The down jacket of the down jacket, Bosideng margin, and its annual income fell for the first time in five years

The results of the recent fiscal year that Bosideng, the down jacket company, handed over were not satisfactory. The company expects its consolidated revenue for the financial year ending March 31, 2014 to decline year-on-year, according to Beijing Commercial Daily, this is Bosideng's first decline in annual revenue in the past five years. The company claims to be highly competitive in the industry and The temperature was higher last winter. However, another industry analyst believes that Bosideng's four-season, multi-brand strategy may also bring some pressure on the company.

Bosideng believes that the decline in annual comprehensive income is mainly due to the fierce competition in the down apparel industry and the fact that temperatures in most parts of China in winter 2013 were higher than in previous years. At the same time, Bosideng expects a larger year-on-year decline in overall net profit. It is worth noting that its net profit has fallen for two consecutive years.

Prior to this, a reporter from Beijing Business Daily once saw a Bosideng flagship store in Xidan, Beijing. The brand had a 4-6.5 fold off on its down apparel and other products, and a down jacket with an original price of 2,138 yuan was dumped to 989 yuan. A clothing industry veteran said that down jackets are seasonally strong products, and when temperatures are high, it can easily cause sales difficulties. Moreover, if the company's expectation at the time of ordering is more optimistic and produces surplus products, it will inevitably increase the sales pressure of the company.

In addition, bird flu last year also affected sales of down apparel. Companies are facing the arduous task of reducing inventory, so under the high pressure of high raw material costs and high inventory, the profitability of down apparel companies has been severely challenged.

In the face of unforeseen climatic factors to bring pressure on sales of down apparel, Bosideng officially announced its entry into the non-down business in 2009 and acquired the “Bosideng Men's” brand. Later, it also established down jacket as the core to achieve multi-branded, four-season An internationalized "3+1" strategy.

However, this piece of business did not perform well in the two recent Bosideng financial reports. For the two reporting periods ending on March 31 last year and the six months ended September 30 last year, Bosideng’s revenue from non-down business fell by 5.3% and 18.1% year-on-year, respectively. As of September 30, 2013, Bosideng's total number of non-down apparel shops decreased by a net 159 to 1267. The analysis of the above-mentioned industry believes that Bosideng’s non-down business is not buoyed. On the one hand, because of the economic downturn, the apparel industry has been caught in a “winter season” and Bosideng is unable to achieve a continual expansion. In addition, Bosideng’s non-down business has a short development time. Lack of experience in product design and management. Another senior expert in the clothing industry pointed to Bosideng's efforts to multi-brand real products, channels, and promotion of homogenization. In the four seasons trial, the company introduced the famous professional manager Cheng Weixiong in 2012. In less than a year, Cheng Weixiong went to hang up. , "It can be seen that its four seasons attempt is just a slogan, and the actual operation level has not yet received four seasons."