Profit companies

Canada Goose Rival Bosideng Reports Profit Gain, Sees Apparel Recovery

Bosideng, China’s top down jacket brand, said on Wednesday it weathered Covid and other global headwinds and reported sales and profit gains for the 12 months ending March 31.

Sales rose 20% to 16.2 billion yuan, or $2.4 billion, which boosted profits by 21% to around 2.06 billion yuan.

Bosideng was optimistic about the outlook this year. “Currently, the global consumer demand for apparel is steadily recovering,” he said. “Although we have faced many challenges related to the epidemic and various other aspects in 2021, we still believe that from a long-term perspective, China’s economy will recover in an orderly manner in the post-war era. epidemic”.

Bosideng is led by its colorful 70-year-old CEO Gao Dekang, who has a fortune of $4.8 billion on Forbes’ real-time billionaires list. Itochu from Japan is an investor; its rivals include Canada Goose. Bosideng shares traded in Hong Kong have fallen 16% over the past year; this compared to a 26% decline in Hong Kong’s benchmark Hang Seng Index.

Sales have increased over the past year even as Bosideng reduced its number of “outlets” from 341 to 3,809. Bosideng “established better stores in shopping malls, popular shopping areas and areas city ​​centers by ‘closing small shops and opening large ones'”.

Bosideng’s branded clothing business remained the main source of revenue, with 13.2 billion yuan, or 81.6 percent of total revenue. It increased by 21%. The company said it remained optimistic about a joint venture announced late last year with Germany’s Bogner to sell winter sportswear, and “believes there is great potential for growth in high-end sportswear market in China, and Bogner will see significant opportunities in Chinese markets.Bosideng and Bogner share their love for winter sportswear and fashion.

Gao started his first clothing business with a team of 11 villagers in eastern China’s Jiangsu Province when Chairman Mao was still alive in 1975, after learning to sew from his father.

As business grew, the group’s factory – called Kangbo Arts and Crafts Fashion Factory – was officially established as a collective in 1991. In 1994, the company was restructured into Bosideng Corp. with Gao as the driving force. A great early success: getting space to sell his jackets in the department store industry which was dominated by state-owned companies.

Gao told me in a previous interview, “At the beginning of China’s reforms, not everyone had experience, and you had to figure out how to do business,” he said. “To survive, you had to create the product and create a brand,” he recalls. “I took it step by step.”

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