Who is the common enemy of down apparel industry?
Suning released data show that the end of October, down jacket sales were up more than 1.5 times, and the price has rose to varying degrees. Withexample, the average selling price down jacket last fall in between 700-800 yuan, and this year has reached 1100-1200 yuan. Canada Goose, down jacket and other foreign brands to accelerate the layout of the Chinese market, driving up the price of consumer psychology to some extent, Bosideng stimulate growth. When the industry is focused on competition between the three companies, people tend to ignore the symbiotic relationship between the down apparel industry in the week just ended, much to usher in snow. And to make sudden cooling down jacket enterprise relieved. According to Fashion Business News, National Climate Center, said earlier this winter as a cold winter\’s almost zero probability, but does not rule out the ups and downs of temperature variations during most areas winter temperatures near or higher than normal. The news lukewarm bomb, triggering concerns retailers. The weather is all retailers heart disease. The relationship between temperature and the outside world of retail is often underestimated, but the former was the industry that is one of the three external factors affecting driving performance. Two-eleven day, Bosideng Lynx flagship store sales exceeded 650 million yuan, an increase of 58% over last year. Brand in just seven minutes to break million in sales in just 78 minutes exceeded 414 million yuan, surpassing last year\’s all-day, so the brand Lynx flagship store sales among Chinese clothing brand first. Surprisingly, however, just after the two-eleven Bosideng selling the company\’s shares plunged nearly 10% in a single day. Some analysts believe that although the sales results impressive but below market expectations, largely due to the mild winter. Or this also means, though down the industry continues to heat up, but the weather is still hanging sword of Damocles in the head down the industry. Down the industry is still essential attribute of a controlled brand power balance uncontrollable weather. Over the past few years, down jacket, cashmere clothing brand as the representative of the seasonal effort to get rid of seasonal tags, known as a fashion beat the weather, especially in the luxury section of the rise down to become a significant trend closely watched industry. Among them, the Italian luxury brand Moncler Union can gaze down, down jacket brand Canada Goose Canada Goose Canada, China Bosideng down apparel giants, three each in Milan, New York Stock Exchange and the Toronto Stock Exchange, and the company became listed on the HKEx most representativeCorporate table of the subject. Deep meaning that the three companies showing a significant step-delivery and catch-up effect. It was first recognized luxury fashion industry Moncler creatively opened up a luxury fashion down by category. And in order to function as long, with social media marketing to get celebrity sought after young rising star of the Canada Goose benchmarking Moncler, Moncler in advance and benefit from the popularity of consumer awareness. Then, Chinese giant Bosideng Down dominated the first two to catch a ride down the rise of category, with the focus and appropriate measures to upgrade the brand down, the past two years to become one of the best performing Chinese apparel business. Suning released data show that the end of October, down jacket sales were up more than 1.5 times, and the price has rose to varying degrees. With Bosideng example, the average selling price down jacket last fall in between 700-800 yuan, and this year has reached 1100-1200 yuan. Canada Goose, Moncler down jacket and other foreign brands to accelerate the layout of the Chinese market, driving up the price of consumer psychology to some extent, Bosideng stimulate growth. This year, with the outbreak of down apparel industry, the market for the comparative analysis of the three companies after another. Bosideng, Canada Goose, Moncler in the past month were released earnings for the quarter ended September 30, the industry behind the boom, some of the alarming factor is beginning to emerge.
