Winter is approaching, and the price of down jackets has quietly increased.
Recently, domestic down jacket giant Bosideng has released a new 10,000-yuan Dengfeng series of down jackets, launching seven high-positioning products priced at more than 5,800 yuan, including the highest Everest. The peak model is priced at 11,800 yuan.
Picture source: Screenshot of Bosideng official website
Price from 5,800 yuan to 11,800 yuan It also makes domestic down jackets comparable in price to international brands.
In this regard, many netizens said, “I have confirmed that I can’t afford a down jacket,” and “‘Down jacket freedom’ has become a major ideal in life.”
Some netizens said: “I used to look at it as cheap, but now I like it, but I can’t afford it anymore.”
The layout is high-end Down jacket market
According to Bosideng’s official website, on the afternoon of October 30, Bosideng held a press conference for the Dengfeng series in Shanghai, officially announcing the new 10,000-yuan Dengfeng series of down jackets.
Seven high-positioning products were launched at this conference, priced at more than 5,800 yuan. The highest Everest model is priced at 11,800 yuan, which is comparable to the Canadian down jacket brand “Canada Goose” .
According to its official website, this Bosideng summit series is inspired by the world’s famous peaks and uses top-grade goose down from the 43° north latitude gold down belt, RECCO life detectors and other cutting-edge technologies and technologies. Science and technology, produced through 489 processes.
The latest data released by Suning shows that sales of down jackets have increased by more than 1.5 times month-on-month in the past two weeks, and prices have also increased to varying degrees. Last year, the average unit price of down jackets in my country was 555.6 yuan per piece, a year-on-year increase of 7.51% from 2017. And prices are still rising this year.
According to Sino-Singapore Jingwei reports, industry insiders believe that the price increase of Bosideng’s down jackets is mainly due to the substantial increase in marketing costs and product costs. In addition, its new product strategy targets competitor Canada Goose. Thereby expanding its high-end market in the field of down jackets. The launch of this new product series will help the brand become younger and attract more young consumers.
Facing Bosideng, which aims to expand into the high-end down jacket market, how do consumers react?
As of November 7, the Dengfeng series of down jackets priced at 11,800 yuan in the Bosideng Tmall official flagship store currently sells only 3 pieces per month.
On the e-commerce platform, the monthly sales of Bosideng’s down jackets priced at more than 5,000 yuan are not good, and the sales volume of many styles is 0.
Picture source: Screenshot of Bosideng Tmall official flagship store
Bosideng’s down jackets, which sell for around a few hundred yuan, are very popular with consumers, with sales mostly in the thousands.
In sharp contrast to the poor sales of Bosideng’s high-end down jackets, is the sales of “Canada Goose”, a high-end down jacket manufacturer from Canada.
On the same e-commerce platform, there are many Canada Goose down jackets priced around 8,000 yuan, with sales of more than a thousand pieces.
The effect of price increases for two consecutive years is significant
Gao Dekang, chairman and president of Bosideng Group, said on October 30 At the press conference on the same day, it was emphasized that Bosideng’s positioning will not change and it will not become a “high-end outdoor” brand, but will always focus on the field of down jackets.
In fact, for consumers, the current market situation is a comprehensive price increase for down jacket products. As far as Bosideng is concerned, the average selling price of down jackets last year was only between 700 and 800 yuan. This year, the average price has reached 1,100-1,200 yuan, and Bosideng’s products priced above 1,500 yuan are already very common.
According to Bosideng’s official website, Bosideng has been in the down jacket industry for 43 years and was listed on the Hong Kong Main Board in 2007.
In the past ten years, Bosideng has entered into diversified businesses such as men’s clothing, women’s clothing, children’s clothing, and home furnishings through acquisitions, joint ventures, etc. However, it has frequently failed and its performance has been sluggish for many years. In 2018, Bosideng announced its return to the main down jacket business.
The 2017/18 annual performance report shows that as of March 31, 2018, Bosideng’s revenue was 8.881 billion yuan, a year-on-year increase of approximately 30.3%; the total comprehensive income during the year reached 739 million yuan. Among them, the branded down jacket business is still Bosideng’s largest source of revenue, reaching 5.651 billion yuan, a year-on-year increase of 23.4%.
Bosideng, which announced its “second venture” in a high-profile manner in 2018, adjusted its strategy and started a round of price increases. The research report of Guojin Securities mentioned that last year’s main sales price range increased by 30%-40%, and this year’s target price increase is 10%-20%.
Its financial director Zhu Gaofeng revealed that in the future, Bosideng will continue to upgrade its products and maintain the price of its main products at 1,500 yuan to 2,000 yuan.
It is disclosed that in 2018, Bosideng has increased the proportion of 1,000-1,800 yuan from 47.6% to 63.8%, and the proportion of prices above 1,800 yuan from less than 5% to about 25% . The trend of mid-to-high-end products is becoming increasingly obvious.
Judging from the effect of the price increase, Bosideng’s 2018/2019 financial report shows that the group’s operating income was 10.384 billion yuan, an increase of 16.9% compared with the same period last year. Gross profit increased significantly by 33.9% to 5.514 billion yuan, and gross profit margin increased by 6.7 percentage points to 53.1%.
Among them, the down jacket business revenue was 7.658 billion yuan, an increase of 35.5% compared with the same period last year. The main brand Bosideng down jacket revenue increased 38.3% year-on-year to 6.849 billion yuan, becoming the main contributor to the group.
It is worth mentioning that as of 13:35 on November 7, 2019, Bosideng’s share price was HK$4.33, while at the opening of January 2, 2018, Bosideng’s per share quotation was only 0.62 Hong Kong dollar, that is to say, within two years, Bosideng’s share price has increased nearly 6 times, and the total market value has increased by 40.1422 billion Hong Kong dollars.
According to the China-Singapore Jingwei report, some experts said that from the perspective of the entire domestic down jacket market, traditional domestic down jacket brands such as Yalu and Ailai are mostly in the mid-to-low price range, which has caused a problem in the market. The lack of domestic high-end down jacket brands. For a long time, Bosideng has formed a professional down jacket brand image in the minds of consumers, which has also created a “cognitive outlet”. When it comes to down jackets, people will naturally think of Bosideng.
The expert also believes that “from the perspective of production costs, down jackets are more expensive to make than summer clothes or spring and autumn clothes, and they last longer. It is reasonable for Bosideng to launch a high-quality, high-price corporate strategy.” of”.
CITIC Securities pointed out in the research report that Bosideng still faces the risk of failing to grasp fashion trends in a timely manner. In addition, there are risks of rising raw material prices and intensified industry competition. China Galaxy Securities analyst Li Ang once pointed out that there is still room for improvement in the marketing efficiency of most domestic textile and apparel companies. In addition, there are also problems such as insufficient attention to emerging e-commerce channels.
</p
