In fact, Canada Goose, founded in Toronto in 1957 as a brand of outdoor down jackets called Snow Goose, had annual sales of less than $3 million in 2000.
In 2001, Dani Reiss, the son of the original president, took over the company and made a big decision: "Due to trademark issues, we will use the renamed Canada Goose logo and only produce products in Canada."
It was seen as a risky decision and received much criticism. At the time, many clothing companies were moving factories to Asian countries where labor costs were lower. But Dani believes this is an opportunity to be the only company with a "Made in Canada" label that will be more valuable to consumers if it is tied to a national brand.
In the end, the strategy succeeded beyond all expectations and Canada Goose enjoyed its fastest growth ever, with annual sales jumping to about $200 million by 2014.
Canada Goose recorded a compound growth rate of 34.4% in fiscal 2016 to 2020, with revenue in Asia growing from $110 million in FISCAL 2019 to $230 million in fiscal 2021.
According to the performance report of Canada Goose in the fourth quarter of fiscal year 2021, the direct sales channel in the Chinese market increased by 101.4%. So China has become its most important source of growth.
From 2017 to 2020, China's down jacket market grew at an average rate of more than 10 percent, according to data provided by the China National Garment Association. China's down jacket market is expected to reach 163.6 billion yuan in 2022.
In European and American countries, the popularity rate of down jacket is between 30% and 70%, and China's current popularity rate of down jacket is only about 10%, there is still a lot of space for development in the future.
With declining revenues in Canada, Canada Goose's marketing strategy has shifted from ethnic homemade to Chinese elements to appeal to Chinese consumers.
In January 2021, Canada Goose and Chinese young designer Chen Anqi launched the 2021 Spring and Autumn co-branded capsule series, to join the characteristics of Chinese design.
But unlike bosideng's boom, the pandemic put an end to Canada Goose's stellar performance, with revenue of $900 million in fiscal 2021, down 5.7% from a year earlier.
In a recent penalty letter issued by Canada Goose, thousands of words of popular science on the evaluation of down jackets have caused a heated debate, pointing out that the key to quality lies in indicators such as the percentage of down content and the number of grams of filled down, rather than the specific origin of duck down claimed by the company.
On This year's Singles' Day, bosideng brand generated 2.18 billion yuan in full-channel sales, of which online sales increased by more than 45% year on year. It also ranked second in the tmall clothing brand sales list for "Singles' Day".
By September 30, 2021, the earnings show that Bosideng achieved revenue of 5.39 billion yuan in the first half of the year, up 15.6% year on year; Bosideng's main brand revenue was 3.25 billion yuan, up 19.1% year on year. The net profit of attributable shareholders was about RMB640 million, up 31.4% year on year.
According to the "2021 World's Top 50 Most Valuable Apparel Brands list" released by Brand Finance, one of the international top five Brand value evaluation authority, Bosideng was selected for the first time and is the third fastest growing Brand, with an increase of 39%. Bosideng and Moncler are the only professional down wear brands in this list.
Previously in fiscal year 2020, Bosideng reported steady growth in operating revenue for three consecutive years. This fiscal year set a new record high and achieved a global leading position. The group's revenue reached 13.516.5 billion yuan and its annual net profit rose 42.1%.
In the long run, domestic goods is the trend, but the broadcast room "wild consumption" generally low price, such as bee flower, Hongxing Erke, if you do not establish brand characteristics, short-term mood receded after the people will be forgotten, and Li Ning has become a successful transformation trend brand, lasting growth.
Domestic down jacket price entry: high-end trend
In fact, Canada Goose has been a traditional clothing brand focusing on outdoor labor protection for decades, step by step through providing clothing for Hollywood movies and stars, to The political and business celebrities such as Jing wearing goods, Jun Ji-hyun, Lee Min-ho wearing it in the Snow in the Korean drama kiss... Successful marketing made the product popular after 2018, becoming a status symbol and planting the idea of "I want a goose, too" in the minds of young and middle-aged consumers.
Thousands of yuan a piece of north, is itself simple style, in recent years, and superme and other fashion brands, after a number of rappers, stars wear, become the "contemporary male college students uniform". North Face had previously issued a new sales target of $3 billion by 2021.
In 2018, Moncler also decided to abandon its traditional seasonal collections in favor of a new monthly limited-edition designer co-branded collection to cater to a younger, more fickle clientele and shift from pure outdoor down to luxury fashion.
However, in 2009, Bosideng hoped to get rid of its dependence on single down garment business through the "three" strategy of branding, four seasons and internationalization. However, the strong expansion made the company face a series of problems such as overcapacity, inventory backlog, aging brand image and declining revenue.
Between 2011 and 2014, bosideng's net profit plunged from 1.451 billion yuan to 138 million yuan, and it closed 8,708 offline stores between 2013 and 2017. In 2016, its share price fell as low as HK $0.14.
In 2017, seeing the beauty of imported high-end down jacket brand, Bosideng refocused on down jacket business, and developed toward expensive and high-end.
At Milan Fashion Week in 2020, Kendall Jenner of the Kardashian family walked the runway for Bosiden, while Nicole Kidman and Anne Hathaway sat in the audience wearing Made in China down jackets.
At the same time, it launched a Disney co-branded collection, and collaborated with former LV designer, former Design director of Ralph Lauren and students of Yohji Yamamoto to launch designer co-branded collections, in an effort to get closer to the fashion brand.
In China, Bosideng began to sponsor a number of variety shows with Yang Mi, William Chan and Xiao Zhan as their spokespersons, which gained enough topics and attention.
