Chinese apparel company Bosideng’s revenue rose 12.4 per cent in the six months to September 30.
The group recorded a revenue of approximately 3.08 billion yuan (US$494.5 million), boosted by franchise fees from apparel distributors and enhanced OEM business.
Gross profit margin increased to 45.6 per cent from 39.4 per cent the previous year mainly attributable to stringent cost control, increased prices and flexible sales strategies.
Operating profit was up 54.6 per cent to around 426.5 million yuan (US$68.5 million) while net profit decreased 3.4 per cent attributed to the increase in effective tax rate.
During the period, Bosideng opened 3483 stores, taking the total store count to 13,499. The significant increase in the number of outlets was mainly attributable to the division of sales channels which transformed the multi-brand stores into mono brand stores.
In the same period, the group opened its first flagship store in Europe in London. The store mainly offers premium line of Bosideng’s menswear – the ‘Bosideng London’ collection and serves as its European headquarters.
The opening of the first overseas flagship store was an important milestone in the group’s internationalisation, the company said.
“The transformation becomes vital for local enterprises to retain competitiveness. It is also the policy of China to encourage overseas expansion of outstanding local enterprises,” said Bosideng chairman and CEO Gao Dekang.
The overseas foray was also a part of its mid- to long-term goal to become an internationally renowned, integrated apparel brand operator.
The down apparel business will remain its core business in the future. The group will continue its multi-brand development to enrich its brand portfolio by introducing new brands of different positioning for existing product lines, so as to provide more quality products to the domestic market.
It also plans to expand its business scope from down apparel alone to various product lines with more variety and characteristics in three years time.
To realise its long term of internationalisation, the group will recruit professionals with international background to prepare for its overseas expansion.