Bosideng Speeds Up The Development Of Women'S Down Business.

Because of the recent fashion brand in the clothing market, Bosideng group will vigorously promote down women's clothing business, hoping to make progress in the winter market.

Women's dress code

    Bosideng The announcement said that through the group's wholly owned Affiliated Companies Jesse International Holdings Limited, the acquisition of Jin Feng investment and Development Co., Ltd. and Prestige Stand Investment Development Limited holding Bang Bao International Holdings Limited 70% stake.

In the transaction, banbao International's women's clothing brand Bao Bao is located in the high-end, mainly for 30-45 year old women. As early as 2013, Bosideng paid 150 million yuan through Jesse to buy the 30% stake of Bao Bao first. After the acquisition, the development of Bao Bao business has been relatively good. After the acquisition, Bosideng has a 70% stake in Jesse as a major shareholder and has a 100% stake in Bao Bao through Jesse.

The acquisition has long been a harbinger. At the end of last month, Bosideng released the annual financial results up to March 31, 2016, when the chief financial officer of Bosideng, Mr Ma Yun Quan, had said that it would seek acquisitions for the non feather down businesses such as Bosteng men's clothing, Jesse and Mogao, while Bosideng's women's clothing brands had shown good results in the past year, so "women's clothing will be the main consideration in the future acquisition and merger," but no specific details were revealed at that time.

Less than 10 days later, Bosideng was overweight.

It is known that the pre tax profit and net profit of bang Bao International year ended March 31, 2015 were 107 million 800 thousand yuan and 88 million 843 thousand yuan respectively.

To choose cooperation with Bao Bao, the first is the four seasons strategy of Bosideng, which seeks new growth points for enterprises. Two, bang Bao dress has a certain reputation in the field of high-end women's clothing in China, and has a relatively mature professional management team, with distinct product style and stable customer base. Bosideng official told the new financial observer.

In addition, through the previous performance of Bosideng women's clothing, "bang Bao has a strong penetration in the north, and the women's wear Jesse's network is mainly concentrated in South market, which has just formed a complementary relationship. Brand coverage in different fields also helps the company to have a more stable and balanced sustainable development in different trends or economic cycles." Bosideng official said.

KangBo quit

and Women's wear The expansion of business is different. Bosideng has carried out a drastic reform for its main hero and down business.

Although Bosideng's brand value has exceeded 20 billion 700 million yuan, it ranks first in the textile and garment industry for three consecutive years. The reason is that Bosideng's down jacket is the main reason.

The most important thing is the exit of the down jacket brand KangBo. In the annual performance press conference, Mai Yun power clearly pointed out that the future of KangBo down garment will withdraw from the market.

Once, Bosideng's down camp is very powerful, besides Bosideng, there are snow flying, KangBo, and ice cleaning. "Making so many brands is aimed at consumers of different ages and different levels, so as to maximize the possession of the market, in fact, the starting point is good." A former Bosideng executive told reporters.

But in the actual process, Bosideng is not very obvious in the differentiation of several brands. According to the earnings data up to March 31st, besides the Bosideng brand's revenue growth of 2.8%, the sales of three brands of snow flying, ice cream and Compaq have all shrunk, and the sales of icy and KangBo have dropped by 28.2% and 47.2% respectively.

Under such circumstances, Bosideng is hard at hand to reintegrate down clothing business. Apart from the exit of KangBo, the original Bosideng brand will continue to be positioned in the high-end fashion design. The snowmobile will be built into an all-around outdoor clothing brand to respond to the trend of more and more consumers taking part in various outdoor activities. The icy business focus will gradually shift to online sales.

Bosideng's goal and expectation for such a reform is to "improve the differentiation of brands and products, avoid brand overlaps, make better use of group resources, launch a brand transformation strategy that is more in line with the needs of the market, and relocate and deploy the brand so that its brand portfolio can better meet the market trend."

Road to transformation

For Bosideng, perhaps now is the best time to transform drastically. In the past few years, Bosideng has experienced a decline in operating revenue for two consecutive years, and the net profit has declined for three consecutive years. In the last fiscal year ended March 31st, Bosideng realized a net profit of 280 million 900 thousand yuan, up 112.5% from 132 million 200 thousand yuan in the same period last year.

"Performance has begun to improve itself is a good news. At this time, the pursuit of success is more active than poor performance." The former Boston executive said.

In fact, the transformation of Bosideng is no longer two days a day. Gao Dekang, chairman of the board of directors of Bosideng International Holdings Limited, has said that Bosideng should strive to transform into a respected world-renowned integrated apparel operator. "We are promoting transformation, upgrading and diversified development with four seasons, internationalization, fashion and high-end as main contents. We expect to increase the proportion of non down business in group revenue to 40% in the next three years."

But up to now, the proportion of its down garment business is still up to 64.8%.

According to Yang Dayun, President of the excellent international brand investment group, Bosideng in the early years was a wholesale operation mode based on single products, but as China's economy entered the downlink and overcapacity, Internet The development of such enterprises will be more obvious.

"Bosideng has always been a manufacturing oriented enterprise. Although it has been actively transforming in recent years, it has yet to see a particularly significant effect." He told reporters.

And Bosideng is clearly aware of the problem. "We will continue to unswervingly shift from the traditional wholesale business mode to a more close to the market and consumer retail mode, and strive to provide consumers with cost-effective products with high quality and fashion." Bosideng said.