Core Viewpoint - The article narrates the inspiring journey of Gao Dekang, the founder of Bosideng, highlighting his entrepreneurial spirit and the brand's evolution into a global leader in down jackets, achieving annual revenues of 25.9 billion yuan and sales in 72 countries [8][37]. Group 1: Early Life and Entrepreneurial Spirit - Gao Dekang was born into a poor family in 1952 and learned tailoring from his father, quickly becoming a skilled craftsman known for his efficiency and style [15][16]. - At the age of 20, he started a sewing group with local tailors to provide work for those unable to farm, marking the beginning of his entrepreneurial journey [17]. - His exposure to the Chinese mountaineering team's achievements inspired him to create a down jacket capable of reaching the summit of Mount Everest [6][8]. Group 2: Establishment of Bosideng - In 1992, after gaining experience in the down jacket industry, Gao founded Jiangsu Kangbo Group and registered the "Bosideng" trademark, aiming for a global market presence [23][24]. - The brand faced a significant crisis in its early years due to overproduction and market misjudgment, leading to a large inventory and financial strain [25][26]. - A pivotal moment came in 1995 when Bosideng's sales strategy evolved, leading to a significant increase in sales and establishing the brand as a market leader [27][28]. Group 3: Challenges and Strategic Shifts - After going public in 2007, Bosideng expanded aggressively but faced challenges due to market saturation and the rise of e-commerce, leading to a decline in brand perception [30][32]. - The company underwent a transformation by refocusing on its core business of down jackets, eliminating non-core products, and emphasizing consumer-centric design [33][34]. - Bosideng's efforts to modernize its brand and product offerings led to a resurgence in growth, with revenues increasing from 5.787 billion yuan in 2016 to 28.068 billion yuan in 2025 [37][38]. Group 4: Current Strategy and Market Position - Bosideng aims to penetrate the high-end market while maintaining its presence in the affordable segment through its sub-brand Xuezhongfei, which targets younger consumers [44][48]. - The brand's strategy includes collaborations with renowned designers and participation in international fashion events to enhance its global image [45][46]. - As of 2024/25, Xuezhongfei is projected to generate approximately 2.206 billion yuan in revenue, reflecting its growing importance within the Bosideng ecosystem [49].

Group 1 - The recent revelation that Adidas down jackets are actually produced by the domestic company Bosideng has sparked public attention [1] - Consumers are questioning the price premium of international brands when domestic brands offer similar products at lower prices [1] - The perception of value in clothing extends beyond functionality to include emotional and aesthetic considerations, leading consumers to pay a premium for brand names [1] Group 2 - The fact that international brands are outsourced to local companies highlights the importance of Chinese enterprises in the global apparel supply chain and affirms the quality of Chinese manufacturing [2] - Bosideng has seen its stock price rise continuously, with its OEM business becoming a significant revenue source, alongside its own brand [2] - Other notable garment manufacturers in the Hong Kong market include Shenzhou International, which has a market capitalization nearing HKD 100 billion, and reached a peak of nearly HKD 300 billion in 2021 [2] Group 3 - There is a significant divergence in stock performance among Chinese apparel companies, with 361 Degrees showing a nearly 50% increase this year, while Li Ning and Anta Sports have underperformed [3] - The potential for brand value enhancement and stock market growth for Chinese apparel companies is seen as inevitable given their strong manufacturing capabilities [3]

