Keywords for the Mid-Year Earnings Report of China’s Down Jacket Giant Bosideng

The 2021 Mid-term Performance Report of Bosideng (HK: 3998), China’s down jacket brand, shows that, as of 30 September, its sales income has reached 5.39 billion yuan and increased by 15.6% year-on-year.

Down jacket business is the group’s biggest source of income, totaling 3.47 billion yuan and accounting for 64.5% of its total income, a 16.2% year-on-year growth. According to Euromonitor International, in terms of both retail volume sales and retail value sales, the Bosideng Group’s down coats products ranked number one globally in 2020 and the company has entered tier one of the world down jacket league.

The Bosideng Group stated that it will continue to follow its “Focus on Main Brands” strategy, and “high-end”, “young looking” and “technological innovation” are the keywords for its continuing transformation.

Among the sales revenue for the first half of 2021 financial year, there has been a steady increase of the proportion of products sitting among the mid-to-high price range.

The CFO , as well as the vice CEO of Bosideng said that last year, the most popular price of Bosideng down jackets sat at around 1,600 yuan. He believes that, this year, sales of down jackets priced at 1800 yuan and above may account for over 40% of sales. During this transforming period of brand, the price range that Bosideng is aiming at is 2,000-7,000 yuan, as not much competition exists at this range yet.

The Group continues to establish the bridge of communication between the brand and customers. More efforts will be done in developing the short video platform which has newly emerged and is popular among the young generation. Currently, the brand has over 1.52 million connections on WeCom, over 6 million followers on Wechat public account and over 2.2 million followers on the TikTok official account. It is worth mentioning that over 95% of Bosideng’s income on TikTok came from streaming.

The Group values partnership by joint cooperation with famous IPs. Its co-products cooperated with Walt Disney and Marvel was highly fascinated by young people. Among the registered members of the brand on Tmall, young customers below the age of 30 accounts for 43.2%, which increased significantly compared to that of last year.

The CEO of Bosideng’s Business Department expressed that the group needs to pay more attention to Generation Z, those who were born post 95 and millenniums, and to tap the new needs of future customers.

Bosideng’s Urban Multifunctional Jacket won the ISPO Award. Also, Bosideng has been suppporting China’s Antarctic Scientific Research Team with its exceptional thermal performance series.

In collaboration with the China Aviation Industry Cultural Center, Bosideng developed 3S fabric. This is the first time that aerospace material technologies and Beidou navigation system have been applied to the down coats field. The Dengfeng 2.0 series which adopts 3S fabric is priced at 11,900-14,900 yuan.

Bosideng has also combined the windbreaker with its down jacket. The design of windbreaker down jacket is led by Pietro Ferragina, Director of Creative Research and Development. He used to work for Armani, Versace, Prada and other Italian luxury brands. Russell Delaney, the former first Director of Design of Burberry contributed to this design as well.

During the first half of 2021 financial year, Bosideng Group applied for a total of 112 patents. As of 30 September 2021, the group has accumulated 311 patents (including patent for invention, patent for utility model and patent for industrial design), among which, the core technology of down-smell elicitation has already been applied in mass production.

| Photo Credit: Bosideng