Revenues surge 34.2% at Bosideng International

09 Jul '10

5 min read

As the first step of the transformation of the “Bosideng” brand from offering seasonal apparel products to non-seasonal apparel products, the Group expanded into the menswear business by acquiring Jiangsu Bosideng Garment Development Co., Ltd. (previously known as Jiangsu Kangbo Clothing Co., Ltd.) (the “Menswear Company”) for a maximum aggregate cash consideration of up to MB650,000,000 in May 2009. The Menswear Company has made satisfactory progress in the development and design, sales and marketing and brand promotion of the brand “Bosideng Menswear”. “Bosideng Menswear” was named as the “Best Brand with Highest Growth” in 2009 and honoured with the “Best Innovation Award 2009” in the joint election campaign of China Business Association and China National Commercial Information Center, showing that the “Bosideng Menswear” brand was widely recognized by the market. The strong performance of the “Bosideng Menswear” brand was consistent with the expectation of our management since the acquisition.

During the period, the Group continued the preparation work of “Rocawear” brand as scheduled with satisfactory progress. In addition, the Group launched the new metropolitan fashion brand “BOSIDENG VOGUE” in March 2010. The “BOSIDENG VOGUE” franchised store in Changshu has been opened recently.

Going forward, Mr. Gao said: “The Group holds a cautiously positive outlook. Year 2010/11 will be a crucial year for the PRC apparel industry. The Group will leverage on the competitive edges of “Bosideng” brand to integrate the style positioning, design, research and development as well as sales channels of its brands comprehensively with a global perspective to ensure the product styles are different yet harmonious and to satisfy different demands from consumers. In the next three to five years, the Group will complete its transformation from product-oriented operation to brand-oriented operation. It will also continue to increase the proportion of the non-down apparel business in overall sales and transform “Bosideng” into an international well-known integrated apparel brand operator.”

He continued: “The Group will continue to implement and facilitate the strategy of developing non-seasonal products. Among which, the number of retail stores of “Bosideng Menswear” is expected to reach approximately 1,100 in 2011; “Rocawear” brand business is planned to open more than 300 “Rocawear” freestanding stores and shop-in-shop concepts in the Greater China Region by 2013; and “BOSIDENG VOGUE” will increase retail stores based on its specific business development progress and market demands. The Group will also enhance its brand and product mix by actively identifying non-down apparel brands with growth potential and good reputation for acquisitions, mergers or cooperation, in order to expedite the development of non-down apparel business.”

Bosideng International Holdings Limited

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