Domestic down jackets sold for 7,000 yuan and became a hot search again.
This is not the first time that down jackets have sky-high prices out of the circle.
In 2019, Bosideng launched the Dengfeng 1.0 series, with a price of over 10,000 yuan, shocking the whole network.
In 2021, the Dengfeng 2.0 series will be launched, and the price will reach a new height of 14,800, which will once again arouse heated discussions.
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No wonder netizens ridiculed: A mountain higher than Mount Everest is Bosideng's ambition.
In the same year, Bosideng joined hands with the luxury brand Burberry to create the first windbreaker down jacket, with a starting price of 5,990 yuan, and if you do high-end customization, the price starts at 10,000 yuan.
Compared with the Bosideng price of only a few hundred yuan more than ten years ago, its price has undergone earth-shaking changes, and it continues to climb the peak in pricing, vowing to become the king of feathers.
So who gave the courage?
In 2017, the terminally ill Bosideng met one of the most expensive marketing companies in China, Kmind Consulting, and threw out a key question to the marketing god who charges 20 million yuan a year: Where is the disease?
Kmind has prescribed a patch: high-end.
Awakening the dreamer, Bosideng embarked on the road of self-innovation.
First of all, it is to throw money at the international stage.
Since 2018, Bosideng has successively appeared in three of the world's four major fashion weeks: New York, Milan and London Fashion Week.
The most well-known international stars in China: Anne Hathaway, Nicole Kidman, Dragon Mother Emilia Clark...... They all put on Bosideng.
Familiar luxury brands: Louis Vuitton, Hermès, Versace...... Their designers frequently visit Bosideng to release co-branded models.
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Infinitely close to the top foreign stream, Bosideng feels that it has become more or less stained with a bright atmosphere and has become high-end.
Then in China, Bosideng signed Yang Mi, Xiao Zhan, Yi Yang Qianxi, Gu Ailing and Yang Zi, who are popular traffic leaders.
They have a strong fan appeal, and the fandom is concentrated in the post-95s and post-00s, and the target is directly aimed at young people who love to chase stars.
Although I don't know the specific endorsement fee, when Huiyuan Juice signed Yi Yang Qianxi, it was revealed that the price was 30 million to 50 million.
At the same time, offline stores have been upgraded in an all-round way to transform into luxury stores to attract high-spending people.
In 2018 alone, Bosideng renovated more than 1,200 stores and added about 1,000 new stores, with an average rate of 6 stores a day.
On Nanjing East Road in Shanghai, it signed a 2,000-square-meter, three-storey super-large store and opened the world's first brand experience store.
Popular business districts and shopping malls in other first- and second-tier cities, such as Beijing Xidan, Hangzhou Tower, Tianjin Binjiang ...... Bosideng has invested heavily in the layout.
Far away in South Moulton Street, the most expensive business district in London, close to Oxford Street, Bosideng's first overseas flagship store has reopened again, with a total cost of 35 million pounds, or about 350 million yuan.
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Standing next to this landmark building, Bosideng is declaring to Chinese consumers: I am a world-class high-end brand.
Focus Media, which works closely with Kmind Consulting, spread this announcement to the land of China.
Huge posters have been pulled up in the mall, the image of the spokesperson is wrapped in every pillar of the airport, and the walls of the subway passage are plastered with life-size advertisements......
High coverage, high arrival, high frequency, no matter where you are, Bosideng wants you to see it.
In 2018 alone, such dominating advertisements burned a full 500 million.
Finally, a brand new Bosideng has appeared.
In 2018, Bosideng's annual sales exceeded RMB10 billion for the first time, RMB13.5 billion in 2020, RMB16.2 billion in 2021, and RMB16.7 billion in 2022.
In 2018, Bosideng's advertising and marketing expenses also soared to 3.4 billion, 4.8 billion in 2020, 6.17 billion in 2021, and 6.12 billion in 2022.
Especially in 2022, it has reached an unprecedented new height, accounting for nearly 4% of the total revenue. It is equivalent to spending 2,000 yuan to buy a down jacket, and 800 yuan is used to see advertisements.
