Where Is Anta'S Next Step?

According to the world clothing shoes and hats net,

Sports Products Co., Ltd. (02020.HK, referred to as "Anta sports") held its 2016 annual performance briefing in Hongkong. At the meeting, Anta sports Chief Financial Officer Lin Zhun announced the financial situation of Anta sports in 2016. Anta's revenue increased 20% in the 2016 year to 13 billion 350 million yuan in the national currency, and recorded a growth rate of over 20% in the three consecutive years.

Meanwhile, the market value of Anta sports exceeded HK $60 billion for the first time in 2017, ranking among the top five of global sporting goods companies.

Good news

Anta sports continued to exert its strength after its success in the 2015 revenue span of ten billion. According to the earnings data released, as of December 31, 2016, Anta sports revenue increased by 20% compared with the same period last year, to 13 billion 350 million yuan, for three consecutive years to get more than 20% growth rate.

In terms of profitability, gross margin increased by 1.8 percentage points to 48.4%, reaching a new high, operating interest rate and shareholder interest rate were 24% and 17.9% respectively.

Cash flow remained adequate, free cash inflows increased by 33.9% to 1 billion 900 million yuan, and net cash and cash costs in December 31, 2016 were 5 billion 830 million yuan.

According to data from Bloomberg consulting, by the end of January, the market value of Anta sports has exceeded 60 billion Hong Kong dollars, while Anta sports has consolidated its position in the global sporting goods company's ranking of fifth in the sixth place, while leading other domestic sporting goods companies.

(PUMA) the gap in market value exceeds HK $25 billion.

According to statistics, the top four companies in the global sporting goods market are

(NIKE), Adidas (ADIDAS), Lulu lemon (LULULEMON) and Andemar (UA).

Anta sports President Zheng Jie told the Economic Observer network that although the investors in Hongkong market are more rational, Anta's market value still exceeds HK $60 billion. "This shows that investors have full confidence in the status quo and prospects of Anta sports. With the accelerated pace of development of China's sports industry in the future, Anta sports is confident that the market value will be promoted to the leading level in the industry."

Economic Observer network reporter found that the market value of Anta sports and Lulu lemon, Andemar gap has narrowed to less than 10 billion Hong Kong dollars.

Continuous pformation

After putting forward the strategy of "single focus, multi brand and all channel", Anta started to build a complete brand portfolio model in addition to its solid operation of the popular brand of the same name.

By the end of 2016, the number of Anta stores in mainland China, including Anta children's independent stores, was 8860.

In 2016, when it became the official partner of the Chinese Olympic Committee in Rio Olympic Games, Anta also used the marketing strategy of "breaking down" to enhance the brand reputation.

Anta's collaboration with world renowned spokesmen like Klay Thompson and Manny Pacquiao (Manny Pacquiao) has also played a positive role in the promotion of its sales.

At the same time, Anta has entered the high-end market, and the operation of specialized market is also deepening.

In 2009, Anta bought the Chinese business of Italy sports brand FILA from BELLE international.

BELLE, famous for its women's shoes, is hardly successful in running FILA's brand.

In the end, Anta put all FILA business and channels in mainland China and Hongkong in the bag at a price of less than HK $600 million.

After several years of operation by Anta, as of the end of 2016, there were 802 FILA shops (including FILA KIDS independent stores) in mainland China, Hongkong and Macao. Ding Shizhong, chairman and chief executive officer of Anta sports board, said at the press conference that although FILA's revenue accounted for a relatively small proportion of total revenue, its growth rate was very fast, and its growth rate reached over 50% in 2016.

In addition, Anta also introduced the Japanese high-end sports brand Desanto (DESCENTE) to China in the form of a joint venture in 2016.

By the end of 2016, Anta had opened 6 Desanto stores in China.

Zheng Jie told reporters, "Anta plans to let Desanto continue to generate profits through two years."

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Future layout

Anta said it plans to increase its total number of stores to 10000 in 2017.

The focus will be on opening more stores in integrated shopping centres.

Zheng Jie told the Economic Observer network reporter that despite the steady growth of Anta's store sales in 2016, online sales also increased by double-digit growth, but with the arrival of the concept of "new retail", Anta needs to cooperate with the corresponding consumer trends to give consumers a better consumption experience.

At present, the retail environment is changing. The dispersed shopping under the front line has been gradually replaced by the comprehensive shopping center which can provide one-stop service for consumers. The ability of comprehensive shopping centers to attract consumers is also rising.

At the same time, "new retail" also makes the boundaries of online and offline increasingly blurred. The purpose of Anta integrated shopping center is to bring consumers a better consumption experience.

Zheng Jie also said Anta would choose different brands to enter different stores.

Anta sports announced the joint venture intention while issuing the annual report of fiscal year 2016.

Anta's wholly owned Affiliated Companies ANKO, Kolon joint venture and Anta company have entered into a joint venture agreement for the establishment of a joint venture group. The joint venture group's business is mainly the exclusive operation and marketing, sales and distribution of products with Kolon sports (Kolon Sport) IP and trademark in the region.

The joint venture interests of ANKO and Kolon are 50% respectively, among which Kolon enterprises (Kolon Corporation) and Kolon industry (Kolon Industries) account for 25% respectively.

Park Chang, deputy general manager of Kolon Sports China, introduced the current development of the brand at the thirteenth Asian sporting goods and fashion show (ISPO) held last week. Kolon sports is currently the largest brand in the Korean outdoor products market. Kolon has already owned 220 outlets in 7 years after its entry into China, and has its own Tmall online store.

In 2016, Kolon sports sold 520 million yuan in mainland China for the first time in two consecutive years in the Chinese market.

In the 1-4 month, Kolon sports sales in the Chinese market increased by 130% over the same period last year.

The 2016 annual market survey report of China outdoor products shows that the total retail sales of outdoor products in China in 2016 amounted to RMB 23 billion 280 million yuan.

Zheng Jie also told the Economic Observer network reporter that according to Anta's research, China's current sales of outdoor products are between twenty billion and thirty billion, but lack of a leading brand and low industry concentration. If the deal is successful, Kolon's product line will enrich Anta's product matrix.

But for Anta sports, which has less experience in outdoor products, the right to operate Kolon China will also bring certain challenges.

Kolon is the main middle and high-end market. It will target people who are over 38 years of age.

In the high-end market of outdoor products in China, Pathfinder, The North Face, Columbia (Columbia) and OZARK (Ozark) are in the first tier of the industry. The competition of this strategic group is still concentrated in the second tier cities.

Among them, the market share of the first domestic brand Pathfinder has suffered from the decline in operating revenue in recent years.

Between 2011 and 2015, Pathfinder's operating income increased by 73.64%, 46.68%, 30.74% and 18.67% respectively.

And Pathfinder has gradually abandoned the strategy of focusing on outdoor layout, and put forward a strategy to pform to a service platform.

Of its 13 investment companies, 3 involved sports plates, 2 involved travel services, and 8 involved outdoor sectors.

On the contrary, Kolon, despite its rapid expansion in the Chinese market, has yet to see whether Anta can continue to pursue Kolon's management philosophy and market strategy after taking over from Anta.

Just as Anta's slogan "never stops", every next step is still a test for Anta.

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