Analysis Of Brand Chaos In Down Jacket Market

"On the subway leading to Xierqi, you can see at least six geese in a carriage with 247 people."

In the cold winter, "fake geese" are everywhere. Canada goose, a well-known Canadian down jacket manufacturer known as "Hermes in the down jacket industry", sells for nearly 10000 yuan per piece. It has achieved a share of "one goose in each subway" today. Shanzhai geese have contributed a lot.

On the other hand, bosden, which has a lot of labels such as "Mom and dad style", "local style" and "cheap price", has quietly stepped into the high-end road (the demand area is 150-200 square meters; the representative projects are Nanjing Jiangning Wanda Plaza, Beijing World Trade skyscraper, etc.), but quietly strides into the high-end road. The "Dengfeng" series down jacket has ten feet, starting from 5800 yuan, and the highest price is 11800 yuan.

As a result, down jacket circle began to appear such a sentence: rich bosden, poor wear geese.

Is that really the case? Does bosden make rich people like you? Canadian geese are the preference of the poor? It's not that simple.

01、 "Fake goose" business without Wu De

First of all, geese.

The reason why Canadian geese are worn by poor people is simply because fake goods are amazingly cheap.

The price of geese, which can be as low as thousands of yuan and more than 10000 yuan, is much higher than that of iPhones that made people cut their kidneys, which is enough to deter many people. At this time, high imitation fake welcome the broad market, it is not difficult to understand.

For example, in Changshu's "foreign trade village", every fake goose looks like a real goose. It may be difficult to distinguish the difference between the two in filling amount, fabric and technology, but the low price of the fake goose is eye-catching in a second.

Here 200 yuan can buy a "big goose", 600 yuan price of fake goose, is enough to achieve the degree of falsehood.

If we take the sales volume as the comparison value, it is not sure whether the genuine products will be more competitive than the high imitation ones. After all, some people have said that they can sell fake geese three or four times as much as real geese.

In the "fake goose" business, not only the seller does not pay attention to martial ethics, but also the buyer is quite "unreasonable but powerful".

As for the "enthusiasm" of shoppers for high imitation fake goods, Jingdong Liu qiangdong has also expressed confusion. He asked those college students who bought fake Adi Nike, "isn't it true that 120 yuan basketball shoes and running shoes are fake?"

The other side replied calmly, "of course I know it's fake. I really can't afford it. What's more, I spend more than 100 yuan just like you bought Adi Nike shoes for more than 500 yuan. "

The two main points of this sentence point to the truth that fake goods sell well: 1. Really can't afford it; 2. Fake and real are almost the same.

This also points out the reason why the expression of "poor people wear geese" is not accurate

On the one hand, the emergence of the "goose rotten Street" phenomenon, a large number of high imitation fake goods, which is naturally an important reason, but these so-called "poor" wear fake geese, and they clearly know that this is not a real goose.

On the other hand, the increase of geese, in addition to the surge in fake goods, in fact, there are more real geese.

02、 Canadian geese under epidemic situation

In May, Canadian geese laid off about 250 employees, about 5% of its more than 5000 employees worldwide. All of the company's top management team members voluntarily cut their salaries by 20%, and CEO Dani Reiss continued to give up all their salaries indefinitely.

According to financial reports, in the fourth quarter to the end of March this year, canadian goose revenue fell 9.8% to C $140.9 million, and net profit fell 72.22% to C $2.5 million.

Under the haze of the new crown epidemic, in the gloomy data, the speech made by the CEO of Canada goose on the second quarter financial report conference call had some highlights

"Our business in China has returned to pre epidemic levels, with revenue up more than 30% year-on-year in the quarter."

There are so many Canadian geese.

In the past few years since geese entered China, domestic customers' enthusiasm for geese has not declined.

In 2018, Canadian geese have entered tmall's flagship store to participate in the double ten one carnival, with an hour's turnover easily exceeding ten million.

In December of the same year, Sanlitun store in Beijing, the first Canadian goose store in mainland China, opened. Although it took an average of 30 minutes to 1 hour to enter the store in the cold wind, it still couldn't stop the enthusiasm of the rush buyers.

In 2020, the global economy will be shrouded in the shadow of the new crown, and the clothing industry and luxury industry will be hit hard. Under this premise, canadian goose's revenue in China will continue to grow by more than 30% year-on-year through DTC mode.