Core Insights - Adidas is experiencing a significant recovery after reporting its first loss in 30 years in 2023, with a projected return to profitability in 2024 and double-digit sales growth across all business lines and markets in the first half of 2025 [2][4] Financial Performance - In Q3, Adidas reported a revenue increase of 12% year-on-year to €6.6 billion, achieving the highest quarterly revenue in its history [2] - The gross margin reached 51.8%, and operating profit increased by 23% to €736 million, raising the operating profit margin for the first nine months to 10.1%, exceeding the CEO's initial target [4] - Adidas has raised its full-year guidance for 2025, expecting brand revenue to grow by double digits and operating profit to reach €2 billion, up from a previous estimate of €1.7 billion to €1.8 billion [4] Product Line Performance - Revenue from footwear increased by 11% to €3.75 billion, with the ADIZERO series running shoes seeing over 30% growth [5] - Apparel revenue grew by 16% to €2.38 billion, while accessories saw a modest increase of 1% [5] Regional Performance - Sales in Europe grew by 12% to €2.33 billion, North America by 8% to €1.3 billion, and Greater China by 10% to €947 million [7] - Greater China has shown consistent quality growth for ten consecutive quarters, with Q3 revenue reaching €974 million, a 10% year-on-year increase [7] Strategic Initiatives - Adidas is focusing on sports marketing and professional endorsements to rebuild its reputation in vertical markets like running and football [5] - The company is implementing a "China for China" strategy, emphasizing local consumer engagement and innovation, with China being defined as a growth engine and innovation testing ground [7][9] Market Challenges - Adidas has faced increased costs due to higher tariffs on goods from Vietnam and Indonesia, impacting its pricing strategy in the U.S. market [7] - Recent consumer feedback highlighted concerns over the quality of Adidas products compared to local competitors, leading to discussions about pricing and product sourcing [11]

Core Insights - The controversy surrounding Adidas's down jackets being produced by the OEM Snow Flying has highlighted the brand's reliance on outsourcing production to third-party manufacturers, allowing it to focus on high-value activities like design and marketing [3][6][9] Group 1: Outsourcing and Production Strategy - Adidas has almost entirely outsourced its production, with very few products manufactured in-house, primarily high-end items produced in Germany [6][9] - The company has historically closed its own factories in China, relying on a network of OEMs concentrated in regions like Guangdong and Fujian for manufacturing [6][7] - The global production strategy includes expanding capacity in countries like Vietnam and Indonesia to optimize costs and mitigate risks [7][9] Group 2: Market Dynamics and Consumer Sentiment - The price difference between Adidas and Snow Flying products has led consumers to question the value of purchasing branded items when cheaper alternatives are available [4][9] - There is a growing consumer awareness regarding the origins of products, with many now scrutinizing manufacturing labels for transparency [19] Group 3: Financial Performance and Business Model - The outsourcing model has allowed Adidas to operate with a lighter asset base, significantly reducing fixed asset investments and risks [14] - In 2024, Adidas's revenue in Greater China grew by 10%, with a gross margin of 51.7% in Q2 2025, showcasing the financial benefits of the light asset model compared to traditional heavy asset models [14][15] Group 4: Challenges and Quality Control - The shift to outsourcing has raised concerns about quality control, with reports of product defects linked to manufacturing in regions like Vietnam and Cambodia [15][17] - The relationship between brands and OEMs is complex, balancing the need for production capacity with the risk of OEMs producing competing products [17]

Core Viewpoint - The article discusses the outsourcing model of major brands like Adidas, highlighting how they rely on third-party manufacturers for production while focusing on design, research, and marketing to maximize profits [3][10]. Group 1: Outsourcing Model - Adidas has outsourced its production to factories like Xuezhongfei and Bosideng, indicating that the brand has minimal in-house manufacturing capabilities [7][10]. - The outsourcing strategy allows Adidas to maintain a "light asset" operation, reducing fixed asset investments and risks while enabling quick adjustments to production based on market changes [17][19]. - The concentration of shoe manufacturing in regions like Guangdong and Fujian is due to the complete industrial chain and mature supply chain [8]. Group 2: Global Production Strategy - Adidas has expanded its production capacity overseas, particularly in Vietnam and Indonesia, to optimize costs and mitigate risks associated with supply chain disruptions [8][10]. - The company has shifted its production base from China to Southeast Asia since 2013, with Cambodia becoming the largest manufacturing country for Adidas apparel by 2021 [14][16]. - Recent adjustments have seen an increase in products manufactured in China, reflecting a strategic shift to regain consumer trust in the Chinese market [16][18]. Group 3: Quality Control and Consumer Awareness - The reliance on third-party manufacturers poses challenges in quality control, with past incidents of product quality issues reported [19][21]. - Consumers are becoming more aware of the production origins of their purchases, leading to a demand for transparency in the supply chain [22][23]. - The article emphasizes the importance of product labeling, as consumers can identify manufacturers through tags, which can influence purchasing decisions [22][23].

