Assassin and Ping, how does Bosideng Duck Duck practice internal skills?

Text: Shoujo Institute of Finance and Economics, Mondo.

Edited by Wu Shuang.

Looking at the change of consumer preferences, Internet hot words are just a refraction, and the perception of cold and warm in enterprises is stronger. At present, the market value of Pinduoduo surpasses Ali and JD.com, and Li Jiaqi and Huaxizi overturned a little farther away are examples.

Recently, Bosideng appeared on Weibo hot search for "domestic down jackets sold for 7,000 yuan", and was once ridiculed as "down jacket assassin", and the ducks and ducks who returned to the front line also quickly went out of the circle and rose rapidly. On the other hand, protective clothing, 1688, military coats, etc. exploded. The intersection of "assassins" and "replacements" reveals what changes in the wind direction and what vigilance and reflection should be made?

1 Gross profit margin declined, and it took Bosideng 31 years to be vigilant about the marginal effect from OEM to world famous brand.

In 1976, Gao Dekang, the 24-year-old founder of Bosideng, made his fortune by OEM for the brand. In 1992, with the awakening of brand awareness, Gao Dekang founded the brand "Bosideng". In 2007, it won the crown of "China's first stock of down jackets" and the title of the first international brand in the garment industry.

After the listing, Bosideng accelerated the pace of expansion, but the initial "four-season" strategy did not achieve good results. From 2013 to 2015, the net profit of enterprises decreased by 24 year-on-year92%，35.60%，80.97%。By 107.9 billion yuan to 13.2 billion yuan;The inventory conversion period increased from 134 days to 211 days.

In 2018, after reflection, Bosideng adjusted its strategy, took the initiative to reduce diversified businesses such as ** and home furnishing, returned to the main channel of down jackets, and gradually made efforts to high-end.

From the perspective of the main business structure, it involves brand down jackets, OEM processing management, ** and diversified clothing, and brand down jackets are the pillars of revenue generation.

From 2020 to 2022, the revenue of the brand's down jacket will be 951.3 billion yuan, 108900 million yuan, 132200 million yuan. 2023 24 first half of the fiscal year (March-September) revenue 49400 million yuan, accounting for 66 percent of total revenue1%。

Among them, the revenue of Bosideng's main brand was 442.1 billion yuan, a year-on-year increase of 255%, accounting for 895 percent, compared to 91 in the same period last year3%；Bingjie was 12.8 million yuan, down 653%；Flying in the snow is 26.5 billion yuan, a year-on-year increase of 522%, accounting for 45% to 54%。Income from the sale of raw materials related to down jackets2400 million yuan, an increase of 94 percent year-on-year1%。

According to the financial report, the Snow Fly brand continues to develop online business, and its core strategy is to "quickly and continuously launch new and profitable explosive products".

However, it should be noted that the overall gross profit margin of the enterprise is 612%, down 24 percentage points, of which Bosideng's main brand decreased by 1 year-on-year1 percentage point.

On the one hand, "expensive on the hot search", on the other hand, the gross profit is under pressure, why is there such a contrast?

The reason for this is considered both internally and externally. According to the China Down Information Network, as of December 1 this year, important raw materials such as white duck down and white goose down in China have been rapidly rising in a short period of time.

Among them, 90% white duck down with better quality has risen to 40485 yuan kg, compared with 192 in 20206 yuan kilogram soared 1102%；90% white goose down** for the high-end market, up from 392 in 20204 yuan kilogram rose to 799 yuan kilogram today, an increase of 1036%。

Focusing on Bosideng, the management explained: "Mainly due to the impact of the category structure, if you leave aside the sunscreen clothing category, the gross profit margin of the rest of the down jackets will probably drop by 0."5 percentage points. "We are confident that the gross profit margin for the whole year will be stable and rising.

The foundation of confidence comes from premiumization. Industry analyst Yu Shengmei believes that Bosideng's strong ability to attract gold first stems from its high-end positioning. Since the company announced its transformation and increased its high-end in 2018, its products have been continuous. In 2019, a series of climbing products with a maximum price of 11,800 yuan were launched.

