Bosideng's "Ten Years of Iron Law" Meets the Transition with a Zeroed Mentality
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In 1994, Bombardier’s predecessor, the Comber Group, had just finished the history of OEM processing. The first batch of down jackets launched under the “Bosideng†brand had a large backlog, eventually transforming the marketing model and anti-season promotions into the market. . In 2004, Bosideng experienced numerous twists and turns in the capital market. In the end, he took out the state-controlled “red hat†and laid a precedent for the smooth landing of the Hong Kong stock market.
Another decade has passed and Bosideng is now experiencing another challenge.
“The apparel industry in China has gone through hundreds of years of development of international apparel brands in more than 30 years, and the approach is also very extensive. But in recent years, the market environment has undergone tremendous changes. The economic downturn has affected the purchasing power of consumers. And labor costs are rising again, coupled with the impact from the line, the traditional clothing business days are not so easy."
At Bosideng headquarters in Bosideng Industrial Park, Changshu, Jiangsu Province, Chairman Gao Dekang accepted an exclusive interview with this newspaper. The founder of China's largest down apparel brand is dressed in a stylish, fast-speaking language. He is not shy about the "winter" of local apparel brands. He talks about the future development of the apparel industry and Bosideng and is very inspiring. Where did the rise come from? The reporter showed details of the shoulder line and waistline of the Bosideng double-breasted black suit.
During the conversation, Gao Dekang mentioned several times "transition and upgrading."
"Next year is an important milestone for Bosideng. We will begin a comprehensive transformation and upgrade from within the company." Starting from this, Gao Dekang explained Bosideng's four-year business expansion, internationalization, brand value enhancement and lean management reform. planning.
Breakthrough brand "ceiling"
At a recent business dinner, Gao Dekang introduced the development of Bosideng’s European headquarters and brand flagship store in London, UK, to British Prime Minister Cameron. The latter highly praised Bosideng’s business development strategy in the UK market.
Gao Dekang said that the situation occurred in Bosideng London flagship store. One day before the opening of the 2012 London Olympics, its first overseas flagship store in the central business district of London opened, and Bosideng made a high profile announcement in this way to enter the international market.
Bosideng has promoted the “Chinese brand, local design, global procurement, localized marketing†model in the UK, and has even invested heavily in British designer Ash Gangotra and his partners, hoping that their designs can help Bosideng to be able to compete with Hugo Boss. The international brand - the latter's store on Oxford Street and Bosideng flagship store is not far.
However, this positioning has attracted a lot of skeptical voices. Due to the large initial investment and the difficulty of generating economies of scale in the current single store, Bosideng expects that the UK flagship store will be in a loss state for the first three years.
Regarding this, Gao Dekang, who has never talked about the internationalization of Bosideng in public, admits that the biggest pressure for “going out†is that it cannot be immediately profitable. “Most people are eager for quick success, but they understand the local market, nurture consumers, and increase brand awareness. Recognition, these all take time."
But he also said that Bosideng went abroad and opened the store directly to Europe where the suit was originated. The greater significance was to learn the local advanced experience in style design, fabric research and development and supply chain management, and use international resources to enhance its own brand value. .
Gao Dekang is very clear that although Bosideng has been working hard to become a “world brand†in recent years, it is far from reaching the goal simply to expand the domestic market. "A brand of clothing must be known to the world, must go to the international market to demonstrate the talent of the product, and take the opportunity to learn more about the world."
In fact, after going through the development process from OEM processing to the creation of its own brand, most of the domestic garment companies are faced with the problems of shaping the brand image and enhancing the added value of the products. The local famous brands like Bosideng must break through the image “ceilingâ€. More need to find another way.
"In the next 5 to 10 years, more Chinese clothing brands will go abroad and more convections will occur in the international and domestic markets." Gao Dekang made a gesture of hope, indicating "look far".
Since the beginning of this year, the internationalization of Bosideng has continued. In October, Bosideng acquired 96% of the issued share capital of British men's apparel brand Greenwoods for 40 million yuan.
Wayfinding Lean Management
Gao Dekang was described as a “very critical†year in 2014 because it will be “a year of comprehensive transformation and upgrading and deepening reform†by Bosideng.
In the aspect of management system upgrade, as early as the beginning of this century, Bosideng became the first garment enterprise to adopt the ERP system in the country. Since then, OA and CRM systems have also been launched in succession, but the effect is not satisfactory.
The root behind this is that there is no established management system that matches the IT platform.
The Italian political scientist Machiavelli said: "There is no more difficult and dangerous thing than changing the order." This sentence also applies to corporate management. As a traditional clothing company with a history of more than 30 years, management changes are even more difficult.
However, in the face of sluggish consumption and increasing competition, especially the impact of fast fashion brands in recent years, Bosideng’s revenue growth has slowed down year after year, from more than 45% for many years to 11.3% last year, just disclosed. As of September 30, 2013, revenue even fell 8.8% year-on-year.
In the same way as when dealing with the first two “ten years of challengesâ€, Gao Dekang has been obsessed with closed doors and declined all invitations in recent days in addition to the conferences that must be attended, focusing on the development direction of the company.
“Original old methods cannot solve the current new problems. We must start with changing my thinking, setting up a platform to assign responsibility to people, and implementing meticulous management.†Gao Dekang spoke of this tone when the tone was not to be discounted. Nearly a hundred kilograms of clothes to go between Changshu and Shanghai.
The strategy, platform, and model are the three core areas that Gao Dekang has planned for Bosideng. “Strategy is the core, and the model is implementation. The most important thing is the platform. All participants in the supply chain must fulfill their responsibilities and develop their talents on the platform. ".
Taking Bosideng's multi-brand layout as an example, from the middle of this year, Bosideng has separated several major down apparel brands. “The two sides of the brand positioning, product planning and end-to-end channels are separated and each of them is responsible. The supply chain in the middle should be integrated to implement the sharing of platform resources,†Gao Dekang said.
“We must use a zeroing mentality to face the transformation and upgrading. Although the division of powers and responsibilities is clear and the implementation of the standard system is not easy, I believe that Bosideng will regenerate new vitality as long as the modern lean management platform is built. We are confident to extend our brand to a century," concluded Gao Dekang.
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