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Business Strategy: Learn About Bosiden'S Business Secrets In Summer By Closing Inefficient Stores

2023/7/7 20:55:00 188

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Recently, Bosiden Holding Group Co., Ltd., the vice-chairman unit of China National Garment Association, released the performance report for the 2022/23 fiscal year as of March 31, 2023. During the reporting period, the company's revenue increased by 3.5% year on year to 16.77 billion yuan, gross profit margin decreased slightly by 0.6 percentage points to 59.5%, and operating profit increased by 10% to 2.83 billion yuan. Among them, the 5-year compound annual growth rate of the company reached 13.6%, the net profit attributable to the parent company increased to about 2.14 billion yuan, and the 5-year compound annual growth rate reached 28.3%, a record high.

According to the report, Bosiden's business includes down jacket, OEM, women's clothing and diversified clothing. In terms of gross profit margin, the gross profit margin of branded down jacket and OEM management business kept rising steadily, reaching 66.2% and 19.9% respectively. By business type, brand down jacket business is still the main source of the group's revenue, with a year-on-year growth of 2.7% to 13.58 billion yuan, accounting for 80.9% of the total revenue. In the brand down jacket business, the main brand Bosiden contributed 11.76 billion yuan, up 1.2% year on year.

In terms of channels, the company's full brand online revenue in fiscal year 2022/23 is about 4.929 billion yuan, accounting for less than 30% of the total revenue. Therefore, some analysts said that although the online sales channel has always been the channel that Bosiden focuses on and vigorously develops, it is still a company focusing on offline business up to now. The impact of retail store business on performance cannot be underestimated. The adjustment and strengthening of store management is one of the company's business priorities.

Zhu Gaofeng, chief financial officer and vice president of Bosiden, said that in early 2022, Bosiden had set a goal of closing inefficient outlets with annual sales less than 2 million yuan. Based on this, Bosiden would also stabilize its channels and make some structural optimization in 2023. Specifically, the company will iteratively upgrade the store image, open up the "people, goods and markets" of global retail with digital technology, implement the business philosophy of "depending on the store at the door", realize the improvement of quality and efficiency of single store operation, establish a replicable and efficient single store operation mode, and improve the operating ability and profitability of the store.

In recent years, Bosiden has increased investment in product innovation and started a "summer business". In addition to the subversive innovation of the down jacket category by redefining the lightweight down jacket, sunscreen has also become one of the key targets of Bosiden. Zhu Gaofeng said that the positioning of Bosideng sunscreen clothes is to benchmark the company's main brand, and the quality should be the same as that of down jackets. Judging from the market reaction in the last three months, the sales of Bosiden sunscreen clothes exceeded 200 million yuan, with a substantial year-on-year growth. The products have been recognized by consumers.