During the National Day holiday, the same unprepared thing as traffic jams may be the cooling down. As the cold air swept in, the temperature dropped in some areas and even broke the historical record set in 1981. Affected by the combination of persistent cold air and persistent rainy weather, mainstream listed companies in the apparel industry experienced significant growth acceleration both online and offline during the eight-day holiday.
Among the brands, Bosideng’s data is particularly outstanding. Taobao data shows that from October 1 to 6, the sales of Bosideng brand flagship store increased by 574% year-on-year to 19.1 million yuan, the number of sales increased by 300% year-on-year to 18,000 pieces, and the average sales unit price increased from 613 yuan in the same period last year to 2020. 1034 yuan per year.
With the help of cold winter, Bosideng is favored by the market
The cooling is indeed an important reason for the recent surge in sales of Bosideng’s down jackets that cannot be ignored. But in fact, Bosideng’s stock price has been rising since the company chose to focus on the down jacket industry in 2017. In 2017, the company’s operating income surged by 30.28% year-on-year, and its net profit attributable to its parent increased by 57% year-on-year. In 2019, despite the impact of the epidemic and the mild winter, the company’s operating income still increased by 17.4% year-on-year, and its net profit attributable to its parent increased by 22.6% year-on-year. . This year, it has also been included in the Hang Seng Composite Large and Mid-Cap Index constituent stocks and the MSCI China Index, which is known as the global investment vane.
Since Bosideng proposed the strategy of “focusing on the main channel, focusing on the main brand, and shrinking diversification” and focusing on the down jacket field, it has significantly boosted business revenue. With the increase in profit and profit, Bosideng, after putting aside its label of being close to the people, has stabilized its average price above 1,000, resulting in gross profit margin and other data performance repeatedly exceeding capital market expectations.
Thanks to the “whole wheat bread effect”, down jackets are considered by many consumers to be “big items” with the attributes of durable goods like home appliances and cars. As residents’ consumption upgrades, the demand for high-priced down jackets The sense of identity is significantly improved. After the down jacket market exceeded 100 billion in 2018, it is still growing at a rate of more than 10%. It is expected that China’s down jacket market will reach 160 billion in 2020, and the global figure will be as high as 1.4 trillion.
Behind the skyrocketing price of Bosideng, will the garment industry, which has been plagued by tragedy, usher in the “New Year”?
As Double Eleven approaches, Li Ning rose 6.94%, Xtep International rose 15.28%, and Anta Sports rose 6.43%. Some apparel concept stocks in A-shares, such as Ribo Fashion, Sanfu Outdoor, Meibang Apparel, Semir Apparel, Hai Lan Home, and Pathfinder, have also set off a wave of repurchase.
Many clothing companies have warmed up in advance and are preparing for a “turnaround”, which seems to indicate that The clothing market is about to go through a “cold winter”, but is this really the case?
In fact, since 2019, the global apparel industry has been in dire straits. In the first half of the year, among the 15 representative companies in Hong Kong and A that have disclosed their semi-annual reports, only two companies achieved positive growth in net profit attributable to their parent companies, and many well-known leading companies experienced declines of more than 50%.
It can be seen that the epidemic is not the only reason for the decline of the clothing industry, so the market rebound caused by the control of the health crisis actually has some doubts. The current situation of the clothing industry Whether rebounding higher is a false proposition, the next earnings season may bring some answers to the market. While the entire apparel industry sector is recovering, the market should still not be overly optimistic.
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