Focus On Down Jacket Track Bosden Net Profit Of 1.71 Billion Yuan In Fiscal Year 2020

According to sources, on June 23, bosden released its financial report for the 2020 / 21 fiscal year. As of March 31, 2021, the company's revenue increased by 10.9% to about 13.52 billion yuan, the gross profit rate increased by 3.6% to 58.6%, and the company's attributable net profit increased by 42.1% to about 1.71 billion yuan. On Monday (21), bosden's share price rose 6.58% to HK $4.86, with a cumulative increase of more than 213% in the past three days. Its latest market value was HK $52.5 billion, a record high.

Bosden's business is divided into down jacket, OEM management, women's wear and diversified clothing. Among them, down jacket is the main business of the group, with annual revenue of 10.89 billion yuan, accounting for 80.5% of the total revenue, with a year-on-year increase of 14.5%. Bosden brand, which focuses on development, has an annual revenue of about 10 billion yuan, up 18.9% year-on-year. The market share of xuezhongfei and Bingjie, which is positioned in the middle end market, has increased.

Bosden was able to achieve revenue growth in adversity under the influence of the epidemic last year, mainly due to the enterprise's adjustment of brand strategy. Under the influence of last year's epidemic and La Nina incident, down jacket has become a just need of consumers. The group takes products and brands as the core, and optimizes through channels, retail and other drivers.

In this fiscal year, bosden applied for 17 special rights and attached great importance to product R & D and innovation. The "Dengfeng series" won the gold award of the fourth "China high quality industrial design award", becoming an independent clothing product among 10 gold award works, and it is also the first time that a domestic clothing brand has won this award. In addition, various products are launched for different scenarios to meet the diversified use scenarios of consumers, such as urban sports series and fashion sports series. In addition, bosden and various IP, such as Gautier, Disney, etc., launched co branded products.

On the other hand, bosden's strategy tends to be conservative. In the mainstream business circle and the core area, we have set up large stores and image stores dominated by self-employed stores, and closed several inefficient stores, so as to strengthen the refined retail operation and deepen the brand awareness of consumers. In addition, bosden is also promoting the brand's new retail operation and digital value transformation. As of March 31, 2021, the total number of retail outlets of the group's down jacket business decreased by 716, 54, and 662 respectively. Among the total retail outlets of the group's brand down jacket business, about 28.0% are located in the first and second tier cities (i.e., Beijing, Shanghai, Guangzhou, Shenzhen and provincial capital cities), and about 72.0% are located in the third tier cities and below.

Bosden has been the leading brand in the field of down jacket in China, but the single revenue is still the challenge bosden always faces. According to the financial report, bosden's non down jacket business accounted for only 19.5% of the main business, down 2.3% from the previous year. Bosden changed this challenge from 2012 to 2017, but the results were not satisfactory. Bosden will eventually make strategic adjustments, but what we need to do now is to improve its ability to resist risks, strengthen brand building, and look for appropriate opportunities to make changes.

For the first time, the 14th five year plan clearly defines the goal of China's brand building. The rise of national brand is ushering in a golden age, and bosden's opportunity may come.

In the financial report, it said that in the future, it will continue to adhere to the brand guidance mode, pay attention to the upgrading of commodity structure, win the favor of the mainstream consumer groups of the times, expand market share, and will lock in the core cities and mainstream business circles, innovate digital retail operation, and comprehensively improve the operation ability of all channels.

In the era of the rise of domestic products, bosden can still do a lot. It is urgent to seize the opportunity to make adjustments.