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Exclusive | How Bosideng builds a global brand the Chinese way

Yiling Pan Vogue Business EN 2020-10-13


















 In 2019, Chinese brand Bosideng officially entered the “billion-dollar club” with revenue of RMB 10.4 billion ($1.5 billion), an increase of 16.9 per cent from the previous year. Gross profit increased 33.9 per cent to RMB 5.5 billion ($780 million). The down jacket business was the engine behind the company’s growth, accounting for 73.7 per cent of total revenue.


Three years ago, Bosideng suffered declining performance and aging products. But since 2017, under the leadership of company founder Gao Dekang (who is also chairman of the board and president), Bosideng has started a comprehensive reform of its business. Encompassing sales channels, marketing, product innovation, and research and development, this reform has achieved significant results.


China’s recent consumption upgrade has brought fierce competition to the local apparel industry where the law of “survival of the fittest” currently rules. A growing number of Western luxury and high-end fashion brands are upping their efforts in the Chinese market, giving consumers more options and influencing their fashion choices. 


According to Bain & Co., in 2017 and 2018, Chinese consumers contributed to more than one-third of global luxury industry sales. Western brands upping their efforts in China inevitably brought a considerable impact on local fashion brands that used to hold the lion’s share of the market. A few among them, like La Chapelle, Meters/bonwe and Ribo Group, no longer have as high a reputation as they once enjoyed. Other brands, like Anta, Mo&Co and JNBY, adapted to the changing times. Bosideng was one of them.


Bosideng shows at Milan Fashion Week.


Bosideng’s milestones

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Chart: compiled by Vogue Business in China


“What makes a brand?” asks Gao. “In my mind, those [companies] that can evolve and adapt are brands, but those that cannot develop can only be called products… today, some brands have become mere products.” To adapt, Gao has strengthened the company’s R&D team, built appropriate sales channels and elevated Bosideng products from the mid-range to high-end category.


From 2018, Bosideng also started to build its influence abroad. In September 2018, it showed at New York Fashion Week and in 2019 at Milan Fashion Week, and in November, the brand launched a collection with French designer Jean-Paul Gaultier. Gao devised a 10-year plan for the brand. The first three years are dedicated to building Bosideng’s importance in the local market while over the second three years, the brand will focus on global expansion. “During the final four years, I hope Bosideng will truly become globally known,” he says.


However, the Shanghai-based research company AgencyChina is pessimistic about Bosideng’s recent expansion into premium down jackets. “Derivative design, samey marketing and an unclear value proposition each inhibit Bosideng's ability to compete at the high-end category with Moncler and Canada Goose,” says Michael Norris, research and strategy manager of AgencyChina. Its research shows that across 2019’s Double 12, Bosideng struggled to move down jackets above $215 (RMB 1500), given that it offered a $29 (RMB 200) discount on jackets over that price threshold.


Bosideng is batting 

out of its league

Double 12 data suggests consumers haven’t warmed to the brand’s premium down jackets


Bosideng down jacket sales during Double 12, by price tier (December 2019)

Count

Source: AgencyChina analysis of Bosideng’s Tmall flagship store sales


Bosideng Group walked a unique path during its 44 years of development, starting from nothing and entering the global market after many ups and downs. It would be reductive to say that the brand’s success was simply built on its “Made in China” roots and association with foreign designers like Gaultier. Bosideng’s path has Chinese characteristics but also takes in Western experience, combining both into its products. Bosideng has become a model for the development of other Chinese fashion brands.



Bosideng company founder Gao Dekang



We recently caught up with Gao at Bosideng’s headquarters in Changshu, Jiangsu. The following interview has been condensed and lightly edited for clarity.


Q: In 2018, Bosideng’s revenue was up 16.9 per cent from the previous year. What was the reason behind that kind of growth?

A: Two factors have helped Bosideng achieve such growth. We have spent seven years rebuilding the brand’s image and upgrading Bosideng’s product offering. On the other hand, with its long history, Bosideng has earned a reputation among consumers as a brand with its unique culture.


Our core advantage is our product. Bosideng is a manufacturer of quality down jackets. In 2018, we continued to make full use of our brand image, and further upgraded our products and sales channels, making sure that everything was done in a consumer-oriented manner. After years of effort, Bosideng is now recognised by consumers.


Q: When Bosideng first entered the market in the early ‘90s, was its success a result of the comparatively low price of its products?

