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Down apparel sales up big in colder weather

Despite concerns over cost, quality and increased competition, chilly winter giving boost to sector

By WANG ZHUOQIONG | China Daily | Updated: 2024-12-11 10:17
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A view of a Bosideng store in Beijing in November. CHINA DAILY

The down apparel market is experiencing a surge as colder weather arrives, pushing up sales for domestic and international brands, despite rising concerns over costs, quality and increased competition.

Bosideng, a leading player in the down apparel market, opened its new concept store in the Sanlitun shopping area of Beijing on Saturday. The new store features high-end down jackets, priced between 1,000 yuan ($138) and 6,000 yuan.

The expansion of retail stores reflects its booming business in the country. In the first half of its fiscal year 2024, Bosideng reported a revenue growth of 17.83 percent year-on-year to 8.8 billion yuan, and its operating profit increased by 19.6 percent to 1.47 billion yuan, with operating profit margin growing to 16.7 percent.

Down jacket sales accounted for 6 billion yuan, a 22.7 percent increase year-on-year, while its high-end Bosideng brand down jackets recorded 5.2 billion yuan in revenue, up 19.4 percent.

The group also balances with affordability. Its Snow Flying brand, targeted at female customers aged between 18 and 35, grew 47.1 percent to 390 million yuan.

During the recent Double 11 shopping festival, Bosideng ranked second in Tmall's clothing category, achieving over 1 billion yuan in sales.

Gao Dekang, chairman and CEO of Bosideng, said: "Focusing on the mainstay business of down jackets as well as fashionable and functional apparel enhanced with technology is the way forward for the group's development."

Bosideng has also recently launched a co-branded collection with Harbin, also known as the ice city and capital of Heilongjiang province. The collection blends urban aesthetics with cold weather functionality to appeal to younger consumers who value both style and performance.

A recent research report by Shanxi Securities said that Bosideng should be aware of the risks of rising raw material costs and intensified brand competition.

However, the report said that in the short term, due to widespread cold weather across the country since mid to late November, the down jacket category has entered peak sales season, and Bosideng is expected to grow further, leveraging its high-quality supply chain and quick response capability.

The size of China's down apparel market rapidly increased to 196 billion yuan in 2023, according to Huayuan Securities. It is expected that by 2028, the scale of the industry will maintain rapid growth, with a compound annual growth rate expected to reach around 11 percent, said the company.

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