(Yicai Global) Oct. 19 — Bosideng International Holdings, China’s largest down jacket maker, has reopened its flagship store in London after being closed since the second half of 2018.
The Bosideng outlet in London recently reopened after being refurbished this year, insiders told Yicai Global. The first and second floors will primarily showcase apparel and new releases across multiple categories, while the third floor will house the brand’s archives.
The flagship store opened at 28 South Molton Street in London’s most affluent area in 2012, a year after the Suzhou-based company acquired the property for £35 million ($39.7 million) .
It’s not easy for Chinese brands to restart overseas business after the Covid-19 pandemic, industry insiders say. For a company like Bosideng, overseas expansion is all about being diversified, as its headquarters remain in China.
Bosideng decided to open the outlet during the 2012 London Olympics to introduce its brand to visitors arriving in the British capital from around the world and boost sales in China.
Between 2014 and 2016, the company’s domestic performance plummeted. Revenues fell nearly 40% and its share price [HKG: 3998] fell to around 60 HK cents (0.8 US cents) from its high of around 4.5 HKD (57 US cents). As a result, store numbers were halved and overseas expansion suspended, with the flagship London store closing in 2017.
Bosideng’s performance accelerated in 2018 when the company began to refocus on its core business, down jackets. Revenue increased 20% to CNY 16.2 billion (USD 2.3 million) in the fiscal year ended March 31 from a year earlier, with a compound growth rate of 19% for five consecutive years, according to the company’s most recently published earnings report. in July. Net profit was 2.1 billion CNY (290 million USD), up more than 39% over the period.
Editors: Shi Yi, Futura Costaglione