Moncler: early pioneer
According to the fashion business newsletter, Moncler third-quarter revenue at constant exchange rates recorded a 10% increase in the first nine months, sales rose 12 percent to 959 million euros, but less than analysts expected 990 million euros. During the reporting period, Moncler sales growth in Asia and other parts of the world, including mainland China is 15%, the Italian domestic market, sales rose 4 percent revenue growth compared with the rest of Europe 7%. It is noteworthy that, Moncler has become one of Hong Kong\’s most prominent retail environmental degradation victims. CEO Remo Ruffini said in an interview, said the brand in Hong KongSales of 6-7% of total revenues, affected by the recent instability in the market environment, he was wary of Moncler performance for the full year. However, the critically acclaimed Moncler Genius imagination to create a project for the long-term development of Moncler, even offers inspiration innovative model for the entire fashion industry. This will not only enhance the diversity of the brand, but also indirectly consolidate the brand\’s fashion right to speak, to further control the risk category down. The new model shows that each brand is not only a creative director, is not only one creative direction. With a number of designers of energy to energize the brand, Moncler Genius can break a single creative director fatigued that may arise, fast-paced lead to potential problems such as decreased quality brand design, to provide consumers with freshness. Overall, Moncler down as a pioneer in the luxury category have been the first to achieve a balance of weather factors, the problems they face more luxury brands are generally faced with the economic environment and geopolitical uncertainty. Down category label but provides a recognizable and special sense of Moncler role in the market. In March of this year, private equity fund Eurazeo shares in luxury brand Moncler8年后 down to 445 million euros sold its remaining 4.8% shares held. The total return on their investment Moncler produced for 1.4 billion euros, 4.8 times the initial investment funds. Industry Focus problem is that currently, the boss Remo Ruffini Moncler can become \”the Italian version of Bernard Arnault (LVMH Group boss)\” and will be the next Moncler build such LVMH luxury goods empire. Canada Goose management burden caused by seasonal single product and brand long-term development or to one of the biggest impediments
Canada Goose: luxury duvet crossroads
If the Moncler down and created a luxury category, then extended to the category of well known, it can be regarded as winter in North America and Asia \”uniform\” of the Canada Goose, thanks to social identity and group belonging brands trafficking it to some extent. Like with Moncler, Canada Goose also failed to survive in the sluggish retail sales in Hong Kong, which is the world\’s 19 outlets in Hong Kong accounted for two. CEO Dani Reiss in a conference call after the earnings report admits that the deterioration in Hong Kong\’s retail environment had an impact on brand performance, the future will take appropriate action based on the new findings, such as re-negotiate with your landlord. In order to control market risk or Hong Kong, the brand the second half of this year in Shanghai, Shenyang has opened new stores. In the second quarter ended September 29 in, Canada Goose revenue rose 27.7 percent to 294 million Canadian dollars, well above analysts\’ expectations of 267.3 million Canadian dollars. Thanks to the increase of the department store coats and jackets orders, its wholesale revenue rose 22.2% to 219.8 million Canadian dollars, retail and online business revenue rose 47 percent to 74.2 million Canadian dollars. However, after the earnings announcement, Canada Goose stock price still fell 10.84%. This is mainly attributed to the presence of the brand and wholesale business inventories scale greater risk.
In fact, in the second quarter than-expected wholesale business was mainly due to the advance shipping channel overdraft next quarter wholesale revenue, will affect next quarter\’s wholesale expectations. Dani Reiss also warned that, due to the brand parkas and jackets delivery earlier than usual, which will make about 15% reduction in wholesale revenues in the third quarter. Chief Financial Officer Jonathan Sinclair also believes that, although Canada Goose on a strong first-half performance, but the trend may not continue into the second half. Furthermore, since the United States department store retail performance continued to deteriorate, or will reduce the amount of orders, which is bad news for Canada Goose has a huge wholesale network, the brand will therefore suffer performance hit. At the same time, Canada Goose\’s high inventory turnover days innovation, reaching 248 days. This is mainly subject to seasonal property down jacket. Since Canada Goose products are more single, not a multi-level layout product matrix, compared to Moncler products in terms of fashion and diversity are inadequate, so Canada Goose winter down all year that is the main selling Prepared for the third quartergoods. However, inventory turnover days is an important manifestation of corporate liquidity, long-term high inventory, low turnover will be a big burden on Canada Goose hinder improve operating efficiency. In the long run, Canada Goose prospects in terms of brand power to compete with seasonal still uncertain. Perhaps to avoid such risks, Canada Goose is actively expanding its product range to products other than winter, an increase of lightweight rain gear and jackets. Late last year, Canada Goose also for $ 32.5 million to buy the boots manufacturer Baffin Inc., began to enter the footwear business. To make matters worse, Canada Goose occupy increasingly clear disadvantage in the sustainable development of macro trends. The brand in London, England suffered another protest troubled PETA Peta, the police had dispatched police to maintain order, to ensure that there is a demand of consumers into the store shopping. In this regard, Canada Goose spokesman said that although the brand respect their opinions and the right to protest, but they are extreme, inexcusable act has seriously damaged the brand image and interests. It now appears that brand to attract young consumers Although Canada Goose is uniform, but the grass is always greener on the Millennials brand loyalty is not high. With the decline in consumer freshness, investor confidence in the future development of the Canada Goose began to shake. So the next few quarters brand performance is essential.
