Why Is Bostenden Still Difficult To Catch?

Last year, Bosideng boarded the fashion week in New York, triggering discussions in the social network.

But it is estimated that many people do not know that as early as 2014, Bosteng recruited marketing and public relations teams in the United States, and held a static Conference on bostman menswear in New York fashion week.

Yes, Bosideng brand has faded away from young consumers for many years.

Because the down jacket is a single season product, the market space is limited, and there are constantly new brands to grab the market. Bosideng brand is gradually aging.

Therefore, founder Gao Dekang has high hopes for the four seasons of non feather products.

In the past ten years, Bosteng group has supported more than 10 new brands of men's wear, children's wear and women's wear.

In 2017, Bosideng brand was also positioned as a lifestyle brand of multi category development, and it was fading away from down garments.

But by 2018, Boston had suddenly become a hot fashion brand, even in micro-blog social media like Canada goose.

"Selling 72 countries and covering Canada goose" seems to have become a world famous brand overseas.

But is this the result of marketing, or is Bosten really successful in pition?

Internationalization and growth in four seasons

Gao Dekang, founder of Bosideng, originally made a clothing contract business, and later made a high profit down garment OEM. He registered Bosideng brand into the retail market in 1990.

In 2003 -2005, Bosideng took the CCTV "King".

Like other brand names, Bosideng also entered a period of rapid development.

By October 2007, Boston was listed on the Hong Kong stock exchange.

In the initial stage of its listing, Bosideng's main business is divided into two parts: down, wholesale, retail and down garment processing. There are 6 down garment brands, Bosideng, Xue Zhong Fei, Kang Bo, ice cream, Shuang Yu and upper feather, respectively, aiming at different down garment market, such as Bosideng's high-end positioning, snow flying is more casual and casual, and ice cream and KangBo are targeting the middle and low end consumers.

Like most clothing brands in China, Bosideng chooses the dealer mode to expand rapidly online, though it is called "retail", but the dealer mode is more like the toB business. Bosideng focuses on brand management, and uses dealer funds to expand the market share of products rapidly.

However, although the brand can sell the goods to dealers and quickly reflow cash flow, dealers will often "ERP" the direct influence of the brand on the terminal channel in order to safeguard their interests.

In terms of brand marketing, Bosideng adopts the strategy of "supporting + replenish" advertising, that is, with CCTV as its support and other media as the supplement, more than 60% of advertising will be concentrated in CCTV. Bosideng can be said to be the most popular textile and clothing brand in China.

In addition, Bosideng also promotes the brand image by opening a large flagship store in the mainstream business circle.

But the sales season of down jacket is from October to February of next year. Gao Dekang realized that "down jacket is after all a single season product with limited market space". Therefore, in the ten years after the listing, Bosideng mainly revolves around the pformation strategy of "four seasons, internationalization and multi branding".

Let's take a look at some major changes in Bosideng in the past ten years.

First, 2013 is the watershed of Bosideng's performance and business. This year, Bosideng performance has gone down for three years.

At the time, Bosideng was faced with three big mountains: 1. the sales of domestic down garments for four consecutive years were negative year-on-year growth, retail channel inventory backlog; 2. fast fashion brand impact, Bosideng products were not dominant in design and price; 3., the electricity supplier let the high premium of traditional sales channels such as department stores fail, and the low price inventory influx of e-commerce channels further weakened the brand influence.

After 2013, the wholesale sales of Bosideng down clothing decreased gradually, and the proportion of consignment and self employment increased gradually. Obviously, there was no support for interests, and the brand's right to speak on distribution channels gradually weakened.

The traditional agency distribution mode is either too slow from consumer information pmission or supply chain response.

Dealers can not make money, to a large extent, the brand premium, to see the difference between the perceived value of the brand and the real value of its channel products through the dissemination.

Bosideng spends a lot of money every year to pay for advertising, publicity, business super deduction and personnel remuneration, but there is so much surplus grain. With Bosideng putting its resources into four seasons and internationalization, the influence of feather down brands gradually decreases.

And the harder the sale of down garments, the more value it will be for Boston.

Haramoto Namishito's brand of 6 down coats has been reduced to three, and the non feather clothing brands have been increasing. Bosideng has bred men's brand "Bosideng men's clothing" and "Widrow". The children's clothing brand "tinkling cat", fast fashion brand "Mogao", "Luo Kawei", women's clothing brand "Jesse", "bang Bao", "corleano" and "colorba", the school uniform custom brand "saymet".

As the market is sluggish, brands are also going downhill. According to the no fashion Chinese network, Bosideng brand lost its position of China's first down feather brand in 19 years in 2014.

According to European consulting data, Bosideng's market share has dropped from 1.4% in 2012 to 0.7% in 2016. There must be no shortage of distributors to find a way out, especially in a competitive second tier city.

In 2012, the total number of Boston retail outlets reached 14435, but in the next three years, Bosideng closed more than half.

