Anta Sports Pformation Is Very Cold, Which Stems From Ding Shizhong'S "Trust".

Supplies company has survived the winter, and it seems that it will grow stronger in the spring.

In the first half of August, the semi annual report released by Anta in the first half of 2014 showed that the operating income in the first half of the year was 4 billion 120 million yuan, an increase of 22.4% over the same period last year. Net profit in the first half of the year was 802 million 800 thousand yuan, an increase of 28.3% compared with the same period last year, and the gross profit margin was 45.1%, up 4 percentage points from the same period last year.

This is another good result of Anta's best record in the first half of 2011. At that time, Anta achieved the best results in history -- net profit of 927 million yuan.

Then released semi annual report, including Lining, XTEP, 31st degree, PEAK, China trend, although every enterprise is still stranded in inventory, but in a comprehensive way, Anta performs best.

"I am very confident that we will not be worse than this year.

Because I know what we are doing now is not just this year. "

Ding Shizhong, chairman and chief executive officer of Anta's board of directors, said to the first financial daily.

Transformation

Over the past two years, China

The whole industry is in deep trouble. Small businesses are unable to withstand the collapse of cold weather. The pformation of large enterprises is difficult. Adidas is a rare winner in this round of downturns. Its pformation began in 2009.

In February 25, 2013, Ding Shizhong wrote in his micro-blog, the era of making money with eyes closed is over.

At this point, Anta is undergoing the biggest adjustment in history.

Ding Shizhong admitted to the first financial daily that Anta had reconsidered, "why can't others do it?"

However, Anta is not the last one to act.

When Anta's operating income and net profit fell 14.4% and 21.5% in 2012, the outside world did not know that Ding's pformation began as early as 2 years ago.

At that time, Anta's net profit was 1 billion 551 million yuan, which seemed to be a good situation.

But Ding Shizhong realized that retail pformation is imperative.

To this end, he even went to BELLE to meet executive director and chief executive Sheng Bai Jiao.

"Our business model, sports brand business model, is the wholesale brand, the product sold to dealers on the line, this is called rough operation, a business model has been used for decades, no innovation, then the problems will erupt."

Ding Shizhong said to the first financial daily.

Ding Shizhong set the goal for 3~5 to complete the pformation in the year of 3~5. Similar pformation, another well-known domestic shoe enterprise Daphne took 8 years.

Ding Shizhong needs Anta to become a brand that can quickly perceive the warmth and warmth of the market. Excellent operational capability has been its killer. Now, reviewing the operational capability has become the first work that Ding Shizhong has to do.

He started from the net shop and cut off any chance to enter the shop.

Even during the meeting, he will let local dealers arrange shop inspection.

In two years, he traveled to more than 500 prefecture level cities throughout the country.

The problem was completely exposed. In the past, Anta valued the number of stores more than 8075.

The dealer's expansion Carnival also won the great support of Anta. The new store opened - Anta shipped - credit on the back and forth.

"In the past, we pursued quantity, and now we pursue quality.

Effective shops are the most important. Invalid shops are not important.

Ding Shizhong analyzed the first financial daily. To do quality, we should look at the growth of the same store, depending on the profitability. We should take a look at the ratio between the Treasury and the sales, depending on the accounts receivable.

In 2012, Anta formally proposed to shift from "brand wholesale" to "brand retailing". Ding Shizhong's point of view is clear: "the quality of the shop, including location, size and interior decoration, is more important than the number of shops." the goal is also very clear: "the adjustment of shops should enhance store efficiency and enhance profitability."

Specifically, Anta streamlined the distribution structure, cancelled the sales area, and the organizational structure was more flat, which could closely monitor the sales performance of dealers and the inventory level in stores.

In addition, the original category management is based on categories such as shoes and clothing as a classification standard. Now it has been pformed into different projects, such as running events, basketball events, comprehensive training projects, etc.

Strongly promote the landing of ERP system, and promote data collection in real time, so as to provide accurate ordering guidance for dealers.

Ding Shizhong revealed that Anta has achieved ERP coverage in most stores in the country. The original four orders will be extended to the "4+2" mode, and efforts are being made to achieve single store orders.

"Can do the sales data analysis of each store, make up the bill, monitor the jump list and so on."

We should control the discount rate in order to strengthen the competitiveness and profitability of dealers from a long-term perspective, optimize the elasticity and efficiency of replenishment, and meet the market demand of product differentiation and the main products of the season.

And increase investment in product research and development, "from R & D cost to sales cost ratio of one percent points to four percent points."