Bosideng: just found it on the standard
compared to Moncler and Canada Goose, Bosideng is still rising in the transition period. In the first half of the fiscal year ended September 30, the Bosideng revenue rose 28.8% to 4.436 billion yuan, gross margin was 43.5%, while net profit rose 36.4% to 343 million yuan. The core business of down jacket revenue rose 42.9% to 2.533 billion yuan, OEM management business revenue rose 21.9% to 1.349 billion yuan. Bosideng last year launched a strategic transformation \”Focus on the main channel, the main focus brands, shrinking diversity\”, return to the main industry down jacket, promote products, drainageRoad, image, such as full upgrade. This is a major policy adjustments following the brand before 2017, followed by four seasons resisted by expanding business men and women, carried out. Reform has yielded notable results, coupled with the Bosideng after 2018 ushered in a major market opportunity. Founded more than 40 years of Bosideng coincided with the rise of domestic products, Li Ning, Anta and other domestic apparel section were all higher. Bosideng breakthrough billion mark in revenue last year, rose 16.9% year on year to 10.384 billion yuan, net profit surged 59.44 percent to 981 million yuan, up 7 times. Coincidentally, Li Ning, Anta, like Bosideng also in June this year have been short-selling mechanism Bonitas questioned financial problems, caused by Bosideng June 24 intraday sudden dive, but Bosideng quickly back to the blood, the stock price is climbing, the stock price so far this year up 200%. The end of August, Bosideng be included in the Hang Seng constituent stocks a comprehensive medium-sized stocks. In addition to the main domestic labels, Bosideng still largely followed the Moncler Canada Goose and experience, and combines the strengths of both, both studied fashion and high-end Moncler, but also draws on the professional Canada Goose, Archeopteryx and other down jacket. While stepping down China luxury goods brands and the rise of the outbreak, which is also Bosideng\’s success can not be copied. And most of the transformation and upgrading of domestic apparel brand, Bosideng hand focus on upgrading from two-channel products. Product fashion channels along with the optimization and upgrading initiatives, the brand began settled core business body, expand the mainstream channels, optimization and upgrading of the terminal stores, redesigned the terminal image, optimizing store display. Some analysts believe that China is the main battlefield long down jacket industry concentrated in the 1,000 yuan price segment, cost pressure, competition is extremely fierce. After Moncler and Canada Goose enter the Chinese market, a substantial move up the price down jacket, gave birth to a price range for the 1000-5000 yuan a huge gap in the market, let Bosideng average selling price from 700-800 yuan, rose to 1100-1200 yuan. Bosideng has brought prices to the rapid expansion of gross profit, gross margin was 53.1% in 2018, soaring 7% in one year. It also provides ample Bosideng marketing budget, the Group reported a 2018 Bosideng cost of sales increased by 40 percent to 3.4 billion yuan, accounting for about one-third of total revenue. Bet campRecent events also makes the brand sales staggering lineup spate. September 19 this year, released Bosideng Fashion Week series Triennale Design Museum in Italy, Kendall Jenner for the fashion show to begin, Oscar-winning actress Nicole Kidman, \”the universe blogger\” Chiara Ferragni, \”VOGUE\” editor Italian Emanuele Farneti, who attended activity. Bosideng Lynx flagship store, the global real stores and buyers shop for sale on synchronization. According to Fashion Business News monitoring, Bosideng Milan show to stimulate the stock rose 5.3%. Bosideng are betting marketing, inviting Nicole Kidman, the universe blogger Chiara Ferragni other international celebrity brand endorsement Then, at the end of November, Bosideng with world-renowned designer Jean Paul Gaultier launched a joint series, and in Shanghai held a fashion show. Jean Paul Gaultier served in between 2003 and 2010, the artistic director of Hermes, Hermes created a golden age, but also because of Madonna\’s conical bras and other classic design style fame. In addition to the fashion show events, brands and shake Sen, and other well-known Hollywood actress Scarlett Johansson reached a cooperative advertising exposure for sizzling topic. At the same time, Bosideng has become apparent to Moncler and Canada Goose par with determination, especially the brand on October 30 launched a series of high-end professional series Dengfeng, it is considered to be functional expertise learn from Canada Goose, Archeopteryx and other outdoor brands . The series priced at between 5000-11000 yuan range, known as the series brings together 43 years of accumulated Bosideng down jacket focused on the field, using 1000 fluffy, cashmere rate of 95% of the rare goose down, \”Century of cloth\” fabric, spaceinsulation materials and the like, and honeycomb-dimensional charge down innovation process.