At the same time, Bosideng began to sink channels, encouraging dealers to open stores in large quantities in 345 cities, and set up a lot of sales channels to digest inventory, through discount stores, supermarket chains, towns and remote areas, special stores and factory stores to promote sales.

The most important thing that consumers buy is the function rather than the design. So the advantage of the down jacket is that there will be no dead stock. Second years of winter can continue to sell.

Compared with the four seasons brand, Bosideng's inventory pressure is much smaller.

In closing stores and going to stock, Bosideng also began to make meticulous management of distribution channels, implemented the order meeting mode, gradually increased the proportion of Direct stores, and set up an information and logistics system to enhance the rapid response to retail terminals.

Before and after 2017, the domestic garment retail channel was basically completed, and the domestic garment industry began to pick up. After solving the problem of inventory backlog and capital occupation, the clothing brand began to develop a lot of new products and began to reshape its brand and channels. The user experience, brand accumulation and cash flow advantages of offline stores began to emerge.

It was also in 2017 that Bosideng closed its only overseas flagship store in February and announced in disguise that its international strategy led by Gao Xiaodong, Gao Dekang's son, failed in 2011.

Bosideng's internationalization is no longer a matter of fact. In short, Bosteng's menswear brand has tried to enter Britain, Italy and the United States. Although it took a lot of effort, it failed to gain a foothold.

The reason is that Bosideng is "blind at the top."

Bosideng can sell well in China, mainly because of the price and good quality of the people, but the men's clothing brand claims to take the high-end route to the standard HugoBoss.

The men's clothing brand with high hopes is more enterprising than ever, but it can't bear much use. Instead, several women's clothing brands are improving.

After the failure of internationalization, Bosideng focused more on the strategy of "four seasons".

According to the interface report, in July 6, 2017, the "NewBosideng" brand positioning conference was held. The new Bosteng wanted to become a lifestyle brand of multi category development, not only selling down clothing, women's clothing, women's clothing, children's clothing, but also vigorously developing the home market.

2017/18 financial year, Bosideng non feather business income grew rapidly, accounting for 25.8% of total revenue.

Gao Dekang has said that Bosideng should reduce its down garment business to 60%, and cultivate new growth points with non feather down and four seasons business.

But the cost is that Bosideng's multi brand expansion in the non core business area leads to distraction of resources. The instability of the main brand position further results in confusion of users' cognition, weakening the reputation of the main business and the main brand.

In the year of pition, why did Boston mutation?

Last year was the turning point of Boston. With the trend of New York fashion week, Bosteng returned to young people's vision.

Last week, I participated in Bosideng's 2018 strategic results conference. Bosideng announced that the single brand retail sales exceeded 10 billion yuan, and Bosideng stock price went up 132.8% in 2018.

Compared with the positioning of lifestyle brand in 2017, Boston came to a 180 degree turn.

The reason for the change is that tiger sniffer high street believes that there are two basic points: 1., "touch porcelain", Canada goose; 2., change the routine, "the fragrance of the flower outside the wall".

1. "touch porcelain" canadian goose

Moncler and Canada goose have heated up the winter wear market in the world, spreading to the domestic market, and also driving the domestic down garment consumption to the middle and high end. The whole down garment consumption market is divided into two levels. One end is "Canada goose" and a "UNIQLO" people. Of course, this is only a consumer market, rather than a professional level (such as Desanto, who has been bought by Anta, and has a very popular reputation in China).

Bosideng has a "geographical advantage", thirty years of experience in the manufacture of down garments, and a perfect retail network, which has a brand foundation in China. This down jacket boom is good for Bosideng, and Canada geese has greatly increased the psychological price limit of down garments for consumers at the mass consumption level, forming a relatively blank intermediate market.

The biggest value that Canadian geese bring to Bosten is to give Bosideng a benchmarking anchor, like Apple's domestic mobile phone, and let all the troops to compete with the four seasons brands. Bosideng sees that only doing well the down jacket can be touted by the consumer market and capital market.

First, in last year, a lot of Bosideng Star Street pictures and "Bosideng VS Canada goose" evaluation articles were published on the Internet, and the title content of "1/10 price was overflowing P" and "overseas big names were all abused and cried". Many consumers also wondered: the impression that the first card of the county has become a color suddenly became the first world war with the world.

Although they all do the down jacket business, Bosideng and Canada geese have different business models and brand positioning. This compares the two, like NetEase strictly selecting the luxury goods produced by the same factory, and letting Bosideng bring the invisible ring of the Canadian geese.

As a substitute for goose, Bosideng can occupy the middle market under the goose.

2., change the routine.

In the second half of 2017, Bosideng introduced some external intelligence to carry out competitive strategy research. It is precisely because of these consulting companies that Bosideng re examined the importance of the down jacket industry.

In order to revitalize the main business, Bosideng mainly did the following work in order to revitalize its main business.