A: I don’t think so. Working for money is exhausting while working for lofty ideals makes a man happy. I treat my work and my career as my ideal, which makes me happy to come to work. I don’t ask for fortune; what I want is for consumers to feel like they have made a fortune by buying my products. That’s why I want to meet their wishes, make the best down jackets with the best technology, and keep innovating and digging into what others can’t achieve. Bosideng’s success is the result of being recognised for our quality.


Q: What are the milestones that have led to today’s success?

A: The first essential step was to lay out a solid foundation. In the beginning, we were tailors. Now, we are building a brand. We learned from many people during this process. Our group worked hard for a lot of clients before we started to manufacture products bearing our brand name. We did a great job in 1993. Then the following year, I blindly followed others and failed in product design. It was then that I realised that in order to build a brand, you need to have good products and channels. In 1995, I upgraded our products, sales channels and brand. Because we had more than ten years’ experience laying a solid foundation, we were able to swiftly restore the company’s performance.


Besides hard work, you also need promotion. You need to dream big. But when your company is on track, you have to keep calm and keep working. We need to do everything well and then publicise it, not the other way around. You need to think of what your intention is before you start a business or build a brand. A brand with height but no depth is unsustainable.


Q: What is the next challenge for Bosideng?

A: We face constant challenges, including brand upgrading, business reform, continuous innovation. We are humble yet entrepreneurial when confronted with challenges. At the moment, the Chinese market is what means the most to us. We will keep improving our down jackets. For example, we invited Jean-Paul Gaultier to join us to design products. By working with globally renowned designers, Bosideng will achieve more recognition locally and internationally.


Q: Do you have a plan for Bosideng on the global stage?

A: Bosideng is a newcomer to the global market. We need time to grow and nurture our consumer base. We are now doing two things. We’re strengthening our positioning in the domestic market, and we are starting to explore the global market.


At the moment, Bosideng has a flagship store in London. We also have stockists in Milan and Rome. These help us understand foreign consumers’ tastes and purchasing habits. We need to learn about boutiques, direct-to-consumer stores, products, visual identity, design orientation, all kinds of things, including what consumers from different countries may prefer in terms of design and dressing. We are making adjustments as we go. Our only objective is to build a strong Chinese brand. Our consumers are the world’s richest, but we don’t have a brand that is recognised by foreigners.


Q: What makes Bosideng a leading brand?

A: Our Chinese consumers recognise our brand name; this is our biggest advantage. Bosideng, as a brand, reminds consumers that we are experts at making down jackets, and we will continue to strengthen this image by further improving our product quality, online channels, physical stores and supply chains.


We are also strong in another aspect. We have talent, and we are a great team. These days, the apparel industry doesn’t attract many young people. We lack high-level managerial and design professionals as well as talents in the field of R&D, marketing and sales, especially people experienced with working for multinational firms. We are cultivating our young employees, but that won’t be enough to fulfil all our needs for future development. We continuously work on optimising our team-building strategies and on attracting more talent.


Q: Why didn’t Bosideng show at an international fashion week sooner?

A: We wanted to do it when the time was ripe. Next year, we are going to Paris Fashion Week. We hope we will have the opportunity to visit the “big four” fashion weeks (New York, Paris, Milan and London) to study how we are going to develop in the global market. Building a brand that lasts centuries is part of our ten-year plan, and it is also my mission. From the beginning, Bosideng wanted to bring warmth to our consumers and to unite the four corners of the world into a big family. I hope to complete my mission.


Q: What was the inspiration behind the show at Milan Fashion Week?

A: The Milan show was inspired by an oil painting, “Starry Sky”, created by the Italian artist Ottavio Fabbri. We used technology to integrate the starry sky pattern in the show set and the clothing. I went to Milan, and I found that the artist brought us something different during the process of creation. This kind of expressiveness made our show surprisingly distinguished. We worked hard for this show, and the models wearing our clothing also approved of our products. I believe it is somehow related to China’s development in recent years. We value the culture behind our brand, which is also the legacy of our country’s history. I want to show the world the real value of our country.


Bosideng shows at New York Fashion Week.



Q: What role does technology play in the production of down jackets?

A: To be made, every Bosideng down jacket requires the work of at least 62 skilled craftsmen and a process of 150 steps. We have built China’s first national-level in-house laboratory for down jackets. Over the years, our group has earned 146 patents, initiated five global standards in the down jacket industry, nine national standards and four industrial standards, as well as drafting 218 articles for all kinds of technological standards.


