On June 23, Bosideng (03998.HK) announced its 2020/21 fiscal year results.
According to financial report data, as of March 31, 2021, Bosideng Group’s annual revenue reached RMB 13.5165 billion, a year-on-year increase of 10.9%; the profit attributable to equity shareholders reached 1.7096 billion, a year-on-year increase of 42.1%. This is the fifth consecutive year that Bosideng has achieved double-digit growth in revenue and net profit.
Among them, the revenue of Bosideng’s down jacket business segment has reached a new high, comparable to the top luxury down jacket brand Moncler, achieving the global leadership of Chinese down jacket brands, demonstrating to the world the professionalism and strength of Chinese brands.
Full-year profit growth 42.1%, Bosideng’s performance bucked the trend and rose
According to relevant data, in 2020, the apparel industry’s annual operating income was 1.36973 billion yuan, a year-on-year decrease of 11.3%. Coupled with the superimposed impact of the epidemic, the apparel industry is struggling in 2020. Domestic and foreign apparel market demand has slowed, comprehensive costs have increased, and industry investment momentum has declined. Many apparel A-share companies have encountered a sharp decline in performance and encountered a “cold winter.”
In this general environment, Bosideng’s strategy of focusing on the main business of down jackets has achieved remarkable results, achieving an increase in performance against the trend in 2020. Among them, the revenue of Bosideng’s down jacket business segment has reached a new high, once again becoming a driving force An important pivot for the group’s core revenue growth.
Excellent product strength, laying the foundation for global leadership
Bosideng can achieve Such excellent results are closely related to the brand’s always pursuing ingenuity and quality, insisting on product technological innovation, and adhering to strict standards. The ingenuity of Chinese brands has been demonstrated throughout the brand’s development process.
In terms of product technology, Bosideng insists on craftsmanship. Each fleece jacket is made by 62 craftsmen and 150 processes. Bosideng took the lead in implementing technical research in the industry to address the consumer pain points of down jackets. It uses German heat-proof machine needles to effectively avoid high-temperature damage to the fabric during the sewing process. It uses 150D mercerized thread, 603 sewing thread or 21Tex sewing thread. The sewing thread will The pinholes left by the needles are fully filled, making each product high-density lock velvet. This technology successfully solved the common problem of down jackets getting velvet in the industry and obtained the invention patent. At the same time, Bosideng promotes this technology throughout the industry and leads the industry to make progress together.
In order to improve product experience, Bosideng continues to increase investment in research and development, empower products with technology, and lead industry changes. In terms of material innovation, in 2001, Bosideng launched green and environmentally friendly down jackets (antibacterial fabrics), and exclusively launched a series of down jackets with intelligent warmth features in China. This overall improved the technological content and wearing comfort of Bosideng products, and promoted the greenness of cold-proof clothing. Environmental protection reform; in 2003, it became the first brand to launch and use the internationally leading “Chitosante ecological antibacterial fleece”; in 2004, it was developed in conjunction with the Institute of Physics and Chemistry Technology of the Chinese Academy of Sciences, introducing domestically leading nanotechnology into the field of cold-proof clothing , was awarded the only “Scientific and Technological Contribution Award” in the field of cold-proof clothing by the China Textile Industry Association. In terms of structure, Bosideng has launched the world’s first patented self-circulating air system, which uses elastic webbing combined with a complex patented structure to discharge the heat generated during skiing through the back and collar. It also established a temperature scale system to measure the thermal insulation performance.
Bosideng is breaking the boundaries of traditional down jackets through successive technological and professional changes, and is moving towards meeting more and more professional scenarios that require warmth.
Previously, Bosideng has assisted the Chinese mountaineering team and the Antarctic scientific expedition team for many years to complete the scientific expedition mission of “reaching the peak”. It has broken the foreign monopoly by continuously iteratively upgrading polar cold protection equipment. , demonstrating the world’s leading professional strength in cold protection. Among them, the “Mountain Climbing Series” of the world’s top down jackets launched in 2019 helped Xia Boyu, a legless mountaineering warrior and winner of the “Oscar” Lawrence Award in sports, climb to the top of Mount Elbrus, the “Top of Europe”, and won the 2020 It won the gold medal of the 4th “China Excellent Industrial Design Award” and became the only clothing product among the ten gold medals. In 2020, Bosideng collaborated with the China Antarctic Scientific Expedition to launch the “Professional Warmth Series”, which successfully helped the Chinese Antarctic Scientific Expedition Team successfully complete the 36th and 37th Antarctic Scientific Expedition missions.
In addition to developing the professional strength of its own products, Bosideng, as a professional down jacket brand that has focused on down jackets for 45 years, actively assumes the responsibility of promoting global down jackets. important task for the development of industry standardization. So far, Bosideng has 271 patents, and has participated in the formulation and revision of 23 international standards, 11 national standards, and 4 industry standards. It is also responsible for the Chinese governing unit of the International Down and Feather Bureau (IDFB) and the National Clothing Standardization Technical Committee for down clothing. The work of the secretariat of the Sub-Technical Committee (SAC/TC 219/SC1), etc., promotes the global down jacket industry to enter the era of standardized development and leads the industry on the road to high-quality development.
