Anta Develops Multi Brand Strategy And Seeks Overseas Acquisitions

Perhaps many people do not know.

Sports has always been the seat of China's first sporting goods company, and even less aware that it has long been among the top four sporting goods companies in the world, and Adi, Nike,

Juxtaposition.

Not only Jilting others

A few streets, Anta sports is more than 83 billion 700 million yuan market value, surpass Hai Lan home (42 billion market value), become the highest market value clothing retail group.

From small workshops to brand retailers, Anta 2017 sold 7 billion 300 million in the first half of the year.

According to the world clothing shoes and hat net, in 1991, Ding Shizhong (Anta Group Chairman and CEO) hung the brand logo of Anta at the door of his shoemaking workshop. At that time, thousands of shoe factories in his hometown were making overseas OEM. Anta was the first Fujian shoe company to make its own brand.

After more than ten years, Anta entered the brand wholesale mode, completed the construction from production to brand wholesale, and focused on two or three line city penetration.

In 2007, Anta sports went public in Hongkong and became the first Fujian sporting goods company to list in Hong Kong.

However, after the Beijing Olympic Games, the domestic sporting goods industry broke out of inventory crisis. After nearly three years, the whole industry suffered a recession. At that time, the industry elder brother Lining was faced with the turning point of sales decline. Ding Shizhong began to lead Anta "from brand wholesale to brand retail pformation", to resist the crisis of the industry downturn.

Since then, Anta has not only completed the overall pcendence of Lining, but also entered its own era. In 2015, Anta's annual revenue exceeded 10 billion, becoming the first sporting goods company to enter the "ten billion club", creating a new historical high income and profit.

Behind the increase in revenues and profits, apart from the constant adjustment of market strategy, Anta's quality R & D investment is also inseparable.

In 2004, Anta successfully signed a sponsorship to CBA. Ding Shizhong hoped that all the CBA players on the stage could wear Anta sneakers, but were refused by the reason that "Anta's shoes were uncomfortable".

Ding Shizhong, who was unable to sleep at night, invested 30 million yuan to build a national sports science laboratory.

In mid August, Anta sports released its semi annual report in 2017. In the first half of this year, Anta's sales volume was 7 billion 323 million yuan, and its net profit was 1 billion 451 million yuan, up 19.2% and 25.92% respectively, and the gross profit margin increased to 50.6%.

The ten - year listing of the listed company was obviously satisfied with Ding Shizhong.

At present, Anta has developed a multi brand strategy. In addition to keeping a cost-effective market, its exploration of high-end market brands is mostly done through acquisitions.

Buying all kinds of high-end brands is still looking for more overseas acquisitions.

Ding Shizhong has reported in media reports that through different brand combinations and market layout for different customer groups, Anta has covered from the public to the high-end market, from functional to fashionable leisure sports goods, from adults to children of different age groups, to meet the specific needs of various market segments.

At present, Anta has three brands: Anta, FILA (FILA KIDS) and Descente.

Anta positioning the mass market; FILA positioning high-end high-end sports market, targeting high-end customers; Descente is high-end outdoor sports brand.

China's high-end and international markets: the acquisition of FILA's franchise and trademark rights in China

In August 2009, Anta acquired the franchise and trademark rights of BELLE International's sports brand FILA in HK $600 million, and was responsible for promoting and distributing FILA China trademark products in mainland China, Hongkong and Macao.

The move is also seen as a symbolic move for Anta sports to announce its entry into the global market.

The acquisition proved to be a win-win situation.

Before the acquisition of Anta, FILA's performance in China was weak and its development was weak. After being acquired, FILA began to return to the fashion line, and invited celebrities such as Gao Yuanyuan and Hsu Chi to expand its influence. On the other hand, Anta changed its previous low-end market impression through FILA, which made up for the high end sports brand line and international brand effect.

Today, FILA has grown from a loss making business to one of Anta's most important performance drivers, accounting for 20% of the group's revenue.

