The “national trend” down jackets are getting more and more expensive.
Recently, a Bosideng down jacket priced at 10,000 yuan has been on the hot search on Weibo, and netizens have gone crazy: The brand was originally thought to be low-priced and affordable, but now the price is out of reach. ? Some think that the price is overkill, while others think that Bosideng is going to be the next Canada Goose.
What exactly is going on?
Bosideng down jacket sells for 10,000 yuan? Netizens were shocked: Are you going to be the next Canada Goose?
Recently, the news that “Bosideng down jackets sell for tens of thousands” has attracted widespread attention on Weibo. Netizens have said bluntly, is it necessary for clothes to be so expensive?
Some bluntly said that this is the price of learning from Canada Goose.
Some pointed out that the high-end routes of foreign brands are worth learning from, but if the pace is too hasty, it is easy to stumble.
But some expressed approval, “I am not your high-end target. I support it, I don’t envy it.” “Isn’t high-endization bad? Do you have to give money to foreigners?”
However, according to verification by Fund Manager, it is reported online that the 10,000-yuan series is only the price of the highest-priced “Everest” model of Bosideng’s 2019 “Mount Summit Series”, which is 11,800 yuan.
Today, Bosideng’s down jackets are generally in the range of 1,000-3,000 yuan, with the current highest price being 6,990 yuan. It is Bosideng’s new windbreaker and down jacket.
Bosideng is indeed undergoing a high-end transformation and has just launched a windbreaker down priced at over 6,000 yuan
This seems to be an “own” incident that was misplaced in time, but in fact, Bosideng has indeed been undergoing a high-end transformation in recent years.
Once upon a time, Bosideng still followed a people-friendly approach. However, starting in 2018, the brand’s down jackets have increased prices across the board, by 20%-30%, with high-end products increasing by more than 30%.
According to Bosideng’s Taobao flagship store, most of Bosideng’s down jackets currently range from 1,000 to 3,000 yuan. According to financial report data, in the 2020/2021 fiscal year, among the online sales revenue of Bosideng brand down jackets, sales revenue with a unit price of more than RMB 1,800 accounted for 31.8%, a year-on-year increase of 4.3 percentage points.
The most expensive one is the newly launched “windbreaker down jacket”, priced at 3599 yuan/yuan for men (3299 yuan/yuan for women), and the highest price is 6990 yuan.
According to reports, the product design is led by Pietro Ferragina, the creative R&D director of Bosideng and a famous Italian designer who has worked for well-known luxury brands such as Armani, Versace and Prada. He said in a previous interview that the windbreaker down jacket has been in preparation for two years in order to combine fashion, warmth, slimming, formality and protection.
Bosideng CFO Zhu Gaofeng said at this year’s performance briefing: “Bosideng’s current main price range is concentrated between 1,500 yuan and 1,800 yuan.” Based on the price positioning of down jacket products, it is not difficult to see that Bosideng is gradually moving towards the high end. Brands move closer.
Is a down jacket really worth 10,000? Canada Goose was just fined 450,000 for false advertising
Is a down jacket really worth 10,000?
It is worth noting that in September, Canada Goose was just banned for false advertising.
According to the National Enterprise Credit Information Publicity System, CanadaGoose affiliated company Xiji (Shanghai) Trading Co., Ltd. used advertisements to falsely promote goods or services, deceive and mislead consumers, and was arrested by Huangpu District, Shanghai. The Market Supervision Administration fined 450,000 yuan, ordered public corrections, stopped publishing, and made corrections.
It is understood that according to the content released by the Canada Goose flagship store, the down mixed materials used in the products it sells are “containing Hutterite down, which is the best and warmest of Canadian Down”.
However, the Huangpu District Municipal Supervision Bureau learned from relevant experts that when the birds are of the same species, the quality of down is related to the maturity of the birds and has nothing to do with the place of production or climate. Therefore, the party’s emphasis on the “Hutterite” origin to highlight the warmth retention properties of down has no factual basis.
At the same time, there is a rare down in Canada called “Eider Down”, which is warmer than the down mixed material used by Canada Goose.
The warmth retention of “Hutterite” down also depends on the quantifiable index “fill power”, with 1000 being the highest standard. Eider duck down can meet this standard.