At the end of 2021, Zhu Gaofeng, chief financial officer and vice president of Bosideng, revealed that the average of the group as a whole has risen to 1,600 yuan, and will increase to 2,000 yuan in the next three years. According to Titanium**, in the past five years, the overall price of Bosideng down jackets has increased from an average price of less than 1,000 yuan to an average price of 1,700 to 1,800 yuan.

A few days ago, browsing Bosideng's official Tmall official *** in-store products** concentrated between 2,000 yuan and 4,000 yuan. Among them, the store's [Xia Boyu same style] Bosideng 2023 Winter Outdoor Long Dengfeng Professional Protective Goose Down Down Jacket is priced at 7,419 yuan after the coupon.

According to Shell Finance, the retail price of the 2317 Extreme Cold Goose Down Down Jacket promoted by Bosideng this year is 2,899 yuan, and the sales volume on Tmall has exceeded 10,000 pieces.

The high-end selling price naturally brings high gross profit margin, and the above-mentioned "steady rise" is full of confidence from this point of view. However, if combined with the ** controversy of Kaiwen, it is also necessary to be vigilant whether there is an implied backlash.

Drill down into the revenue structure. During the reporting period, the revenue growth rate of sunscreen clothing launched by the Bosideng brand was faster than that of down jackets, while the gross profit margin of the former was slightly lower, which affected the gross profit margin of the brand's down apparel segment.

* It is also a double-edged sword, and you need to be wary of marginal effects. Especially in the case of changes in the industry and changes in consumer preferences.

2 OEM worries, stock price coldness, how to explain the quality-price ratio, cost-effective for the best disputes. At the performance exchange meeting on November 28, the company's management said that the current core core of Bosideng is 1,000 yuan and 3,000 yuan, which is the same as last year, and more than 3,000 yuan is the mainstream mid-to-high-end ** belt. In the future, "Flying in the Snow" will be positioned as inclusive and high-cost down jackets, and form a differentiated layout with the main brand Bosideng.

Gao Dekang, president of the group, said that the current market is the structural coexistence of consumption upgrading and consumption downgrading. "We will seize the opportunities in the mid-to-high-end down apparel market, and also pay attention to the development opportunities of the mid-range and cost-effective down apparel market. In the future, it will face market segments, expand market share, and achieve comprehensive coverage of the down jacket market. ”

In a sense, in Bosideng's view, the crux of the doubt is not in the high-end products themselves, but in the imperfect layout of mid-range and cost-effective products.

Subdividing the Bosideng brand down jacket matrix, in addition to the Bosideng brand, there are also two major brands: Bingjie and Flying in the Snow. Among them, Bosideng is positioned as a sports down jacket, while Flying in the Snow and Bingjie are focusing on the down jacket market for low-end men and young and fashionable women.

The positioning of the three brands is different, the products are different, and the proportion of revenue is also different. Taking 2022 as an example, the revenue of the Bosideng brand will be 1161.8 billion yuan, accounting for 87% of the sales of brand down jackets8%；Flying in the snow is 97.4 billion yuan, accounting for 74%；Ice clean is 23.5 billion yuan, accounting for 18%。

From March to September 2023, the revenue of the Bosideng brand was 442.1 billion yuan, an increase of 25% year-on-year, accounting for 895%；Bingjie's revenue was 12.8 million yuan, a year-on-year decrease of 653%, accounting for 02%；Flying in the snow earns 26.5 billion yuan, a year-on-year increase of 522%, accounting for 45% to 54%。

Obviously, the Bosideng brand and high-end products are still the basic market, Bingjie is in decline, flying in the snow is improving the fastest, but the revenue volume is still weak.

And although it is positioned in the mid-range, flying in the snow is still not low. According to the Bank of China ** research report, the price of Snow Fly products is about 1,000 yuan, and the price of some products is 3,000 yuan.

In addition, according to Flying in the Snow Tmall***, the most expensive product in the store is the Flying in the Snow 2023 Autumn and Winter Women's Fashion Loose Fox Fur Collar Long Down Jacket, with a price of 3,129 yuan and a price of 2,849 yuan after the coupon.

Of course, you get what you pay for. **No matter how high, it's worth the money. However, as of December 6, 2023, there have been 961 Bosideng-related complaints. The spearhead focuses on product quality, difficulty in returning and exchanging goods, and first-class disputes.

