Yalu, the second-largest domestic down jacket brand in China, has long aimed to surpass the market leader Bosideng but has consistently struggled to close the gap. Let’s take a closer look at Yalu’s marketing journey and explore where things might have gone wrong. Why hasn’t Yalu managed to become the “second child†of the industry?
With over 3,500 down apparel companies in the market, standing out is no easy task. Yet, Yalu managed to rise quickly, much like Mengniu did in the dairy industry. In just five years, Jiangsu Yalu Group transformed from a small village-run garment factory into a rising star in the down jacket sector.
In 1972, Yalu started as a small workshop with just a few sewing machines, producing simple OEM items for state-owned enterprises. By the early 1980s, it seized an opportunity by purchasing cheap wool and launching men’s jackets that became a hit on Nanjing Road in Shanghai. This led to a 163-day sales miracle, and by 1993, Yalu had captured over 15% of the Chinese jacket market. However, the jacket boom eventually declined, forcing Yalu to pivot again.
Recognizing the growing demand for down jackets, Yalu shifted its focus, innovating in style and color while leveraging its existing sales channels. This move helped Yalu expand rapidly, with annual sales increasing by more than 30%. By 1999, the brand had launched a nationwide distribution network and invited Zhao Wei, the "Little Swallow," as its spokesperson. The campaign was a massive success, helping Yalu gain widespread recognition.
By 2004, Yalu had become the second-largest down jacket brand in China, with a market share of over 15% and a presence in 16 countries. It had grown from a small factory to a major player, often compared to Mengniu in the clothing industry. But despite these achievements, Yalu still lagged behind Bosideng.
Bosideng, the industry leader, took a different approach. Starting as an OEM manufacturer, it built strong international partnerships and raised the quality standards of down jackets, setting itself apart with high-end branding and global campaigns. Bosideng also invested heavily in retail networks, even going as far as pressuring retailers not to carry Yalu products. This aggressive strategy left Yalu playing catch-up.
Faced with intense competition, Yalu tried to follow Bosideng’s lead, but it often found itself trailing in marketing efforts. While Yalu claimed to be "innovative" and a "real down jacket expert," Bosideng’s slogans like "World's No. 1 Down Jacket Sales" overshadowed them. Yalu struggled with limited financial resources, making it difficult to match Bosideng’s large-scale advertising and promotions.
One of Yalu’s biggest challenges was brand identity. Despite being a well-known name, many employees couldn't clearly define what Yalu stood for. Its marketing lacked direction, leading to inconsistent strategies and unclear brand positioning. Additionally, Yalu expanded too many sub-brands without proper planning, causing confusion among consumers and weakening the main brand.
The company also faced issues with its marketing system. With over 60 subsidiaries, many operated semi-independently, leading to inefficiencies and lack of coordination. Marketing teams were often underdeveloped, focusing more on short-term tactics rather than long-term brand building.
At the retail level, Yalu’s stores lacked consistency. Sub-brands competed against each other, creating internal confusion. Sales staff were not adequately trained, and customer service was often poor. These issues hurt consumer satisfaction and damaged the brand’s reputation.
To truly compete, Yalu needed to differentiate itself. It should focus on creating a unique brand identity, invest in meaningful marketing campaigns, and improve both hard and soft terminal management. Only by addressing these issues could Yalu break free from the cycle of homogenous competition and carve out its own path.
Ultimately, Yalu’s story reflects the challenges many Chinese brands face: rapid growth, fierce competition, and the need for innovation. While it may not yet be the top, with the right strategies, Yalu can still rise and reach new heights. The key lies in embracing change, strengthening core values, and building a brand that resonates with consumers.
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