Boston 2015 Annual Performance Decline 23.6% Family Business How To Inherit?

According to people familiar with Bosideng, Bosideng has a complex relationship in the process of long-term development.

Since the beginning of 2014, Bosideng has continued to decline in the two figure of net income and net profit.

The decline in performance has further intensified.

In June 29th, Bosideng announced its 2015 annual performance, showing a 23.6% decline in revenue and a 81% decline in net profit.

This is not the first decline in Boston's performance in recent years. Since the beginning of 2014, Bosideng has continued to decline in the two figure of net income and net profit.

However, some industry members pointed out that the performance dilemma is just a problem representation, the root of the problem comes from Boston's product positioning and deep-rooted management problems. For the future Bosideng, we should not only seek other breakdowns clothing business breakthroughs, but also renew the brand vitality, and behind these efforts, the reform of management mode may be the key to success or failure.

The main business is in distress.

According to Boston's announcement in June 29th, the revenue from March 31, 2014 to March 31, 2015 was 6 billion 293 million yuan, down 23.6% from 8 billion 238 million yuan in the previous year, and net profit was 132 million yuan, down 81%.

Whether it is brand down clothing and non down clothing business, two areas suffer from "serious disaster".

The annual report shows that the sales of Bosideng brand down garments dropped from 6 billion 57 million yuan in 2014 to 4 billion 80 million yuan, among which four brands, Bosideng, Xue Zhong Fei, Bing Jie and Kang Bo, all had two figure declines.

The main brand Bosideng slipped 20.3%, and the biggest decline was 79.2%.

Another area that Boston hopes for is high expectations.

The acquisition of leisure brands and women's clothing brands are facing major setbacks.

Around 2004, Bosideng invested money in the development of men's clothing. According to industry experts, the brand's turnover reached 500 million yuan to 600 million yuan in its prime.

But the 2015 earnings report showed a sharp decline in the brand.

In the 2014 fiscal year, the sales of Bosteng men's clothing was 478 million yuan, while in 2015 fiscal year, men's clothing sold only 276 million yuan, down 42.3%.

In addition, Jesse women's clothing and sports and leisure brand acquired by Mogao in 2010 also showed a different decline.

Overall, the income of non down garments dropped from 1 billion 300 million yuan in 2014 to 1 billion 11 million yuan in 2015, with a 22.3% decline.

The only relief is the growth of OEM business income, reaching 1 billion 202 million yuan, an increase of 36.5% over the previous year.

However, some analysts pointed out that the growth of OEM revenue is not good for a brand enterprise.

"The faster the development of the OEM business, the faster the competitor grows, actually helping others, not for themselves."

In fact, the problem of performance began bothering on 2014. In 2014, business income declined from 9 billion 325 million yuan in 2013 to 8 billion 234 million yuan, down 11.7%.

The main business of the down garment business was down 14.6% and the turnover was 6 billion 57 million yuan. At that time, Bosideng would be blamed for the rising temperature and the severe market environment.

Xiong Xiaokun, a light industry researcher at CIC, believes that the reasons for the sharp decline in Bosideng's revenues and profits are both related to the environment and more from itself.

In 2014, Bosideng devoted itself to inventory cleaning, new products, narrow profit margins, and its development in the development of non down garment business has not yet made good progress, especially women's wear, which has been a drag on the company's performance.

Xiong Xiaokun believes that Bosideng's urgent task is to further develop the non down garment business, so as to enhance the company's ability to resist risks and expand the profit margin.

Women's wear is the short board of Bosideng. Bosideng needs to adjust strategy and make breakthroughs in women's wear.

Bosideng may have other plans, according to media reports. In April 2015, Bosideng announced that the investment platform of Japan's third largest trading banks Itochu Commercial Corporation and CITIC Securities (27.72, 1.95, 7.57%) was jointly invested in Bosideng, with a total subscription amount of HK $1 billion 550 million, and subscription shares accounted for 13.99% of the issued share capital.

Shadow of success

In addition to declining performance, the change of Bosideng professional managers has also raised doubts.

In February 2015, Liang Xuhui, a professional manager from Daphne, announced his resignation. Gao Dekang, chairman and founder of Bosideng board of directors, continued to take over the position of CEO.