For example, on September 29, 2023, the complaint 17368944495 numbered shows that a consumer said that the fabric of the Bosideng Extreme Cold series of black down jackets turned white after several wears, and he kept talking to customer service to solve the problem and did not solve the problem. I saw that many netizens who bought clothes of the same fabric on the Internet did not wear this problem a few times, and the merchant did not solve the problem, and there was no way to complain.

On October 25, the complaint of the numbered 17369402340 showed that a consumer bought an extremely cold down jacket in the Wuhan live broadcast room of Douyin Bosideng. But after buying, the price of the product was reduced by 300 yuan. The customer service changed its words and said that it was only insured for 30 days. The consumer believes that this is a deception and asks for a refund.

The above complaints have been reviewed by the platform).

Objectively speaking, Bosideng's response to and completion rate of complaints is relatively high, and the importance it attaches to market feedback is worthy of recognition. However, as a well-known brand, it may be more important to put quality control and risk control in advance and prevent problems before they occur.

In order to control the quality, we first need to strengthen the OEM management. From the perspective of revenue structure, from March to September this year, OEM management contributed 20 percent to Bosideng4.3 billion yuan of revenue, accounting for 2734%, the revenue contribution is second only to down jackets.

Industry analyst Sun Yewen believes that although OEM can amplify the potential energy of the brand and create more revenue, the corresponding quality control management is a university problem, and if you are not careful, you will be counterattacked by quality. For Bosideng, which pursues a high-end strategy, it is time to consolidate the quality chassis and make up for the shortcomings.

Indeed, ** is more high-quality. **It's just face, and the inside is quality. If under the guise of high-end, through the harvest of consumers, it is bound to not last long, after all, the market is increasingly involuted, and there is never a shortage of choices. Only by being consistent on the inside and outside, and telling the story of quality-price ratio and cost-effectiveness, can we truly stick to the market, make consumers willing to pay, and continue to pay.

Despite the latest interim report, profits continued to increase. Since its strategic transformation in 2018, Bosideng's profitability has reached a record high for the same period for six consecutive years, and the high-end has achieved remarkable results. However, judging from the stock price, the market does not seem to be hot, and as of December 6, Bosideng closed at 335 Hong Kong dollars, with a market value of less than 36.6 billion yuan, compared with 3HK$57 basically stagnated, compared to 6A high of HK$57, almost halved.

What is the market waiting for?Is there any reflection on the high-end strategy?

3 Duck Duck Second SpringCompared with Bosideng, which was criticized for its high price, another "old cannon" Yaya ushered in a second spring after ups and downs.

According to public information, Yaya Group is known as the originator of domestic down jackets, and it is as famous as domestic brands such as Bosideng and Yalu in the early days. Unfortunately, after entering the new century, due to the aging of the brand, the lack of research and development capabilities, and the squeeze of competing products at home and abroad, the market share of Yaya Group fell out of the top ten and gradually declined.

After that, the company implemented restructuring, and in 2012, Veken Group, whose main business was the textile industry, became the owner, which once brought hope to the outside world.

However, during the period at the helm, Yaya Group did not fully seize the opportunity of e-commerce dividends, and its sales channels were still mainly offline, mainly concentrated in cities below the third tier, and the online channels only had Tmall stores.

In contrast, Bosideng once again led the Yaya Group by virtue of its brand advantages and active layout. In 2019, the e-commerce revenue of Yaya Group was only 80 million yuan. Bosideng's online revenue was as high as 234.5 billion yuan.

On July 21, 2020, Yaya Group underwent a second reorganization, and Bochen Investment acquired 100% equity of Yaya from Veken Group, and Fan Jibo became the new chairman of the group.

It is reported that Fan Jibo is especially good at e-commerce marketing. As an agent operator of Yalu e-commerce, with its help, the annual revenue scale of Yalu's e-commerce business has climbed to 2 billion. Based on this, the outside world has rekindled new expectations.

Sure enough, this time it didn't disappoint.