Meanwhile, we are serving as a secretariat for ISO/TC133 (a global clothing sizing system). We keep innovating with the use of GORE-TEX fabrics and an extremely high percentage of down fill power. With our patented sewing technology, every Bosideng down jacket passes the extreme cold test, which puts the jacket in negative 30 degrees Celsius for 24 hours; the 15,000 to 20,000 fabric rubs test; as well as the 10,000 zipper movements test, bringing our consumers a better experience.


This year, Bosideng launched the “extremely cold” snow mountain label. We make full use of our experience and expertise from the past 44 years, with waterproof and highly ventilated fabrics usually used in an aerospace setting, extremely fluffy and rich down fill and RECCO life detector. Products from this new collection redefined what a real down jacket should be.


Q: Why is technology so important for the manufacturing of down jackets?

A: Technology decides whether we can truly create functional clothing. Technology is the key for people to explore the world. If we want to climb a higher mountain, technology is essential. I believe we need to create better fabrics and multifunctional ones. This is the future of our down jackets.


Q: Is the biggest challenge for a down jacket manufacturer to create a down jacket that is thin, lightweight and warm?

A: Yes and no, because these are not the only requirements for a good down jacket. Some of our products are extremely warm, some are made with advanced technology, and others are fashionable and environmentally friendly. We have more things to consider, like how to make it fluffy, airy and, at the same time, warm.


Q: Do you think global warming may affect your down jacket business? 

A: It is traditionally believed that the down jacket business depends heavily on the climate. In recent years, global warming and extreme weather conditions have drawn the attention of clothing designers. For seven years, we have continuously worked on innovation so that our products are more than just clothing products to keep people warm.


This year [in China], it has been warm for quite some time, which worries our salespeople. But I’m not worried, because of my experience and understanding of the market. Our products are innovative. Once the weather gets cold, we can catch up on sales. In one day, we can probably achieve the same sales volume of half a month or even twenty days.


What is worrying is when some manufacturers don’t have new products or working channels and fail to upgrade their brand. Even if winter gets shorter, young people in China still want to have a down jacket whenever it gets cold. Consumers love our down jackets, as long as our products are new and cool. We hope that everyone will have a Bosideng down jacket in their wardrobe.


Q: Guangzhou’s winter is different from Beijing’s. How do you deal with regional climate difference?

A: For us, such a difference is the driving force pushing us to practice different marketing strategies. With big data and new retail models, we can capture and react to the changing tides of the market with precision. We provide differentiated products for different markets to meet and even lead our consumers’ needs and wishes. This, I believe, is Bosideng’s competitive edge.


Bosideng is a manufacturer of down jackets, so it seems like you wouldn’t have much business for half of the year when it’s warm or hot. How do you see this matter?


Bosideng wants to become one of the world’s most respected apparel groups for functional wear. We will focus on building products that serve specific functions. We are innovating our products and upgrading our brand image as an expert on down jackets. Besides down jackets for cold weather, we are also promoting useful and fashionable clothing items for spring and summer, like waterproof and sun-protective clothing.


Q: Does Bosideng want to become the new Moncler?

A: We want to be ourselves. We have our own heritage and brand DNA; we don’t want to be another company.


Q: Once Bosideng becomes a globally renowned brand for down jackets, do you want people to learn about its Chinese roots?

A: I’m Chinese. I want to bring all the good things in the world into China and to make us better. We need to learn about how the West uses its creativity and inspiration to flourish. The learning process that comes from collaboration is more important than the result. In this way, young consumers in China may truly appreciate our local brands and products.


Q: What is your vision?

A: It is a shared responsibility for all Chinese companies to one day build world-class brands. For us, we will continue our commitment to bring comfort and warmth to people everywhere. We want Bosideng to be a leading brand for down jackets, not just in China, but around the world.



Opening Animation

Daniel Lam is a branding designer and communication artist with a sense of absurdity and engrossing juxtaposition. After spending some time of his early 20s in Berlin, he joined a branding studio and started working for different brand stories in Hong Kong. Yet he has grown interest in exploring the depth of graphic design, literally creating imaginative yet satisfying three-dimensional art scenes with light and shadow, bulges and smoothness, still and vibrancy, pauses and motions.












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