Anta CEO: Hope To Build A World-Class Sporting Goods Group Through Multi Brand Strategy

Recently,

The chairman of the board and CEO Ding Shizhong, who received an interview with CNBC (NBC) Managing Asia, said Anta wanted to pass more

Strategy, ranking the first in China by 2025.

The company eventually became a world-class sporting goods group.

Since the establishment of Anta brand in 1991, Anta has gradually become a giant in China's sporting goods industry for more than 20 years.

In 2015, Anta's operating income exceeded 10 billion, reaching 11 billion 126 million yuan, becoming the first Chinese sports brand with tens of billions of achievements.

Ding Shizhong said that the Beijing Olympic Games were the turning point of China's sporting goods industry, and Anta's positive pformation has been achieved today.

In the 2008 Beijing Olympic Games, many Chinese sports brands were too optimistic about the prediction of sporting goods market, and a large number of shops opened up, resulting in high inventory.

From 2009, the growth rate of Chinese sports brands began to decline. By 2012, Chinese sports brands including Anta began to show negative growth.

Nevertheless, Ding Shizhong believes that this is not entirely a bad thing, because the lower the industry is, the more test the ability of the enterprise, the more it can force the enterprise to think about the direction of future development.

Ding Shizhong spent nearly 2 years in almost all the prefecture level cities in China, with a total of more than 500. Finally, it concluded that "the traditional wholesale mode can no longer meet the needs of the market, and Anta needs to pform."

In 2012, Anta launched a drastic retail oriented pformation, from the retail culture construction, management efficiency improvement, flexible supply chain, effective inventory control, channel optimization and other aspects, to carry out all-round pformation and upgrading of enterprises.

Subsequently, Anta took the lead in revival of retail pformation and became the first brand of Chinese sports brand.

This has also turned Anta's competitors into international giants like Nike and Adidas.

If we rely on Anta's single brand, we can't surpass Nike and Adidas.

But when we implement multi brand strategy, we may create more possibilities.

Ding Shizhong said.

This is the origin of Anta's multi brand strategy. Although it is officially determined that the "multi brand" strategy is the core strategy at the end of 2015, Anta's multi brand layout can be traced back to 7 years ago.

In 2009, Anta acquired Italy sports brand FILA, positioning FILA as a high-end sports fashion brand, and complementing Anta's popular sports positioning.

FILA brand is an important flag for Anta to seize the high-end market. Before that, China's high-end sporting goods market was basically carved up by international giants.

In just a few years, FILA has submitted an excellent report card. At present, Anta has opened 600 FILA stores in China, and the revenue of FILA has increased by an average of 40% over the past five years.

After confirming the multi brand strategy, Anta stepped up its pace in multi brand layout.

In 2016, Anta worked with Desanto, who focused on winter sports products and functional products, set up a joint venture company and planned to open 100 retail stores in China.

At present, China's first Desanto store has opened, and Ding Shizhong said: "we need time to cultivate new brands, so I do not think Desanto will make a huge contribution to the revenue in the next three years, but after that, we are confident that Dizon will bring us profits."

In the interview, Ding Shizhong also said: "although no substantive agreement has yet been reached, more acquisitions are in the pipeline. We are now keen to explore the category of professional sports."

In addition to developing new brands, Anta is also developing brand value.

As a partner of the Chinese Olympic Committee, Anta has prepared a complete set of promotional plans for the Rio Olympic Games in 2016. From the theme of Olympic Games to the Olympic Games and the spread of sports spirit, Anta hopes to further strengthen its brand image on behalf of China's essence with the help of Rio Olympic Games.

Ding Shizhong said: "during the Olympic Games, the exposure rate of brands can immediately increase profits. This is a misunderstanding. The significance of Olympic marketing lies in enhancing brand awareness and influence. This is a long-term benefit."

Although the market value of Anta group is far more than that of other Chinese sports brands, Ding Shizhong said: "market value is not my main goal. My goal is to let Anta group become China's top ranked sportswear company in 2025 and eventually become a world-class sporting goods group."