Author丨Gao Jianghong.
Editor丨Luo Yifan.
Figure source丨Figure worm.
Recently, Bosideng, a Chinese down apparel brand group, released its interim results report for the year ended September 30, 2023. During the period, Bosideng Group's operating income increased by 20% year-on-year9% to 74RMB700 million, operating profit increased by 30% year-on-year2% to 12300 million yuan, revenue and net profit for 6 consecutive years hit a record high in the same period.
Although the performance is outstanding, the ** about "**" still pushes Bosideng to the forefront.
Domestic down jackets are sold for 7,000 yuan", "Can you accept domestic down jackets of more than 1,000 yuan" and other topics have been on the hot search many times. According to a report, after the launch of the 10,000 yuan Dengfeng series, the average price of Bosideng Group as a whole has risen to 1,600 yuan, and will increase to 2,000 yuan in the next three years.
Since 2017, the average price of Bosideng down jackets has exceeded 80%. In this regard, the reason given by Bosideng is "Is this really the case with raw materials?".
"High-end" is not the same as "**
According to CCTV Finance and Economics, affected by raw materials, the price of down jackets this year is generally higher. The purchase price is about 3% to 5%, and the price of each piece is more than 20 yuan, and the higher price is more than 30 yuan. But even the raw material ** cannot explain the "jump" phenomenon of Bosideng down jackets.
In the face of controversy, at the recent interim results conference, Bosideng Group responded that it would increase the layout of the Pratt & Whitney down jacket track, and in the future, its sub-brand Xuezhongfei will be positioned as Pratt & Whitney's cost-effective down jacket, forming a differentiated layout with the main brand Bosideng. At the same time, Mei Dong, Executive Director and CEO of Bosideng, said that in the future, it will integrate global high-quality resources and increase the number of mid-to-high-end products with more than 3,000 yuan to meet the needs of mainstream mid-to-high-end people.
This is the high-end brand strategy that Bosideng has been precipitating since 2018. In 2019, the highest price of the Dengfeng series launched by Bosideng reached 11,800 yuan, which is close to the international brand Canada GooseThis year, the price of an outdoor goose down jacket launched by Bosideng is 6,799 yuan, and a variety of windbreaker down jackets and ski wear products cooperated with Burberry designers are priced at more than 5,000 yuan.
However, "high-end" is not the same as "high-end" In this regard, Zhou Ting, president of the VIP Research Institute, believes that the high-end brand should be high-end in many fields such as brand, product, service, channel, communication and customers, rather than simply "high-end", and the gap between Bosideng and international luxury brands is still very large.
Although it has been criticized, in the "Double Eleven" not long ago, Bosideng has achieved remarkable results and won the first place on the Tmall platform.
First, second, Tmall official flag single store (**first, Jingdong and Vipshop ranked first in the clothing category, and Douyin official flag full-cycle brand** single store first. As of September 30, 2023, the Bosideng brand has more than 37.6 million followers on Tmall and JD.com, more than 14.6 million members, and more than 9 million followers on Douyin.
However, judging from the product detail pages of the two major online shopping platforms of JD.com and Tmall, Bosideng's highest sales volume is the model of around 1,000 yuan, and the style of more than 5,000 yuan is almost unpopular. In contrast, the down jackets of Canada Goose with more than 14,000 yuan have sold more than 500, which is obviously more favored by consumers.
Over-marketing is burdensome
Compared with the risks existing in the "** strategy, the high marketing investment cost is also worthy of Bosideng's consideration.
In the past five fiscal years, Bosideng's annual marketing expenditure has increased from 34400 million yuan** to 612.5 billion yuan, the total expenditure on advertising and marketing is as high as 24.8 billion, and its total revenue is only 67.8 billion, it can be said that Bosideng has used one-third of its revenue in the past five years for marketing.
In terms of co-branding, Bosideng has launched popular models such as the Marvel series and the Star Wars series across borders, and has also cooperated with many international designers such as the former designer of Hermès for many times to create international voice and optimize the brand image.
After Bosideng debuted at New York Fashion Week in 2018, it has appeared in international fashion weeks such as Milan and London one after another, and has gradually become a frequent visitor to Fashion Week. Not only Gu Ailing, but also Bosideng's brand spokespersons include Yi Yang Qianxi, Yang Zi, Xia Boyu and other well-known personalities. With such a "top-rated" lineup, presumably the endorsement fee is not a small amount.
In this regard, Zhou Ting pointed out that "advertising + channel" is the secret of success of most Chinese brands, but this also shows that the degree of specialization of Chinese brands is low, and it is difficult for brands to have a greater future if they start from this.
Although the marketing burden is too heavy, Bosideng has also seized the market dividends brought by consumption upgrades. In recent years, the influence of foreign brands on consumers has led to the expansion of express delivery in China's high-end down jacket market, and when other brands have not had time to deploy and react, Bosideng has taken the lead, and has a certain degree of recognition at a time when Chinese consumers still tend to decide the quality of brands and products.
But on the whole, especially in brand building, there is still a way to go for the high-end of domestic products. China has the world's largest luxury market, and it should have a deeper foundation of luxury brands than Europe and the United States. Zhou Ting believes that it is very important for domestic products like Bosideng to break the traditional perception and focus on new business models, and at the same time, it is also necessary to be wary of luxury brands hitting Chinese brands through large-scale dimensionality reduction through diversification and popularization strategies.
sfc
Editor of this issue: Liu Xiang, Xi, Zhao Fengling.
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