The Performance Of The Three Major Sports Brands In China Is Different.

When sports are becoming more and more popular, the recovery of local sports brands and industries is attracting more attention.

Recently, three sports brands including Lining, Anta and China have released annual reports: Anta's revenue in the first half of the year exceeded 10 billion yuan, creating its best mid term performance in 11 years.

Lining's net profit has risen by more than 40%.

The performance of Kappa's parent company in China is not so beautiful, and net profit has dropped by two digits.

Insiders pointed out that the performance of the three enterprises showed that

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In the context of the development of China's market with international brand names, local brands need to continue to innovate in products and functions.

One

The results are different.

Anta released the mid term 2018 earnings report, as of June 30, 2018, Anta's revenue reached 10 billion 550 million yuan, an increase of 44.1% over the same period, gross profit margin increased from 50.6% in the same period last year to 54.3%.

This pcript announces that Anta still ranks as the first sports brand in China.

Cheng Weixiong, general manager of textile and clothing management and Shanghai Liang Qi Brand Management Co., Ltd., in an interview with the international finance daily, said that

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At the same time, the Lining announcement, which was nearly thirty percent, was overtaken by Anta in 2011, showing that its operating income was 4 billion 713 million yuan, up 17.9% from the same period in 2017, and its net profit was 269 million yuan, an increase of 42% over the same period last year.

This means that after 8 years, Lining is expected to re-enter the 10 billion battalion camp in 2018.

Reporters access to relevant information found that in 2010, Lining's revenue exceeded 9 billion 500 million yuan, leaving only 10 billion yuan away.

However, due to the failure of the company strategy, the company sustained losses since 2012.

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However, compared with Anta's tens of billions of revenue and Lining's nearly 5 billion yuan revenue, China's performance is slightly desolate.

According to its semi annual report released in 2018, the company's revenue in the first half of the year was 772 million yuan, up 14.4% over the same period last year, but the net profit attributable to shareholders of listed companies was 481 million yuan, down 10.3% compared with the same period last year.

According to the financial report, Kappa brand marketing is the main source of revenue for domestic divisions. The total sales volume in the first half of 2018 was 569 million yuan, an increase of 55 million yuan over the same period last year.

Japanese branch sales amounted to 123 million yuan, an increase of 15 million yuan over the previous year.

However, the net sales of its apparel sales in China's domestic sector amounted to 74 million 829 thousand yuan, while the Japanese apparel sales net profit was 18 million 994 thousand yuan.

China's trend is that the increase in business revenue is mainly due to product optimization and reduced returns.

Lu Shengzhen, a marketing expert in an interview with the international finance daily, said: "China's trend of product brand update is slow, mainly relying on the Kappa brand market impact.

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The impact of other brands is relatively small, compared with Anta and Lining, the brand synergy is slightly worse, which has dragged down its overall impact on the market.

"From the point of view of performance, Anta has been far behind Lining and China's trend, and the gap will be bigger and bigger.

If Anta develops at the present pace, it will probably be smaller for Lining and China to move beyond Anta in the next 5 to 10 years. "

Cheng Weixiong told reporters.

Two

Overweight children's clothing business

In order to find new business growth points, diversified product placement strategy has become the consensus of local sports apparel brands, not just limited to footwear business.

Reporters found that

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At the scene of Anta's mid term performance conference 2018, Zheng Jie, executive director and group president, disclosed publicly to the media.

While Anta's multi brand acquisitions focus on sports other than children, non sports brands will not be considered.

According to Lining's earnings report, for the three main sectors of footwear, clothing, equipment and accessories, the total income of footwear in the first half of the year was 2 billion 190 million yuan, accounting for 46.5% of total revenue, and total clothing revenue was 2 billion 299 million yuan, up 30.7% over the same period last year.

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Coincidentally, the Chinese trend also indicated that the sales volume of its core brand Kappa business increased by 10.7% in the first half of the year, while its children's clothing business grew by 16.28%.

In the clothing industry expert Ma Gang view, on the one hand, this is good for children's consumption growth, on the other hand, the enterprise itself is also carrying out the pformation and merger of the business mode and focus, and adjusting the layout of the children's wear brand product line.

Ma Gang also pointed out that at present, the second child policy has contributed to the accumulation of capital to children's clothing from the macro level, enabling enterprises to have more product R & D funds and channels to expand funds, which laid the foundation for the overall improvement of children's clothing industry in recent two years.

Three

Market segmentation is obvious.

It is worth mentioning that, according to the report issued by Eicke de Te consultation, it is estimated that China's sports shoes and clothing market will reach 246 billion 700 million yuan in 2020, with an average annual compound growth rate of 8.37%, maintaining a relatively stable growth trend.

Therefore, apart from Anta, Lining, China's trend and other local sports brands, the international sports giants such as Adidas, Nike and other brands are also eyeing the Chinese sports market.

In the view of Lu Sheng Zhen, fierce competition has also made the market segmentation of China's local sports brands more obvious.

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Ma Gang also holds similar views.

He believes that compared with international brands, domestic sports brands are slightly inadequate in terms of creativity, product development and so on. Therefore, we should constantly subdivide different sports items, innovate in products and functions, and take advantage of brand combination or merger to make up for short boards if necessary.

Prior to that, Ding Shizhong, chairman and CEO of Anta sports director, also told the media publicly: "nowadays, if a company relies on a single brand, it will not be able to compete with" foreign brands "such as Nike and Adidas.

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