Bosideng Enlarges The Proportion Of Women'S Clothing Business

According to the world clothing shoes and hats net, China's veteran down producers.

On the category scale of International Holdings Limited (03998.HK),

Business weights are increasing.

In the June 27th earnings conference, the executive director of Bosideng mauren announced that the women's clothing market would become the focus of the company's future development. He himself was pferred to the general manager of the women's clothing business department of the group since 26 this month.

In the planning of Mai Yun Quan, the future business of women's clothing will occupy about 20%-25% of Bosideng's total revenue and become the second largest profit center.

From the company's earnings report, Bosideng fiscal year 2016 (up to 12 months in March 31, 2017) sales rose 17.8%, reaching 6 billion 817 million yuan.

Among them, the sales of down garment business was 4 billion 579 million yuan, up 15.1% from the same period last year, accounting for 67.2% of the total sales. The sales of non down garment business was 1 billion 459 million yuan, up 76.7% from the same period last year, accounting for 21.4% of the total sales volume of the group.

Men's wear, women's wear, home life clothes and so on constitute the company's non down jacket plate.

Bosten men's suit is non down jacket.

The best seller in the sales period was 330 million yuan, accounting for 22.5% of the sales of the non down garment brand; the rest were women's clothing brand Jesse, bang Bao, men's wear brand Mogao (sold in February this year), home brand Bosideng home, sales were 326 million yuan, 299 million yuan, 248 million yuan and 186 million yuan respectively.

Source: Bosideng financial report

Source: Bosideng financial report

This means that in the non down garment brand, the sales performance of Jesse women's wear and Bao Bao women's clothing (a total of 622 million yuan) has exceeded two major men's wear brands (a total of 578 million yuan).

Bosideng also put forward in the earnings report that although the down jacket business is getting warmer, the business still faces fierce competition and market pressure.

The group is optimistic about the prospect of the domestic women's clothing industry, and has a multi brand platform for women's clothing to give Bosideng an advantage in channels, procurement and so on. In the future, it will integrate women's clothing resources and improve synergy, and appropriately develop high-quality channels for women's clothing.

In fact, since the global financial crisis in 2008 caused a 13.63% decline in China's down garment production, Bosideng began to reduce market risks, start diversification strategy, invest in women's clothing market.

In 2009, Bosideng bought the management rights of the US street corner Rocawear. Two years later, it bought Jesse, the domestic women's clothing brand.

Since 2016, Bosideng has speeded up the layout of the women's clothing market, and has successively acquired all the shares of Shenzhen Bao Bao fashion dress company 70%, women's clothing brand corleano and corbor parent Co., Ltd. and Eugene (Tianjin) Garments Co., Ltd. by way of capital.

However, Boston's earnings data in recent years are not satisfactory.

Bosideng 2012 annual report data show that during the reporting period, the company achieved 9 billion 325 million yuan sales, the highest in nearly eight years.

Since then, sales of Bosideng have dropped to 5 billion 787 million yuan, up to 6 billion 817 million yuan in the fiscal year of 2016.

Bosideng's down garment business also declined from 6 billion 57 million yuan in 2014 to 4 billion 579 million yuan in the 2017 fiscal year.

Source: Bosideng financial report

At the same time, Bosideng began to close its poor performance stores.

By the end of March this year, the total number of retail outlets of the brand had decreased by 979 compared with the same period last year. The remaining 4292 outlets, 1374 outlets and 2918 outlets operated by direct retail outlets and third party distributors.

Bosideng's overseas expansion plan has also been stranded.

In 2012, Bosideng spent 30 million pounds to open the flagship store in Britain, but it finally ended in February this year.

However, "walking on multiple legs" does not mean that the brand has entered a safe area.

In the past fiscal year, the income of Jesse brand declined by 2.8%, and the number of stores decreased by 7, with only 196 remaining.

And Boston's revenue in Mogao men's clothing, which was bought in 2011, is down by 15.9%.

In February this year, Bosideng terminated Mogao men's clothing business and sold the brand 51.0004% stake at a price of 41 million yuan.

Kang Lanxin, Dean of the school of dress and collocation, believes that the new fashion brand is very difficult under the fierce competition of Chinese clothing brands.

It has a multi - brand strategy, rather than the impact of bostin's original influence on new brands, and the possibility of success is very low.

Multi brand strategy is a double-edged sword for the group, which runs multiple brands, and the group's energy and capital will be dispersed.

But for Bosideng, it is always a good thing to expand the scope of business to many categories of home life clothing, from selling the down season single season business mode to the four seasons business mode.

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