What is Bosideng doing right when the counter-attack of the national brand is reversed?

We are paying attention to Bosideng, which has been in the market in the near future. After joining hands with Junzhi Consulting, it has refocused on the main business of down jackets and strives to create a competitive strategy for down jacket experts. It has become a fast-moving Chinese clothing industry and is expected to achieve full operation. Out.

It is not difficult to see that Bosden can cut the past and focus on the courage of the main business because there are huge opportunities in the segmentation field. The huge market size and market growth of the down apparel industry is also giving the Bosideng brand a chance to “renew”.

So what is Bosideng going to run out of? Let us find out.

First, why does Bosideng win?

Winning a company often requires unique advantages in terms of market size, core technology, differentiation, and channel efficiency. Below we will analyze the strength of Bosideng's ability to win in the down jacket market.

1. Market size

From the market situation, Bosideng's down jacket market is quite an opportunity.

According to the data provided by the China Fashion Association's Down Professional Committee, the size of China's down apparel market in 2017 is 96.3 billion. In 2018, the size of China's down apparel market will reach 106.8 billion, with a growth rate of 10.86%. By 2022, the Chinese down apparel market will reach 162.1 billion, with an average growth rate of more than 10%. This series of data is not difficult to reflect the growth potential of China's down apparel market. In addition, in the developed countries of Europe and the United States, the penetration rate of down jackets is between 30% and 70%, while the current penetration rate of down jackets in China is only about 10%, and there is still huge room to be filled in the future.

From this point of view, Bosideng focusing on the main business is an extremely correct strategic choice, to do the big and fine areas, and to deepen it, and to seek greater profitability and development opportunities. In fact, it is not difficult to find that good giants doing at home and abroad tend to focus on only one area, rather than building a so-called "business empire." The pattern of flowering everywhere and spreading the net everywhere is not persistent. It is often easy to weaken the brand and its professional ability. It is said that playing snakes and playing seven inches, focusing on a truly capable field, and doing the ultimate, often than all The fancy is much more powerful.

It is worth mentioning that Bosideng has achieved the first national sales in the 23rd consecutive year (1995-2017). In China, it can be said that it is a well-deserved leading enterprise. The company is currently focusing on its main business and is striving to build a professional brand of down jackets. As the company continues to deepen its efforts, and the market scale still has a large growth prospect, the company will be quite attractive in the future. look forward to.

2 , core technology

In general, if companies do not have core technology, it is often difficult to go far. Many people in clothing companies think that there is no big technology at all. However, down jackets are not simple garments. They need strong technical support in terms of cold protection, warmth, waterproof, windproof, light and breathable. The core technology is the accumulation of enterprise R&D, and it is not the result of a single trip. Bosideng, which began in 1976, has been focusing on the development, design and production of down jackets for 42 years. Each piece of down jacket has to undergo at least 150 procedures. Bosideng has accumulated considerable experience in the field of down jacket manufacturing. And technical strength.

It is worth noting that Bosideng owns the nation's first national-level laboratory in the industry, and has obtained 177 patents, 23 science and technology projects, and 3 high-tech product certifications. At the same time, the company also participated in the drafting and revision of 15 international standards, 9 national standards, and 4 industry standards, and formulated 218 technical standards for various enterprises.

From the perspective of the company's development history, Bosideng once promoted the “three revolutions” of down jackets, and introduced the fashion design concept into the down apparel industry for the first time. At the same time, the company also applied antibacterial down technology, heat storage and heating materials, multiple lock velvet crafts, etc. “Black Technology” is injected into the down jacket products, which makes the down jackets integrate fashion and technology. The company has demonstrated its unique technical charm and scientific research strength in product innovation.

