Anta'S New Strategy: To Slow Down The Pace Of Traditional Business And Expand Children'S Clothing Market

Anta sports recently announced the latest orders and sales figures for the first quarter of this year, the report shows.

In the fourth quarter of this year, the order value of products to be sold in the two quarter decreased by a small percentage.

In the traditional shop expansion mode encountered "ceiling", Anta will pay more attention to the children's clothing market.

Data show that Anta children's sporting goods stores grew by 249 to 632 last year, far exceeding the number of children's stores planned for the beginning of the year to 500.

However, NetEase financial found that while Anta children's clothing was speeding up shop, its children's wear threshold has been greatly reduced. Anta, Beijing's regional leader in charge, told NetEase finance that only less than 300 thousand could open a more than 40 square meter Anta children's wear shop, which was 7 yuan less than the 1 million yuan required by Anta adult store.

Zhang Bin, a senior analyst of the state textile industry, pointed out to NetEase finance that although there is a big gap in the market of children's wear, but from the perspective of the development of Anta children's clothing at present, it is impossible to solve all the problems encountered by Anta's children's clothing by opening up shop at high speed.

Traditional business expansion mode meets "ceiling"

Anta sports recently announced the latest orders and sales performance in the first quarter of this year. The report shows that the order volume of Anta's upcoming sale in the fourth quarter of this year has a two digit percentage decline. Under this influence, Anta's total annual subscription amount in 2012 is expected to fall by a high percentage of the unit.

For Anta's such market performance, industry analysts pointed out that

After experiencing a high growth rate of 30% in the past few years, the market ushered in a comprehensive adjustment period in 2011.

The overall "pcript" of China's local sports brands last year showed that Lining, Anta, PEAK, and China had all seen a decline in performance or a sharp slowdown in growth.

The person also told NetEase finance that the decline in performance of domestic sporting goods, including Anta, may take years to begin to rebound.

Although Anta's annual report last year showed that the company's operating income last year was 8 billion 905 million yuan, an increase of 20.2% over the same period last year, net profit of 1 billion 730 million yuan, an increase of 11.5% over the same period last year, but the performance increased by 26.1% compared with Anta's operating income in 2010, and net profit rose 24% compared to the same period, showing a downward trend of growth.

The year-on-year decline in same store sales reflects another serious problem facing Anta.

Zhang Bin, a senior analyst at the national textile and securities industry, told NetEase finance that Anta's growth in the past few years can be likened to the "brutal growth" of the "big pie" style. It relies on the large number of stores and intensive advertising bombing to stimulate the rapid growth of business performance.

"At that time, the sports goods market in many parts of China was still a blank area. Relying on a large number of new stores, these sporting goods brands in China have made brilliant achievements in those years, and some enterprises' annual revenue increased to 20%~30%."

But at the same time, with the rapid development, the number of stocks accumulated by various brands is increasing. Anta and other enterprises have to discount sales, the price system is chaotic, consumer confidence has been compromised, and the overall economic environment has slowed down, leading to a decline in existing store sales.

"With the gradual saturation of these markets and the gradual maturity of Chinese consumer psychology, the difference and specificity of sporting goods are gradually emerging. Consumers will measure the use, brand and price of products before buying them."

Zhang Bin pointed out that in this case, Anta and other Chinese sports brands still focus on increasing the number of stores, which is both a strategic deviation and a helpless move. "If you open a shop, you will lose a store, and you will lose market share and be abandoned by consumers."

He also pointed out that after the number of existing stores reaches a certain level, the expansion of channels will encounter bottlenecks. It will be difficult to maintain a relatively fast growth in the case of single store profits.

Three hundred thousand shop children's wear to join the threshold significantly reduced

With the slowdown in the growth of sports apparel business and the "ceiling" of traditional traditional store expansion models, Anta group is also looking at some of the rapidly developing areas of clothing. Children's wear has become the first choice of Anta group.

Public information shows that in January 1, 2008, Anta children's business started, Anta also became the first sports brand to enter the children's sporting goods market in China. In 2009 and 2010, the number of Anta children's clothing stores reached 228 and 383 respectively. But because of the better development of Anta sportswear in the past two years, the focus of Anta has not been embodied in children's clothing.

But with the adjustment of Anta's traditional business in 2011, Anta will also pay more and more attention to the children's clothing business. Data show that the number of children's sporting goods stores increased by 249 to 632 last year, and the number of children's stores far exceeded the planned number for the beginning of the year, reaching 500. The number of new stores added to Anta last year was only 229.

