The market value has increased by 8 billion! Bosideng became the biggest black horse in apparel retail last year.

Bosideng was one of the first domestic apparel brands to compete in the international market. He once compared himself to "China's Marks & Spencer"

Fashion headline network report: With the frequent occurrence of extreme weather in the world, the warm and cool down jacket can bring consumers a sense of security. The Chinese down jacket market is entering a new growth period.

According to data released by market research firm HTF MI, from 2013 to 2016, the down apparel market has reached an average annual growth rate of 18.4%. The future down apparel market will further expand and is expected to reach 208.5 billion US dollars by 2021.

Thanks to this positive trend, the Chinese down brand Bosideng turned its stock price against the trend by 2.2 times and the market value increased by 8 billion Hong Kong dollars. It is regarded as the largest dark horse in apparel retail, and the IT accumulation in Hong Kong stocks has increased by 24%. Jiangnan Cloth has risen by 20%.

Some analysts said that behind the optimistic acquisition of the capital market, Bosden's rare bold transformation measures last year came into effect. According to Bosideng's latest three-quarter performance data, in the nine months ended December 31, 2018, the Group's main brand Bosideng retail sales increased by more than 30% year-on-year, and the income growth of Xuezhongfei, Bingjie and other brands also increased. More than 20%. In the first half of 2018, Bosideng brand sales rose 24.1% year-on-year to 1.557 billion yuan.

However, the experience of Bosideng, which has been in existence for 43 years, has not been smooth.

Bosideng was founded in 1976 in Changshu, Jiangsu Province. After establishing a foothold in China, he decided to move to the global market in 2012. He opened the brand's first independent store in the Mayfair district of London, England, and became the first group to compete in the international market. Domestic apparel brand. According to the British "Financial Times" report at the time, Bosideng compared himself to "China's Marks & Spencer."

The picture shows Bosideng's main performance data for the first half of fiscal year 2018

Bosden's new and old logo comparison between 2012 and 2018

Stars such as Anne Hathaway attended the 2018 Bosideng New York Fashion Week show

However, since 2014, Bosideng experienced a period of sluggish performance. In the same year, group sales fell 11.7% to 8.238 billion yuan, net profit fell 35.6% year-on-year to 695 million yuan; revenue in fiscal year 2015 fell 23.6% to 62.93 Billion renminbi, net profit fell 81% year-on-year to 132 million yuan; fiscal year 2016 revenue was only 5.787 billion yuan.

Under the influence of the uncertainty of Brexit, Bosideng closed its only store in the UK and its official website in February 2017. The Group’s overseas expansion plan was also stranded until September last year when Bosideng’s flagship store in London was Reopening.

At the time when Bosideng was gradually declining, international luxury down brands such as Canada Goose and Moncler, which smelled business opportunities, began to accelerate the layout of the Chinese market. Last year, they set up flagship stores and flash stores in Tmall, and Canadian geese were still short. Two physical stores opened in Beijing and Hong Kong within a month.

In order to retain existing consumers, the Bosideng Group, which has been targeting the mid-end down market, has to start a new transformation plan. Therefore, 2018 is also regarded as the "first year of reform" of the Bosideng Group. Bosideng Group decided to take the "focus on the main channel, shrinking diversification" route, gather resources in its main brand Bosideng, start brand rebranding from Logo, and launch the main business of down jacket, cut off Bosideng menswear, home, children's clothing in one go. Waiting for the non-down business, and will close 70% to 80% of non-profit stores in the next three years.

To attract more consumers, Bosideng has developed different collections for different consumers to meet the diverse needs of consumers. Under a series of transformational measures, Bosideng changed the old and boring brand image and quickly became synonymous with the “fashion” of the Chinese down industry.

According to data released by Tmall earlier, only in November last year, the sales of down products on its platform rose by 48%. Among them, Bosideng became the first clothing brand to be sold in the double eleven period. During the New Year's holiday, the Bosideng line of stores also triggered a wave of consumer queues.

Some analysts pointed out that the success of Bosideng's transformation is inseparable from the Group's diversification matrix in the down field, breaking through the limitations brought about by the simplification of down apparel products. It is reported that Bosideng also plans to make women's clothing the second largest profit center, emphasizing that the business is also a key development project in the coming year.

In addition, the Group is also improving its response mechanism to the end market, strengthening order management efficiency through intelligent and big data supply chain systems, and the total production, sales and replenishment cycle is no more than one month, effectively reducing inventory.

Although down products are more sensitive to weather changes than ordinary clothing, today's "fashion" and "luxury" have already broken the signs of the weather, luxury down brands such as Moncler even opened the store to Mexico in the tropics The first store opened by Canada Geese in China also saw a rush to buy.

Some analysts pointed out that the high-end Bosideng is trying to cut with the previous "soil down jacket", but the high-end is not a one-time thing, the challenge after Bosideng's performance carnival has just begun.

At the end of last year, Bosideng's share price has been rising all the way, setting a new high in the past five years. Today, the group's share price has once again bucked the trend by 9% to 1.45 Hong Kong dollars. The current market value is about 15.5 billion yuan.