In the high hopes of the men's clothing business, the "boss" of Bosideng in the 2012/2013 fiscal year plan, it is still necessary to take the strength down jacket as the core, to achieve multi-brand, four seasons, and international "3 +1 "Strategy.
In the winter, boss Bosideng of domestic down apparel ushered in the most prosperous season of the year.
However, in the face of the economic downturn, the road to Bosideng's diversification does not seem to achieve the desired results in the short term. In the high hopes of the men's clothing business, the "boss" of Bosideng in the 2012/2013 fiscal year plan, it is still necessary to take the strength down jacket as the core, to achieve multi-brand, four seasons, and international "3 +1 "Strategy.
As a result of measures such as initial fee collection from down apparel dealers and a four-year strategy from April this year, Bosideng’s revenue increased by 12.4% to approximately RMB 3.08 billion in the semi-annual report for the fiscal year 2012/2013 ending September 30. However, The net profit attributable to equity holders decreased by 3.4%.
It should also be noted that the Zhongbao reported that, as of September 30 this year, the cost of inventory recognized as an expense in cost of sales was 1.667 billion yuan, an increase from the 1.618 billion yuan in the same period of the previous year.
Core business revenue decline
In recent years, the domestic down apparel market has been in a slowing trend of growth. In 2012, the annual work conference of the China Garment Association down apparel and products professional committee announced that, under various pressures, sales of down apparel continued to decline year-on-year for the fourth consecutive year. At the same time, the down apparel industry showed some new features, such as rising sales prices, sales unit prices, off-season sales growth year-on-year decline, and so on.
In the first half of fiscal year 2012/2013, Bosideng down apparel business revenue was 1.842 billion yuan, an increase of only 3.8% over the same period of last year, accounting for 59.8% of total revenue, down from 64.8% in the same period of last year.
Bosideng Investment Department sources said: “In the past, Bosideng, Xuezhongfei, and Comber three (down apparel) brands shared a management team, and many resources could be shared, but the disadvantage was that the product models borrowed from each other and the positioning of each brand was not clear enough. The operation of the down jacket segment was also adjusted accordingly, taking the form of sub-brands. Each brand has an independent management team responsible for design, product development, supply chain, marketing and marketing.â€
As of September 30 this year, Bosideng's total number of outlets reached 11,904, a net increase of 3,560 compared to the end of the first quarter. The significant increase in the number of outlets was mainly due to the split of sales channels, and the original multi-brand stores became single-brand stores. The total sales area only increased by approximately 5.4%.
The Chinese Investment Adviser Xiong Xiaokun pointed out to reporters that in recent years, the production costs of garments have continuously increased, which has greatly squeezed the profitability space. Moreover, more and more fashion brands are launching down apparel products. If professional down apparel brands are designed in a single style and their individuality is not strong, they will lack competitiveness.
What's more, down jackets are special in single season. “It takes 10 months to produce and 3 months to sell. It's very hard to make substantial growth.†Zhang Bin, a researcher at Guojin Securities, told the reporter.
Menswear business is weak
As a result, Bosideng’s intention was to increase the proportion of non-down apparel business. Bosideng Investment Department sources told reporters that the group’s goal is to contribute 30% of the Group’s net profit contribution to the non-down apparel segment in the next 3 to 5 years.
However, only from the situation in the past two years, this goal is still a little difficult.
In terms of sales in 2012/2013, Bosideng’s non-down apparel revenues accounted for only 16.1% of the Group’s total revenue. As of September 30, its non-down apparel revenue accounted for 15.8% of total revenue.
In the non-down apparel business, men’s wear has always been Bosideng’s “leaderâ€. Bosideng Menswear was acquired by Bosideng in 2009 and is the first acquisition of the non-down apparel segment. Located in 28 to 45-year-old white-collar workers and working class, the style is divided into business dress, business casual, fashion casual, and Li Lang, seven wolves style similar.
However, the proportion of Bosideng's menswear business is also falling.
As of September 30, there were 887 men's sales outlets in Bosideng, a decrease of 14 from the end of the first quarter. Sales revenue was 146 million yuan, down 13.8% from the same period of last year and accounting for 30% of total non-down apparel. In the same period last year, Bosideng men’s income was 169.5 million yuan, accounting for 51% of non-down apparel.
In terms of business scale, Bosideng men's wear and the above two men's wear brands are not at the same level.
Lilang had 3032 retail outlets in 2011, and seven wolves even reached nearly 5,000 stores.
Bosideng said to reporters that the company will continue to develop the existing brand - Bosideng men's, Jesse, Mogao, based on the company will continue to look for opportunities to acquire high-quality men and women wear brand mergers and acquisitions.
Goldman Sachs stated in its research report that Bosideng’s growth in the next three years is about 10%, but there is limited room for growth in its core business. Bosideng’s current sales prices are already high, so the price increases are limited.
Goldman Sachs stated that the diversified development of Bosideng's non-down apparel business has yet to bear fruit. For non-down apparel business, sales in 2013 are expected to increase by 22%.
In addition to men's clothing, Bosideng has also tried on women's and children's wear. Children's wear is "fast-forward and fast-out" on Bosideng's business territory.
As a result of the increase in the Jesse brand of women's apparel business, the total revenue of non-down apparel business increased significantly, reaching 488 million yuan, an increase of 46.7% over the same period of the previous fiscal year. Business income accounted for 15.8% of the group's total revenue, only 12.2% of the same period last year. An increase of 3.6 percentage points.