Down jackets are often mocked as Michelin tires because of their puffiness, but with the help of fashion stars, Canada Goose and North Face have gone from traditional mediocrity to fashion ICONS. It can be seen that the key to the acceptance of high-priced clothing by consumers is not hardcore quality, but fashion identity.
On Tmall, bosideng's flagship store has 16.98 million fans, compared with 4.65 million for Beibei and 2.04 million for Canada Goose.
But the top-selling items at bosideng's flagship store -- more than 10,000 pieces -- are lightweight, basic models priced at around 200 yuan. In the north, the sales volume is about 3,000, with an average price of more than 2,000 yuan. Canada Goose 300+ pieces, the average price of about 10,000 yuan. Visible bosideng in the public heart of the impression is still relatively affordable people.
In September, the average price of a down jacket on JD.com was about 550 yuan, up about 40 percent from last year.
Plus down jacket belongs to low frequency consumer goods, it is difficult to achieve "small profits but quick turnover", bosideng and other brands are rising in price.
Rui Jinsong, president of Bosideng's brand division, said on November 26 that prices will continue to rise in the future and should reach more than 2,000 yuan. It is understood that the main price of bosideng has reached 1500 yuan -1800 yuan.
According to guojin Securities research report previously, in 2018, Bosideng main brand price increase up to 30% to 40%. From 2017 to 2018, the proportion of 1000-1800 yuan products of Bosideng increased from 47.6 percent to 63.8 percent; Products costing more than 1,800 yuan rose from 4.8% to 24.1%, while those costing less than 1,000 yuan dropped from 47.5% to 12.5%.
High price trend, although the marketing cost is high, but the higher the profit.
According to bosideng's financial statements, in the fiscal year 2020/2021, the distribution expenses, including advertising expenses, depreciation of the right to use assets, contingent rents and sales and employee expenses, were about 4.807 billion yuan, up 12.4% year on year.
Bosideng's overall gross margin rose from 46.4% in FY2017 to 58.6% in FY2021, narrowing the gap with Canada Goose.
However, the discussion volume of bosideng's more than 10,000 notes in Xiaohongshu is lower than that of Canada Goose, which is over 30,000, and that of North China, which is over 80,000. It can be seen that Bosideng lacks the popularity of social media, and its youth trend needs to be further developed.
Cheap brand broadcast room war - duck to seize Douyin, snow flying into the fast hand
In addition to high-end, Bosideng also by virtue of the matrix brand Xuezhongfei, Bingjie, completed the low-end product line layout.
On October 15 this year, Xuexuofi flagship store started live broadcasting in Kuaishou, and cooperated with official service provider Camila to implement all-inclusive operation. It used the models with high test sales to live sell goods, and the GMV in the first month exceeded 6.8 million. In the 116 Quality shopping Festival of Kuaishou e-commerce, Xuexuofi became the second in the self-broadcasting list of women's clothing brands.
At the same time, Bosideng is also increasing its own stores, a large number of offline stores and dealers.
At the end of September 2021, the total number of retail outlets in the down jacket business, which includes brands such as Bosideng, Xuezhongfei and Bingjie, decreased by 149 to 4,001 compared with the end of last year. At the same time, its self-owned retail outlets increased by 2 net to 1809, while the retail outlets operated by third-party dealers decreased by 151 net to 2192.
In particular, the flagship store and offline store of Xuezhongfei brand are mainly for men's wear, but in the apparel category of short video live e-commerce platform, women have stronger purchasing power. "They will not only buy for themselves, but also for children, lovers and the elderly according to their needs."
According to the high proportion of women in the platform's user portraits, 40% of Snow Flying's launch plan is targeted at women to tap their consumption potential. Finally, this investment strategy achieves an input-output ratio of more than 4 times. Subsequently, Snow Flying also adds many popular women's clothing products in its selection.
The biggest threat is that yada, another cheap down jacket brand, became popular this year on Douyin Snow Mountain, gaining 300,000 followers overnight.
Compared with the indoor broadcast room carefully arranged in the past, the planning of the duck attracted the attention of consumers. "We are now at an altitude of 5,000 meters, minus 9 degrees on the Snow mountain of Tibet, live broadcast here is to show you the quality of our duck down jackets, whether they can withstand wind and keep warm."
In addition, Yaya achieved outstanding sales through the establishment of Douyin live broadcast matrix and online celebrity live streaming with goods. In August, the total GMV of goods on Douyin platform exceeded 75 million, and ranked first in the list of 818 Douyin clothes. In September, Yada also surpassed Bosideng in sales of 7 million yuan on JD.com.
On The Platform of Douyin, yada has more than a dozen officially authorized live broadcast rooms, and the distribution scale of its online store is also gradually expanding, with at least 10 stores on jd platform alone.
On October 15, National Duck & Duck brand and the most expensive marketing company "Hua &Hua" held a strategic cooperation signing ceremony to jointly create a super symbol. "You love me, I love you, Snow Ice City sweet honey", "Blue bottle calcium, delicious calcium" and "Take photos and shout Tianqi" are all successful marketing cases of H&H Company.
Yada, a classic brand that first grew up as an educated youth association, once had a glorious history as a diplomatic gift, but is now considered outdated, attracting young people through co-branded items such as Pokemon.
In November, Xuzhongfei also launched a joint series of Chinese space culture, paying tribute to the ingenuity of Chinese spacemen, but also a "meta-universe" concept, committed to fashion and younger.
Therefore, cheap domestic products also need new stories and marketing to be seen by young consumers.
source:https://www.tnc.com.cn/info/c-001001-d-3717944.html