In the face of rising sales, Bosideng believes that this is everyone's recognition of its high-end image, and is willing to accept the high price.
The average price in 2017 is 1,000 yuan, 1,600 yuan in 2020, and more than 2,000 yuan in the future.
Perhaps Bosideng thought it was at the top of the down jacket pyramid, but the data was cold and sober.
Bosideng's Tmall store has more than 30 million fans, and the most expensive down jacket is priced at 7,000 yuan, with zero sales.
5,000 yuan down jacket, sales are only double digits.
Yang Zi with the same paragraph of 2599 yuan, 2000 pieces of sales.
More than 9,000 people bought down jackets at the thousand-yuan level.
The down jacket of around 700 yuan is the main sales force of Bosideng - 30,000 pieces, and the sales of lower price down liners are also in the tens of thousands.
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In the past five years, Bosideng has spent more than 26.8 billion yuan in marketing expenses, which has finally changed consumers' perception of it, but it has only moved from a mass brand to a mid-level level, and the amount of money that is willing to pay for it is around 1,000 yuan.
It has nothing to do with high-end, and it has nothing to do with luxury.
Bosideng's dream of a luxury brand is dying, and that's not all.
As Bosideng's prices continue to rise, its quality is increasingly not commensurate with its price.
The main extreme cold series, the word "extreme cold" is not bad. Many people just bought this dress for two or three thousand because of these two words.
But soon the weather slapped in the face, and it couldn't meet the most basic needs of a down jacket.
Many buyers reported that after wearing it for less than a month, they drilled into it when the wind was a little stronger, and froze into dogs, and their shoulder sleeves were super cold, so cold that they jumped to their feet.
There are also people who mistakenly take the advertisement as reality, wear it directly to the snowy mountain, and almost freeze to death and can't come back.
The price is almost catching up with a month's salary, but the filling volume is only about 100g, just this little goose down, what else can you do if you don't freeze to death?
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In 2018, when Bosideng had just transformed, the price of extreme cold was about 1,700 yuan, and the filling volume was 180, which was really thinner.
Bosideng's cutting corners is also reflected in the fabric, and the most complained about problem is whitish.
After wearing it for a month, the neckline turned white, and after wearing it less than five times, the cuffs were white, and the white ones looked like they came out of a flour mill.
Not only whitish, but also yellowing, fading and other problems.
Some people even believed in Bosideng too much, and even went out without an umbrella on a rainy day, but the defense was quickly broken.
Said good high-tech fabrics, windproof and waterproof, where did they go?
In fact, it is the summit series that uses the world's top expedition standard fabric - Gore-Tex, which is a raincoat to put it bluntly.
As for other styles, Bosideng is not willing to use such good materials at all.
But who made it advertise too loudly, everyone mistakenly thought that all down jackets used black technology.
In the cold weather, I confidently put on Bosideng, tried the "danger", experienced the coldest temperature, and lived in the dark for the rest of my life.
Even so, Bosideng still insists on using marketing to drive price increases, regardless of the high-end market, why?
It all started in 2018.
That year, a down jacket brand called "Canada Goose" refreshed the worldview of the Chinese people with shocking pricing.
As it became popular in the Asian market, its price has risen from $600 to $1,000, and now it is as high as $1,500, which is equivalent to more than 10,000 yuan.
At that time, Bosideng was struggling to survive, and when it saw this visitor from the sky, it was full of surprise and envy: it turned out that down jackets could be sold for such an expensive price, which was more than 20 times that of itself!
But why can people sell it so expensive?
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Founded in 1957, Canada Goose began as a labor protection company, providing down jackets, thermal vests and gloves to local police officers and inspectors in the Arctic Circle.
Surprisingly, as far away as Sweden in Europe, the Canada goose is particularly favored.
Not only professionals, ordinary office workers, but even the Swedish royal family wore it.
In the store, Canada Goose is placed with luxury goods such as Prada and Gucci.
In other words, relying on its strong warmth characteristics and Europe's longing for the Maple Leaf Country, Canada Goose has become a high-end brand in other countries.
In 2001, the third-generation head of Canada Goose took office, and he keenly smelled business opportunities and decided to take the high-end brand route.