Enter the outdoor sports market: get the exclusive sales business of Descente mainland

In 2016, Anta and Japan Descente, and ITOCHU Corporation subsidiary Itou Tada joint venture company, three companies in accordance with the contribution ratio of 6:3:1 shares.

Anta sports invested 150 million yuan in the incident and obtained the privilege of exclusive product design and sales business with Descente trademark in the mainland of China.

It is reported that Descente has gained worldwide fame in skating and skating, due to its accumulation in functional fabrics, waterproof and thermal insulation technology.

The 2022 Winter Olympic Games will be held. Anta has a good market prospect in building high-end ski sports brand.

Semi annual report shows that Anta Sports Group's Volkswagen brand Anta has 9041 stores, plus high-end brands FILA and Descente, the total number of shops up to 9931.

Acquisition of Sprandi, Kolon, and acquisition of PUMA?

If the acquisition of FILA and Descente is the initiative of Anta in the high-end market, the acquisition of the UK outdoor brand Sprandi in 2015 is a complement to Anta's international brand in the low and middle end market.

Sprandi itself is located in the middle and low end market, and has a high reputation in Eastern Europe, Russia and South Africa.

Media reports said: "Russia is one of Anta's largest export markets. With Sprandi's brand position and distribution network, it has made a significant contribution to Anta's internationalization strategy."

In February 2017, Anta group published the annual report and announced the acquisition of the Korean brand Kolon - "the wholly owned subsidiary ANKO and Kolon joint venture and the company have entered into a joint venture agreement for the establishment of a joint venture group. The business of the joint venture group is mainly for the exclusive operation and marketing, sale and distribution of products with Kolon Sport IP and trademarks in the region."

That is to say, in addition to Anta, FILA and Descente's three brand clusters, Anta is also buying other international brands to enrich its business lines.

In fact, after the turnover of Anta group exceeded 10 billion yuan in 2015, Ding Shizhong said that it would seek more overseas acquisitions. In March 2017, Anta announced that it had raised HK $3 billion 790 million, and proposed the possibility of acquisition and cooperation with international sports brands in the future.

At the same time, since April this year, the news that the North American sports brand PUMA is about to be bought is frequent. Anta is likely to get its income.

All along, the North American market is a sports brand paradise, but by Adi, Nike and other brand segmentation occupy, PUMA also has a certain market share, if Anta take it, away from the real "globalization" further.

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Revival of domestic sports brand? International campaign brand encirclement and suppression

It is also a sports brand listed in Hongkong, and the market value of other domestic brands is far higher than that of Anta.

As of August 21, 2017, Lining's market value was 12 billion 760 million, XTEP international only 6 billion 994 million.

However, this time more than Anta, Lining also revealed beautiful results in the semi annual report: the first half of 2017 earned 3 billion 996 million yuan, an increase of 11.10% over the same period last year.

It is reported that although the 360 degree has not released half yearly results, it is expected that its first quarter and two quarter income will increase.

The rise in brand performance and gross margin seems to signal the revival of the domestic sports brand market.

China's awareness and policy support for sports and fitness industry is increasing. It seems that this "market recovery" is traceable.

According to the economist's "China start: rising China sports fitness industry" report, the scale of China's sports fitness market is now close to 1 trillion and 500 billion yuan, of which sports products and equipment consumption accounts for nearly 70%.

The cake is getting bigger and bigger. While the domestic sports brand is being carved up, it also needs to set aside a hand to resist the encirclement and suppression of international brands.

The promotion of consumption level means that more and more people can accept the pricing of high-end sports brand market, and tide factors also make these brands look like fish in water in China.

In the international market, Nike, Adidas and Under Armour are launching a seesaw battle. China's rising market is a big fat meat. For example, the goal of Nike in fiscal year 2020 is to achieve 6 billion 500 million dollars sales in the Chinese market, and this cake is constantly being separated by international companies.

China's sports market will be evenly distributed among the domestic brands, or will the local market be better? Ding Shizhong said that they do not become China's Nike, they want to be the world's Anta, and the idea of going out in the brand encirclement and suppression may bring a longer term future.

More interesting reports, please pay attention to the world clothing shoes and hats net.