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Non-down business is temporarily difficult
The company’s announcement showed that as of the end of September, there were 887 sales outlets for men’s clothing. In the first half of the fiscal year, Bosideng's non-down apparel business had a net decrease of 77 stores compared with March 31, 2012. In addition, in the menswear business, sales revenue decreased by 13.8% from the same period of last year to RMB146 million, accounting for 30% of total non-down apparel. For the declining performance of some men's clothing, Boolsten’s investor relations manager CarolMak explained to the “Daily Economic News†reporter that the main reason for this year was not to put pressure on the men’s clothing distributors’ indicators because the situation in the entire men’s clothing industry this year is not good. He also pointed out that this is also a situation in which the company has to continue to expand its sales network and press distributors before it avoids repeating the sports sector.
Bosideng’s chief financial officer and company secretary, Mai Runquan, had previously told the media that the follow-up may continue to reduce the number of men’s stores and reorganize the men’s clothing business. CarolMak confirmed this statement to reporters. He said that the company’s views on the menswear business are relatively conservative and that men’s clothing only accounts for a small part of the company’s business.
Men's positioning is not clear
For Bosideng in the non-down apparel business, there are people in the industry who interpret it as survival, and the company or return to the down jacket main business.
In response, Ma Gang, an independent commentator in the apparel industry, told the Daily Economic News reporter that merely closing a store could not show that he was returning to the main business. "Removing the unprofitable part, especially when the industry is not making money, is the right thing to do."
According to Cui Hongbo, founder and CEO of Shanghai Zhengjian Brand Management Consulting Co., Ltd., the purpose of the Bosideng store is to adjust the non-down business segment. In his view, because it is the down jacket that started, and there are gaps in various sub-sectors of clothing, Bosideng will inevitably encounter problems in diversification, and problems need adjustment.
"Not long after Bosideng did diversification, the popularity of various categories and market impacts have not yet been opened," said Ma Gang. As a major category other than the down jacket business, Bosideng’s men’s clothing also has some problems. "At present, men's wear is characterized by a clearer product positioning, and Bosideng lacks a clearer main line. Although it is more casual, it is still not obvious." Choi Hongbo believes that Bosideng needs brand positioning, product strategy, and operations in the menswear business. Make adjustments on the pattern.
"Internationalization" is only an opportunity to promote
Previously, Bosideng’s flagship store in London was officially opened in September. The project was signed and purchased in May and is mainly used for men's wear on high-end routes.
Then, the flagship store of Bosideng in London was known by some insiders as a typical example of a Chinese brand “going out†under the shadow of the global financial crisis. At the same time, some people also pointed out that whether such “internationalization†will encounter the same predicament of the local sports brand on the international road.
"Can not be called internationalization, can only be said to be an attempt of internationalization." Ma Gang told the "Daily Economic News" reporter, the entire real estate is bought by Bosideng, this move is understood as investment may be more appropriate. Cui Hongbo also said that "there are no signs of internationalization and it is Bosideng's attempt to upgrade its brand." Bosideng also told reporters: "The ability to place properties in London's prime locations and the Olympic Games in London will provide the company with opportunities to promote the world and increase company exposure."
“The internationalization of brands is not just about selling products abroad. What's more important is whether corporate culture, talent reserves are well-prepared, product design, and supply chain match.†Cui Hongbo finally pointed out that internationalization is not a simple matter.
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Recently, Bosideng’s financial report for the first half of the fiscal year showed that as of the end of September 2012, the number of outlets of its non-down apparel business decreased by a net 77 from March 31, 2012. Including 14 Bosideng men's stores.
Recently, Bosideng’s financial report for the first half of the fiscal year showed that as of the end of September 2012, the number of outlets of its non-down apparel business decreased by a net 77 from March 31, 2012. Including 14 Bosideng men's stores. In this regard, there are views that Bosideng is trying to survive in a closed shop or return to its original business. Some industry insiders also stated that Bosideng is releasing positive signals and closing down unprofitable shops is normal behavior.
January 30, 2020