Why Did Bostin Restart London Flagship Store For Two Years?

After a year and a half of extinction, Bosideng announced the decision to restart the flagship store in London.

In 2012, Bosideng opened a flagship store in a six storehouse in Morton street, London, and the store closed down 4 years later.

What made Bosteng stay away from London for many years?

Revenue rose by 30.3% in 2017, and its down jacket performance was the highest in history.

Recently, Bosideng announced its 2017 financial year results.

Data show that as of March 31, 2018, Bosideng's operating income was 8 billion 880 million yuan, an increase of about 30.3% compared with last year, with a total revenue of 739 million yuan during the year.

Among them, the brand down clothing business is still the largest source of revenue for Bosideng, reaching 5 billion 651 million yuan, an increase of 23.4% over the same period last year; Bosideng OEM processing business income increased 20.4% to 936 million 800 thousand yuan, accounting for 10.6% of the group's income; women's clothing business income reached 1 billion 153 million 500 thousand yuan, up 85.4% over the same period last year, accounting for 13% of group income; diversified clothing business income increased 36% to 1 billion 139 million 500 thousand yuan, accounting for 12.8% of the group's total income.

As of March 31, 2018, there were 4466 retail outlets in Bosideng, with a net increase of 174 over the whole year.

Retail outlets operated by self operated retail outlets and third party distributors increased 49 and 125 to 1423 and 3043 respectively, accounting for 32% and 68% of the total retail network respectively.

Brand remodeling: cut down men's clothing, home, children's clothing and other non feather business.

With the recovery of performance, Bosideng will readjust its overall development strategy in the future.

Bosideng group will reshape the brand of Bosideng brand this year, make the main business of the down jacket, cut off the non down business of Bosteng men's clothing, home and children's clothing.

According to the financial report, "in view of the brand new positioning of Boston brand, the Bosideng brand's non down garment product line will be fully adjusted, and the group will terminate its cooperation with the original dealer in the men's clothing brand of Boston. The group's total goodwill and customer relationship of the men's clothing account for about 165 million yuan, all of which have been reduced. In the future, the group will redesign the development of men's clothing business."

In addition, similar instructions include Bosideng home business and children's clothing business for only one year.

Increase international layout

Starting from the first step of international marketization in 1999, Bosideng has been in 72 countries, including the United States, France and Italy in the past 20 years.

Now Bosideng has made brilliant sales results of over 200 million down garments.

In the market of domestic garment market, and many factories have to export, most manufacturers export cheap products and produce OEM for foreign brands.

Bosideng made its own brand very early. It is rare Chinese brand with its own brand entering the international market.

Bosideng said it will reopen its flagship store in London in September.

In addition, Bosideng and Ali group work together to "Tmall to sea" as an important part of its globalization strategy, and also to further expand the influence of Chinese brands in overseas markets.

Opportunities and challenges in down garment market

Challenge: Bosideng is also facing fierce competition and severe challenges.

Recently, Canada Goose announced its plan to enter the Chinese market. Italy's luxury down jacket brand Moncler is China's leading Asia Pacific.

At present, there are 100 retail stores. They will become strong competitors of Bosideng.

In addition to the diversion of high-end brands on consumption, it also faces the constant expansion of the fast fashion brands such as UNIQLO in down garment business.

Opportunity: HTF MI, a market research firm, recently released a focus on down jacket.

According to the industry research report, although the down jacket industry is affected by the global economic slowdown, it maintains double-digit growth.

In the past four years, the market of the down jacket Market has reached an average annual growth rate of 18.4%, from 51 billion 60 million US dollars in 2013 to 84 billion 740 million US dollars in 2016.

Industry analysts believe that the market will expand further in the next few years, and it is expected to reach US $208 billion 500 million by 2021.

Based on the grasp of market opportunities for consumption upgrading and the 42 years' focus on the quality accumulation of down coats, Bosideng launched the competition strategy in 2018, focusing on the largest down payment garment industry with the largest proportion of revenue, gathering resources, amplifying the brand competitive advantage, and activating the brand recognition of consumers to their down jacket experts.

In addition, Bosideng launched the "hot sale in the world" in 2018.

The new strategy of experts will invest more than one billion of the brand in the coming year, spend more than ten billion to develop channels, upgrade terminal stores, and upgrade the quality and design of the down garment products directly to the target of "100 billion brand".