Down jacket maker Bosideng banking on premium tag for success

Chinese mainland down jacket maker Bosideng Corp said it plans to transform the majority of its stores into higher-end outlets located in central business districts, as it is bullish on the growing revenue potential of the down jacket market in China.

Founded in 1976 in Changshu, Jiangsu province, Hong Kong-listed Bosideng now has more than 3,000 stores across China, accounting for 4 percent of the domestic market share. It produces one-third of the world's down jackets. The company said it plans to renovate 70 percent to 80 percent of its stores within three years.

The company plans to reopen its flagship store in London, which closed last February due to lukewarm sales. Bosideng said the reopening of the store is an important move for its brand strategy, as it looks to further expand into overseas markets.

"We plan to locate our stores in shopping centers in Chinese cities' central business districts, and launch new flagship stores in Beijing and Shanghai. Those stores will come with more fashionable decoration," said Rui Jinsong, senior vice-president of Bosideng.

"We would also like to cooperate with renowned international designers and suppliers, and change the brand image that consumers associate with us," he said.

Last year, Bosideng achieved sales revenue of 8.88 billion yuan ($1.31 million), jumping 30.3 percent year-on-year. During the same period, its net profit reached 616 million yuan, surging 57.1 percent year-on-year, according to its latest earnings report released in March.

Rui said that the popularity of high-end down jacket brands in China, including international brands Moncler and Canada Goose, have helped to expand and inject vitality into the overall market in the country.

"As a market segment with strong seasonal factors and limited consumption regions, some consumers used to think that down jackets are not stylish enough, and they prefer to wear coats instead," he said.

Zhao Ping, director of the research department at the China Council for the Promotion of International Trade, said if a brand wants to become globally renowned, it has to offer classic products that are easily identifiable for consumers, in addition to premium quality.

There are over 1,000 brands in China that focus on manufacturing and selling down jackets. This year, the domestic market scale is expected to reach 106.8 billion yuan, according to the data provided by the China National Garment Association.