In terms of products, we work together with international design forces to introduce designer joint names and high-end functions to boost product prices.

And actively publicize raw material information, such as selecting the same raw material supplier with Moncler, showing its quality and production technology.

In terms of channels, the core commercial bodies such as Wanda and Yintai are back to the mainstream channel. At the same time, the terminal has also carried out visual upgrading, opening large stores, opening flagship stores, and making high tonality.

In marketing, Bosideng strengthens the concept of Bosideng = down jacket, which is related to the down jacket and strengthens, which has nothing to do with Down clothing.

With "selling the world 72 countries", "focus on down 42 years" and other advertising slogans to enhance consumer awareness.

In addition, Boston returned to CCTV last year to return to CCTV's "marking king", put the CCTV national brand plan into practice, signed a billion dollar cooperation with Focus Media, launched a large number of advertisements in mainstream channels, and launched a large number of domestic and foreign Street stars wearing Bosideng down clothing in social media.

New York fashion week is the highlight of Bosideng, and even more importantly, Bosideng emphasizes the concept of "nation" and "nationality" consciously or unconsciously. "National brand", "Chinese name card" and "Chinese brand conquer the world (though the big story is made by African American designer LawRroach)" has greatly strengthened the marketing effect of this event.

This is why the same fashion week has also gained more benefits from the fashion week than the more fashionable genes of Jiangnan cloth, Taiping bird, Bosideng and Lining.

Facts have proved that this "wolf wolf" marketing is very effective, or the consumer itself is the case. At the end of last year, the Canadian geese fell sharply because of the incident of HUAWEI Meng, Bosteng was soaring, and patriotic let us choose Bosideng.

But at the same time, we also believe that fashion week is still at the top of fashion communication, so Bosideng and Lining can "fragrance outside the wall".

The hidden danger of innovation under family management

In the strategic results conference, Gao de Kang said that in order to make consumers feel valued, Bosideng will do three things in 2019: emphasize the connotation of the world's hot down feather clothing experts; continue to implement the brand "Bosideng mode" that led the development of the brand; and lead the Chinese clothing brand to the world.

Can it really "go to the world"? Looking back, Bosideng set up shop HugoBoss in London, so similar to the way that foreign goose shows the Canadian geese. I'm afraid Bosten didn't really want to enter the international market at the beginning. After all these years of trouble, Bosteng had only one London store abroad.

As for the "Bosideng model" of brand led development, bostin has so much love for CCTV in the past thirty years. It is still necessary to improve brand awareness through marketing and other means so as to obtain low-cost mobilization of social resources such as channels, media and so on.

Bosideng often takes itself as a "world famous brand". From some simple details, Bosideng is very concerned about brand publicity, and even some "go mad".

For example:

"Bosideng began in 1976 and has been focusing on down garments for 42 years." Gao Dekang started his business in 1976, but the earliest factory did not produce the down garments. The Bosideng brand was born in 1990.

The title of "world famous brand" was awarded to Bosideng in September 2007 by the AQSIQ, which is valid for three years. In 2016, Hebei industrial and commercial bureau announced the quality problem of "Bosideng" brand clothing.

"In 2009, the Chinese Brand Research Institute selected Bosideng as the" national card "with a brand value of more than 16 billion 200 million yuan. Besides Baidu encyclopedia, I failed to find any substantive information on the" China Brand Research Institute "from the Internet.

In July last year, Bosideng "clothing industry's only national brand planning conference (that is the name)" was held in Beijing water cube.

We must know what the CCTV national brand plan is and how it ends. Therefore, the name of this conference shows a strong "local flavor". It feels like a man buying a fake goose himself, but he thinks others can see it and feel complacent.

A financial online article is written on Bosideng's family management. The top executives are mostly from relatives of Gao Dekang and Mei Dong, and the professional managers are basically not going to last for a long time. Moreover, the Bosideng group meeting is to preview. In general meetings, we must first talk about the total respect of the respected high total, respectful Mei, and how much he has achieved under his leadership. How to make such a set of words and even have two rehearsal for the tone.

These descriptions should be true, because at the press conference, many executives or guests would describe Gao Dekang as "superior", "return of the king" and "legend".

Moreover, the atmosphere of the whole conference was dull. Even in round table discussions, the guests kept looking at the paper in their hands.

The seat next to the author is exactly the two row of executive seats, almost all middle-aged men.

Pan chaos in Tencent no dream, questioned Tencent's loss of innovation, said: "if a general manager of Internet Co is 60 after 70, hobbies are playing golf, drinking red wine, buying holiday hotels and politics, why do you think young people and the mass market have something to do with you?"

This sentence can also be placed on Boston.

In an industry that is increasingly emphasizing aesthetic and personal expression, can an old-fashioned enterprise attract young people with vigor and make good design? Although it is optimistic about the potential of the domestic down market and the development of Bosideng, I believe that what consumers see is what the brand wants to show.