Bosideng, who made 1.7 billion last year

Against the backdrop of the strong market, Bosideng, China’s largest branded down jacket manufacturer, hit a new high in its stock price on June 21, and its market value once exceeded HK$53 billion.

Bosideng, who made 1.7 billion last year

Immediately on June 23, the 2021 fiscal year performance report was announced.

In terms of fundamental data, Bosideng’s revenue in fiscal 2021 has achieved new growth, which is basically in line with the earnings pre-announcement issued. The same is true in terms of net profit, achieving a substantial increase of 42.1% year-on-year.

The issuance of the financial report did not gain the optimism of the capital market. The Hong Kong stock market opened the Bosdeng share price once fell nearly 3.5% the next day.

With the rise of self-confidence in the consumer culture of the post-95s and even post-00s, and the continuous fermentation of the “Xinjiang Cotton” incident, domestic brands have become popular, and brands such as Bosideng, Li Ning, and Anta have become popular among the public.

In the era of the rising tide of the country, what is the specific performance of Bosideng’s financial report this fiscal year? With the “fake products rampant” of Canada goose, what will happen to Bosideng’s high-end? By disassembling this financial report, part of the logic may be glimpsed.

Annual revenue fell short of expectations, and the main brand still accounted for the majority

Let’s first look at the basic data of this financial report.

According to the latest financial report data, in the 2021 fiscal year, Bosideng’s revenue reached 13.517 billion yuan, an increase of 10.5% compared to last year, which was lower than the 14.03 billion yuan expected by the market and investment institutions.

Among them, the revenue in the second half of the 2021 fiscal year reached 8.856 billion yuan, an increase of 14.2%. Comparing the first half of the year, it can be found that the revenue growth in fiscal 2021 is mainly due to the rapid increase in performance in the second half of the year, which also shows that Bosideng’s revenue growth is related to seasonal factors.

Specific to each business:

At present, Bosideng’s business segments are mainly divided into four categories. Among them, branded down apparel business and OEM processing management business are Bosideng’s two main revenue growth points. As of the end of March, branded down apparel business revenue reached 10.889 billion yuan, a year-on-year increase of 14.5%; OEM processing management business achieved revenue of 1.536 billion yuan, a year-on-year decrease of 4.7%.

From the revenue ratio, it can be seen that in fiscal 2021, the branded down apparel business will account for an increase in overall revenue to 80.5%. In fact, this may be related to Bosideng’s current strategy.

At present, Bosideng still regards the down apparel business as the main development direction of the group. On the current basis, Bosideng has strengthened its down apparel sales channels by opening e-commerce operations and channel construction. During the reporting period, Bosideng’s flagship store on Tmall had more than 4.76 million members, an increase of 160% year-on-year, and the amount of repurchase members accounted for 26.9% of the total offline sales. From the perspective of the breakdown of down jacket brands, Bosideng achieved revenue of 99.94 billion yuan, a year-on-year increase of 18.9%. The main growth was the main brand Bosideng.

This has also strengthened the increase in gross profit. The financial report shows that as of the end of March, Bosideng’s gross profit reached 7.924 billion yuan, an increase of 18.1% year-on-year. What can be found is that the growth rate of gross profit in this fiscal year is significantly higher than that in fiscal year 2020, which also means that Bosideng’s current sales and cost control have improved, and the gross profit margin has also increased from the original 55% to 58.6. %.

This also stems from the market’s more focus on cost and expense investment. Bosideng’s investment in marketing expenses slowed down in fiscal 2021, reaching 4.807 billion yuan, a year-on-year increase of 12.42%, which is one step closer to the 24.32% in fiscal year 2020. reduce.

In addition, it is worth noting that in fiscal 2021, the proportion of branded down apparel business revenue is a step up compared to fiscal 2020, and the development of various businesses is uneven. In fact, this is not good for Bosideng’s long-term development. . In the 2021 fiscal year, the branded down apparel business accounted for more than 80% of its revenue. It can be seen that Bosideng still has a high dependence on down apparel sales.

From this point of view, Bosideng’s revenue and business performance in this fiscal year are worthy of recognition, but the business structure and reliance on the sales of branded down jackets will still be the next problems Bosideng will face.

Net profit has increased by more than 40% year-on-year, and brand down is Bosideng’s “real thigh”?

Financial report data show that Bosideng’s net profit in fiscal 2021 reached 1.71 billion yuan, an increase of 42.1% year-on-year in fiscal year 2020. Basic earnings per share this fiscal year reached 0.16 yuan per share, exceeding the profit expectations of Bosideng and institutions.

