A few days ago, Euromonitor International completed the statistics of retail channel sales and sales volume of down jacket products in 2020. The results show thatBosideng InternationalDown sales, sales ranked first, which means that Bosideng International has ranked first echelon of down jackets in the world.
From the financial results released by Bosideng International, we can also see that after returning to the main business, its down jacket business has achieved growth.
According to the financial report, as of March 31, 2021, Bosideng International's revenue and net profit reached record highs of 13.5165 billion yuan and 1.7096 billion yuan respectively, up 10.9 percent and 42.1 percent respectively from the same period last year.So far, Bosideng International has achieved revenue and profit growth for five consecutive years.
According to the statistics of China Garment Association, China's down jacket market has reached 120.9 billion yuan in 2019 and 130 billion yuan in 2020. It is expected that China's down jacket market will reach 162.1 billion yuan in 2022.
Judging from the data, Bosideng International's future is promising, but can this "light of domestic products" with several ups and downs really bear the reputation of being "number one in the world"?
According to public data, Bosideng International, founded in 1976, is a Chinese down jacket manufacturer. In 2013, Bosideng International was in crisis, and both total revenue and main business revenue began to decline, all of which were hidden dangers of "unsuccessful diversification".
In 2010, Bosideng International began to focus on the non-down jacket business, buying a large number of other brands, including menswear brand Jesse, hoping to get rid of the "seasonal" revenue instability of down jackets.
However, the multi-brand strategy did not bring Bosideng International stable revenue, but highlighted its "lack of experience" outside the down jacket category. At the same time, under the influence of the environment, Bosideng International also had an inventory crisis. In order to transform, Bosideng International gave a big discount and closed a large number of stores. Bosideng International's number of stores nearly halved to 6599 in 2015, while inventory problems eased.
In 2017, Bosideng International, the "hard to get off a tiger", finally cut off the business of men's wear, children's wear and home furnishings, refocused on the category of down jackets, and hoped to upgrade the brand through design, research and development, and high-end strategies.
In September 2018, Bosideng International entered New York Fashion week through Tmall. This marketing won a lot of attention for Bosideng International. Like most domestic clothing enterprises, Bosideng International once again stood on the forefront of the times. After resuming positive growth, its founder Gao Dekang also shouted the slogan of "starting a second business" again.
But the good times didn't last long. In June, a year later, short selling agency Bolidas dealt Bosideng International a heavy blow.
The agency pointed out that Bosideng International's accounts were falsified, that his share price was only worth 0 yuan, and listed Bosideng International's four sins:
1. Make a profit of 807 million yuan by making a false report.
2. Bosideng International made a number of acquisitions with as much as 2 billion yuan, while the seller was an undisclosed insider.
3. Sell property assets to Chairman Gao Dekang with an appropriate amount of RMB 56 million.
4. The track record shows that the company has paid a considerable amount of dividend to the major shareholders who hold 65% of the shares.
Affected by this, Bosideng International's share price plummeted that day, and the next day, Bosideng International denied all of Bolidas's allegations.. But looking back on this incident, it is not difficult to find that short sellers are clearly well prepared. As Gao Dekang said before, Bosideng International may have had certain problems in operation and management before, at least in terms of information disclosure, some events have not been explained clearly.
However, the development of the situation so far, especially the "certification" of Euromonitor International, has also consolidated Bosideng International's leading position in the world. And under the influence of the epidemic, Bosideng International's performance did not decline, but rose, and these are precisely the positive effects brought by Bosideng International's return to the main business.
But for the future, Bosideng International, who strives to make efforts at the high end, may not be as smooth as expected.
First of all, the foundation of Bosideng International's rise is popularization, and the process of high-end will inevitably be affected. Secondly, compared withCanadian goose, Moncler and other high-end down jacket brands, Bosideng International's brand strength, professionalism is still relatively weak.
More importantly, today's Bosideng International is only trying on other categories other than down jackets, and has not yet got rid of the off-season nature of down jackets, which makes him have to spend more energy on inventory turnover.
To be sure, under the premise of increasingly fierce competition in the down jacket market, Bosideng International needs to do more.
As of press time, Bosideng International shares rose 0.32 per cent to HK $6.31 per share, with a total market capitalization of HK $68.379 billion.