In 2020, the second reorganized Yaya Group took the lead in entering Pinduoduo. According to "Lianshang.com", in the past three years, Yaya's annual growth in Pinduoduo has exceeded 200%, becoming the top 1 affordable down jackets on the platform, with an annual sales volume of more than 2 million pieces.

To a certain extent, Duck Duck Group and Pinduoduo are soul matches, and both parties aim for cost performance. Hu Shiqi, brand director of Yaya, once said that China has a strong population base, and consumers are willing to try good domestic brands. Behind the huge sales of Pinduoduo platform is China's diversified consumer market, as well as consumers' mental perception of the high quality and cost-effectiveness of the Yaya brand.

As of early November this year, the sell-out rate of ducks and ducks increased by 20% year-on-year. In three years, Yaya's sales in Pinduoduo increased from 50 million yuan to 500 million.

In addition to in-depth cooperation with Pinduoduo, Yaya Group has also achieved good results in the live broadcast e-commerce channel. In the summer of 2021, relying on the off-season live broadcast of the summer ** Snow Mountain, a lot of traffic was obtained.

In 2022, Yaya Group will squeeze into the top 10 of the Douyin Double 11 Good Things Festival brand list, and the top 20 of the Tmall Double 11 clothing fashion store sales list, and the sales performance is booming.

According to data from Daduoduo Douyin, the sales volume of the Yaya brand in November was 1 million+, and the brand sales were 100 million+. Among them, the largest sales volume is 1299 yuan yaya duck duck [down mulberry silk high-waisted belly] women's autumn pants tight leggings warm pants worn winter y518.

In addition, according to the sales volume, in November, a number of products of Yaya Group reached sales of 10w-25w, and the first segment was mainly concentrated in 399 yuan.

However, since 2023, Yaya has also been rapidly out of the circle and rising in price. According to the first report, since the beginning of this year, the company has successively announced different forms of brand cooperation with more than 10 stars. The recently signed spokesperson Wang Yibo's "goods" products cover a rich price range of 400 to 2,000 yuan, helping the "people-friendly" duck duck to sprint to the mid-to-high-end market, as if he is already an Internet celebrity.

In the view of industry analyst Guo Xing, in addition to making efforts online and deeply cultivating cost performance, Yaya's return to the front line of the market is inseparable from the reshaping of the first chain. At present, the company not only integrates advantageous resources and establishes intelligent processing plants, but also reaches close cooperation with leading businessmen in Changshu, Jiangsu, Dandong, Liaoning and other places. Yaya has the ability to quickly turn over orders within 7 to 15 working days. In all respects, the development goal of Yaya Group is not to become an Internet celebrity in the era of e-commerce, but to regain the golden sign and pursue long-term popularity.

4 The next stop is unknown Changhong has a long way to go and is ambitious, but it needs to be seen that the competition in the industry is still intensifying, fighting for characteristics, quality, and scientific and technological innovation. Consolidating the first chain is one side of the company's long-term popularity, and listing and financing bigger and stronger is the other side.

In February this year, according to a report by the global network, a person familiar with the matter revealed that in order to further lay the foundation for brand expansion and group brand acquisition, Yaya is promoting its listing plan in Hong Kong.

In fact, rumors of a listing have been around for a long time. According to Zebra Consumption, at the beginning of 2022, Jiujiang disclosed in an annual work report that a special working class had been set up, and substantial progress was made in promoting the listing of Yaya shares on the main board that year.

In August of the same year, the Jiujiang Municipal Finance Office replied to the person in charge of the CPPCC, Guo Quanshui, in a suggestion, clearly revealing that it had been promoting the listing of Yaya shares and giving professional guidance to the preliminary work of the company's listing.

Fan Jibo also seems to be doing his homework to promote the listing of Yaya. In April 2021, the actual controller of Shanghai Hurui Industrial***, the former controlling shareholder of ST Wanlin, was changed, from Huang Baozhong to Fan Jibo. At the same time, the controlling shareholder of the listed company became Gongqingcheng Purui Investment Partnership (Limited Partnership).

According to public information, ST Wanlin is a listed company whose main business is integrated logistics for the management of the first chain of imported timber. From 2020 to 2022, the revenue continued to decline, with 72.1 billion yuan, 58 billion yuan, 44.6 billion yuan;The net profit attributable to the parent company was 4794330,000 yuan, -28.3 billion yuan, -59.8 billion yuan, with a cumulative loss of more than 900 million yuan in three years.

