Bosideng Closed Nearly 3500 Stores In The First Half, Bosideng Net Profit Plunged

The problem of backlog brought by the recession of garment industry has been made.

International Holdings Limited ("Bosideng") suffered a lot.

In November 27th, Bosideng announced its interim results. By the end of September 30th this year, net profit fell 22.5% in the first half of fiscal year, and closed 3436 stores.

From March 31st to September 30th, the number of full-time staff was reduced by 1342.

Bosideng said, at the same time, what we are doing is building the online sales platform.

In addition, the company will comprehensively control the production volume of new goods and deal with old stocks, which has become a major task for the company.

The total output is expected to be reduced by about 25% over the previous year.

More than 3000 shops have been closed.

The problem of overcapacity, inventory backlog and over expansion of the retail network in the apparel industry is being addressed.

Industry brings challenges.

According to the interim results announced by Boston, the group's revenue increased slightly by 1.4% in the first half of September 30th. It increased by 2 billion 849 million 500 thousand yuan from 2 billion 809 million 200 thousand yuan a year earlier, while net profit dropped 22.5%.

In the first half of the year, sales of down garments were mainly off season sales.

In the first half of fiscal year 2014/15, the income of down garment business fell by 19.2% from the same period last year, accounting for 49.8% of the total revenue of the group.

Corresponding to this decline is intensive measures to close stores.

According to the interim results announced by Boston, as of September 30th, the total number of retail outlets in group down clothing business decreased by 3436 compared with March 31st, and sales area decreased by about 18.7%.

During the period, the number of self operated retail outlets dropped by 304, while the third party dealers' retail outlets decreased by 3132.

"The decrease in the number of retail outlets is mainly due to the group's use of off-season scanning and evaluation of the geographical and business circles," Bosideng said, in order to avoid overlapping channels.

In addition, retail outlets whose sales are not up to expectations or image and services have been shut down.

The closure of retail stores is matched by layoffs.

Bosideng said the company was reorganizing its human resources to reduce expenditure. As of September 30th, there were about 4598 full-time employees in Bosideng group, compared with 5940 in March 31st alone.

This means that in the past 6 months, Bosideng has reduced its number of full-time employees by 1342.

In addition, the company will comprehensively control the production volume of new goods and deal with old stocks, which has become a major task for the company.

The total output is expected to be reduced by about 25% over the previous year.

Like other clothing brands that are exploring pformation, Bosideng is also exploring ways to get through online and offline sales channels.

Bosideng said that during the period, the group has realized the sharing of goods under the 19 sales areas in Shanghai, Beijing and other countries, that is, the online orders will be shipped and returned in the near future, thus shortening the delivery time.

Bosideng said that this line of online sharing has enriched the product line of online sales, and has also improved customer shopping experience.

It is estimated that Bosideng will also allow about 30% of e-business orders to be delivered through offline delivery in the current fiscal year.

In addition, Posen also tried to develop on the mobile end e-commerce, that is, using WeChat end activities to sweep the two-dimensional code, encouraging consumers to download the online shopping end and becoming a member; on the other hand, using member data to promote the promotional activities of the entity store, to achieve the mutual promotion of online and offline platforms.

Bosideng has expressed its determination to pform. It shows that in the process of economic restructuring and industry integration, it will inevitably bring short-term shocks to the industry, but this is also a good opportunity for enterprises to review their business and enhance their own capabilities.

Bosideng group will enable business to keep pace with the times through changes so as to enhance the competitiveness of enterprises and enable enterprises to achieve healthy and long-term sustainable development.