Down Jacket In Winter, Bosideng

Overseas development is slow, Bosideng is undergoing painful pformation.

When winter comes,

Bosideng also encountered cold currents.

Bosideng's daily report showed that its net profit fell by 22.5% to 253 million yuan.

What is even more surprising is that during the reporting period, the down door business of the company closed 3436 stores, and the non feather down businesses also closed 114 stores and closed 19 stores a day.

In addition to having half of the group's total revenue.

There are also non feather down men's and women's wear brands and related OEM business.

Nearly 40 years ago, Bosideng, like other local brands, faced with problems such as overstock, excessive expansion of retail outlets and international fast fashion brand competition.

According to the results of the report, the income of down business decreased by 19.2% compared with the same period in 2013, but the OEM business grew by 54.8% over the same period.

Bosideng's main theme in the first half of the year is to digest the inventory of down garments in the off-season, and the second is to close stores.

Group CEO Liang Xuhui said that the closure of stores is the company's use of off-season scanning of geographical and business circles, to sort out and integrate the sales channels of all brands of down garments, avoid overlapping channels, and make the layout of retail network more reasonable.

The group also closed down some retail outlets whose sales did not meet expectations or the image services did not meet the group's requirements.

In order to enhance the tone of the brand, the company intends to pform some of the second tier cities into experiential shops.

"It is still in the preparatory stage."

Liang Xuhui said.

He served as Daphne's chief strategy officer and joined Bosideng group in May this year, with an annual salary of up to 5 million yuan.

Gao Dekang, chairman of the board of directors, said the move proved the company's determination to pform.

It is understood that Bosideng began pformation and upgrading from last year. One of the important measures is to strengthen control over channels and increase the proportion of Direct stores.

Now, the important goal of its clearance is franchised stores.

The semi annual report shows that the proportion of direct sales of down business has increased from 32.8% at the end of March 2014 to 42.8%.

Another logic of Bosideng pformation is that it is better to explore the international market actively instead of competing in the domestic market and the continuous influx of international brands.

Two years ago, Boston spent 300 million yuan to build the flagship store in London.

At that time, Bosideng specially invited famous designers in Europe, and the high-end men's clothing sold in the shop was designed and manufactured locally.

Zhu Wei, chief executive of Boston, announced in early 2013 that the brand will enter London's high-end shopping center to accelerate European expansion.

But no further information has been received so far.

In April, foreign media reported that Bosideng was laying off the London procurement and design team of its headquarters in the United Kingdom. The following products of local employees, Chiba Jito, will not be manufactured in the UK, but will be produced locally in China.

However, Bosideng denied layoffs, saying that the overseas market still takes the establishment of brand awareness as the primary goal.

The company said that some of the UK's products were pferred to the mainland, mainly considering Bosideng's production, resources and cost advantages in the mainland.

In addition to the European market, Bosideng is also testing the attitude of American consumers.

At the beginning of this year, the store in Manhattan Union Square opened in New York.

Gao Dekang told this magazine in March this year that the US market will be the focus of Bosideng expansion and is ready to enter the US Department store to enhance its popularity.

Under the suggestion of an external think tank, he is also preparing to tell a story of "relying on eight sewing machines to work hard" to impress Americans and department stores.

But now, the effect of this story is not obvious.

"The flagship market in London is ideal. This year, we will gradually increase the down jacket product, which is expected to account for half of the sales in London stores."

Liang Xuhui told reporters.

However, Boston did not mention the sales data of London flagship store for two years, and Goldman Sachs has reported that Bosideng London store is not profitable after 3 years.