Yalu down jacket, as the second-largest domestic brand in China, has long aimed to surpass the industry leader Bosideng. However, despite its efforts, it has struggled to break free from being just a follower. To understand why Yalu, often referred to as the "second child" of the down jacket market, hasn't managed to stand out, we need to take a closer look at its marketing journey and the challenges it has faced.
In 1972, Yalu started as a small garment factory with only a dozen sewing machines, producing simple garments for local factories and state-owned enterprises. It wasn’t until the early 1980s that Yalu seized an opportunity in the men’s jacket market, buying cheap wool and selling jackets in cities like Nanjing and Shanghai. This move led to a historic 163-day queue at its stores, making Yalu a household name by 1993.
By the mid-1990s, Yalu shifted focus to down jackets, capitalizing on the growing demand. The brand invested heavily in product innovation, leveraging its existing sales network and expanding rapidly. By 1999, Yalu had signed Zhao Wei, the "Little Swallow," as its brand ambassador, significantly boosting its visibility and reputation. Sales soared, reaching 2.1 billion yuan annually, and Yalu became one of the fastest-growing brands in the down jacket industry.
However, as the market evolved, so did the competition. Bosideng, the market leader, expanded aggressively, using high-profile sponsorships and global brand strategies. In response, Yalu followed suit, but its efforts often felt reactive rather than strategic. While Yalu continued to grow, it never truly broke away from Bosideng's shadow.
One major issue is Yalu’s lack of a clear brand identity. Despite years of success, many internal staff couldn’t clearly define what Yalu stood for. The brand slogan "Real Down Jacket Expert" was more of a media-driven phrase than a genuine brand statement. This ambiguity led to inconsistent marketing efforts and a lack of deep consumer connection.
Another challenge lies in Yalu’s marketing strategy. Unlike Bosideng, which has a dedicated marketing department, Yalu relied heavily on design and promotional activities without a structured approach. Its promotions were often imitative, focusing on price wars and gift giveaways rather than building lasting brand value. Even when Yalu tried innovative campaigns, such as sending warm down jackets to migrant workers, these efforts lacked proper execution and failed to make a lasting impact.
Additionally, Yalu’s channel management was fragmented. Although it had a vast network of branches, many operated semi-independently, leading to inefficiencies and internal competition. This lack of coordination weakened the brand’s ability to respond quickly to market changes.
Finally, Yalu’s terminal system was chaotic. Stores lacked consistency in branding, and employees were often unclear about the brand’s values. This undermined customer trust and led to dissatisfaction, especially after some negative media reports about product quality.
Despite these challenges, Yalu still has potential. Like Mengniu in the dairy industry or Oakley in sports, it can learn from past mistakes and find its unique path. The key lies in developing a strong brand identity, investing in strategic marketing, and improving customer experience. Only then can Yalu truly become more than just the second child of the down jacket market.
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