Bosideng Revolution: Chop Down Non Down Clothing Business And Restart London Store

On the evening of June 28th, Bosideng, an old down garment enterprise, announced its year-end results as at the end of 3 in 2018.

Data show that its revenue increased by 30.3% to 8 billion 881 million yuan; the net profit of the company's equity holders increased by 57.1% to 616 million yuan.

This is a good set of performance data.

But before that, Bosideng's performance has experienced a long period of downturn.

"Our external challenges and pressures are still very large."

Bosideng said frankly.

To this end, it set specific development goals in 2018, focusing on revenue growth and brand influence.

According to the plan, Bosideng will carry out many changes, including the closure of seven to 80% physical stores in the next three years, the stripping and restarting of the flagship store in London, which was closed early last year.

However, Bosideng's competitors did not stop.

On the one hand, Moncler is sought after by Chinese consumers. Canada Goose has announced that it will officially enter China. On the other hand, the four seasons clothing brand is constantly catching up.

The newly released performance report shows that Bosideng should make a big adjustment to its main brand Bosideng.

According to the report, "in view of our brand new positioning of Bosideng brand, the Bosideng brand's non down garment product line will be fully adjusted. The group will terminate its cooperation with the original dealer in the men's clothing brand in Bosideng. The group has all the impairment on the remaining goodwill and customer relationship of the men's clothing and the total customer relationship of about 165 million yuan. In the future, the group will replan the development of men's clothing business."

In addition, there is a similar description of Bosideng home business.

In fact, the operation of the two parts is not bad.

The annual report shows that in the financial year ending 3 months in 2018, the income of Bosteng men's clothing was 503 million yuan, an increase of 52.5% over the same period last year, and Bosideng's household income was 561 million yuan, up 201.2% over the same period last year.

But now Bosideng should focus on down garment business.

It is understood that Bosideng has decided to divest the main brand of Bosideng's non down clothing business, which also includes only one year's operation of children's clothing business.

According to what he said, Bosideng should focus on the main business and focus on the main brand. In order to achieve the goal smoothly, Bosideng will open shop in the high quality complex such as shopping center, expand the down garment business, and continue to adjust the existing stores.

As early as 2013, Bosideng began to adjust its plan accordingly.

As of the last 4 fiscal years ended in late 2017, Bosideng has reduced net stores by more than 8000 in its down jacket business.

In Bosideng's view, the clothing circle closing shop is already a normalization event.

"Bosideng will still shut down in 2018, and it will exceed the number of shops.

But in this state, our revenue will grow by 30%.

And then go abroad to open a shop.

Like many fashion brands, Bosideng has its own plan for internationalization.

In 2012, Bosideng opened a flagship store in a six story property on Morton street, South London.

At that time, many people in the industry believed that the reason why they chose to open a store in the United Kingdom was to show its brand to tourists from all over the world with the help of the 2012 London Olympic Games, and to promote the sales in the domestic market.

However, more than four years later, the store closed down at a low key.

According to Bosteng's theory at that time, in the international market, the company adjusts its business direction according to the international environment and actual situation.

In the future, if the time is right, we will further develop overseas.

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Now, Bosideng finally thinks it's time.

"In September of this year, we are going to reopen the flagship store in London."

Rui Jinsong, senior vice president of Bosideng, said that opening stores overseas is an important part of Bosideng's brand strategy this year.

"Globally, we must open strategic flagship stores.

We finally chose to open a shop in London, where to fall and where to stand. "

Internal and external attack

Because of the huge consumer groups and the purchasing power of consumers, China has also become a competitive market for brands in the field of down garments.

Not long ago, the Italy luxury feather clothing brand Moncler announced the first quarter of fiscal year 2018, data showed that as of March 31st, its sales rose 20% over the same period of 3 months.

Moncler highlighted China in its earnings report.

Sales are particularly strong.

Also recently, Canada Goose announced its plans to enter the Chinese market. It is reported that this autumn it will open two flagship stores in Sanlitun, Beijing and Hongkong IFC, and cooperate with Tmall in developing e-commerce business.

For Bosideng, in addition to facing the diversion of high-end brands in consumption, it also faces similar fashion brands like UNIQLO, ZARA, and even a four seasons fashion brand.

Business continuity.

Boston has said that it has little to do with external competition as to why we need to start big changes this year.

In recent years, Bosideng has been making adjustments. After three or four years of adjustment, the whole enterprise has been in a relatively normal situation.

At this time node, the probability of success is relatively high.

Bosideng has set a goal of three years: to achieve a substantial increase in operating income by 2020 and further enhance its reputation at home and abroad.