2 billion yuan net prof it, how Bosideng achieves such great growth?

By Zhong Mengxia

Few days ago, Bosideng released its annual report for the 2021/2022 fiscal year, with another record high in revenue and net prof it. Its revenue rose 20% year—on—year to 16.214 billion yuan, with a compound growth rate of 18.9% for 5 con—secutive years. Net prof it rose 20.6 percent year—on—year to 2.062 billion yuan, with a compound growth rate of 39.4 percent for five consecutive years, during which Bosideng has in fact sustained its year—on—year double growth.

According to the report, down jackets contributes to the most of revenue growth,with business revenue up 21.4 percent year—on—year to 13.22 billion yuan, accounting for 81.6 percent of total revenue. Due to the con—tinuous iteration and innovation of Bosideng,its series of coat and down jacket received a pretty good response from the market at home and abroad, and the annual revenue rose by 16.3% to 11.62 billion yuan.

Then the revenue of OEM processing and management business was 1.901 bil—lion yuan, accounting for 11.7% of the total revenue of the group, up 23.8% year—on—year; revenue from women's clothing was 904 million yuan, accounting for 5.6% of the group's total revenue. Diversif ied appar—el generated 186 million yuan in revenue,accounting for 1.1% of the group's total, up 28.3% from a year earlier.

Increasing online sales

The popularity rate of down jacket of domestic market at present is around 10% only, but the rate of down jacket of European and American countries achieves 30%—70%. This shows that there is still a lot of room for growth in China's down jacket indus—try. An industry insider said, "In the medium to long term, maybe there are three to four times revenue to grow."

Zhu Gaofeng, CFO and vice president of Bo—sideng, said at the full—year financial performance conference that despite repeated outbreaks in the first half of this year, there was little effect on its business. During the pandemic, the number of fans of its official Tik Tok account increased to 4.9 mil—lion, and the number of its wechat account fans exceeded 6.3 million, among which the proportion of young consumers increased significantly. In the online sales of Bosideng, the income of middle and high—end products increased to 46.9%.

New brand image

In 2020, Bosideng’s down jacket sales ranked first in the world. After years of research and development, Bosideng has grown into a global leader in down jacket industry. It sits firmly on the high position not only in the domestic market, but also in the foreign markets where it is welcomed by many European and American celebrities. Last month, Bosideng rose to the 48th place in the Apparel 50 list released by Brand Finace, an in—ternational Brand value evaluation agency, further demonstrating that Bosideng is in the leading po—sition in the world.

In recent years, Bosideng has participated in New York Fashion Week, Milan Fashion Week and London Fashion Week many times to enhance its mid—to—high—end image. What’s more, the high—street retailer is never far from the spotlight, with several collaborations with big names like former Hermes design director Jeau—Paul Gaultier.

Besides, Bosideng's Mount Qomolangma series of down jack—ets are very popular since it launched. 2.0 series of down jackets previously released by Bosideng, in conjunction with the Aviation Industry Culture Center of China, for the first time Bosideng applies aviation material technology to the field of clothing, and realizes the first application of China's BeiDou Navigation Satellite System,one of the world's three major positioning systems, in the field of down jackets. By 2021, the price of this series of down jackets was set between 11,900 to 14,900 yuan.

In product technology, Bosideng aimed at the young new con—sumer group under 35 years old, launched a number of products combining fashion and functionality. Its 2022 multi—functional jacket won the ISPO Award 2022, while the Composite Structure Camping Down Jacket and Zero Pressure Puff Down Jacket won the ISPO Award 2022 and the Red Dot Design Award, respectively.

Price has risen 80% in four years

With the continuous emergence of brand power and the launch of high—quality products, the price increase of Bosideng products has become a hot issue of consumer concern. The price increases are not just at the top end of its product line. Zhu Gaofeng, publicly stated that in 2017, the average tag price of Bosideng down jacket that has not been upgraded was about 1,000 yuan, and by 2021, the average tag price has rose to about 1,800 yuan. The average price increase of four years is about 80%. For the price increase year by year, Bosideng said that it is based on the company's continuous introduction of new categories. There is also news that the next three years, Bosideng down jacket price will be more than 2,000 yuan. They will stick to this strategy for a long time.

During three years, domestic garment enterprises have been seriously affected by the pandemic. After decades of deep cultiva—tion in the field of down jackets, Bosideng achieves countertrend growth with product innovation, quality upgrading and technology empowerment, leading and promoting the high—quality develop—ment of the domestic down jacket industry, and constantly explores the path of global development to achieve the construction of an international brand.