Produced by | Bullet Finance
Author | Wan Qing
Edit | lightning
American Editor | Qianqian
Audit | Ode
Bosideng has once again set a new record for itself.
Yesterday, BOSIDENG (3998.HK) officially released its 2023/24 annual report, and the data is quite impressive:
According to the financial report, in the 2023/2024 fiscal year, Bosideng Group's revenue increased steadily by 38.4% to approximately RMB23.21 billion, and the Group's net profit increased steadily by 44.7% to approximately RMB3.12 billion, and the operating profit once again achieved high-quality improvement.
The reason why I say "again" is because the speed at which Bosideng leads has always been visible to the naked eye.
As early as 2021, Euromonitor International's survey data showed that in terms of sales and sales volume of down apparel products in retail channels, Bosideng ranked first in the world in terms of down apparel scale, and ranked first in terms of sales and sales volume at the same time.
By 2023, the sunscreen clothing category launched by Bosideng will rank first in the market size and product sales of more than 400 yuan in the sunscreen clothing market of major e-commerce platforms.
This year's annual financial report is not only remarkable in terms of revenue, but also surprising in terms of product innovation, top store breakthroughs, globalization, ESG layout, etc.
Now, Bosideng, which has reached the top of the industry, continues to climb upward, what are the possibilities?
1. Revenue and net profit increased Bosideng = explosive product manufacturing machine
In the past, the outside world paid more attention to Bosideng's marketing and play, but ignored its strategic efforts.
From the financial report, it can be clearly seen that in the 2023/2024 fiscal year, Bosideng's focus is no longer on its opponents, but on how to maintain its own advantages.
In terms of data, Bosideng has achieved high-quality growth in all business units, and all major product categories have also achieved steady growth.
In FY2023/2024, the revenue of the Bosideng brand increased steadily by 42.7% to approximately RMB16.78 billion, a record high for the same period. In terms of OEM management, its revenue increased by 16.4% year-on-year to RMB2.67 billion, also reaching a record high.
What's even more remarkable is that in the off-season of down jacket sales, sunscreen clothing and outdoor clothing support the heavy responsibility of sales.
The main reason for cutting into the outdoor and sunscreen track is to make up for the dilemma of the seasonal lack of income in the main category of down jackets, but Bosideng has once again accurately grasped the pain points of consumption and opened up a new "more fashionable professional sunscreen clothing", opening up the era of sunscreen clothing 3.0.
More professional, Bosideng has achieved a major breakthrough in sunscreen technology, such as the "original yarn sunscreen technology" with sunscreen factor, which makes the ultraviolet protection coefficient as high as 100+, truly achieving hard-core sunscreen; More fashionable, Bosideng launched the world's first sunscreen clothing show in the "Film and Fashion Section" of the Beijing International Film Festival, and also made the outside world feel Bosideng's value and cultural identity to the new generation of young people.
In the first half of the 2023/24 fiscal year, the Bosideng brand achieved revenue of RMB4.42 billion, a year-on-year increase of 25.5%, thanks to the rapid increase in sales of sunscreen clothing.
As of March 31, 2024, Bosideng Group's inventory turnover days were 115 days, down 29 days from the same period last year. The number of days of accounts receivable turnover was 19 days, a decrease of 4 days from the same period last year, indicating that Bosideng's liquidity is continuing to increase.
Bosideng's brilliant performance in both vertical and horizontal directions has also been favored by the outside world.
Just yesterday, JPMorgan Chase released a new review of Bosideng's annual report, further raised the target price from HK$6.4 to HK$6.6, maintained an overweight rating, and maintained its inclusion in the catalyst watch list.
J.P. Morgan specifically mentioned that we have become more confident in Bosideng's "More than just Winter Trading" investment theme. In the face of an uncertain macro environment, Bosideng's proven category expansion capabilities, strengthened brand equity, flexible supply chain and robust execution capabilities can create alpha.
It can be said that behind this report card is Bosideng's continuous optimization and persistence in product strength, brand power, channel power and supply chain system for decades.
2. Under the financial report, decode Bosideng's growth method
In addition to revenue, there is also a remarkable highlight in this financial report, which strongly confirms the success of Bosideng's "focus on the main channel and focus on the main brand".
Compared with other products, the Bosideng down apparel brand equipped with top technology has not only increased its sales year after year, but also grown quite rapidly - according to the financial report, the total revenue of the Bosideng brand down apparel was 19.52 billion yuan, a year-on-year increase of 43.8%.
Everyone is talking about "technology", where does Bosideng's confidence come from?
The first is to use product upgrades to drive brand upgrades.
Down jackets are deceptively simple - the two layers of fabric are filled with down, and the air in the gaps between the down can play a role in insulating heat and warmth, which is the most basic principle of down jackets.
However, under the premise of taking into account comfort, fashion and beauty, there is still unlimited room for a down jacket to withstand the cold.
Under Bosideng's brand matrix, the five classic series of Ascending, Extreme Cold, Puffs, High-end Outdoor and Skiing all carry their own missions of "gnawing hard bones".
For example, the Extreme Cold series has come to the fourth generation, after continuous screening and research on fabrics and processes, as well as many experimental tests in severe cold environments, the fourth generation of Extreme Cold can withstand the severe cold environment of minus 40 °C for the first time, and reduce weight by 500 grams on the basis of no reduction in quality.
The Dengfeng series has broken through professional application scenarios in terms of top-level raw materials and processes: the 2023 Dengfeng LITE series is developed for workers in severe cold environments and mountaineering enthusiasts in addition to professional mountaineers, achieving a double breakthrough in cold protection and lightweight, which can withstand temperatures up to minus 50°C and reduce the weight of the body by 5%.
