Bosideng Medium Term Revenue Net Profit Double Growth Response To The Outside World Questioned The Difficulties Of High-End Transformation

In November 28th, Bosideng handed in the transcript of China Daily (from April 1, 2019 to September 30, 2019). During the reporting period, the company achieved double-digit growth in revenue and net profit. In the off-season, Bosideng responded to the doubts about its transition to high-end transformation with its performance data.

As for the super expected mid school transcript, which is delivered by Bosideng, brokers' comments are kept at the same time. The reason is that Bosideng is a typical representative of the rise of domestic goods, and the brand strategy of the company is stable and reliable.

Net profit growth of two times

According to Bosideng semi annual data, the company achieved revenue of 4 billion 436 million yuan during the reporting period, an increase of 28.8% over the same period, and a net profit of 343 million yuan, an increase of 36.4% over the same period last year. Among them, the company's brand down clothing business in the report achieved a 42.9% growth, revenue reached 2 billion 533 million yuan, accounting for 57.1% of total revenue.

Specifically, during the reporting period, the company's main brands grew year-on-year. Among them, Xue Zhong Fei's mid term performance increased by 5.4%, and its icy performance grew by 11.7%.

For the reasons for the growth of company performance, Zhu Gaofeng, chief financial officer and vice president of Bosideng group, explained the interim results of the company. The reasons for the growth of the company's medium-term results came from two aspects: the growth of the core plate of the company's brand down jacket, and the growth of the OEM business segment.

According to the results of the report, the brand down garment business is still the largest source of income for Bosideng, achieving 2 billion 533 million yuan in the reporting period, accounting for 57.1% of the total revenue, an increase of 42.9% over the same period. The increase over last winter is higher than that of last year.

In addition, under the background of intensified trade friction, Bosideng's overseas OEM business unit achieved a growth rate of 21.9% during the reporting period, with a revenue of 1 billion 350 million yuan.

In an interview with reporters, Zhu Gaofeng said that OEM products will continue to grow more than 20% next year. These products are for international brands to do foundries, and Bosideng's main market in the country, so OEM products and their own brands will not conflict.

It is worth mentioning that in Bosideng multi business sector to achieve high growth at the same time, only women's clothing business appeared year-on-year decline, the decline was 6.1%, to 506 million yuan.

Management still maintains high expectations

According to reporters, Bosideng sales accounted for more than 70% of last year's revenue. However, the cold weather this winter is also an indisputable fact. In the less than two months from the Spring Festival in 2020, the higher turnover will be faced. What challenges will Bosideng face?

In response, Zhu Gaofeng said in an interview with reporters that Bosideng specializes in down coats and sells for the first time in 24 consecutive years. The company experienced too many winters and warm winters. Its psychological quality is higher than that of ordinary people. It will not be discounted due to the late cold weather.

Zhu Gaofeng said that in order to ensure the strength of the winter sales season, the company has conducted 600 training sessions in the off-season, covering nearly 22 thousand people, and upgrading the flagship store. The terminal details have been greatly improved.

At the end of the "double eleven" Shopping Festival, the sales of main brands on Bosideng online exceeded 800 million yuan, and the total channel sales exceeded 1 billion yuan. In Zhu Gaofeng's view, the "double eleven" and the "double denier" have passed the "double dawn" and the "Spring Festival". "We still have high expectations for the peak season."

It is worth mentioning that this year Bosideng sales increased considerably.

Earnings data show that in the first half of the 2019 /2020 fiscal year, Bosideng's online sales revenue of its brand reached 305 million yuan, an increase of 70.9% over the same period last year.

In the past 6 months, Bosteng is among the top IN brands in Tmall. Bosideng's brand strength and quality have been recognized by mainstream consumers online. Tmall flagship store rose from 4.83 to 4.91, and customer satisfaction increased from 93% to 96%.

Bosideng's domestic market occupancy rate is 30%.

Data show that the domestic down jacket Market is 120 billion yuan, and Canada's geese, Moncler and other international brands have entered the Chinese market, while Bosideng's market share is only 10%.

Zhu Gaofeng said that the Chinese market is the market where Bosideng focuses its efforts. The company will continue to plough deep into the Chinese market, and the market share of 20%-30% is fully capable of getting it.

And when the target of market share for 30% was reached, Zhu Gaofeng did not give a specific timetable. He told the Securities Daily reporters that the size of China's down garment market is increasing. Bosideng will continue to increase its market share according to the growth of market share. Although the timetable can not be given, the growth rate of the company will not slow down, and will continue to maintain a relatively high growth rate.

In fact, when Bosideng formulated the strategy of focusing on down jacket main channel in 2018, its sales volume continued to grow, and it was moving from the domestic market to the international stage, becoming a typical representative of the rise of domestic goods.

However, Bosideng, who is on the road of transformation, has also encountered many doubts. In the face of external doubts, Bosideng said that the strategy of transformation to the middle and high-end will not change.

According to the industry forecast, with the help of the "Dongchao tide", Bosideng will be a "trump card" leading the Chinese clothing to the world through a series of brand building, product R & D investment and supply chain upgrading.

This year is the second year of Boston's transformation and upgrading. It is also a year of systematic effort. Through the company's interim performance data, we can see that the development of Bosteng in the past two years is consistent with the company's established track of development.