According to a report on January 12, down jackets are selling well in China during the severe cold weather. People’s demand for cold protection products that are lightweight and have good thermal insulation properties has increased significantly. This situation, coupled with the unexpected challenges faced by the livestock industry, has led to a sharp increase in raw material prices. Changes in the Chinese market may have global ramifications.
According to reports, in recent years, a large number of down jacket advertisements have appeared on China’s rapidly developing short video platforms. In addition to their versatility, the promotional content also includes the high quality and easy maintenance of down jackets.
According to the report, among the many brands that are highly praised by Internet celebrities are local Chinese brands such as Bosideng. Bosideng’s sales in the second and third quarters of 2021 reached 5.3 billion yuan, a year-on-year increase of 16%. It is said that this is mainly because the sales volume of its high-priced products has increased significantly compared with last year.
The report pointed out that the primary reason for the sales of down jackets is the cold weather. The China Meteorological Administration stated in December 2021 that due to the La Niña phenomenon affecting the world, the temperature this winter is likely to be lower than in previous years. Four cold waves have hit from September to November 2021.
However, climate is only a short-term factor in the sales of down jackets. There are also long-term factors behind it. According to the analysis of Huajing Industrial Research Institute, the penetration rate of down products in China was less than 10% in 2018, which is lower than the penetration rate of 35% to 45% in developed countries in Europe and the United States. Rural areas in China have previously been accustomed to wearing heavy leather jackets and cotton-padded jackets to survive the winter. As incomes have increased, they have gradually begun to accept lightweight and warm down jackets.
According to reports, the increase in the production of down products has led to a sharp rise in raw material prices. Data released by the China Down Industry Association show that the price per kilogram of feathers (containing 90% white duck down) reached 362 yuan as of October 2021, a year-on-year increase of 28%.
According to statistics, China’s total exports of down and other feathers account for more than 40% of the world’s total, ranking first in the world. Therefore, changes in domestic demand in China may have an impact on the global apparel industry.
Previous report: CCTV survey-down jackets are increasing in price! Sold out! Sell out the code! Mid- to high-end products are even more popular
The reporter came to a high-end down jacket store in Beijing’s Guomao Mall. Currently, the classic and co-branded down jackets in the store are basically out of stock.
Salesperson: We can only transfer it across the country. The sales in Beijing are too fast and they are all out of stock.
Later, the reporter went to a down jacket flagship store in Xidan, Beijing. The price of down jackets in the store on the upper and lower floors is basically more than 1,000 yuan. The average price of the main down jacket is 4,000-6,000 yuan. The high-end “Dengfeng 2.0” series of down jackets just launched at the end of November are priced at 14,900 yuan, which is a nearly 30% price increase compared to last year’s 1.0 version. The store manager said that consumers’ acceptance of mid-to-high-end products this year is much higher than in previous years.
The manager of a down jacket brand store: For high-end outdoor products, sales can account for 25 to 26% of the store’s overall sales.
In addition to high-end brands, down jackets from mid-range brands also experienced a small sales peak before the cold wave this week.
Huang Wei, deputy manager of a down jacket brand: The cold wave is coming soon. Our store staff has improved significantly than before. The average sales volume per day in December was about 60,000 to 70,000. In Xidan Mall, the sales volume is basically more than 200 a month. Ten thousand.
According to statistics from the China National Commercial Information Center, sales of down jackets at key large-scale retail enterprises across the country increased by 15.1% year-on-year in 2020, and the average unit price of down jackets also increased from 432 yuan in 2015 to 656 yuan in 2020. Industry insiders said that with the improvement of the epidemic and the innovation of down jacket standards, processes and technologies, consumers’ demands for products no longer stop at price.
Yao Xiaoman, chairman of the China Down Industry Association: Some large domestic companies have also formed relatively stable customer groups in the mid-to-high-end market, and the down jacket industry is gradually moving out of the low-end price competition stage.
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