Profit Margins Are Bigger Than &Nbsp; Anta Finally Beat Lining?

In 2010,

At one time, Lining sat firmly in the first place of the domestic sports brand, and Anta, which was second years old, was always making an aggressive trend.

A few days ago, Anta sports announced its 2010 annual performance report.

Data show that in 2010, Anta's turnover increased by 26.1% to 7 billion 408 million yuan, and gross profit margin increased to 42.8%.

Although Lining did not publish the performance report for the same period, in January 17th of this year, the Li Ning Co released its 2010 performance estimate, calling the gross gross profit margin and net profit margin in 2010 close to 2009 level.

According to statistics, Lining realized operating income of 8 billion 380 million yuan in 2009, an increase of 25.4% over the same period last year, and the profit attributable to shareholders rose by 31% to 945 million yuan.

In fact, although sales in 2009 lagged behind Lining, Anta made a profit of about 1 billion 250 million yuan, which has surpassed Lining.

In contrast, although the two companies still have a gap in turnover in 2010, Anta's profits may still exceed that of Lining.

Anta sports CEO Ding Shizhong has said that Anta has a high number of sales in the same store last year. It is expected that the order will increase by 20% this year, and the order volume will increase by 23%, 21% and 20% in the first three quarters of 2011.

Compared with Anta's orders rise, in December last year, Lining's total value of orders in the second quarter of 2011 decreased by about 6% compared with the same period last year.

Similarly, in January 17th, the Li Ning Co announced in its performance notice that the Lining brand will be held in the first half of 2011 this year. It will take some time to improve the channel reform and the retail environment in the third and fourth quarter. It is estimated that the order growth rate will not be higher than the previous two quarter level.

The conflict between Anta and Lining has become increasingly fierce. Even the new ranking of domestic sports brands is beginning to show signs.

But how important is this comparison and the change of the two?

In an interview with our newspaper, Wang Xiangsheng, a domestic brand expert, pointed out: "it is not scientific and objective to compare" profit alone "alone.

We should take into account the operating costs of the two brands. According to the brand positioning, the cost of the two products is also different from each other.

There is no need to make a mere profit statement.

"A year's performance report can only represent a certain period of operation of an enterprise, but it is difficult to say which is stronger or weaker.

Moreover, if we want to compare two enterprises, we should also take into account many factors such as reputation and international influence.

Yang Dayun, a fashion industry strategy expert, expressed his views on the matter.

Number of wrestling shops

If the figures in the performance report are still slightly abstract, it is more likely that the "true strength" of a brand should be measured by the constant indicators of opening up shop.

Data show that in 2009, Lining had 7249 stores and 6591 Anta.

By the end of 2010, the number of Anta stores increased by 958, and the number of new stores was much higher than that of Lining.

In March 2010, Li Ning Co Ltd CEO Zhang Zhiyong once said that in 2010, there would be more than 8000 stores in Lining, 8700 in 2011, 9300 in 2012, and 10000 in 2013.

And Anta's plan is to expand Anta stores, children's shops and sports life series stores to 8200, 500 and 1000 stores in 2011 alone, plus 300 stores in FILA stores. The total number of stores in Anta's sports brand will exceed 10000.

Compared with Anta's fast "Wan Dian plan", Lining's shop opening pace is conservative, and he still has a retreat.

In December 28, 2010, Li Ning Co launched a series of reform measures for the distribution system to the outside world: integrating 500 to 600 inefficient distributors, adjusting the store structure and increasing the wholesale discount by 3 percentage points.

The independent critic of the industry, Ma Gang, said that as a leader in Chinese sporting goods, Lining's move is releasing a signal that the Chinese sporting goods market will usher in a comprehensive integration stage. The era of "rough growth" will depend on the sporting goods industry, but the battle for competition will further intensify.

Although Anta and Lining both expressed their positioning in the mass market, they shared differences with China.

Ding Shizhong attributed the growth to the penetration of Anta in the two or three line market in 2010, and opened new stores in two or three cities in the future. Anta was also seen as the main driving force for further economic growth.

Lining will continue to focus on big and medium-sized cities.

Wang Xiangsheng said: "even if we want to make comparisons, we should take full account of the development stages of the two brands. Anta can be said to be in a period of rapid development, while Lining is relatively mature."

It can be seen that the number of shops can not fully illustrate the strength of a brand.

According to the real-time changes of China's consumer market and the life cycle of the brand itself, the number of stores in the brand is often "changeable" during the period of development and integration.

Comparison is not the ultimate goal.

Lining and Anta are also carrying out the upgrading and pformation of the brand's own image, and their long-term plans are in operation.

It seems that the reference value of the 2010 performance report is even more limited.

In the face of various speculations about competition between Anta and Lining, Anta sports public relations manager Yuan Wei said in an interview with the media: "although an industry is in the same place, but because of different brand positioning, channel mode and stage of enterprise development, Anta does not regard its" peers "including Lining as a competitor, and do well, as long as every year is better than the previous year.

As early as May 2009, Zheng Jie, executive vice president of Anta, revealed that Anta would consider acquiring an international high-end brand sports company.

In October of the same year, Anta spent 600 million yuan on the acquisition of FILA brand in mainland China, Hongkong and Macao, and intends to break through the development potential of the high-end sporting goods market in China.

For Anta's current good momentum of development, Yang Dayun will take a far sway: "Lining is an old business in the industry. There are indications that it has reached a stage of development. From the perspective of development, the bottleneck that Lining faces today should be faced by Anta in the future.

Therefore, this is not a simple competition problem, but relates to the future development path of Chinese sports brand.

In the past 2010, Lining also did a lot of action.

At the end of June last year, in the 20 year celebration of the Li Ning Co, the new LOGO appearance of "Lining cross action" formally targeted the target customers in the "post-90s".

In January 2011, Zhang Zhiyong added that Li Ning Co plans to invest US $10 million in US business this year, and plans to increase US sales to US $50 million.

Lining's overseas ambition can be seen.

In this regard, Ma Gang said: "competition for channels will become increasingly fierce, sporting goods brands will enter a" life and death "stage.

This "life and death" expression is rather cruel. We may think about it in another way.

Wang Xiangsheng suggested: "there is no need to limit competition to Anta and Lining, and to jump out of the domestic perspective. The great momentum of Anta development should be the new hope of China's sporting goods industry.

Lining is accelerating the pace of stepping into the international arena. The performance of Anta in the local market is also a pleasant surprise. Why not add an addition to the Chinese sports brand: Lining + Anta? The two parties can form a complementary position in the positioning and the market, so as to fight against the penetration of foreign brands into the Chinese market, and even seize their existing foreign markets.