In addition, NetEase finance also found that in order to speed up the market share of China's children's clothing market, the NetEase financial group has greatly reduced the threshold of children's wear. NetEase finance hopes to join the Anta group's affiliation in the Beijing area. After several twists and turns, it found Mr. Lu, the head of the Beijing regional alliance. The latter said to NetEase finance that at present, the Anta children's clothing is in the stage of rapid development, and only needs less than 300 thousand to open a more than 40 square meter Anta children's wear shop, of which 20 thousand yuan is the deposit for the, 150 thousand yuan for the first time, and the remaining about 100000 yuan is for rent, decoration, labor and shelves.

Compared to Anta adult stores, the requirement of 1 million yuan shrank by 7.

There is no threshold for joining, so long as you can do business, you will make money if you can do business, and the discount of our children's clothing is also very low, which is 48% of the normal product price, which is lower than the 50% discount of Anta sportswear. For the current sales situation of each Anta children's clothing store, Mr. Lu said, "the sales of different stores are different. Now there are about more than 40 Anta children's clothing stores in downtown Beijing, and some monthly sales can reach ten million, while some only 4-5." but when NetEase finance asked whether there was a risk of joining the losses, Mr. Lu said that there would be a risk of loss, and pointed out that Anta children's clothing indeed had a loss shop. Mr. Lu also introduced to NetEase finance, "our contract is signed in one year.

For the development of Anta children's clothing for several years in the Chinese market, NetEase finance has not obtained the detailed data in the financial report of Anta group. Anta only mentioned the number of children's clothing business in its financial report. In this regard, NetEase has contacted the director of the Department of Anta children's affairs ye ye, hoping to learn about the development status of the related children's wear in recent years from her mouth, but she said that the detailed data of the children's wear will be submitted to the group headquarters every year. "For what kind of consideration the group has not reflected in the financial report, I will not know."

Children's clothing market competition intensified, franchisee free price adjustment

One has joined Anta.

Mr. Wang, a franchisee, told NetEase finance that he joined Anta children's clothing for less than a year. Although he did not have a high franchise fee like other clothing brands, his Anta children's wear shop had not been sold well, and their franchisees needed to take full inventory risk.

"Anta only accepts 10% of the returns when it comes to the first purchase, and every other ordered product needs to be sold by itself. But according to the price of the Anta label, the product can not be sold at all."

For Mr. Wang's statement, NetEase finance has also been confirmed from Lu manager's head of Anta children's clothing Beijing area. Lu manager told NetEase finance and economics, "how to clear the goods, this is the mind of the franchisee's personal business."

He also stressed that "in general, in addition to the more stringent regulations in the urban areas of Beijing, the suburbs or more remote areas how to clear the goods company is also a blind eye, for example, you can use a lower discount to deal with the goods squeezed out of your hands."

In connection with this, Mr. Wang, a member of the franchisee, pointed out that he had adopted the method of "low price processing". "Because the price of Anta children's clothing is lower than that of some famous children's clothing brands, and the discount price is slightly larger, the selling price of the products has come down, so many people have bought it. Basically, they haven't got any inventory, so they won't lose much though they don't earn much."

At present, Anta children wear extremely low franchise threshold and management chaos, Anta children's career director Ye told NetEase finance, at present, children's clothing business Anta actually adopted a lower joining "threshold".

But for the specific development plan and expectations of Anta group for children's clothing business, Anta has not disclosed much.

Insiders told NetEase financial analysis that at present, Anta does not want to mention too much about children's clothing business, largely because the current market structure of children's clothing in China is not obvious. "At present, the development of Anta may not be ideal, and it is affected by many market factors. Anta is reluctant to make an early statement."

The person also told NetEase finance that from the current Anta entry into the market of children's clothing, the brand will also face the dual pressure of channel and brand building.

Zhang Bin, a senior analyst at the national textile and securities industry, pointed out to NetEase finance that there are two kinds of development models for children's clothing in China. One is the extension of brands such as ADI, Nike and Anta, and the other is a separate brand operation like Dr. frog.

The former has a certain brand influence and status in the minds of consumers, which has a certain foundation for business operation. The latter is more difficult and needs to start shaping the influence of brands in the minds of consumers from scratch.

Zhang Bin said that although there is a big gap in the children's wear market, but from the current development of Anta children's clothing, the high speed shop can not solve all the problems encountered by Anta children's clothing. "Now the children's wear is very different from that of Anta's adult sportswear. The current strategy of Anta's children's clothing needs to wait for the inspection of the market and consumers. The expansion will only lead to the brand's status is not solid, and gradually lose the recognition of consumers."