It is noteworthy that, during the two-eleven warm-up, with well-known cargo net red Li Jiaqi between Taobao sold 217 Live set the original price 12,000 yuan, 11,000 yuan price of Archeopteryx classic \”Macai\” series Down boxes, to create 20 seconds of records sold, the brand side temporarily added 700 units. Archeopteryx is calledFor outdoor category in Hermes, whose classic \”Macai\” series with a high component in outdoor segments, it has a niche of loyal consumers. From this perspective, Archeopteryx feather hit the professional category due to the breakdown field, the field has become a luxury that consumers are willing to pay enough for the premium brands, thus effectively balance the seasonal factors. Porceden ten thousand yuan a down jacket will soon lead to the industry\’s hot. As the series Down Under during the two-eleven frame, and is not significant in the Lynx flagship store sales, there are people in the industry questioned the high-end Bosideng. On the one hand, the market is well aware of Bosideng climbed thanks to free-riding, not yet fully match the prices of products to enhance the speed, on the other hand, due to the deep sink over the years Bosideng market, the current price band covers a few hundred dollars first million, the complete high-end brand image of the resistance is very large. For Bosideng, the high-end might mean abandoning old Bosideng brand, develop new brands. And rely on the sinking of the domestic apparel market bigger brands as brand promotion and strategic price increases \”abandoned\” sinking market, what is the price paid is still unknown. Google Trends chart from the point of view, Moncler down jacket in the off-season to discuss degree higher than Canada Goose, Canada Goose winter and the degree of discussion than Moncler. Despite the country\’s 72 best-selling hit Bosideng slogan, but the OEM processing, the main brand of international influence is minimal. But still there are two Bosideng high point in 2018, which provides a positive signal. Now the most important thing is, in addition to 43 years of domestic brand, Bosideng what should mark their own. Moncler has a fashion label, Canada Goose and Archeopteryx outdoor function labels, they also correspond to the consumers a clearer picture. For example Moncler consumers more low-key fashion, Canada Goose youth in North America and Asian students tied closely associated with the Archeopteryx professional outdoor sports enthusiasts. How Bosideng Group size advantage, as well as raw materials and supply chain advantages into competitiveness of products, how to identify their customers portraits, this is still the brand to be solved. Only a strong enough personality label, to the long-term effects of weather factors will be placed within the controllable range. In fact, in 2018 compared to 2017 is the warm winter, no extreme weather, which proved the potential of products to enhance the control of certain weatherDegree is valid. Therefore, when the industry is focused on competition between the three companies, people tend to ignore the symbiotic relationship between the down jacket industry. Without Moncler, would not now Canada Goose, if not Canada Goose, Bosideng is not likely to produce success at this stage. Down three companies formed the Community category, by tacit collusion, Down bigger market. And this industry has a greater common enemy. In essence, the category down to get considerable development, it is necessary to defeat the long-term weather and cyclical factors in hidden fashion feather native category. In 2015, down category is not recognized by the high fashion industry. In a very long time, it is not considered a down jacket fashion items, fashion editor at winter wear less proud of, rather than seeking warmth. Google trends \”puffy jacket\” (Down) word search wave-like rise from 2016, mainly due after 2015, the luxury fashion industry began to set off down jacket fashion, and fashion trends often gradually spreading to the general public areas of the high fashion, as a precondition down after category was able to achieve several years of rising. However, a significant cyclical fashion trends, jacket trend eventually becomes dated. This will also cause the attention of investors in the capital market, whether it is a luxury category still down recently to discuss high degree of luxury electric provider, due to being seen as an emerging industry and there is no reference to experience, brands and investors are \”touch the stones \”, easy expectations are too high, especially in the global economy tightening, the brand needs to be a more long-term investors to tell the story convincing. The nature of the problem is very simple, and that is how to make Down \”has been fashionable to go.\”