Previously, many brokerage agencies and analysts had forecasted Bosideng’s 2021 fiscal year data, and the average predicted net profit for the 2021 fiscal year was 1.684 billion yuan.

It is worth noting that the sharp increase in net profit in this fiscal year has achieved new growth compared to the growth rate of net profit in fiscal year 2020. The net interest rate in fiscal year 2021 has reached 12.65%, which is an increase of 2.73% compared to 9.87% in the same period last year. Moncler is more intuitive, with revenue of about 1.44 billion euros in 2020, a year-on-year decrease of about 11%. In addition, the growth rate of net profit has also declined significantly.

In recent years, Bosideng’s down jacket series have moved closer to high-end, covering different consumer groups. In terms of product unit prices, the average selling price of domestic down jackets has steadily increased, and Bosideng’s mid-to-high-end market (1200 yuan and above) has continuously increased its product revenue. Last year During the Double 11 period, the average unit price of Bosideng’s flagship store increased by 68.68% to 1,034 yuan. It can be seen that the price positioning proves Bosideng’s high-end brand route.

In addition, Bosideng still maintains a continuous force in the low-end market. At present, in Bosideng down apparel products, the category with a price of 500-1000 still occupies more than 20% of the proportion.

This has driven the sales of Bosideng products to a new high. In January this year, data from many weather stations across the country showed that the local temperature had exceeded the historical extreme value, which greatly stimulated the demand for down jacket products.

Bosideng has also incorporated Chinese elements into its product design, which has also made it popular in overseas markets. According to data from Ipsos, the world’s top three market research institutions, Bosideng’s awareness among consumers reached 97%, the first mention rate was 60%, the NPS reached 50, and the reputation reached 8.72. Bosideng is ranked as the “most valuable in the world in 2021”. Among the 50 clothing and fashion brands, the only domestic brands on the list are Bosideng and Anta.

But looking carefully, Bosideng’s branded clothing business as its main business will be affected by the seasonal effect to a certain extent. In winter, Bosideng’s high sales season, but few consumers will be in the three seasons of spring, summer and autumn. During the purchase of down jackets.

Warm and cold winters will also affect the enthusiasm of consumers to buy down jackets. Although all down jackets are transforming into the fashion field, most of the down jackets still remain rustic and bulky in the minds of consumers. The greatest effect of down jackets is to keep warm. , Then, when the temperature is not low enough, it is difficult for consumers to focus on down jackets.

In Bosideng’s market segmentation, overseas markets account for a certain proportion. However, in the international market, consumers have a higher purchase rate for Canadian goose and international brands such as North and Moncler. In recent years, Canadian goose and North players have It is still going deep into the hinterland of Bosideng in order to open up the Chinese consumer market, which has an impact on Bosideng’s market share to a certain extent.

Based on the above, although the net profit for this quarter is within the forecast range and has achieved substantial growth compared to the 2020 fiscal year, the main business is facing double attacks from Canada Goose and Moncler, and the market also needs Bosideng to give more new stories.

Under the rising tide of the national tide, how does Bosideng wear a “high-level sense”?

Speaking of Bosideng, the “brand upgrade” mentioned the most in recent years.

In 2017, Bosideng proposed the strategy of “diversification, four seasons, and internationalization”, but in 2018, it clearly defined the main direction of “focusing on the main channel, focusing on the main brand, and shrinking diversification”, and then embarked on Milan Fashion Week and London Fashion Week. Zhou, signed with big-name celebrities William Chan and Yang Mi as endorsements in 2020.

This series of operations made the market have a kind of “illusion” that Bosideng has changed from “the down jacket that parents love to wear” to “the down jacket that all Hollywood stars are wearing”.

For consumers, the most intuitive feeling is that Bosideng’s products are becoming more and more expensive. According to Bosideng’s flagship store on Tmall, goose down products are basically priced at thousands of yuan, and 800+ series products are basically nearly 3,000. But in terms of sales volume, products around 100-300 sell better.

Bosideng chose to start from its own main brand. The idea is good, but its long-term brand tonality and product positioning make it not too much brand premium. This will also cause Bosideng to face an embarrassing situation: old users who value the price/performance ratio may be difficult to accept and digest, and capable consumers will think that Bosideng is not up to the standard.

In addition, as we all know, Moncler and Canada Goose have always been the two most popular brands in the down jacket industry. They are positioned in the middle and high-end consumer groups and are well-known for their high prices and outstanding performance.