Bosideng: Enhancing "Brand Value" in "Innovation"

Bosideng: Enhancing "Brand Value" in "Innovation"

  Starting from scratch

In 1976, Gaodekang, a 24-year-old, started to set up a small sewing group in the mountain village of Baiji Township, Changshu, Jiangsu Province. This pocket-sized company is the predecessor of Bosideng Co., Ltd., which has assets of several billion yuan today. At the beginning of the venture, the situation is as follows:

Employees: 11 people; Equipment: 8 sets of old and new foot-operated sewing machines; Location: leased several houses of the local ancestral home of Jiangxue Cheng TCM; liquidity: pocket money for sewing group employees; business: sewing repair, processing. On this basis, in 1980, Shanwei Village Garment Factory was officially established.

  OEM start

Relying on good processing quality, Shanwei Village garment factory has gradually attracted a number of customers. The staff has grown to more than 30 people. It has also purchased a lot of equipment. The factory building has moved to the second floor of the production team. Gao Dekang has also come to some clothing companies in Shanghai. In the materials processing business, as time went on, the Shanghai companies that cooperated with the factory gradually grew.

With the order from Shanghai, the garment factory in Shanwei Village is slowly on the right track, but the transportation of products and raw materials has become a problem. Changshu is more than 70 kilometers away from Shanghai. At that time, the company did not even have a motorcycle. It could only be transported by bicycle. On the Ningbo-Nanjing Highway, Gao Dekang rode a bicycle carrying more than 100 kilograms of goods. The wind came in, the rain went, the severe cold, and the intense heat.

After some hard work, the Shanfen Village Garment Factory gradually established a foundry relationship with some of Shanghai's famous garment companies. In 1982, Gao Dekang won the order for a branded garment in Shanghai. In the second year, the company changed its name to Changshu Baiyu Down Garment Factory and began to have some accumulation. In 1986, they invested 300,000 yuan to build a new factory and purchased a car to solve the bottleneck problem in expanding production. Relying on strict enterprise management, the quality of their products and their output exceed the associated factories.

“The side branch actually surpassed the main trunk!” This caused the Shanghai General Plant to be vigilant, so the main factory in the quiet, interrupted the business contact with the Changshu Baiyu down garment factory.

Licensed production

The departure of the partner did not overwhelm this small business. On the second day after losing his business, Gao Dekang came to a down garment factory in Shanghai and showed his intention of cooperation to the leaders of the factory. The request was “OEM production”. In layman's terms, people borrowed their brands and produced them according to what they provided. As for the amount of production and how to sell them, people wouldn’t ask. Gao Dekang’s price for using this “Shanghai product” brand is 250,000 yuan per year. .

On the experience of this cooperation, Gao Dekang told reporters: “In the late 1980s, various demands on the market had just been released, and down jackets were all the rage. Even in big cities, people had to go back doors to buy one. 'Shanghai products' are synonymous with good quality, which is exactly what we lacked in the early days of our business." In the context of demand exceeding supply, Gao Dekang was a great success. In 1989, the company earned the first one million yuan in 1990. The profit reached 7 million yuan.

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