Price increase is the dream idea of every brand.
The price increase is also sold out, and it is a scene where every brand wakes up with a smile in their dreams.
In the down jacket industry, ** is increasingly refreshing people's cognition. Gao Fan, Canada Goose, Skypeople, etc., have spared no effort to raise the ** of down jackets to 5,000, and Moncler is even more easily tens of thousands, with a maximum of 50,000 pieces.
Seeing that these international brands are making a lot of money, Bosideng, a domestic down jacket, is also red-eyed, so it launched the "Dengfeng" series of tens of thousands in 2019, and began to be high-end through channels, marketing, products and other aspects, which brought it a luxury scene of "queuing up to cut leeks" that belongs to luxury goods.
However, the good times did not last long, and from 2018 to 2023, Bosideng's revenue and net profit continued to grow, and its market value was close to halving.
How high you climb, how painful you fall. Bosideng quietly removed the 10,000 yuan down jacket from the shelves and began to secretly reduce the price.
What happened when Bosideng woke up from his dream?
Ever since Jack Ma wore Canada Goose, the effect of tomorrow has begun to show. This is only the same style as the richest man from Canada, which has fed countless ** and sold out directly.
In order to buy Canada geese, the middle class lined up in the cold wind with a full amount of money in their pockets. That posture is more positive than grabbing tickets for the Spring Festival.
This inspired Bosideng to sell so expensive! Bosideng decisively launched the Dengfeng series of down jackets with a maximum of 11,800 yuan. And upgrade raw materials, co-branded with high-luxury, in short, how to raise the price.
Since Bosideng's high-end has tasted the sweetness, the price of domestic down jackets has begun to rise, and Yaya, Netease Yanxuan, Gao Fan, etc., have joined forces to raise the ** to more than 1,000 yuan.
Down jackets are strong cyclical products, so they are at a disadvantage in the apparel industry chain. In terms of profits, it is better to sell than to sell, and it is better to sell than to sell. The premium of strong functionality is high, and the more streamlined the SKU, the more popular SKUs will be, the more profitable they will be. However, down jackets have to depend on the weather, and there is only demand in winter, and inventory turnover often takes hundreds of days.
The key is that the source of down jackets, down, also depends on the output of white duck down and white goose down.
Once the slaughter rate is not high, the cost will be doubled.
Therefore, seeing that the price increase can be a big sale, everyone has joined hands to increase the price.
Bosideng went to the top end and only did three things.
The first is to co-brand high-end, the second is to open big stores in the core business district, and the third is to use big-name star marketing, such as Nicole Kidman, Anne Hathaway and other big coffees, to directly fill Bigra.
After some operation, Bosideng successfully raised the price, increased the proportion of down jackets above 1,800 from 5% to 24%, and cut about 1,000 yuan to less than 20%.
Bosideng's dream came true, and it was the same rush to buy as Canada goose. Consumers queued up for a Bosideng down jacket.
With the support of consumers, Bosideng ushered in a highlight moment in 2021, with a global revenue and sales volume of double champions, and a market value of 68 billion yuan, a record high.
However, big ups and downs are the fate of Internet celebrity brands, and Bosideng's beauty did not last long, and the growth rate of revenue and net profit in 2022 hit a new low since the "second venture".
Because down jackets are a winter warm category, the guarantee of revenue lies in the best-selling basic models, but in this regard, countless replacements will dissipate the basic users. If you want to stabilize the user's mind, you can only make a large single product with a brand halo, such as the workwear parka down jacket of Canada goose, so as to stand the flag of the trendy brand. Continuously deepen consumer awareness.
However, Bosideng has as many as 1,800 SKUs, which has brought pressure on it in terms of cost and turnover.
Going up, it seems to encounter obstacles, and going back, the former battlefield has been occupied by the opponent.
In the mass market vacated by Bosideng, Yaya worked hard to fill it in 4 years, and achieved 80 million revenue to 11 billion.
Consumers who feel that down jackets are too expensive have turned to polar fleece and jackets.
After all, mass consumption is the basic market.
The thorny road of luxury is not so easy to pave. Only with more than 100 years of accumulation, the rich will pay for the thick sense of storytelling. Just by rubbing the light of luxury, I want to be them, it's too ***.
Almost all trendy brands have the same marketing methods, and when you wear it, you are a hipster.
The reason why Canada geese are selling crazy is because everyone wants to be a hipster. On the subway in Xierqi, it is full of hipsters from the foreign trade village.
However, because of its own false publicity, refusal to return and other magical operations, Canada Goose directly collapsed its performance and fell into a situation of sharp decline, and has now fallen below the issue price.
But the moncler, which is mainly for the really rich, lives beautifully. Because it not only has a low-key social connotation, but also does not engage in big ups and downs, and is always active in the eyes of a few people. Each down jacket is also equipped with an anti-counterfeiting chip, so that it can support the high-end value.
Although Canada Goose has surpassed Canada in terms of the total number of stores in China, it cannot sell Moncler.
In the world of luxury, Moncler is the presence of Prada with its feet on it.
Perhaps, compared with the ups and downs of trendy brands, the real luxury is the brand image formed by the long stream.
Those trendy brands that have fallen have also begun to discount and clear their inventories after they have become popular. For example, Superme, Canada Goose, Bosideng.
Without the "luxury" soul that really supports the brand, it can't always maintain such a high **.
Bosideng hit the south wall three times, once when it was first established, blindly imitating bloated product designs, resulting in failure to sell. At one time, diversification brought 2.6 billion yuan of inventory after the Olympics, and it took four years to turn the page. The third is to bet on the middle and high-end, running all the way, but forgetting to look up at the road.
Today, compared with the leading Bosideng, the growth rate of its second-tier brand Xuefeifei is twice as high.
Perhaps the painful realization lies in the fact that Bosideng's ten-year cold window has been worth three generations of luxury business?