The down jackets sold by Danxiji (Shanghai) Trading Co., Ltd. are filled with goose down and duck down, and the fill power of the products is duck down 625 (US standard) and 750 respectively. (U.S. standard), goose down 675 (U.S. standard), 800 (U.S. standard).
Therefore, most of the products sold by Xiji (Shanghai) Trading Co., Ltd. are not made of high-quality down with better thermal insulation properties. Instead of goose down with a lower fill power, duck down with a lower fill power was used.
Shanghai Huangpu District Market Supervision and Administration Bureau believed that based on the horizontal comparison of the down used in the products sold by the parties, the parties used partial generalizations. Quandi’s claim that the down used in its products “all contains Hutterite down, which is the finest and warmest Canadian down” is inconsistent with the facts.
Can Bosideng afford this price? ?
According to data, the size of China’s down jacket industry is about 150 billion yuan, growing at a growth rate of about 10%. According to ASP, the mass consumer market with prices below 2,000 yuan is fiercely competitive, and the luxury product market with prices above 5,000 yuan is fierce. Monopolized by Canada Goose and Moncler.
In addition, divided by price segment, China’s down jacket market includes three major types of players: 1) Overseas high-end down brands represented by Canada Goose and Moncler occupy the high-price range; 2) Fast fashion brands represented by Uniqlo, Zara, and HM, as well as mass-market professional down jacket brands such as Bingjie and Yalu; 2) Professional down jacket brands such as Bosideng and Xuezhongfei, as well as mid-to-high-end card brands such as ONLY and The North. Other brands in the market.
Data show that in 2017, Bosideng failed in the transformation of four-season clothing. Subsequently, Bosideng decided to transform and move closer to fashion brands.
Bosideng founder Gao Dekang called this change his second entrepreneurship. During New York Fashion Week in September 2018, he said to the camera: “I admit that Bosideng was successful before, but it may not have been managed well in the middle. Got a little problem. Now, we want to pursue youth trends. What we think about is what young people want, and what we do is what young people like. ”
After that, Bosideng took advantage of the residual heat of New York Fashion Week to release a new series of designer co-branded products. The three international designers who collaborated were the former LV designer, the former design director of Ralph Lauren and Yohji Yamamoto. student.
The following year, Bosideng became the only Chinese down jacket brand to participate in Milan Fashion Week, and received support from Oscar-winning actress Nicole Kidman and other stars.
Since then, Bosideng has been taking the mid-to-high-end brand route.
However, Bosideng’s annual report shows that as of March 31, 2021, 72% of the group’s retail outlets are still located in tier 3 and below cities.
Judging from the Bosideng online store, the down jackets that sell over 10,000 yuan are all down jackets worth over 1,000 yuan.
Bosideng’s stock price rose by more than 50%. 1 Bosideng = 2 Canada Goose
From the perspective of capital market performance, Bosideng’s stock price has been strong in recent years and has indeed “replaced” Canada Goose.
Since this year, Bosideng’s The stock price has risen by more than 50%, and the latest market value is HK$65.7 billion.
Although Canada’s value has increased by more than 24%, its latest market value is only US$4.1 billion (nearly HK$31.9 billion) .
This means that Bosideng’s market value is more than twice that of Canada Goose.
Judging from Bosideng’s annual report, the group’s revenue has been stable for three consecutive years Growth, revenue in fiscal year 2020 hit a record high again, reaching RMB 13.52 billion, a year-on-year increase of 10.9%, and net profit attributable to shareholders was approximately RMB 1.71 billion, a year-on-year increase of 42.1%. Even in the face of the challenges of the COVID-19 epidemic and the external environment, in 2020 In the fiscal year, its cash flow from operating activities also reached 3.13 billion yuan, a year-on-year increase of 155.8%.
The branded down jacket business is still the largest source of revenue, with revenue of approximately 10.9 billion yuan, accounting for approximately 80.5% of total revenue, a year-on-year increase of approximately 14.5%.
Gross profit revenue was approximately 7.9 billion, an increase of 18% year-on-year; the gross profit margin was 58%, slightly higher than the 55% of the previous year. Among them, the gross profit margin of the branded down jacket business increased by 3.9% to 63.7%.
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