Anta'S Strategic Pformation, Closing Shop, Tide Shop, Thousands Of Stores To Solve High Inventory

< p style= "text-align: center" > < img border= "0" align= "center" alt= "" src= "" /uploadimages/201408/08/20140808011933_sj.JPG "/" < > > "

< p > nearly two years, the depth adjustment of domestic sporting goods enterprises is beginning to dawn.

< a href= "http://fz.sjfzxm.com/" > Anta Sports Products Limited < /a > issued semi annual report in August 6th. As of June 30, 2014, the first half of August 6th was 4 billion 120 million yuan (RMB, the same below), an increase of 22.4% over the same period last year.

Net profit in the first half reached 802 million 800 thousand yuan, an increase of 28.3% over the same period last year.

Gross profit margin was 45.1%, up 4 percentage points from the same period last year.

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< p > through the implementation of a series of pformation, including closing stores and clearing stocks, it has reached its best historical results. In the first half of 2011, Anta reached its peak level with a net profit of 927 million yuan.

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Ding Shizhong, chairman and chief executive officer of Anta P, revealed that over the past two years Anta has closed more than 1000 stores.

"Upgrading and upgrading of shops is more efficient."

He commented.

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< p > < strong > retail pformation strategy < /strong > < /p >

Before and after Anta's listing, P is the peak of China's sporting goods industry.

Since then, after entering the adjustment period, the sporting goods industry has repeatedly reported high inventories, closing stores and declining profits.

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< p > "back to the path of growth."

Zheng Jie, executive director of Anta and a href= "http://fz.sjfzxm.com/" > Anta brand "/a", evaluated the performance in the first half of this year.

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< p > semi annual report shows that the number of Anta and its children's and FILA brand stores has been adjusted. The total number of shops is 7701 now, a decrease of 56 compared with last year.

Among them, there are 987 Anta children sporting goods stores, an increase of 106 from the end of last year, and FILA stores increased from 25 to 441 last year.

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< p > although the number of shops reflected in the figures is not much reduced, it still basically keeps the original retail scale, but in fact, Anta has focused on the sustainable development of the retail network, and has made vigorous efforts to optimize and upgrade the shops.

"The quality of the store, including location, size and interior decoration, is more important than the number of shops."

Ding Shizhong thinks that the adjustment of shops based on improving store efficiency and improving profitability is of great significance.

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< p > inventory, data show that as of the end of June, Anta inventories increased from 690 million yuan at the end of last year to the current 791 million yuan.

Ding Shizhong said that the current treasury pin ratio is 4:1, and is in a healthy state.

"Healthy inventory levels ensure the need for sales while avoiding large discounts."

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Behind the above performance, Anta is relying on the strategy of retail pformation, aiming at improving the profitability of Anta and P dealers.

In 2012, when the industry entered the cold winter, Ding Shizhong suggested that Anta should shift from "brand wholesale" to "brand retail".

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< p > Anta implements streamlined distribution structure, tends to flatten the organization structure, closely monitors the retailer's sales performance and store inventory level, collects real-time data with the ERP system, provides accurate ordering guidance for retailers, and is more competitive than the previous ones in the retail discount policy. The reason is that "in the long run, it can enhance the competitiveness and profitability of dealers". In supply chain management, Anta strengthens the elastic supply chain management, optimizes the elasticity and efficiency of replenishment, so as to meet the product differentiation and market demand of the main products of the season.

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< p > "the driving force of growth comes from the improvement of management quality and the sale of innovative products."

Zheng Jie said that after two years of promotion, the retail pformation strategy began to bear fruit. With the improvement of the retail operation level of distributors, enterprises began to go out of the trough.

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< p > < strong > > the two giants' competition < /strong > < /p >

On the two day before the half year publication of this year's P, Anta suddenly announced that it had become a partner of the National Sports Administration's gymnastics management center.

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"P" surprised the industry that Anta took over from another sporting goods giant Li Ning Co Ltd.

As we all know, Lining, the head of the Li Ning Co, is the world champion of the former gymnastics, and the Gymnastics Center has been working with Li Ning Co for 23 years.

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< p > Ding Shizhong responded that Anta's brand development strategy is concerned with projects related to China's < a href= "http://fz.sjfzxm.com/" > Sports < /a >, among which gymnastics is the most representative and symbolic project, which is matched with Anta's brand development strategy.

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< p > industry analysts said Anta went deep into the base of Li Ning Co, reflecting the deep shuffling of the domestic sporting goods industry.

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< p > data show that in August 10, 2012, the market value of Anta was 11 billion 800 million yuan, the market value of Li Ning Co was 6 billion 400 million yuan, in July 30, 2014, the market value of Anta was RMB 32 billion 400 million, and Li Ning Co's market value was 6 billion 400 million yuan.

In the past two years, Anta's share price has risen nearly 2 times, and the market value of the company has increased 1.7 times.

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In 2012, Anta exceeded Li Ning Co for the first time. Its performance was RMB 7 billion 620 million yuan, and the latter was 6 billion 740 million yuan. P

Judging from the absolute value of revenue, Anta has successfully become the leader of domestic sporting goods brands.

It is also from this year that the two giants launched a pformation competition.

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< p > July 17th, Li Ning Co issued a profit warning that it expected to lose 550 million yuan in the first half of this year. Li Ning Co lost 184 million yuan in the same period last year.

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In the face of strong competitors, Li Ning Co is not hesitating about P.

For Anta's signing gymnastics management center, Li Ning Co said that he voluntarily gave up the contract renewal because the strategic marketing focus has become five core sports: basketball, running, badminton, training and sports life.

Statistics show that Li Ning Co has signed huge sums of money to sign NBA star Wade, taking resources such as CBA.

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< p > < strong > industry future < /strong > /p >

< p > "Anta's recovery does not mean the recovery of the whole industry." Ding Shizhong believes that not all enterprises can come out of the trough. "A bad industry does have an impact on the development of enterprises, but there is great room for enterprises to do well in themselves."

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< p > a set of data provided by Ding Shizhong shows that in the US market, the average person owns 4.5 pairs of sports shoes, and the figure is 2 pairs in the Chinese market of Hongkong, which is 0.5 pairs in mainland China.

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< p > he believes that there is no recovery or no recovery in the sporting goods market in the mainland: "it has been growing all the time."

Ding Shizhong believes that for sporting goods companies, the key is to identify the right position and seize their own market share.

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< p > Anta is benefiting from diversified brand strategy and product mix.

Anta brand covers the mass market, and the FILA brand acquired by M & amp; a is covered by high-end consumer market. At the same time, Anta has accelerated the development of children's sporting goods shop.

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< p > Ding Shizhong admits that after the electricity business is in the exploratory stage, with clear inventory as the main objective, next, the electricity business will become one of Anta's important growth drivers. Under the unified product sales strategy, the future Anta will allow the distributors to sell products synchronously under the same line, and at the same time, it will provide differentiated products for the electronic business platform. The goal is to minimize the interaction between the online and offline businesses and achieve the complementary advantages.

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< p > Anta also mentioned internationalization strategy in the semi annual report. Ding Shizhong revealed that Anta's strategy is to go out rather than go out of the brand. He used Lenovo and Geely as Anta's benchmarking enterprises, and acknowledged Anta has been looking for suitable acquisition targets.

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"P >" sports products industry is still facing the uncertainty of product homogenization, fierce competition and other factors in the short term.

With the acceleration of urbanization and the increasing popularity of sports, the sporting goods market will have great potential in the future.

Ding Shizhong said.

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