Bosideng stated in the announcement that the non-down apparel business will continue to be affected by the downturn in the Chinese consumer market and the sluggish industry, and the men's apparel market will continue to face industry adjustments in the short term.
However, in the face of the economic downturn, the road to Bosideng's diversification does not seem to achieve the desired results in the short term. In the high hopes of the men's clothing business, the "boss" of Bosideng in the 2012/2013 fiscal year plan, it is still necessary to take the strength down jacket as the core, to achieve multi-brand, four seasons, and international "3 +1 "Strategy.
As a result of measures such as initial fee collection from down apparel dealers and a four-year strategy from April this year, Bosideng’s revenue increased by 12.4% to approximately RMB 3.08 billion in the semi-annual report for the fiscal year 2012/2013 ending September 30. However, The net profit attributable to equity holders decreased by 3.4%.
It should also be noted that the Zhongbao reported that, as of September 30 this year, the cost of inventory recognized as an expense in cost of sales was 1.667 billion yuan, an increase from the 1.618 billion yuan in the same period of the previous year.
Core business revenue decline
In recent years, the domestic down apparel market has been in a slowing trend of growth. In 2012, the annual work conference of the China Garment Association down apparel and products professional committee announced that, under various pressures, sales of down apparel continued to decline year-on-year for the fourth consecutive year. At the same time, the down apparel industry showed some new features, such as rising sales prices, sales unit prices, off-season sales growth year-on-year decline, and so on.
In the first half of fiscal year 2012/2013, Bosideng down apparel business revenue was 1.842 billion yuan, an increase of only 3.8% over the same period of last year, accounting for 59.8% of total revenue, down from 64.8% in the same period of last year.
Bosideng Investment Department sources said: “In the past, Bosideng, Xuezhongfei, and Comber three (down apparel) brands shared a management team, and many resources could be shared, but the disadvantage was that the product models borrowed from each other and the positioning of each brand was not clear enough. The operation of the down jacket segment was also adjusted accordingly, taking the form of sub-brands. Each brand has an independent management team responsible for design, product development, supply chain, marketing and marketing.â€
As of September 30 this year, Bosideng's total number of outlets reached 11,904, a net increase of 3,560 compared to the end of the first quarter. The significant increase in the number of outlets was mainly due to the split of sales channels, and the original multi-brand stores became single-brand stores. The total sales area only increased by approximately 5.4%.
The Chinese Investment Adviser Xiong Xiaokun pointed out to reporters that in recent years, the production costs of garments have continuously increased, which has greatly squeezed the profitability space. Moreover, more and more fashion brands are launching down apparel products. If professional down apparel brands are designed in a single style and their individuality is not strong, they will lack competitiveness.
What's more, down jackets are special in single season. “It takes 10 months to produce and 3 months to sell. It's very hard to make substantial growth.†Zhang Bin, a researcher at Guojin Securities, told the reporter.
Menswear business is weak
As a result, Bosideng’s intention was to increase the proportion of non-down apparel business. Bosideng Investment Department sources told reporters that the group’s goal is to contribute 30% of the Group’s net profit contribution to the non-down apparel segment in the next 3 to 5 years.
However, only from the situation in the past two years, this goal is still a little difficult.
In terms of sales in 2012/2013, Bosideng’s non-down apparel revenues accounted for only 16.1% of the Group’s total revenue. As of September 30, its non-down apparel revenue accounted for 15.8% of total revenue.
In the non-down apparel business, men’s wear has always been Bosideng’s “leaderâ€. Bosideng Menswear was acquired by Bosideng in 2009 and is the first acquisition of the non-down apparel segment. Located in 28 to 45-year-old white-collar workers and working class, the style is divided into business dress, business casual, fashion casual, and Li Lang, seven wolves style similar.
However, the proportion of Bosideng's menswear business is also falling.
As of September 30, there were 887 men's sales outlets in Bosideng, a decrease of 14 from the end of the first quarter. Sales revenue was 146 million yuan, down 13.8% from the same period of last year and accounting for 30% of total non-down apparel. In the same period last year, Bosideng men’s income was 169.5 million yuan, accounting for 51% of non-down apparel.
In terms of business scale, Bosideng men's wear and the above two men's wear brands are not at the same level.
Lilang had 3032 retail outlets in 2011, and seven wolves even reached nearly 5,000 stores.
Bosideng said to reporters that the company will continue to develop the existing brand - Bosideng men's, Jesse, Mogao, based on the company will continue to look for opportunities to acquire high-quality men and women wear brand mergers and acquisitions.
Goldman Sachs stated in its research report that Bosideng’s growth in the next three years is about 10%, but there is limited room for growth in its core business. Bosideng’s current sales prices are already high, so the price increases are limited.
Goldman Sachs stated that the diversified development of Bosideng's non-down apparel business has yet to bear fruit. For non-down apparel business, sales in 2013 are expected to increase by 22%.
In addition to men's clothing, Bosideng has also tried on women's and children's wear. Children's wear is "fast-forward and fast-out" on Bosideng's business territory.
As a result of the increase in the Jesse brand of women's apparel business, the total revenue of non-down apparel business increased significantly, reaching 488 million yuan, an increase of 46.7% over the same period of the previous fiscal year. Business income accounted for 15.8% of the group's total revenue, only 12.2% of the same period last year. An increase of 3.6 percentage points.
Bosideng stated in the announcement that the non-down apparel business will continue to be affected by the downturn in the Chinese consumer market and the sluggish industry, and the men's apparel market will continue to face industry adjustments in the short term.
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