Core Insights - The outdoor sports sector, particularly the sales of jackets, has seen significant growth during the recent "Double 11" shopping event, with jackets ranking high on sales charts across e-commerce platforms [2] - The company BERSHIHE has submitted a listing application to the Hong Kong Stock Exchange, aiming to become the "first stock of high-performance outdoor lifestyle in China" [2] - BERSHIHE's sales of jackets are projected to reach 3.8 million units from 2022 to 2024, with a compound annual growth rate (CAGR) of 122.2% [2] Company Overview - BERSHIHE's primary products include jackets and footwear, with jackets contributing over 80% of revenue from 2022 to 2024 [3] - The company operates primarily through a direct-to-consumer (DTC) multi-channel sales model [2][3] - BERSHIHE's revenue for 2022, 2023, and 2024 is reported at 378 million, 908 million, and 1.766 billion respectively, with net profits of 24.3 million, 152 million, and 283 million [7] Market Position - The outdoor apparel market is experiencing a 16% annual compound growth rate, indicating a robust growth trajectory for brands like BERSHIHE [2] - BERSHIHE's market share in 2024 is estimated at 5.2%, indicating room for growth compared to competitors like ANTA and other established brands [5] - The company has a low asset-liability ratio of 36% and a gross margin of 59.6%, which are favorable compared to industry standards [8] Sales Channels - BERSHIHE heavily relies on online sales, with DTC sales expected to exceed 1.35 billion in 2024, while offline sales are only projected at 169 million, accounting for 9.6% of total revenue [8] - The company has been expanding its offline presence but has only opened 146 stores by the end of 2024, falling short of its initial target of 500 stores [9] Marketing and Branding - BERSHIHE's marketing expenses have increased significantly, from 120 million in 2022 to 587 million in 2024, representing over one-third of total revenue [10] - The company is exploring high-end product lines to enhance brand perception, with new products priced comparably to premium brands like Arc'teryx [10][11] - The challenge remains for BERSHIHE to balance cost-effectiveness with the establishment of a premium brand image [11]

Core Viewpoint - Domestic outdoor brands are shifting from being affordable alternatives to high-end positioning, driven by capital market interest and rising consumer expectations [4][6][20]. Group 1: Market Dynamics - In the first half of this year, domestic outdoor brand "Berghaus" submitted its IPO application, with Tencent investing 300 million yuan, becoming the fourth largest shareholder [5]. - The outdoor equipment market in China has grown from 67.5 billion yuan in 2019 to 87.2 billion yuan in 2023, indicating a significant expansion [20]. - A notable trend is the increasing consumer willingness to spend on outdoor activities, with 43.6% of young people viewing outdoor sports as social currency [20]. Group 2: Pricing Trends - Berghaus has seen a 38.59% increase in average product prices, reaching around 500 yuan, and is now launching mid-to-high-end products priced in the thousands [7][10]. - Consumers have reported significant price increases for outdoor gear, with some items rising nearly five times in price over three years [12][14]. - The brand's reliance on its classic series remains high, with 82.7% of revenue still coming from lower-priced items, despite efforts to introduce higher-end products [26]. Group 3: Brand Positioning and Strategy - The shift in branding has led to a focus on professional, high-performance gear, distancing from the original target market of average consumers [8][23]. - Brands are increasingly abandoning their "affordable alternative" identity in pursuit of higher margins, as evidenced by the rising gross margins of leading companies [21][22]. - Berghaus's gross margin has shown a steady increase from 54.3% in 2022 to 59.6% in 2024, reflecting this trend [22]. Group 4: Challenges and Investment - Despite impressive revenue growth from 379 million yuan to 1.766 billion yuan, Berghaus faces challenges due to over-reliance on a single product line [25]. - The brand's R&D expenditure has been declining, indicating a potential weakness in innovation compared to competitors [26]. - Marketing expenses have surged, with promotional costs rising from 68.71 million yuan in 2022 to 359 million yuan in 2024, which may impact profitability [27].

Core Viewpoint - Domestic outdoor brands are rapidly embracing the capital market, shifting from being affordable alternatives to high-end positioning, as evidenced by significant price increases and new product launches [1][10][11]. Group 1: Market Dynamics - In the first half of the year, domestic outdoor brand Berghaus submitted an IPO application, with Tencent investing 300 million yuan for a 10.7% stake, becoming the largest institutional shareholder [1]. - The outdoor equipment market in China has grown from 67.5 billion yuan in 2019 to 87.2 billion yuan in 2023, indicating a robust expansion [8]. - A significant portion of the younger demographic views outdoor activities as social currency, with 43.6% engaging in activities like camping and hiking for social interaction [9]. Group 2: Pricing Trends - Berghaus has seen a 38.59% increase in average product prices, reaching around 500 yuan, and is now launching mid-to-high-end products priced in the thousands [1][10]. - Consumer complaints about price hikes are prevalent, with some products increasing by nearly 1000 yuan within six months [2][4]. - The price of outdoor gear has reportedly risen nearly fivefold over three years, drawing comparisons to gold in terms of price stability [4]. Group 3: Brand Positioning and Strategy - Brands that were once seen as affordable alternatives are now distancing themselves from that image, focusing on high-end features and performance [1][6]. - Berghaus's revenue has surged from 379 million yuan to 1.766 billion yuan from 2022 to 2024, with a compound annual growth rate of 115.86% [12]. - The reliance on a single product category, such as jackets contributing over 80% of revenue, poses risks to brand stability [13]. Group 4: Financial Performance and Challenges - Berghaus's gross margin has increased from 54.3% in 2022 to 59.6% in 2024, reflecting a trend towards higher profitability [11]. - Despite the growth, the brand's high-end product lines are struggling to gain consumer acceptance, with many products frequently discounted [13]. - Marketing expenses for Berghaus have surged from 68.71 million yuan in 2022 to 359 million yuan in 2024, indicating a shift towards aggressive marketing strategies [14]. Group 5: Competitive Landscape - The pursuit of higher margins is evident in the strategies of leading companies, with brands like Anta achieving gross margins over 70% [10]. - Berghaus's patent portfolio is limited compared to competitors, with only 4 invention patents out of 45, highlighting a gap in technological innovation [13]. - The challenge for brands like Berghaus lies in balancing the need for premium pricing with the necessity of maintaining sales volume, as excessive reliance on marketing may undermine product value [16].