This year's new outdoor OUTSIDE, which has the reputation of “Oscar” in the field of outdoor equipment, also awarded the 2019 Outdoor Awards to Bosideng's high-end outdoor down series. Its products not only perform well in performance, design, and wearing experience, but also have professional performance comparable to international brands Canada Goose. Bosideng has been constantly innovating in products and has been highly recognized by authoritative selection agencies. It shows the different styles of traditional national brands on the international stage.

Therefore, Bosideng constructs its core competitiveness in the down jacket field through technical means. This is not only a reflection of the deep upgrade of traditional clothing, but also will be given more development potential and imagination space by the market.

3 , differentiation

The competitive strategy proposed by Bosideng's strategic consultant Junzhi Consulting advocates that the brand establishes “differentiation” in the mind and builds a unique competitive advantage of the brand. The competition in China's down apparel market has always been fierce. Four seasons brands and sports brands have begun to develop down jackets and divide the down jacket market. In addition, international brands such as Canada Goose and Moncler have also entered the market; Bosideng is the biggest difference in competition. It lies in its professionalism, 42 years of brand precipitation, making it synonymous with the "down jacket" in the customer's mind.

Bosideng has always been the title of "King of the Emperor", but in the early stage, the style of clothing tends to be a bit traditional. Since 2016, Bosideng has launched more new product lines, focusing on innovative technologies in the down apparel field, combining current market trends to bring freshness to the market and consumers.

On the one hand, the company uses brand superposition effect to cooperate with well-known IPs such as Disney and Marvel to launch a new series, which has attracted rave reviews from young people. On the other hand, it has continuously integrated global designer resources and cooperated with famous designers from many countries. Brand online and offline snapped up. In addition, Bosideng officially appeared in New York Fashion Week this year, becoming the only Chinese brand to show at home, bringing the world's top professional down jacket experience, making Chinese brands more dazzling in the international market.

As Coca-Cola announced in its 1995 annual report: “If our company is completely destroyed, we can immediately rebuild the entire company with the strength of our brand.” From this point of view, Bosideng’s actions are also Constantly working in this direction, its brand value is constantly improving.

4 , channel efficiency

In the consumer goods market, the channel is the common understanding of the company. As a very seasonal product, down jackets are highly sensitive to temperature. If the company estimates the market incorrectly, it is easy to cause inventory crisis, so it must make a difference in the channel.

After years of hard work, Bosideng has become more and more rational on the sales network. By strengthening the retail data analysis of the terminal, we will follow up the sales of each category at the retail level every week, and make timely adjustments to improve operational efficiency and quickly respond to market changes. Bosideng can say that he has achieved good results in channel upgrades.

In terms of channel structure, Bosideng has a significant upward trend in the number of specialty stores and self-operated stores in recent years. It has begun to enter the mainstream channels and is deployed in shopping malls, fashion department stores and core business districts. In addition, the company is also actively upgrading the terminal image store to enhance the customer experience. From point to point, it has been continuously improved in the channel. Bosden has made great progress in cost control, efficiency optimization, brand enhancement and marketing increment.

Second, the highlights behind the bright eye earnings report

At present, the domestic garment industry is chilling, and the performance of Bosideng's mid-year report has given the market a different sense.

a·Repease in the off-season, contrarian growth, net profit growth, return to high-speed track

Judging from the data of the semi-annual report in FY19, the company achieved revenue growth of 3.44 billion year-on-year of 16.4%. In the off-season of down apparel sales, the company's revenue has such a high growth rate, and its performance is relatively bright.

In addition, the company's net profit to the mother also reached 251 million yuan, a year-on-year increase of 44%, the growth rate is considerable, and has successfully returned to the track of past high-speed growth.

If you understand Bosideng's situation, you must know that the company's performance has been successfully reversed in these years. From this latest situation, its performance has shown a more in-depth posture, only in the off-season's semi-annual report in the 19th fiscal year. The company's income and net profit have shown a relatively bright growth rate. It is believed that the entire fiscal year will also be expected to achieve good results. The company is constantly adjusting and optimizing, and future performance is expected to continue to improve.

b. Focus on the transformation of the main business, the obvious competitive strategy has a significant effect

Judging from the semi-annual report in FY19, the company's down apparel business revenue was 1.773 billion yuan, up 19.5% from last year. The main brand Bosideng down jacket revenue increased by 24.1% year-on-year to 1.557 billion yuan, continuing to become the highest proportion of business segments.

