Bosideng to focus on core business and boost marketing and R&D
Hong Kong-listed apparel maker Bosideng International Holding plans to double its research and development spending in the coming year after its core down apparel business recorded more than 35 percent sales increase last year.
Executive Director and Senior Vice President Rui Jinsong told a media briefing on Tuesday the company is allocating more resources to upgrade its brick-and-mortar operations to ride the trend of consumers’ premiumization.
"Opening up flagship stores in key metropolitans and adding outdoor sporting functionality has contributed to the booming sales,” he noted.
As of late February, the accumulated retail sales of down apparels under the “Bosideng” brand during the last fiscal year (starting April 2018) exceeded 10 billion yuan (US$1.47 billion), according to a stock exchange filing on Monday.
It also intends to increase marketing spending by 50 percent over last year to push its functionality and fashionable design elements.
In recent years, the company has been divesting other apparel business to focus on down jackets and has also shut down under-performing physical outlets. As many as 2,600 stores have also been redecorated and remodeled in the past year.
Average sales for individual stores increased 20 percent under the restructuring.
“We’ve been enhancing consumers’ perception of Bosideng as a leading brand for down jackets despite strong competition from rivals in home and abroad, while our designer collections have proven to be popular with consumers,” Rui added.