Skiing is a popular sport among young people in recent years, and the upgrade of ski clothing is also a test of a brand's fashion sensitivity and technological strength.
In 2023, Bosideng's third generation of skiing has upgraded the patent of the down air circulation system, which can not only lock in the heat energy radiated by the human body, but also exhaust excess moisture from the body, which is more suitable for high-intensity sports scenarios.
You will find that Bosideng has not only effectively enhanced the value of the down jacket category, amplified its own advantages, but also made it cooler and more unimaginable to wear down jackets in winter.
The second is to use precision marketing to get closer to users.
In addition to the competition of the top technology, the product is also more than the comprehensive strength.
Times are advancing, and users are constantly growing, which requires brands to constantly have new stories. This year, it is also obvious that you can always see Bosideng in the activities that young people love.
For example, at the summer sunscreen new product launch conference held in Shanghai in April this year, Bosideng chose to cooperate with the authoritative fashion media "Harper's Bazaar" to jointly present Bosideng's innovative exploration in the fashion field.
From fashionistas, celebrities to scholars in related fields, they discussed the trend and future of the sunscreen clothing industry in depth, and at the forum, Bosideng and Harper's Bazaar also jointly released the "New Fashion Manual for Sunscreen", which became the world's first new fashion manual for sunscreen.
In May, at the Strawberry Music Festival, Bosideng also appeared.
Bosideng also set up a Bosideng sunscreen workshop on the spot, allowing young people to experience the collision of Bosideng's sunscreen clothing fashion and music in a close-up interactive social environment, and directly turned the music festival into a sunscreen clothing show.
In addition to "making trouble" with other IPs, Bosideng has also not forgotten to upgrade its offline stores, such as the Yintai in88 Dengfeng theme concept store in Wangfujing, Beijing, China, and the sixth-generation image store in Chengdu MixC, which are also powerful and stable brand traffic entrances for Bosideng.
It can be said that through iteration and upgrading, Bosideng has got rid of people's impression that domestic products are only low-priced, and is a brand that understands demand, can innovate and is of high quality.
3. The core advantage of business is hidden in value and experience
In fact, in the face of younger users, it is undoubtedly a subversive change and reshuffle for the existing clothing industry, which forces many domestic brands to rethink their positioning.
Behind the growth of financial reports, there is a more important question worth exploring: what is the core logic behind all growth?
The answer is: value and experience.
In his book The Experience Economy, economist Joseph Pine argues that companies provide an unforgettable experience for their customers, and the process of experience creates business value for the business.
This requires companies to put themselves in the shoes of their users and pay more attention than ever to what consumers need in order to deliver the products they really need. The reason why Bosideng has become a benchmark is due to two key words:
The first is to hold the long track.
48 years ago, Bosideng started with only 8 sewing machines, which is an absolute old domestic product.
Many of the brands born at the same time as Bosideng have not resisted the temptation of diversification, some have turned to real estate, some have become obsessed with investment in finance, and some have lost themselves in the continuous transformation.
As early as the end of 2017, Bosideng put forward the plan of "focusing on the main channel and shrinking diversification", and in the following year, it officially took "focusing on the main channel and focusing on the main brand" as the group's strategy, which has continued to this day: among them, the main channel and the main brand refer to the down jacket category and the Bosideng brand.
Each of Bosideng's down jackets is manufactured by 62 craftsmen and 150 processes—every seemingly inconspicuous detail is regarded as an important part of Bosideng's production—because it is related to the real experience of users.
During the 2023 Double 11 period, Bosideng ranked first in the sales list of branded apparel on the Tmall platform, first in the single store of Tmall official banner (men's + women's clothing), first in JD.com and Vipshop clothing, and first in the single store of Douyin official banner full-cycle brand women's clothing.
As of 2024, Bosideng has been the sales champion of down apparel in the Chinese market for 29 consecutive years, and has achieved best-selling sales worldwide.
What is even more commendable is that while holding the track, a company is willing to continue to invest in research and development.
At present, Bosideng has built a national industrial design center, a national postdoctoral research station, and a scientific research and technology center of more than 10,000 square meters.
In Bosideng's laboratory, it witnessed the birth of a number of "firsts" - the first apparel enterprise laboratory in China to obtain the accreditation qualification of the International Down and Feather Bureau (IDFB), the first enterprise laboratory in the down apparel industry to be accredited by the China Accreditation Service for Conformity Assessment (CNAS), and the first polar environment simulation and verification laboratory in China's apparel industry.
Each of Bosideng's down jackets has to pass extreme tests in the laboratory, including 24-hour material extreme cold test at minus 30°C, 15,000 to 20,000 times fabric friction test, and 10,000 times zipper slip test.
In the field of functional apparel that pays attention to real materials, hard bridges and hard horses, even the industry leader cannot be distracted.
However, in Bosideng, such a super concentration can always be seen.
Whether it is a grand goal such as moving from a "leading national brand" to a "global leader", or the rise and growth of a company, or solving specific problems such as cold resistance and sun protection, we must focus on the right direction and valuable things in order to have the possibility of getting what we want.
In the past, Bosideng's foreign rivals were strong enough, but through its long-term professionalism, Bosideng has created an advantage that is not inferior to any competitor and has become a global leader.
When the spotlight came down, Bosideng was able to shine on its own, all because this company used its professional determination to pierce the ceiling of domestic products.