In today’s fiercely competitive apparel industry, whoever masters the standards will win market dominance. Bosideng’s promotion of standardization development not only helps the entire industry effectively improve product quality, but also improves product quality. ���The strength of the brand to participate in global competition has also set a benchmark for Chinese clothing brands to go global.
The brand power has been fully developed and won the attention of the world
In response to the policy of strengthening the country through national brands, Bosideng has never forgotten its mission of national brands, taking the revitalization of national brands as its own responsibility, so that Chinese brands can win the attention and favor of the world.
In 2006, Bosideng helped Han Xiaopeng win the first skiing gold medal in the Winter Olympics, achieving a breakthrough of zero gold medals in snow sports in China; from 2018 to 2020, Bosideng has won three consecutive years It has made a brilliant appearance on the international fashion week stage; at the same time, Bosideng also teamed up with Gaultier, the founder of Hermès’ golden age, to launch a joint model for the second time, which has been favored by celebrities at home and abroad and continues to enhance the brand’s potential.
While pursuing excellence, Bosideng remains true to its original aspiration, takes “warming the world” as its mission, and fulfills its social responsibilities. In 1999, the founder of Bosideng, Gao Dekang, drank water and thought about its source. He personally invested 120 million to build Kangbo Village for villagers and promote local economic development. During the epidemic in 2020, Bosideng launched the “300 million down jackets to support the front line of anti-epidemic” charity event to warmly protect anti-epidemic workers. At the same time, let “Come on China” resound throughout the London Fashion Week shows, bringing the power and confidence of Chinese brands to the international stage.
For many years, Bosideng has insisted on conducting in-depth visits to the “three regions and three states” of Tibet, Xinjiang, Sichuan, Gansu, and Shaanxi every year. Registered impoverished households, impoverished students, and lonely elderly people in poverty-stricken areas have donated tens of thousands of pieces of cold-proof clothing. The charity footprint has spread across 29 provinces, 108 prefecture-level cities, and 558 counties across the country, benefiting 1.192 million poor people, and also covering international . As of 2020, Bosideng has donated more than 1.2 billion yuan in donations. Use social responsibility to create brand charm, convey corporate social value to society and consumers, and demonstrate patriotism.
Digital transformation efficiently restarts precise service to consumers
In the post-epidemic era, Bosideng’s rapid restart and operation are also inseparable from corporate digital operations and channel upgrades.
The company is constantly matching strategic upgrading channels and entering mainstream domestic business districts such as Hang Lung, Vientiane City, and Joy City. At the same time, it is also exploring the international market, opening global flagship stores in London, and opening global flagship stores in Italy. It has been present in more than 350 buyer stores and has won the favor of mainstream people at home and abroad. Many fashion bloggers have called Bosideng on Instagram. It also invited a team of internationally renowned designers to create store images and further improve consumer experience.
At the operational level, Bosideng has deployed supply chain digitization in advance, signed an agreement with Alibaba, and established a data center. It is currently based on Enterprise data connects all links of the supply chain, opening up front-end sales, mid-end inventory and back-end production outsourcing processes, allowing rapid response to market demand while paying attention to the timely supply and inventory control of raw and auxiliary materials.
For back-end production, Bosideng has a first-class intelligent manufacturing factory. It is the world’s largest and most technologically advanced self-owned production base for down clothing, with an annual throughput of nearly 20 million pieces. For mid-range logistics, Bosideng has built the most advanced intelligent distribution center in China’s apparel industry – Bosideng Intelligent Distribution Center (CDC). Meet consumer needs faster and more accurately, achieve direct distribution from all stores across the country, and interconnection from stores to factories and distribution, deploying 9 major warehouse areas around the world, not only able to respond to market demand more quickly, but also realize the delivery of goods Shared nationwide. For front-end sales, the company further promotes digital innovation in the supply chain, promotes integrated online and offline operations, and uses new models such as live broadcasts, community operations, and out-of-store sales to connect with consumers in the new era, continuously increase market share, and consolidate market leadership. Help performance growth.
Bosideng’s victory in the global brand competition is the result of the company’s continuous efforts to build core competitiveness such as brand upgrade, product leadership, and high-quality fast response. It is the inevitable result of pursuing high-quality development. At the same time, Bosideng responded to the country’s call to build a brand power by providing all-round support for product upgrades and brand remodeling, gaining a say for Chinese brands in the world apparel market.
Bosideng’s eye-catching financial report has attracted market attention, and the capital market is optimistic about the development of Bosideng’s down jackets. Zheshang Securities pointed out that Bosideng Group’s three-year brand transformation has achieved significant results. The gross profit margin of its down jacket business has continued to hit new highs. The quick-response supply chain has fully exerted itself, and inventory has been well controlled during the epidemic. At the beginning of the new three years, we look forward to the company continuing to move forward amid the rise of the national trend. In addition, many securities companies such as CICC, Tianfeng, Guosheng, etc. have maintained “buy” ratings and continued to recommend, affirming Bosideng’s leading position. Bosideng will continue to make more upgrades in the next three years to consolidate its leading position, and its future valuation is worth looking forward to. </p
