Market Value Increased By 8 Billion! Bosideng Became The Biggest Black Horse In 2018.

With the frequent occurrence of extreme weather in the world, the down jacket with strong thermal insulation can give consumers a sense of security, and China's down garment market is entering a new growth period.

According to the data released by market research firm HTF MI, from 2013 to 2016, the market of the down jacket Market reached an average annual growth rate of 18.4%. The market of the down jacket market will further expand in the future, and it is expected to reach US $208 billion 500 million by 2021.

Thanks to this positive trend, China's down price brand Bosteng doubled its market share by 2.2 times last year, and its market value increased by HK $8 billion. It was regarded as the largest black horse in dress retailing, and it rose by 24% with the I.T of Hong Kong stock and 20% by the south of the Yangtze River.

Some analysts said that after obtaining the promising capital market, Bosideng's rare bold transformation measures came into effect last year. According to the latest three quarter performance data released by Bosideng, in the 9 months ended December 31, 2018, the retail sales of the group's main brand Bosideng increased by more than 30% over the same period last year, and the revenue growth of Xue Zhong Fei, Bing Jie and other brands also increased by more than 20%. In the first half of fiscal year 2018, Bosideng brand sales rose 24.1% to 1 billion 557 million yuan over the same period.

However, the experience of Bosteng, which has been in existence for 43 years, is not smooth sailing.

Bosideng was founded in 1976 by Gao Dekang in Changshou City, Jiangsu province. After gaining a firm foothold in China, he decided to move towards the global market in 2012. He opened the first independent overseas store in Mayfair District, London, and became the first domestic clothing brand to fight for the international market. According to the financial times at that time, Bosideng compared himself to "China's Martha department store".

However, since 2014, Bosideng has gone through a period of low performance. In the same year, group sales fell 11.7% to 8 billion 238 million yuan compared with the same period last year, net profit fell 35.6% to 695 million yuan in the same period, and the income in the 2015 fiscal year dropped 23.6% to 6 billion 293 million yuan, net profit fell 81% to 132 million yuan compared to the previous year, and 2016 in the fiscal year was only 5 billion 787 million yuan.

Under the influence of uncertainty in Britain, Bosideng closed its only store in Britain and its official website in February 2017, and the group's overseas expansion plan also ran aground until last September, when the flagship store in Boston was reopened.

While Bosideng is on the decline, the Canadian luxury geese, such as Canada goose and Moncler, have begun to accelerate the layout of the Chinese market. Last year, they entered Tmall's flagship store and flash store. The canadian goose opened two entity stores in Beijing and Hongkong in just 3 months.

In order to retain the existing consumers, the Bosideng group, which has been targeting the mid end down market, had to start brewing a new transformation plan. Therefore, 2018 was also regarded as the "first year of reform" of Bosideng group. Bosideng group decided to follow the route of "focusing on the main channel and shrinking diversity", gathering resources in Bosideng, the main brand of its main brand, starting from Logo, rebuilding the brand, launching the down garment industry, cutting off the non down business of Bosteng men's clothing, home and children's clothing in a single breath, and closing 70% to 80% non-profit stores in the next three years.

In order to attract more consumers, Bosideng has developed different series of different consumers to meet the diversified needs of consumers. Under a series of transformation measures, Bosteng changed the old and conservative brand image and quickly became the "fashion" pronoun of the Chinese feather and down industry.

According to the data released by Tmall earlier, the sales of feather products on its platform rose by 48% in November alone, and Bosideng became the first clothing brand to sell in advance during the double eleven period. During the holiday of new year's day, the store on Bosideng line also caused consumers queuing up.

Some analysts have pointed out that the success of Bosideng's transformation is inseparable from the diversity matrix of the group in the down field, breaking the limitations brought by the simplification of down jacket products. It is reported that Bosideng also plans to make women's clothing the second largest profit center, emphasizing that the business is also a key development project for the coming year.

In addition, the group is also improving the response mechanism to the terminal market. Through the intelligent and big data supply chain system, the order management efficiency will be strengthened. The total production, sale and replenishment cycle will not exceed 1 months, effectively reducing inventory.

Although the down products are more sensitive to the weather changes than ordinary clothing, nowadays, "fashion" and "luxury" have the signs of breaking the shackles of the weather. Luxury feather brands such as Moncler have even opened stores to Mexico in the tropical region, and Canada goose's first store in China has also seen a panic buying rush.

Some analysts pointed out that the high-end high-end Bosideng is trying to cut with the previous "local flavor down jacket", but high-end is not an overnight job. The challenge after Boston's performance carnival is just beginning.

At the end of last year, Bosideng shares rose all the way, hitting a new high of nearly 5 years. Today, the group's stock price has surged 9% to HK $1.45, and its market value is about 15 billion 500 million yuan.