Time flies, Bosideng, as a down jacket brand that rose in the 70s of the last century, once had unlimited scenery.
In the whirlpool of market competition, this brand, which was once known as the "first brother of down jackets", has suffered a heavy blow in recent years. Behind the rise, decline and predicament of Bosideng, it reflects the ups and downs of the brand's fate in the fierce market competition.
The history of Bosideng can be traced back to the 70s of the last century, when the brand emerged in the Chinese market with its excellent product performance and adaptability.
Down jackets, as a light and warm winter clothing, became a fashion trend chased by consumers at that time. However, with the passage of time, Bosideng gradually fell into the dilemma of aging brand and outdated image. The younger generation of consumers has developed a dislike for it, seeing it as an outdated "rustic" representative brand.
In order to regain lost market share, Bosideng began to actively catch up with the trend. From celebrity endorsements to participation in New York Fashion Week, Bosideng tries to reshape its brand image by aligning with elements of the new era.
In September 2018, Bosideng even appeared on the stage of New York Fashion Week, inviting international stars such as Anne Hathaway and Marvel superhero Hawkeye, as well as Victoria's Secret Angels to endorse the brand. This series of measures enabled Bosideng to rediscover the "traffic password" of the new era and successfully embarked on the route of Internet celebrity products.
Canada Goose, a down jacket luxury brand from Canada, quickly emerged in the market with its unique brand image and position. Its down jacket not only has excellent thermal performance, but also attracts a large number of consumers who pursue quality with the label of luxury. However, the performance of Canada Goose in the Chinese market has not been without its challenges.
Due to the Meng Wanzhou incident and animal protection issues, Canada Goose has suffered tremendous pressure in China, its brand reputation has been damaged, and its market share has declined.
This incident provided a respite for Bosideng. Under the resistance of domestic consumers to Canada Goose, Bosideng has regained its vitality, and its sales volume and market value have gradually climbed. However, this is not the end, but a new beginning.
As time passed, Bosideng's predicament resurfaced. The brand's share price ranged from a maximum of 6HK$57 shares all the way to 320 Hong Kong dollars shares, the market value directly evaporated 34 billion.
As early as June 24, 2019, Bosideng's stock price was **2478%, nearly 6.1 billion Hong Kong dollars evaporated in one day. In the following years, Bosideng's performance also continued to decline, from 1762% growth fell to 346%。
The reason for Bosideng's predicament is not only the objective law change of the market, but also the problem of the brand itself. During the 2018 Double 11, some consumers found that Bosideng's full reduction** was even higher than usual, and this blatant **fraud made consumers feel dissatisfied.
At the same time, there has been a wave of support for domestic products in the domestic market, and many brands have increased their products**, but the value of Bosideng's products has not increased accordingly, resulting in brand premiums and unreasonable pricing becoming a major problem for brands.
What's even more worrying is that the younger generation of consumers is beginning to take an interest in more affordable products such as traditional military coats, which is gradually eroding the market share of down jackets.
The brand's mistake in the co-branded design has also become one of the reasons why the brand has smashed its own sign. Bosideng even hired a designer from Burberry, an insulting Chinese brand, to participate in the design, and this series of decisions caused consumers to have a negative impression and damaged the brand image.
Under the general trend of consumption downgrade, Bosideng's experience has become a stark case. Consumers' support for the brand should not become the capital of the brand to "cut leeks". Treating consumers sincerely and providing cost-effective products is the key for brands to truly grasp the market.
Brands need to find new opportunities to rethink and adjust to re-establish trust with consumers, otherwise, the market will become more competitive, and Bosideng may lose more in this competition. Maintaining a keen market insight at all times is the only way for brands to gain a long-term foothold in the market.