Core Viewpoint - The article discusses the outsourcing model of Adidas, highlighting consumer reactions to the revelation that their products are manufactured by third-party factories like Xuezhongfei, which has sparked discussions about brand transparency and consumer awareness [4][12][23]. Group 1: Adidas Outsourcing Model - Adidas has largely outsourced its production to third-party factories, focusing on design, research, and marketing to maximize profits [4][8]. - The company has no significant production lines of its own, with only a small percentage of high-end products manufactured in Germany [8][12]. - The outsourcing model allows Adidas to maintain a "light asset" operation, reducing fixed asset investments and risks while enabling quick adjustments to production based on market changes [18][20]. Group 2: Consumer Reactions and Market Dynamics - Consumers have expressed dissatisfaction upon discovering that Adidas products are made by Xuezhongfei, leading to discussions about the price differences between branded and unbranded products [6][24]. - The price comparison shows that Adidas's down jacket, priced at 867.71 yuan with 70% down content, is significantly more expensive than a similar product from Xuezhongfei, which costs 569 yuan with 85% down content [6][8]. - The article notes a shift in consumer awareness, with a growing demand for transparency regarding product origins and manufacturing processes [23][24]. Group 3: Global Production Strategy - Adidas's production strategy has evolved, with a significant shift of manufacturing bases from China to Southeast Asia, particularly Cambodia and Vietnam, driven by cost considerations and supply chain optimization [16][20]. - In 2021, Cambodia became the largest manufacturing country for Adidas apparel, accounting for 21% of total production, while China's share dropped to 20% [16]. - Recent strategic adjustments have seen an increase in locally produced goods in China, with 95% of products sold in the Chinese market being "Made in China" [17]. Group 4: Quality Control and Challenges - The outsourcing model presents challenges in quality control, with reports of product quality issues arising from factories in Vietnam and Cambodia [20][22]. - The relationship between brands and their manufacturing partners is complex, balancing the need for production capacity with the risk of competition from the manufacturers themselves [22]. - The article emphasizes the importance of maintaining brand image and consumer trust, suggesting that brands should enhance supply chain transparency to meet evolving consumer expectations [23].

Core Viewpoint - The controversy surrounding the outsourcing model of the down jacket brand Xuezhongfei, under the Hong Kong-listed company Bosideng, highlights consumer concerns about product quality and brand integrity due to its reliance on multiple subcontractors for production [2][3][5] Group 1: Outsourcing and Consumer Perception - Xuezhongfei has gained attention for its outsourcing practices, particularly after Adidas chose it as a subcontractor, leading to consumer confusion about the authenticity of the products [2] - Consumers express concerns when they discover that Xuezhongfei's products are not manufactured by the brand itself but by various factories in Hebei, Jiangsu, and Anhui [2][3] - The phrase "you buy Adidas produced by Xuezhongfei, but you may not buy Xuezhongfei produced by Xuezhongfei" reflects consumer trust issues regarding the brand's choice of subcontractors [3] Group 2: Industry Dynamics and Brand Management - The outsourcing model reflects a typical contradiction in the Chinese apparel industry during its transformation period, balancing brand expansion needs with quality control [3][5] - The global trend of "brand operation + subcontracted production" is becoming more prevalent, and Xuezhongfei's strategy aims to reduce production costs and respond quickly to market demands [3][5] - However, quality issues arising from subcontracting could damage the brand image of Xuezhongfei and Bosideng, as consumers associate products from the same group with similar quality standards [3] Group 3: Quality Assurance and Transparency - To address consumer concerns, Xuezhongfei should establish a more transparent quality assurance system that communicates consistent quality commitments [4] - Suggestions include allowing consumers to scan QR codes to view production factory qualifications and quality inspection reports, or providing comparison videos of quality control tests from different factories [4] - Initiatives like "factory open days" could help eliminate information asymmetry and build consumer trust [4] Group 4: Shift in Industry Focus - The Chinese apparel industry is transitioning from scale-driven growth to value-driven growth, with the outsourcing controversy exemplifying this shift [5] - While a light-asset model can rapidly increase scale, long-term brand value ultimately relies on product quality [5] - Addressing the quality control challenges posed by multiple subcontractors is essential for establishing new types of subcontracting relationships and alleviating consumer concerns about brand integrity [5]