As for the proportion of business composition, as of September 30, 2018, the proportion of brand down apparel business has increased to 51.5%, and continues to be the Group's largest source of income.

It is not difficult to see from the above data that the company continues to adjust and focus on the transformation of the main business has begun to take effect. With the contraction of the company's diversified business, the company will have more income to the main brand business in the future, and the brand will continue to be activated. The main sector in the future is expected to continue to strengthen.

c·Product upgrade wins consumer favors Down jacket main business gross profit rate optimization is obvious

In recent years, Bosideng has refocused the image of “Bosideng” down jackets by focusing on the main channel of down jackets, and has launched a series of new products and styles to expand the product portfolio. The online and offline sales also strongly promote the terminal sales. The optimization of gross profit margin has brought positive effects.

In the first half of FY19, Bosideng's gross profit margin increased by 2.2 percentage points to 42.3%. The company's gross profit in the first half of the year increased by 22.5% to 1.46 billion yuan. The gross profit margin of the company's main business of down jackets also increased significantly, up 7.9 percentage points year-on-year to 50.6%.

d·Channel optimization is obviously a new driving force for online e-commerce growth

In the past, under the pressure of overcapacity in the apparel industry and the decline in brand competitiveness, the entire apparel industry experienced a fierce closing of the store.

However, according to the latest financial data, as of September 30, 2018, the number of retail outlets of Bosideng's down apparel business increased by 93 to 4,559, including 1,569 self-operated retail outlets and 2,990 retail outlets operated by third-party dealers. The store began to show a more obvious reversal. Nowadays, as the company continues to optimize the channel layout and actively accelerate the layout in shopping centers, fashion department stores and core business districts, the company will also usher in a new round of development opportunities.

At the same time, with the continuous evolution of the Internet era, Bosideng's online e-commerce business has also begun to exert its strength. This year's "Double Eleven", Bosideng Tmall flagship store has become the first clothing brand to pre-sell 100 million yuan, online Sales ended with a sales volume of 560 million. The development of Bosden's online e-commerce business is booming. In addition, the financial report also shows that in the future, the company will continue to increase online investment, continue to increase the proportion of online sales, while promoting the integration of online and offline development, and continue to enhance the consumer shopping experience.

Summarizing the performance of the financial report, it is not difficult to see that Bosideng has refocused its main business, and the effect of streamlining diversified strategic adjustment has been gradually released, giving rise to new vitality. Looking forward to the development of the market, as the company's brand continues to upgrade, the reform results are continuously released, and the brand will be expected to reach a new level.

Third, the conclusion

"Drink Maotai, wear Bosideng, buy Gree air conditioner." The words spoken by Miss Dong reflect the weight of the Chinese brand. Today, Moutai and Gree air conditioners are still well-known, and Bosideng has also begun to accelerate its launch, achieving a high-profile recovery.

From the perspective of the capital market, Bosideng has more than doubled this year. In the case of poor market conditions, the company is the leader in Chinese retail stocks, and far exceeds the Hang Seng Index by nearly 10%. The performance of the same period.

Whether it is the amazing performance of the double eleven, or the bright-eyed financial report handed over in the off-season has already proved the success of the company's bet on the transition track.

The current company's PE valuation is around 20 times, which is not cheap compared to traditional clothing companies. However, considering that the company is in the field of functional clothing, its special market should give a certain valuation premium. Considering that the company continues to upgrade from brand building, product development, channel optimization and other aspects, the company's profitability will continue to be boosted, and the future value release is expected to be worthy of our attention.

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