Bosideng Down Garment Business 18/19 Fiscal Year Revenues Of More Than 10 Billion, Earnings Growth In The Short Term Will Remain Strong.

Bosideng International Holdings Limited (hereinafter referred to as "Bosideng") announced in February 26th noon, 2018/19 fiscal year, group retail and revenue performance (including offline and offline) achieved good results.

In the 2018/19 fiscal year, the group's core brand "Bosideng" focused on the positioning of the "world's hot down eider" experts, and continued to enhance brand upgrading, quality upgrading, channel upgrading, image upgrading and fashion function innovation. Retail and revenue performance (including offline and offline) achieved good results.

As of February 25, 2019, the cumulative retail sales of Bosideng brand down garment business 2018/19 fiscal year has exceeded 10 billion yuan, and the total sales revenue has increased by more than 35% over the same period of 2017/18 fiscal year.

Public information shows that Bosideng group was established in 1976 and listed on the main board of Hongkong in 2007. It mainly develops and manages its own down garment brand. Its "Bosideng BOSIDENG" brand was founded in 1994. For many years, Bosideng has been the top brand of the domestic down garment industry. The company listed on the HKEx in 2007, and its performance has been growing strongly before the 2014 fiscal year.

However, the industry believes that Bosideng has two main problems. First, under the brand aging and fierce competition, the core apparel business performance retrogression, and the two is the loss of non down garment business outside women's clothing.

In the view of Ma Li, an analyst at Soochow securities, Bosideng began to take measures to solve its own problems. Bosideng's profit began to recover in the 2016 fiscal year. The key step is to focus on Boston's core business, down garment business.

Starting from the first half of fiscal year 2019, the company reduced its non core business and retained only a steady profit in women's clothing business.

For down garment business, its reform is all-around: (1) product upgrading; (2) channel optimization; (3) brand establishment.

Ma Li believes that in the early years of the reform, bostin was firmly invested in products, channels and brands, comprehensively changing brand image and strengthening the cognition in the minds of young consumers. At present, all reforms are expected to achieve the desired results. Looking forward to the next fiscal year, it will continue to invest in product development and brand publicity, and continue to consolidate the position of bostin as a "global hot down garment expert". According to historical experience, the reform bonus is expected to be continued in a few years under the conditions of product adjustment and brand potential.

It is understood that Bosideng's main business is down garment, women's clothing, OEM processing management (OEM) and diversified businesses.

Down garment business: on the basis of focusing on the main brand down garment business, the company is also actively implementing multi brand development strategy.

Among them, Bosideng is completely rebuilt into the high-end brand. Snow and fly ice cover the middle end and pay attention to high cost performance respectively, so as to meet the needs of different customer groups and enhance the market share of the company.

OME business: through the OEM business channel, Bosideng develops the international market to realize the development of the international brand. At present, the company has become an international famous brand partner of COLUMBIA, NORTHFACE, TOMMYHILFIGER, ADIDAS and so on.

Women's clothing business: in recent years, Bosideng has been actively looking for and acquiring the brand of non down garment women with potential development and good reputation. At present, its brands mainly include Jesse, bang Bao, corleano and kolba, and since 2018, the business platform of women's clothing has gradually become larger.

Diversified business: diversified businesses include Bosteng men's clothing, Bosideng home and children's clothing business.

The latest data show that the company accounts for 0.8% of its revenue.

China Galaxy International researcher Li Jiahao believes that Bosideng's sales momentum is good, and the average store sales are improving.

With the help of profit margin expansion, earnings growth in the short term should remain strong.

Although the down jacket industry is affected by the global economic slowdown, it keeps double-digit growth.

In the past four years in 2013-2016 years, the CAGR of the down garment industry is about 18.4%.

In the next few years, the market of the down jacket market will further expand, and it is expected to reach US $208 billion 500 million by 2021.

The popularity rate of down garments in China is less than 10%, and the trend of demand increase exists.

It is mainly reflected in two aspects: rigid demand and fashion demand.

On the one hand, just need to stimulate the growth of the industry scale.

China's cold areas are widely distributed, but the popularity of down garments is less than 10%.

China's northeast, northwest and southwest plateau and other cold areas have a vast area, although the number of residents is not dense in eastern coastal areas, but the number of residents is still large.

In Europe and Japan, which are widely distributed in the same cold regions, the popularity of their down garments is 35%-70%, and the popularity of our down garments is very low, less than 10%.

In addition, due to the large population base and the rapid improvement of the living standard of residents, the popularity of our down garments will continue to grow, which will further expand the market scale of our down garment industry.

On the other hand, the demand for fashion is booming, and traffic marketing breaks the "ceiling" of the industry.

First of all, down jacket is the result of the development of street clothes and trend culture.

According to Trendalytics, there will be a $309 billion Street apparel industry in the global fashion and luxury market in the next 2018-19 years.

Secondly, the feather clothing enterprises imitate the luxury Brand Company to increase the brand exposure by using traffic marketing, that is, the Hollywood stars and private service endorsements, and then bring strong purchasing power.

In addition, down jacket gradually refresh consumer awareness, with a high degree of vigilance, through product design and research and development, and constantly lead the fashion pursuit of consumers.

According to the industry information forecast, the average annual growth rate of China's down garment industry in 2019 -2022 is about 11%, the growth rate has stabilized, the scale of the industry has continued to grow, and the growth has continued to improve.