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First of all, it is fashionable, with a more concise urban style, which drives up the price.
In fact, it is specialization, and the business of Canada Goose has also extended to the Antarctic scientific expedition team, Air Canada, etc.
Finally, and most importantly, it is to be nationalized and stick to Canadian roots.
Even though labor is expensive, it is necessary to keep the Canadian handmade, and the clothing is affixed with the logo of the Arctic Circle outline, using duck and goose down from the Hutterite breeding area in northern Canada and locally produced coyote feathers.
Eventually, the Canada goose became a Canadian specialty, equivalent to Swiss clocks and Chinese Moutai.
It can be said that Bosideng's road is simply a replica of the Canada goose, inviting luxury designers to sponsor the Chinese mountaineering team and the Antarctic scientific expedition team, and sewing the two big red letters "China" on the down jacket.
But compared to this goose, Bosideng has just learned to become a fast-selling brand that smashes advertisements everywhere.
Because when it comes to marketing, Canada Goose is very restrained and smart.
For more than 20 consecutive years, it has provided uniforms for film crews and actors in extremely cold areas, and has been quietly implanted in major movies, such as "007", "X-Men", "National Treasure" and so on.
Abandon traditional media such as television and radio, and only place advertisements in professional outdoor magazines to maintain the nobility of the brand.
Eventually, consumers recognized wearing Canada Goose as a status symbol and took the initiative to become a member of the premium brand.
On the other hand, Bosideng's down jacket constantly promotes black technologies such as nanoscale, volcanic rock, aerospace space, and Beidou positioning system.
Do you think you can go to the moon if you wear it? The more advertisements there are, the more insincere they are!
Of course, the ultimate goal of pursuing high-end is to make high profits.
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Over the years, the price of velvet has risen and fallen. The latest price of 90% white duck down is 400 yuan a kilogram, and 90% white goose down is 800 yuan a kilogram.
Converted, the cost of a down jacket is only about 100 yuan.
According to eBay, the price of a top-quality fabric like Gore-Tex is about 200 yuan per meter.
As for labor costs, Bosideng has long entered the era of intelligence, and the production capacity of a worker per day is 1-2 pieces of long down jackets and 3-4 pieces of short ones.
Therefore, the cost of a down jacket is only five or six hundred yuan on the ceiling.
However, through price increases, Bosideng has increased its gross profit margin from below 40% to 60%, and this year it has soared to 70.8%, surpassing 63.86% of Canada geese.
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Think about it, spend 2,000 yuan to buy a down jacket, and 1,400 yuan of it will be swallowed by Bosideng.
We all grew up watching Bosideng, a thoroughly civilian brand that started with 8 sewing machines and 1 bicycle.
In 1995, when the down filling volume of the entire down jacket industry was only 60% or 70%, Bosideng took the lead in increasing the down content to 90%.
Warmth is the foundation of a down jacket.
It was by virtue of this move that Bosideng suddenly became the top brand of down jackets. In China, when it comes to down jackets, the first thing that comes to mind is Bosideng.
Now, where has the original intention gone?
Now, everyone sighs the most: "You treat Bosideng as a domestic product, and it treats you as a big Zuo." ”
Actually, Canada geese are not expensive in Canada. 1,000 Canadian dollars is equivalent to a week's or two of the locals' wages, so everyone on the street wears it.
It was only in China that the exchange rate was converted, plus tariffs, that it became a luxury.
So in China, it costs a month or even several months of salary to buy a Bosideng, why?
We don't want to be leeks, we don't want to be slaughtered.
A brand, not the pursuit of quality, imperfect service, only the pursuit of profits, will never become a real high-end brand!
Bosideng is no exception!
-End-
Resources:
36 Krypton: "Bosideng can keep out the cold, Gaode Kang is difficult to climb the peak"
Xueqiu: "Down jackets have entered the era of 2,000 yuan, and Bosideng's gross profit margin exceeds that of Canada goose"
Fashion Business Network: "In just one year, Bosideng's revenue has risen again, and its revenue has advanced to the 10 billion club"
Author: Xin Feixiang
Editor: Daniel Lee