Ding Shizhong And Anta: "Never Stop": An Analysis Of The History Of Fujian Merchants

At that time, Ding Shizhong had just graduated from junior high school. At the age of 17, he had neither the capital nor the experienced Jinjiang boy in Fujian with 600 pairs. shoes Set foot on the North drift train.

"Anta, never stops", I believe this slogan is not strange to most people. nowadays Anta Has become China's sporting goods brand boss, the market value exceeded 100 billion Hong Kong dollars, equivalent to 6 Lining, 11 XTEP and 20 361 degrees. Last year, CCTV was listed as a "big power brand" and became a model of Chinese national brand. More than 20 years ago, however, Anta was only an unknown shoe factory in Jinjiang. The development history of Anta is not inspiring, because Anta group Ding Shizhong, chairman of the board of directors, can be regarded as a "grassroots" at the beginning of entrepreneurship in the last century. At that time, Ding Shizhong had just graduated from junior high school. At the age of 17, he had neither capital nor experience. The Jinjiang boy in Fujian took 600 pairs of shoes on the North drift train. At that time, he would never have thought of the achievements of Anta today. Today, let's take a look at the eight sisters together to see how Ding Shizhong launched the counter attack on Anta.

Fortune history: Grassroots counterattack

Let's take a look at the major events in Anta's development process.

In 1970, Ding Shizhong was born in Chen Dai Town, Jinjiang, Fujian. The area of the town is only 38.8 square kilometers. In the early 80s, there were shoe factories all over the place, and Ding Shizhong was there since childhood. footwear industry Grow up in a workshop.

In 1986, Ding Shizhong, 17, had neither capital nor experience. His only courage was courage. At that time, just in time to catch up with the spanformation from the planned economy to the market economy, Ding Shizhong believed that there was a certain commercial space to sell the shoes of Jinjiang to the outside world.

So he brought 10 thousand yuan and 600 pairs of shoes borrowed from his father to the unaccompanied Beijing.

In 1994, Ding Shizhong returned to Jinjiang with 200 thousand yuan earned from Beijing and founded Anta with his father Ding Siren.

In July 10, 2007, Anta sports listed on the stock exchange of Hongkong, offering 600 million shares for the global market, and only 183 times the public offering. With the excess allotment of shares, Anta's financing exceeds HK $3 billion 500 million, creating the highest price earnings ratio and financing amount in China's sporting goods industry.

In 2014, Anta surpassed Lining and became the leader of China's sporting goods industry.

In 2015, Anta's revenue reached RMB 11 billion 126 million yuan, an increase of 24.7%. It became the first sports product company in China to enter 10 billion clubs.

As of July 12, 2018, Anta's total market value has exceeded 100 billion HK $109 billion 812 million, becoming the first domestic sporting goods brand with a market value of HK $100 billion, and it has also become the highest value apparel retail group in China.

Anta's revenue and net profit margin have been close to 20% in recent ten years, and gross profit margin has kept rising steadily, which has been higher than the average level of the industry.

In the past more than 20 years, Anta has become the first comprehensive sporting goods company in the world and third in the global industry, second only to Nike and Adidas.

How did Anta achieve such a success? It can be summed up in three words: change, innovation and international pattern.

Key words: Change

Anta is a traditional manufacturing industry. Since its establishment, Anta's development history is also a history of spanformation. The path of spanformation is mainly divided into 4 stages: 1 of manufacturing, 2 of brand wholesale, 3 of deep ploughing and 4 of multi brand.

1 of manufacturing. At the time of Anta's establishment, it was mainly the wholesale mode of production. At that time, China only had the concept of sports shoes and no sports shoes, so Anta developed at this time. Ding Shizhong once said, "from 500 thousand to 1 billion, Anta has been using it for nearly ten years.

2 of brand wholesale. In 2000, Anta began to create its own brand, from "factory production stage" to "brand wholesale stage". Signing Kong Linghui as the spokesman of the image, launching the brand slogan of "I choose I like", and pioneered the marketing mode of "sports stars + CCTV" in China, and focused on the penetration of the two or three line cities, which made Anta brand take off. From 2000 to 2011, Anta's scale was nearly $10 billion from 1 billion yuan.

3 of deep ploughing retail. After the 2008 Beijing Olympic Games, with the rapid growth of China's sports industry, the homogenization competition of sports goods industry is becoming more and more serious, and the whole industry is facing a stock crisis. Anta is starting to spanform again from "brand wholesale" to "brand retail", all of which are consumer oriented and create the best brand experience. In 2012, domestic brand inventory crisis broke out, small businesses went bankrupt, and Anta was affected by inventory crisis least. Ding Shizhong later recalled: "there is nothing to worry about without turning around." In the past, Anta was a wholesaler and had a distance from consumers. We decided to spanform at that time. "

Multi brand 4. Since 2016, Anta has entered a new stage of development -- single focus, multi brand and all channels. "Single focus", that is, focusing on resources in the sporting goods industry, doing every dress and every pair of shoes. "Multi brand", by strengthening its own brand lineup, punching out the combined boxing, subdividing the sports market and capturing the demand of the market. The "all channel" layout has made it possible for every brand and product to cover target consumers through the network layout of street shops, shopping malls, department stores, outlets and electronic business platforms. It is precisely this development strategy that promotes the commanding heights of sporting goods industry at Anta station.

