By ZHU Yongling
Bosideng International Holdings Limited, the largest down apparel company in China, saw revenue up 3.5 percent to 16.8 billion yuan (US$2.3 billion) in the year ending March 31. The gross profit margin declined by 0.6 percentage points to 59.5 percent. Bosideng's operating profit rose by 10 percent to 2.8 billion yuan.
Branded down apparel accounted for 80.9 percent of revenue, up 2.7 percent to 13.6 billion yuan. Flagship brand Bosideng accounted for 11.8 billion yuan of the total.
The company witnessed significant growth in online sales, up by a quarter and close to 5 billion yuan.
Despite the obvious success online, the company has been busy opening larger stores and closing smaller ones. Around 1,000 stores have been closed in the past two years, leaving 3,423 permanent locations across the country.
Down apparel is a seasonal product, with almost no demand at some times of the year. The permanent stores that have closed have been superseded by “peak-season stores” (popups). These "stores" are open for 1 week to 3 months during the peak periods only. Over 1,000 such locations operated last year, mainly in core business districts and sports venues.
Although specific sales contributions were not disclosed, these peak-season stores are believed to have significantly boosted sales.