Liang Xuhui, who took office in May 2014, left only CEO9 months.

This is also considered to be another setback for Bosideng in appointing professional managers and from family management to international management.

"It is rare for professional managers to come and go and be able to be stable for two years in a fully managed position. We can see that the contradiction between family management and professional managers is large, and the latter is very difficult to have enough time to manage."

One industry insider said.

The executive who was promoted to the front desk by Gao Dekang, besides Liang Xuhui, who had just resigned, and his wife madon and other managers such as Huang GUI did not last long.

Ma Bin, a manager who had worked in Bosideng, told reporters that Gao Dekang was always full of confidence in himself and was hard to listen to others' opinions.

Face-to-face conversation with him is easy to develop into his own long winded speech.

There are also loopholes in company management.

"It may be hard for you to believe that Bosideng group meets for rehearsal. Generally speaking, we must first talk about the achievements of the respected General Gao, the respected general Mei, and how much he has achieved under his leadership. Finally, we must assure Gao Zong that we will complete the task this year, and shout slogans such as" high general assured, Mei is always reassured "and so on, and even the tone should be rehearsed in advance.

In 1976, Gao Dekang started his own business, and rolled out from a dozen farmers to become a large company listed in Hongkong, with an annual turnover of several billion yuan. This is undoubtedly a great success for Gao Dekang.

However, some industry experts say that the past success has also kept them in the past.

"Bosideng down clothing is getting more and more aging, the style is also old, can only attract older consumers, it is difficult to catch young people."

The industry commented, and the price positioning is high, a piece often 2000 yuan, in the market gradually lack of competitiveness.

This person said that in the current down jacket Market, some cutting-edge brands often grasp the elements of youth and fashion, which brings great pressure to Bosideng.

For example, Eral, born in Lishui and Jin Yujie in Beijing, although sales can not surpass Bosideng, there is great potential for development.

Japan's brand of uniformed clothing developed by the uniformed clothing can be sold at a price of 399 yuan or 499 yuan, which lies in the huge consumption power brought by the young fashion of the product.

"Once UNIQLO's down jacket can be placed millions of pieces at a time, it is its competitiveness, which is far beyond the reach of Bosideng, which is only a small product of UNIQLO, and the competitiveness gap of enterprises can be imagined."

An industry source said.

Bosideng faces another chronic illness from the product itself.

Ma Bin said that Bosideng produces winter clothing products, and lacks sales of supporting products in the three quarter of spring, summer and autumn.

The sales mode of the company is also a sales of exclusive stores and counters. Therefore, in the winter, these stores and counters are operating very difficult, especially in large shopping malls.

"Sometimes, in order to ensure the other three seasons of operation, Bosideng special food and other products sold, which seriously undermines the brand image," Ma Bin said. "Bosideng's urgent task is to make the original products young and fashionable, and then cooperate with other products of the four seasons to reshape the product image."

Who will take over?

As a family business, Bosideng is also faced with how to inherit the enterprise.

According to people familiar with Bosideng, Bosideng has a complex relationship in the process of long-term development.

According to Haranami Jito, Gao Dekang was divorced from the original after starting her business. Gao Xiaodong, the oldest son of Gao Dekang, was born in 1974 with Gao Dekang and his ex-wife. He graduated from the century university management major in 2003, and then returned to the group.

But Gao Xiaodong can hardly get involved in the main business in the group.

。

At present, Gao Xiaodong is in charge of Bosteng men's business, which was rather poor in 2014.

In order to pacify his eldest son, Gao Dekang handed over other non clothing businesses to the group, such as the capital and Chongqing Expressway, which is invested by Bosideng.

In 2006, Bosideng invested in the expressway winning bid. At that time, it said it invested 4 billion yuan.

"Gao de Kang is more than 60 years old, and he is also at the helm of the mountain. The main task is to take over personnel."

An analyst who worked in the company analyzed.

Gao Dekang's youngest son was born to his wife. He had gone to England to study. A familiar person said he had returned to work in the group.

Does family dispute drag down Bosideng's performance? What is Bosideng's self-evaluation of the current management mode? How does the future successor arrange it? As of press time, no reply has been received from Boston Group.