Regarding Fan Jibo's acquisition of ST Wanlin, the outside world once speculated that Yaya would be listed on the backdoor. On October 10, 2022, an investor asked ST Wanlin about this.

At that time, ST Wanlin replied that after the company's self-examination and inquiries to the company's controlling shareholders and actual controllers, the company did not have relevant plans, nor did it have any undisclosed matters that should be disclosed.

In addition, the news of the above-mentioned listing in Hong Kong has come out, and some ** have also been confused, when will Yaya be listed?

Industry analyst Sun Yewen believes that the listing of Yaya should be a high probability event, but from the market news, the company is obviously hesitating, and the quality of the enterprise, the pace of development, and the industry environment should be important considerations.

According to the report of the Prospective Industry Research Institute, the market concentration of China's down garment industry is currently low, and the product competition is fierce. The market concentration of high-end products is relatively high, with foreign brands such as Canada Goose, Moncler and Bosideng dominating, and Bosideng occupies a mid-to-high-end market shareThere are many competitors in the low-end market and the product differences are small, and Yaya is in the middle of it.

In all fairness, with the help of social e-commerce and live e-commerce, the rapid growth of GMV is commendable, but the level of profitability is the key to determining the value of listed companies. If Yaya shares want to go further, it is inseparable from product transformation and upgrading.

In order to improve profitability, Yaya shares are not only meeting the needs of mass consumption, but also increasing more than 1,000 yuan, high-end products. Hu Shiqi once bluntly said: "The most representative ** band of mass consumption must be within the range of 399 to 799, but if we want to be a national brand, we still hope to cover the needs of more people as much as possible." ”

From 2022, Yaya will begin to focus on the layout of offline stores to build an online and offline omni-channel brand. You can't change the market, you can change yourself. When will Duck Duck Group go public, you might as well leave the answer to time.

5 New cycle shuffle It is difficult to have a winning general on the battlefield, and it is also difficult for a shopping mall to have a winning enterprise.

Since the beginning of this year, while consumer demand has recovered, it has also shown signs of the return of consumption rationality and cost performance. On November 29, Eastern time, the U.S. stock market witnessed a historic moment for China's e-commerce industry, and Pinduoduo's intraday market value briefly surpassed Alibaba for the first time. As of December 5**, Pinduoduo's total market capitalization reached 1,905900 million US dollars, Alibaba is 1843$400 million, which is 45 times.

Chasing the reason for its overtaking, the low price mentality stepped on the market beat, and the careful calculation did not respect national borders. Consumers pay more attention to the quality-price ratio and cost-effectiveness, not only the positive teaching materials of Pinduoduo, but also the negative cases of Hua Xizi and Li Jiaqi's overturning.

According to a survey by Beijing Business Daily, from the cost price of the source foundry, the cost of an eyebrow pencil with the same material as Huaxizi is about 4About 8 yuan. If you want to add ingredients such as the essence of He Shou Wu promoted by Huaxizi, ** will be relatively higher, but the cost of the domestic eyebrow pencil below 100 yuan will not be higher than 10 yuan, and the public complains that the 79 yuan eyebrow pencil is expensive.

With the fermentation of **, Huaxizi was complained by some netizens that it was a pseudo domestic product, and it directly affected the sales of Double 11. As the suspicion spiral continues to intensify, some old domestic products have taken advantage of this to usher in "pouring wealth and wealth". In the meantime, old domestic products, including bee flower and vitality 28, have once again attracted the attention of consumers.

Dig deeper, between complaining and popular, it is the general trend to return to the essence of products, cost performance, and quality-price ratio. Enterprises that make products in a down-to-earth manner, polish quality, value for money, and price can match will always accumulate steadily, otherwise they will face the hidden danger of overturning at any time.

According to the "2023 618 New Consumption Trend Insight Report" released by Nandu, nearly six ** believe that their consumption is more rational, and they have transitioned from the previous fixed channel consumption to the current shopping around, and more than sixty percent of the respondents pay more attention to cost performance.