Core Viewpoint - The controversy surrounding Adidas down jackets being produced by domestic OEMs like Xuezhongfei has sparked significant consumer debate regarding brand pricing versus product quality [2][4][8] Group 1: Adidas and OEM Relationships - Adidas confirmed its collaboration with Xuezhongfei for manufacturing but did not address the pricing concerns directly [2] - Consumers have noted significant differences in product specifications between Adidas and Xuezhongfei's products, despite similar pricing [4] - The majority of Adidas products sold in China are manufactured locally, with over 60% produced by domestic teams and 95% made in China [8][9] Group 2: Consumer Reactions - Consumer responses are divided; some prefer to buy directly from Xuezhongfei for better value, while others accept the brand's premium for perceived quality and design [4][8] - The lack of transparency regarding the OEM relationships and product specifications has led to confusion and dissatisfaction among consumers [12] Group 3: Industry Context - The practice of outsourcing production to local manufacturers is common among international brands like Adidas and Nike, which do not operate their own factories in China [5][6] - The controversy reflects broader issues of global supply chain dynamics and consumer awareness regarding product sourcing and pricing [12] Group 4: Financial Performance - Adidas reported a revenue of €7.98 billion in the Greater China region, with a year-on-year growth of 11% [9] - The OEM business is a significant revenue source for companies like Bosideng, contributing approximately 13% to its total income, with a notable increase in revenue from this segment [12]

Core Viewpoint - Recent consumer complaints on social media suggest that Adidas down jackets sold on short video platforms are actually produced by Snow Flying, raising questions about brand pricing and product quality [1][4]. Group 1: Product Comparison - A specific short down jacket from Adidas is priced at 579 yuan, featuring duck down with a fill power of 600+ and a down content of 80% [4]. - In contrast, a similar jacket from Snow Flying is priced at 519 yuan, with a fill power of 680+ and a down content of 90%, indicating a better value proposition [4][5]. - Another Adidas jacket listed at 869 yuan contains 135 grams of duck down and 80% down content, while a comparable Snow Flying jacket is priced at 879 yuan with 200-249 grams of duck down and 90% down content [5]. Group 2: Company Background - Jiangsu Snow Flying Garment Co., Ltd. was established in September 1997, with a registered capital of approximately 150 million yuan, and its business scope includes textile sales and garment manufacturing [8]. - The company is wholly owned by Jiangsu Kangbo Intelligent Manufacturing Co., Ltd., which is a subsidiary of Bosideng Co., Ltd. [9].

Core Viewpoint - Recent consumer complaints on social media suggest that Adidas down jackets sold on short video platforms are actually produced by Snow Flying, raising questions about brand pricing and product sourcing [3][6]. Group 1: Product Comparison - An Adidas down jacket priced at 579 yuan has a fill power of 600+ and a down content of 80%, while a similar jacket from Snow Flying is priced at 519 yuan, with a fill power of 680+ and a down content of 90% [6]. - Another Adidas jacket priced at 869 yuan contains 135 grams of duck down and 80% down content, whereas a comparable Snow Flying jacket is priced at 879 yuan, containing 200-249 grams of duck down and 90% down content [7]. Group 2: Company Background - Jiangsu Snow Flying Garment Co., Ltd. was established in September 1997, with a registered capital of approximately 150 million yuan. Its business scope includes textile sales, garment manufacturing, and import-export activities [12]. - Snow Flying is fully owned by Jiangsu Kangbo Intelligent Manufacturing Co., Ltd., which is a wholly-owned subsidiary of Bosideng Co., Ltd. [12]. Group 3: Consumer Feedback and Brand Response - Adidas customer service stated that they do not have information on whether products are outsourced or the details of the manufacturing process, emphasizing that all products are shipped directly from warehouses [7]. - The Adidas official flagship store on short video platforms has received similar consumer inquiries regarding the sourcing of their down jackets [6].