In terms of quantity, real geese may not be as good as fake geese, but their increased sales are genuine goods purchased by the so-called "rich" real gold and silver.

03、 Bosden's shot

And bosden.

The reason for the feeling that "the rich wear bosden" is that the evergreen tree in the down jacket industry, which was mercilessly criticized as "rustic in style and cheap in price", seems to be more and more expensive.

According to statistics, the average price of bosden's down jacket in autumn of 2018 is between 700-800 yuan, while it has reached 1100-1200 yuan in 2019, with an increase of about 50%. At present, the average price is about 1500 yuan. Zhu Gaofeng, chief financial officer and vice president of bosden, once said that the average price of bosden will be 1800-2000 yuan in the next two or three years.

Indeed, the price of down jacket is getting higher and higher. What really increases bosden's "noble demeanor" is its Dengfeng series which sells "goose" price.

In November 2019, bosden launched 7 types of peak series down jackets, with an average price of 5800 and the highest price of 11800 yuan, which is regarded as an important end of high-end strategy by the industry.

One year later, in the winter of 2020, the down jacket of bosden's offline stores is mostly around 1000-3000 yuan, and there are few local tyrants of 10000 yuan. In the flagship store of tmall, the sales volume is still 100 to 1000 yuan of down jacket and peak series.

Therefore, at present, the saying "rich people wear bosden" is more ridicule about high price.

04、 Firmly transform to high end

However, it is not a secret that bosden will transform to the middle and high-end.

At the mid-term performance communication meeting in 2020, bosden said that the trend and strategy of transformation to the middle and high-end have not changed.

Bosden was founded in 1976, entered the retail market in 1990, and arrived in * * in 2006. At that time, one third of the world's down jackets came from bosden. Since then, bosden proposed four seasons and internationalization reform to accelerate the scale of expansion, covering men's and women's wear and children's wear.

In 2012, the number of bosden stores reached more than 14000. However, this round of expansion caused the share price of bosden to fall madly from 2013 to 2017, and the net profit shrank nearly five times.

The strategy of product diversification not only does not help bosden to become bigger, but also weakens its original brand power and influence. The international layout is a drag on bosden's performance.

After closing nearly 9000 retail stores, bosden cut off redundant business in 2017, and then returned to the origin of down jacket industry.

Bosden's "counter attack" road was opened, but the problem of single product line still could not be solved. With single product line and single revenue model, bosden urgently needs to find the next growth point.

For many years, the domestic down jacket Market has been dominated by low-end, lack of high-end down clothing brands. However, it is not easy to compete with geese and move towards high-end.

05、 Development trend of light luxury down jacket

China's down jacket Market has great growth potential. According to statistics, China's down jacket market will reach 162.1 billion in 2022, with an average growth rate of more than 10%. From the development trend of the whole down jacket industry, high-end is also the major development direction of China's down jacket industry.

It should be noted that the clothing industry has always been competitive, once left behind, there is a danger of extinction. The glory of the past, such as zodanu, JeansWest, rich and noble birds, etc., are gradually fading away.

How to go the high-end way of down jacket? In the case of canadian goose and bosden, we can think from the following four dimensions.

In terms of market. No matter high-end or low-end, survival is the life of an enterprise. Market development is just like water to life. Most of bosden's main revenue is in China, and the third tier cities account for the majority. However, despite the high sales of Canadian geese in China, the global market is still the main source of income. Opening up the real market is the magic weapon to live forever.

In terms of channels. Canada geese are in a difficult situation in the epidemic. The performance of online sales and Chinese market is the highlight of its gloomy performance. Online is the main channel to increase the sales of geese, while bosden's thousands of stores have resulted in a 10% lower gross margin than Canadian geese. The full use of online channels and the increase of gross profit rate may also be a breakthrough.

Brand. It may not be difficult to survive, but for high-end ones, efforts must be made in brand upgrading, product innovation and quality improvement to achieve the purpose of enhancing brand value. If consumers want to cross the huge cognitive gap from local flavor to high-end, it is the only way for every brand that wants to turn to high-end.

Canadian geese are trapped in the shadow of the new crown while their performance growth is slowing down. Bosden, however, is constantly hindered in its high-end strategy. The saying "rich bosden, poor people wear geese" is ultimately a joke. The dilemma behind the two down jacket brands may be more worthy of attention. As for how they will break through their own difficulties, we may as well wait and see.