Focusing on the down jacket market, the characteristics of careful planning are also obvious. With the 7,000 yuan domestic down jacket being pushed to the "cusp", the discussion on social platforms "It's not that down jackets can't be bought, but military coats are more cost-effective".

For example, Pan Jie, general manager of 1688 Yanxuan, revealed to ** that driven by the popularity of replacement, since the end of 2022, 1688 users have continued to grow on a large scale, with a year-on-year growth rate of nearly three digits.

On the other hand, some college students are eyeing military coats priced within 100 yuan. During Jingdong's Double 11 period, the turnover of cotton clothing designed by military coats increased by 181% year-on-year, like a "dark horse" of increment. On platforms such as Pinduoduo and **, there is no shortage of factory direct sales of military coats priced at 50 90 yuan, with monthly sales of more than 10,000 pieces.

Industry insiders pointed out that "replacement" is not a consumption downgrade, but essentially a different way to live, on the basis of obtaining satisfaction, happiness and self-pleasing experience, looking for a more first-class experience of consumption grading. The so-called "the province of the province, the flower", low price but not inferior quality, the same function has become a new choice for more and more new middle class and Generation Z.

Indeed, it is not known how long "extreme" cost-effective products such as military coats can be popular, but it is certain that refusing to excessively brand premiums and returning to the actual use and quality of goods is becoming the "underlying logic" of more and more consumers.

Objectively speaking, big-name down jackets are not high-end, and there are many choices of down jackets of hundreds of yuan on e-commerce platforms. For example, the "Flying in the Snow" Tmall official *** duck down jacket with the highest sales price is 399 yuan, the women's down filling volume is about 200 grams, and the goose down model is higher. The price of the "duck duck" long down jacket is 359 yuan, and the amount of duck down is about 215 grams. A "Tong Liya same style" light and short duck down jacket is priced at 299 yuan, including a capacity of 63 grams.

The most popular ones are mainly down jackets with certain technological content and partial functionality. For example, windproof, heat storage and warmth, anti-fouling, oil-proof, perspiration and ventilation. The side reflects the changes in consumer demand: from heavy warmth, appearance and style, to more and more attention to functionality and technology.

In the view of Shoutiao Finance, this is a differentiation strategy implemented by the brand in order to seize the mid-to-high-end market. The market is changing more and more diversified personality stratification, and high-end ** cannot be generalized and beaten to death. Whether it is high-end, low-end, or assassin, the key is to match the corresponding value experience. In a certain sense, the winter warmth market has entered a new cycle, and the basic skills of enterprises, innovation, industrial chain control, refinement level, and characteristic experience are more demanding in the big waves.

Fortunately, Bosideng, which is accustomed to strong winds and waves, has made adjustments. The company's executives made it clear at the financial report exchange meeting that they will continue to pay attention to the "fashion function" track while focusing on the positioning of the high-end brand of luxury fashion down skiing, lay out the mid-to-high-end fashion function brand matrix, and develop new categories of layout functions. This summer's successful expansion of the functional category of sunscreen clothing is the best proof of this.

In contrast, Yaya is thinking about how to make the brand bigger and stronger, and strengthen more characteristic labels on the basis of solid cost performance. Listing seems simple, but it is a comprehensive parade of enterprises, whether the sales channels are perfect, whether the product structure is reasonable, whether the profitability, core competitiveness is stable, and whether the development strategy direction is accurate are all points of scrutiny.

Brand recognition has improved, online sales performance is strong enough, the family is professional enough and full of confidence, combined with the current consumption environment, it can be said that Yaya is in the best state, the key is to make up for the shortcomings as soon as possible, and not to live up to the first period.

People want to live in the moment, and this is especially true for enterprises. Based on the above, many lessons warn practitioners: no matter how brilliant the past is, we must face up to the market and respect the trend. Only with fewer first-class routines, more product sincerity, and good user experience basic skills can enterprises survive the winter and move towards greatness.

In the face of changes in the consumer environment, the entire garment industry is looking for opportunities in crisis. Under the new cycle of reshuffling and reshaping, the rivers and lakes are undecided, and you and I are dark horses. Who will fight their way out of the encirclement and usher in the leap, and who will be left behind by mistake and oblivious to everyone?