Analysis: Bosideng's Pain Of Multi Brand Development

< p > in fact, Bosideng began the pformation of multi brand development in 2008. The purpose is to overcome the shackles of the development of down season clothing.

However, the high level of inventory is still attributed to the higher temperature. Whether the "multi season" development of Bosideng has achieved the desired effect? Sang Baichuan, Dean of the International Economic Research Institute of the foreign trade and Economic University, said: "inventory is high, performance is slippery and Bosideng's strategic positioning is not clear, the way of operation is not good, sales path is not smooth and other factors have a direct relationship."

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< p > < strong > < a > href= > http://sjfzxm.com/news/index_s.asp > Bosteng > /a > the road of multi brand pformation < /strong > /p >

< p > as we all know, down jacket is a seasonal product with high sensitivity to temperature. If the enterprise is too optimistic about the market and stocking more, it will easily lead to sales difficulties and high inventory.

Xiong Xiaokun, an analyst with CIC's light industry, said that by the impact of the electricity supplier, there are a lot of merchants selling down clothing on Taobao platform. The price is lower than Bosideng, which will undoubtedly divert the latter customers; on the other hand, the market demand for Down garments is reduced due to the influence of global warming.

This is also the fundamental reason for Bosteng's pformation and upgrading in recent years.

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< p > 2008, Bosideng set up a non feather down four seasons fashion team, and embarked on frequent acquisitions, a large number of shops open road: < /p >

< p > May 2009, Bosideng wholly-owned the Jiangsu Bosideng Clothing Development Co., Ltd., entered the men's clothing business area; < /p >

Less than P, the same month, Bosideng set up a joint venture to participate in the sales of the American street corner brand Rocawear in the Greater China region and enter the fast fashion field; < /p >

In the early years of P, Bosideng held a shareholding of 56% of Mogao brand and 51% of Shanghai's Rambo children's products, expanding the business of casual wear and children's clothing through the way of increasing capital and expanding shares. < /p > 2011

< p > by the end of 2011, Bosideng bought 70% of the domestic women's clothing brand Jesse, entered the fashion women's clothing market; < /p >

In the past three years, Bosideng has acquired many brands through frequent acquisitions, and Bosideng has been involved in many fields including men's wear, women's wear, casual wear, children's wear, fashion dress and so on. P

Not only that, they have also started building many self created brands, such as "Rui Qi" women's clothing, "Wei del Luo" senior men's clothing, etc.

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The pain of multi brand development: < p > < strong > > a href= > http://sjfzxm.com/news/index_s.asp > Bosteng < /a >: blurred image < /strong > /p >

After only one year after the acquisition of P, Bosideng announced the pfer of all the shares owned by Rambo and terminated its business.

And the self created brand also has the awkward situation of "fighting oneself": in 2010, Bosideng launched the "Rui Qi" women's clothing project and the "wade Luo" senior men's clothing project. The former "high-end fashion women's dress" positioning coincided with Bosideng women's clothing, Bing Jie's dress and even the subsequent acquisition of the Jie Xipin brand. The competition for market resources was inevitable, while the latter had a positive confrontation with Bosideng men's high-end products.

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< p > Xiong Xiaokun, a light industry researcher at CIC, said that the idea of self creation and acquisition of brands in the early stage of Bosideng's diversification is not clear. The development of multi brand makes Bosideng's brand image blurred and has more adverse effects on development.

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< p > more media reports said: Bosideng will integrate multiple brands with different positioning in the same store, and the partitions are not clear. This way makes consumers feel confused. Even many people stop at the stores and come to the conclusion that "they are all mixed brands" and turn away.

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< p > for this, sang Bai Chun, Dean of the Institute of international economics of University of International Business and Economics, pointed out that the contradictions arising from the "multi brand strategy" will even reduce the brand awareness of the original fist products.

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The pain of multi brand development: < p > < strong > > a href= > http://sjfzxm.com/news/index_s.asp > Bosteng < /a >: "cost increase" < /strong > /p >

< p > from Boston annual report, as of March 31, 2013, the total number of stores in Bosideng reached 13009, a net increase of 4665.

Bosideng explained that the sharp increase in the number of stores was due to the separation of sales channels, and the brand of its down garments, Bosideng, Xue Zhong Fei and KangBo, were independently separated from each other. From the design and product development, supply chain to marketing and marketing channels, each brand formed its own independent and complete operation system.

It is understood that the split of sales channels directly led to a surge of 55.9% in Bosideng stores, and the corresponding increase in human capital, from 554 million yuan in 2012 to 757 million yuan.

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< p > industry analysts pointed out that the implementation of multi brand strategy made Bosideng need a lot of distribution, which further aggravated the situation of high inventory.

Compared with 1 billion 398 million inventories in 2012, Bosideng's stock grew by 41% to 1 billion 970 million yuan in 2013, and the turnover days of inventory rose from 134 days to 114 days in the same period in 2012.

The cloudy cloud of high inventories has remained intact. The latest fiscal year results released by Boston showed that as of March 31st, the company's final inventory remained as high as 2 billion yuan.

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< p > for this, Xiong Xiaokun analysis, multi brand strategy will cause Bosideng to shop more in the short term, at the same time, enterprises lack effective marketing and management of sub brands, resulting in high inventory at present.

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By analyzing the problems of Bosideng's multi brand development, Professor P concluded that "we need to maintain the original brand image and rebuild all kinds of brands, but Bosideng has no clear supporting support in all aspects of capital, operation, marketing and management. This has become the real main reason for high inventory and declining performance."

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