Bosideng Product Diversification Drag On Main Business Development

Turn off 5033 in a big way.

Bosideng's reply is to save resources and optimize the layout.

We should strive to build a "pull" supply chain management mode that is customer oriented and highly effective, so as to make the layout of retail network more scientific.

In the light of Xiong Xiaokun, a researcher at CIC light industry, there are two reasons for Bosideng's plunging profits.

First, the traditional "brand + wholesale" business mode not only leads to low product market adaptability, but also increases the management cost of enterprises, resulting in a decline in gross profit margin of enterprises. Two, the development of e-commerce and the change of consumer habits make some competitive entities fail to perform well.

The main business is urgent. Bosideng "n" walks with legs.

It is worth noting that not long ago, Bosideng issued a profit warning shows that as of March 31st this year's financial year, Bosideng's down jacket business income and net profit compared to the same period last year, a serious decline.

The annual report shows that the sales of Bosideng brand down garments dropped from 6 billion 57 million yuan in 2014 to 4 billion 80 million yuan, among which four brands Bosideng, Xue Zhong Fei, Bing Jie and Kang Bo all had two figure declines, and the main brand Bosteng fell 20.3%.

The main business is in a downturn.

With its high level, Bosideng had to "seasonally" and began to look for new profit growth points.

Multi brand, four seasons and internationalization are all means for Bosideng to seek the development of non feather down business.

In an interview with the media, Gao Dekang, the founder of bostin, said that in three years, it was planned to adjust to 60% or less of bostin's down clothes, which accounted for about 80% of the whole business. "The best one in the future is 55."

In 2009, Bosideng bought the brand of Bosideng menswear and formally announced its march into non down garment business.

In 2010, Bosideng bought the sports and leisure brand Mogao; in 2013, Bosideng bought 40 million Greenwoods Menswear 96% share in the men's clothing business, and after the introduction of new investors at the end of 4 this year, Bosideng CEO announced that it would sell children's clothing brand by the end of this year.

However, this series of actions does not seem to have achieved much success.

Data show that its non down wear business declined from 1 billion 300 million yuan in 2014 to 1 billion 11 million yuan in 2015, down 22.3% compared with the same period last year.

Its Boston men's wear, Jesse's dress and sports and leisure brand morco have declined to a different degree.

The analysis shows that product diversification will increase business risk.

There is a big gap between fashion and casual wear business and down coats. New products not only fail to improve the company's management, but also drag the development of the main industry.

Professionalism is a major trend in the development of the garment industry. Bosideng is against the trend or is not conducive to its future development.

Bosideng should focus on the optimization and upgrading of channels.

How should the fierce clothing enterprises of "internal and external enemies" achieve self-help?

As a matter of fact, low performance and frequent "off shop" are not the plight of Bosideng.

In recent years, the Chinese sports brand represented by Anta, PEAK and 361, Giordano and other leisure brands and the seven pack wolves have been experiencing or are experiencing the baptism of customs.

It is understood that since 2011, the growth rate of China's clothing market retail sales has slowed down.

According to the statistics of the National Bureau of statistics, in the first quarter of 2015, garment enterprises above Designated Size completed 6 billion 615 million garment production, an increase of 3.94% over the same period last year.

In the first half of this year, although the performance of some garment listed companies has been warmer, China's traditional clothing industry has yet to see "spring" in the face of economic weakness and reduced demand.

Xiong Xiaokun pointed out that at present, China's clothing industry is facing a new competition pattern and competition tactics, and the pressure of garment enterprises pformation is increasing.

The channel of traditional garment enterprises is shrinking, inventory is high, business efficiency is low, and with the development of international brand forces and the vigorous development of electricity providers, the road of garment enterprises is really not easy to go today.

Taking Bosideng as an example, the traditional clothing brands, which are based on the Chinese mainland, have caught up with the market demand in the period of establishment and development, and the production and sales of the industrial technology base is deep and large-scale. This makes the enterprises grow stronger. However, in the environment of economic weakness, the gradual saturation of the clothing market, the rising cost of labor and raw materials, and the acceleration of the expansion of foreign brand power, how to pform and upgrade the garment enterprises and get out of the bad management mire should become the current important point.

A clothing trade practitioner in Hangzhou, Zhejiang, said in an interview with reporters.

Xiong Xiaokun suggested that the garment industry can pform and upgrade from the following aspects.

First, we should precisely target consumers, raise the level of specialization, and improve the quality of products; two, integrate the resources of offline stores, improve the environment of the stores, improve the quality of service under the line; three, optimize and upgrade channels, innovate business models, and expand the channels of e-commerce under conditions permitting.