As of June 30th, half a year, Anta invested 95 million yuan in R & D.

"A large part of the gross profit margin comes from the contribution of new products, which is, in general, differentiation."

Half year report shows that over the past two years, Anta has totally turned off 1000 stores, and the total number of shops is 7701. By the end of the year, Anta's various departments plan to open up to 9400 stores, and at least 9150.

For Ding Shizhong, the boundary of management is that the proportion of shops that lose money should not exceed 10%.

"Sports goods industry, or other industries, loss shops within 20% are good."

Ding Shizhong told the first financial daily that when Anta was in the worst condition, the proportion of loss shops was higher than 20%.

"Why can Anta take the lead in recovery and can not be done by others? Why can Anta do what others can't do?" Ding Shizhong asked himself, "first of all, look at the foundation of your enterprise". He believes that Anta is not afraid of change for three reasons: "first, the financial health of enterprises; secondly, the burden of inventory is not large; thirdly, the vast majority of dealers are profitable."

The second is management capability.

"The real core of Chinese enterprises is the ability to manage."

In Ding Shizhong's view, management ability is reflected in whether the enterprise is in a good industry, how the performance is, whether the business mode is feasible, and whether the team is excellent enough.

Third is the pursuit of short-term benefits or sustainable growth.

Obviously, in this round of consolidation, Anta focuses on the adjustment of the fundamentals of the enterprise. This adjustment is aimed at a long period of time in which enterprises will not hesitate to move because of market volatility.

Location

The change of all things stems from Ding Shizhong's "belief".

He believes that Anta will have the opportunity to be a mass market in China.

Data show that in the US market, Nike sells one hundred million pairs of shoes a year and Adidas sells 20 million pairs of shoes. Compared with leisure sports brand, Cage can sell 60 million pairs of shoes.

Compared with

Adidas, a struggling Adidas, has no doubt that life is much better.

"Brand is most afraid of blindly follow suit, do not insist on their own positioning."

Ding Shizhong analyzed the first financial daily.

He believes that Anta's Jedi counter attack stems from always knowing who he is, always knowing what to sell to consumers, and always knowing who to show it, that is, to solve the problem of product positioning, consumer positioning and brand positioning matching.

"Expensive things do well, cheap things do well, cheap and good things are not good."

Ding Shizhong believes that what Anta can do is "cheap and good" products, "this is our core competitiveness."

"It's too easy for an enterprise to succeed in moving other people's models."

Ding Shizhong insisted that Anta make its own product models, such as retaining its own factories. Early Anta started from factories, and the factory is Anta's competitive advantage. It can realize quick rewriting and help to make profits.

OEM is the way for Nike and Adidas to survive, and Anta has no way of learning Nike Adidas.

As a popular brand, Anta wants to control the whole value chain, which means precise cost control.

For example, the price of down last year has more than doubled. Anta is not in a panic because the decision to buy ahead of schedule has been made the year before last.

Brand positioning in a second tier city or three or four tier cities for consumer marketing, in Ding Shizhong's view, is a false proposition, the key is whether to seize the consumer groups that they are positioning.

"There will be more demand for high-end products on the second line and the largest number of consumers."

Ding Shizhong often watches consumers on motor cars. Over half of them can't afford Anta shoes or they think Anta shoes are expensive. In the whole country, this figure is at least 650 million.

Let every Chinese buy one, we can sell 1 billion 300 million of the products. This kind of heroic words has been regarded as crazy and unrealistic in Chinese business circles.

Ding Shizhong tried to think in a more rational way. "How about buying 13 pairs for every 1 billion 300 million people?" Ding said, "you don't want to see how Nike does it. Nike does its market. I can't take all of my market."

He is convinced that the real market space is in China. "I want to sell 100 million pairs of shoes to the most popular consumers."

In China, entrepreneurs are collectively trapped in the vicious circle of escaping from industry. Ding Shizhong insists on his original intention: "I am the one who makes clothes, I sell shoes; I always have to make sure that my shoes are done well, and my clothes are done well; I always know who to sell them to and who to sell them to; I want to think about how to bring maximum benefits to my consumers. This is what I want to insist on."

Ding Shizhong criticized the entrepreneur for PE and VC. He once revealed in his interview with a Chinese media that he wanted to be a Wang Yongqing figure in Formosa.

This can not help but imagine that a few years ago, Anta's old rival, Li Ning Co founder and former China gymnastics world champion Lining, when talking about the topic of entrepreneurs to the media, Lining said, "is the entrepreneur not important, is the athlete important?"

Ding Shizhong has no identity coke.