surplus (Boston chairman Gao Dekang) and subscribed to Boston.

It is said that Bosideng plans to import new brands and strengthen the business beyond feather and down business.

According to the latest information announced by Bosideng, it has cooperated with Itou Tada in the OEM process, and the specific brand cooperation has not yet landed.