Why Did Anta Only Succeed In Listing Companies?

Recently, there are so many negative news in the society that I want to share a small story with friends around me, dispelling the haze in my heart.

This special fitness friend usually likes to wear a Canadian.

Lululemon's fitness clothes, because of the likes of products, she disclosed that he was interested in investing in Lululemon stock, so he went online to find relevant information of the company. He accidentally discovered that Lululemon Hongkong was recruiting. Because of the recognition of the company's products, the recognition of the company's advocacy of healthy life, the friend applied for the position advertised online, and the result was successfully passed the interview, so that she found her own Dream Company.

Today, I want to talk about a Chinese sporting goods retailer Anta (02020), which was also listed as Lululemon in 2007. Relying on China's Big Mac market, it has grown to be the leader of China's sports retail brand. Its market value is 96 billion Hong Kong dollars, and its market value is only twice as big as that of international sports brands.

(market capitalization of $96 billion 800 million) and second Adidas (market capitalization of $43 billion 500 million).

According to the world clothing and shoe net, Anta Sports Products Limited, established in 1994, was listed in Hongkong in 2007. The price was HK $5.28, the market value of which was 12 billion 670 million. The sales revenue was only 2 billion 988 million yuan, the net profit was 537 million yuan, and there were 4716 Anta stores in China.

After the 08 Olympic Games in Beijing, Anta has no exception. The number of newly opened shops increased by more than two digits from 2008 to 2010, 20%, 16% and 15% respectively.

The consequence of extensive growth is the outbreak of stock crisis in the sporting goods industry in 2012. As the whole industry was dominated by distribution mode, a large number of brands of goods were backlog on distributors.

Anta promptly cleaned up the stock, reduced the number of main brand stores, and realized the growth of new Anta stores in 2015, and actively expanded the number of Fila stores in the high-end fashion sports brands, and took the lead in getting out of the industry crisis.

The company's sales revenue and profits achieved double growth in 2014, and in 2014 -2017 maintained double-digit growth in sales revenue and profit for four consecutive years.

Why is Anta only successful?

In 2017, Anta's market capitalization was close to 100 billion Hong Kong dollars. Let's take a look at its partners, Lining, who was once the leader of China's local sports brand. (02331) after losing his brand positioning and pformation to a high-end line, he experienced several years of loss. He did not turn his losses until 2015. In 2016, the net profit was 640 million yuan, only 1/4 of Anta's profits.

Although it was a joint venture with the French high-end fashion outdoor brand Aigle (that is the famous rain boots brand) in 2005, it has a 50 year franchise to produce and sell Aigle products in China. But until 2017, 99% of its revenue source came from the core brand Lining, and the operation and promotion of other brands were almost unsuccessful.

The market value is HK $13 billion 600 million.

The main business of China's Kappa business is not improving. The profit contribution comes mainly from the investment income from the sale of financial assets. A sports retailer who is not serious in its current market value is 7 billion 900 million.

360 degree (01361) mid 2017 report shows that the turnover is only 2 billion 800 million yuan, making 320 million, and accounts receivable and accounts payable are more than 2 billion 300 million yuan, accounts receivable turnover for up to 152 days, and you sell goods to go out, 5 months before you can withdraw money, not very good, 361 currently market value 5 billion 890 million Hong Kong dollars.

XTEP International (01368) has been selling income and profit in the range of 5 billion RMB and 500 million RMB for the last five years, and accounts receivable turnover days is more than 100 days. It shows that these small three line sports brands have no relation to their survival, consumption upgrading and brand upgrading.

Let's take a look at the development path of big brother Anta: Anta, in addition to steadily developing its own brand of public positioning, in 2009, the company acquired visionary BELLE China's Fila China Trademark from China, Hongkong and Macao, and took over 10 retail outlets in Hongkong and Macao.

Buying Fila China is, of course, a layout for consumption upgrading, and private brand is not suitable for the high-end market. This road Lining has failed, and Anta has chosen wisely to create a Italy brand which has been established for more than 100 years. In a few years, Fila has expanded rapidly from 60 shops in the BELLE era to nearly 900. Through the celebrity endorsement and the cooperation with fashion designer Wu Jigang, the high-end consumer market has been successfully opened. At present, the sales of Fila account for more than 20%, which is an important source of the company's performance growth, and the increase in the proportion of high-end brands has also increased the gross profit margin of the company.

After the success of Fila, the company set up a joint venture in 2016 to acquire the exclusive right to manufacture and sell Descente, the high-end sports goods brand Descente in China. Its products are oriented to high-end consumer groups in China. This year, a joint venture is set up to exclusively sell and sell the Korean outdoor brand Kolon Sport in Greater China. Besides, Anta also bought the mid high end children's wear brand Kingkow, which was set up in 1998 this year.

Through the establishment of joint ventures and acquisitions, Anta has gradually formed a comprehensive sports brand retailer integrating sports, fashion, outdoor and children's clothing, and has completed the brand layout from the public to the high-end.

So in the past 10 years, why is Anta running out of the mire and achieving the first status of the industry? In addition to the ability to deal with crisis quickly, it is also related to the company's forward-looking grasp of the trend of consumption upgrading, and actively layout the subdivision category that has great potential for growth in the future.

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Some thoughts on brand retail and investment

In the ten years from 2007 to 2017, the fate of these retail Brand Company listed in Hongkong is also different. In 2007, a star shoe retailing king went on the market. It was called BELLE international. When it was listed, its market value was as high as 65 billion. Through its ten brands, it expanded rapidly in the retail sales channels, and the market value had once risen to 150 billion Hong Kong dollars. In July 2017, the company officially privatized its delisting, and its valuation was only 53 billion 100 million.

At that time, the company operated many brands of women's shoes, but there was no clear positioning between brands, fighting with each other.

The rapid expansion of expansion through channel expansion is followed by the rise of the electricity supplier and the pformation of consumption patterns, and the product itself has not been upgraded.

So from peak to collapse, what you may see is just the change in the company's financial data, which is actually hidden in the company's genes.

If a brand retailer values the channel too much and does not enhance the quality of the product, it will be quickly abandoned by consumers.

After all, consumer goods are not industrial products, and they can not be promoted solely by raising market share.

As an investor, I often think that in addition to looking at financial reports repeatedly and relying on data to support your investment, you need stronger faith support. For example, you believe in the development of China in the next 10 years, and believe in the future of the investment industry. You believe that your investment company is on the right road. After all, you only look at the valuation, you can only see the financial data and can not convince me. Now I will buy the money that a company can earn in 20 or 30 years at the current price.

For brand retail companies, this confidence can only be found from products, otherwise, even if China's future sporting goods market has trillions of scale, the scale of children's clothing market hundreds of billions of dollars may not be related to the company you invest in.

At present, there is a long show of pop shows. Where does Dad go? Let me find out that at present, the boys and girls in Anji and hum are wearing Fila children's clothes. This may become a little confidence in investing in Anta.

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