Keywords two: Innovation

Innovation has also played a decisive role in the development of Anta.

Back in 2005, when CBA was just starting to look for sponsorship of sports brand, Ding Shizhong accepted the requirement that CBA players play basketball with Anta's basketball shoes, but because Anta shoes were uncomfortable, they could not match Nike and ADI's collective boycott. In the same year, Anta set up a sports science laboratory at a cost of 30 million yuan. It is the first and only state-level enterprise technology center in the industry. 5 years after the establishment of the sports science lab, 99.5% of the CBA players wore Anta sneakers.

In recent years, Anta has attached great importance to R & D. In 2014-2017 years, the cost of R & D activities of Anta was 211 million yuan, 308 million yuan, 351 million yuan and 479 million yuan respectively, accounting for 2.36%, 2.77%, 2.63% and 2.87% respectively. Anta's R & D cost is on the rise. Looking at the R & D expenses of peers, Lining: in 2014-2016 years, R & D expenditure was 165 million yuan, 132 million yuan and 126 million yuan respectively, accounting for 2.73%, 1.86% and 1.57% respectively. A rough contrast between R & D investment and the importance of technology is immediately apparent. The cost of Anta's scientific research activities has accounted for more than 5% of the total cost of sales, and the proportion is similar to that of Nike and ADI.

According to the data of the State Patent Bureau, the number of Anta patents is currently 876, far higher than the level of competitors in the same industry (300-400 or so). In the design, Adidas has been excavated for the senior design director.

Abundant capital investment enables Anta to provide consumers with more technological and differentiated products. You can see from Anta's shoe design:

Keywords three: international pattern

The international pattern mainly includes the following aspects: first, the internationalization of talents, and the two is to integrate global resources to serve consumers. Since its listing, Anta has been introducing talents from all over the world. At present, the proportion of international talent in the top management team has exceeded 22%. At the same time, Anta set up design centers in the United States, Japan, Korea and other countries and regions. DuPont, BASF, McKinsey, IBM and other excellent international suppliers are working with Anta.

In terms of brand, integrate global resources to serve consumers. Anta's main brands include Anta ANTA, FILA (Fei Le), Descente (Desanto, ice and snow sports equipment), Sprandi (walking shoes), Kolon Sport (outdoor equipment), NBA joint brand and children's wear Kingkow, Anta Kids and FILA Kids. Anta's current brand matrix integrates the global brand resources and advantages of many countries, covering professional sports to mass sports, from high-end leisure to urban strides, to meet the needs of different consumers.

The key factor of success: founder Ding Shizhong

No matter what the establishment, development or success of Anta depends on, ultimately, it depends on people. For Anta, this person is Ding Shizhong.

There are many labels on Ding Shizhong: diligence, nothing, execution, learning, and pragmatism... It is precisely because of these characteristics that under his leadership, Anta moves to the top step by step.

Ding Shizhong's diligence and execution power can be seen from more than 500 cities in two years. In detail, he will pay close attention to the time of Anta advertisement rolling in the sponsorship field. Ding Shizhong also has a very strong learning ability and high conversion efficiency. Take an example: when Anta spanformed from brand wholesale to brand retailing, Ding Shizhong visited Anta's Sheng Bai Jiao and Daphne's Chen Yingjie to understand BELLE's supply chain operation and the spanformation of Daphne's retail operation system. Chen Yingjie told Ding Shizhong that Daphne took 8 years to complete the spanformation of the self operated retail system, but Ding Shizhong reduced the channel spanformation time to three to five years. There are many similar cases. It can be said that Anta's achievements really depend on Ting Shi Zhong.

In 2015, the proportion of sports industry in GDP (gross domestic product) was 0.7%. According to international experience, the proportion of developed countries in Europe and the United States was above 2%, and the United States and France even reached 3%. According to the plan of the State Council and the State General Administration of sport, Sports industry It is entering a long period of rapid development: the output value of the industry will increase from 1 trillion and 700 billion in 2015 to 5 trillion in 2025, that is to say, in 2015-2025 years, the sports industry will grow 11.4% annually.

At this stage, the growth of China's sports industry is huge. Reform, innovation and international pattern will still help Anta's development. But what can not be ignored is that Anta itself has some problems. For example, Anta's 95% business is concentrated in the domestic market, and sales outlets are mainly distributed in two or three line cities, and the brand audiences are mainly middle and low income groups. But eight elder sister thinks that these problems are not cases, and they are available in many well-known domestic enterprises. In recent years, the tide of enterprise spanformation is overwhelming, and mergers and acquisitions happen frequently at home and abroad. Anta also said that Market segmentation Indeed, it is a good opportunity. The standard of acquiring brand in the future is differentiated from Anta first. On the basis of subdivision, we should make product specialization and create first-class brand.