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    The Four Major Sports Brands Occupy The Top Of The Mountain: Fierce Competition Has Emerged Behind The Brand Impact.

    2018/8/24 9:31:00 71

    Sports BrandAnta31St DegreeLiningSponsorship

    Behind the brand impact, the market competition is fierce.


    Recently, Sun Yang's "dress door" incident continued to ferment, one side is a personal endorsement is official sponsorship, attracted a lot of debate.

    Behind the impact of the brand, there is fierce competition in the market.

    From the local sports shoes and clothing brand,

    ANTA Sports Products Limited

    Occupied China

    Sports market

    Half of the country's sports brand is dominated by sports events. Now there are different sports venues. But because of the characteristics of the sports brand, they all present a characteristic: high gross profit rate and low net interest rate.

    Four listed brands have their own routines.

    At this Asian Games, Anta and 361 degree are all the prominent local sports brand sponsors.

    In 2009,

    Anta

    For the first time, it became an official partner of the Chinese Olympic Committee and ushered in a chance to overtake in the curve.

    Since then, after signing the contract with the Chinese Olympic Committee in 2013, it also signed a contract renewal agreement with the Chinese Olympic Committee in 2024 to provide uniform clothing for Chinese sports delegations including the Olympic Games and the Asian Games in 2017.

    This is Anta's 9 years of triumph.

    When Anta first signed the Chinese Olympic Committee's sports

    clothing

    The annual revenue of the sponsorship contract was only 5 billion 870 million yuan, which exceeded 100 billion yuan in 2015, and this figure has reached about 16 billion 693 million yuan in the 2017 annual report.

    On the other side, 361 degree has also been trying to achieve its internationalization path by virtue of the Asian Games in the past 10 years.

    Since becoming a senior partner of the Guangzhou Asian Games in 2008, it has signed the 361 Asian Olympic Council in 2009 and became its global official sponsor.

    361 degrees had sponsored the 2010 Asian Games in Guangzhou and the Inchon Asian Games in 2014, and became the official partner of the Rio Olympic Games and Paralympic Games in 2016.

    The 2018 Jakarta Asian Games, 361 degree as a senior partner, for the Asian Games staff, torchbearers and volunteers and other official personnel to provide equipment.

    With the in-depth cooperation between 361 degrees and many teams such as the national swimming team, the brand image has been promoted. As of December 31, 2017, the group has 1241, 1030, and 378 sales outlets in Brazil, the United States and Europe.

    In addition to Anta and 361 degrees, Lining, one of China's veteran sports brands, is also one of the contenders.

    After being robbed of sponsorship by Anta, Lining lost CBA sponsorship in 2012 for 5 years and 2 billion yuan.

    Huge sponsorship has brought Lining a heavy burden, and the "shoe stripping" incident of the previous year has also affected Lining's brand image.

    But overall, during the CBA sponsorship cycle, Lining recovered well and achieved profitability in 2015.

    And XTEP seems to be making a new path. Since the brand pformation in 2015 chose to abandon the marketing way of large-scale sponsorship entertainment programs, it began to focus on domestic running related events.

    In 2017, XTEP reclaimed the sporting goods brand sponsored by China for the most marathon events. It sponsored 40 running events and became an official partner of the Chinese marathon recognized by the China Athletic Association.

    In recent years, the performance of XTEP International (01368, HK) is far less than that of Anta, but it is more stable.

    High gross margin and low net interest rate

    Reporters noted that after the incident, the performance of the capital market is quite impressive.

    By the end of August 21st, Anta sports showed a U trend in the morning. It rose in the afternoon and ended up at HK $40.55 / share, or 2.53%; the 361 degree overall performance rose, closing at HK $2.21 / share; Lining's performance was mediocre, eventually rising 0.24%, at 8.52 Hong Kong dollars / share; XTEP international rose all the way, or 5.43%, and reported 4.66 yuan / share.

    In the sporting goods industry, Anta's development in recent years is particularly noticeable.

    In August 14th, Anta sports released its medium-term performance in 2018. Its revenue grew 44.1% over the previous year, reaching 10 billion 550 million yuan. It created the best "mid-term" answer in the 11 years since Anta went to Hong Kong.

    Meanwhile, Anta sports has gained two digit growth for 5 consecutive years.

    But Anta sports also mentioned in the 2018 semi annual report that the increase in advertising and publicity expenses accounted for 2.4 percentage points, to 11.7%, because of the increase in expenditure related to the marketing and publicity activities of the Chinese Olympic Committee at the sponsorship and retail level.

    If the annual earnings of the four major brands in 2017 are used as the basis for evaluation, the reporters found that the high distribution expenses became the general characteristics of the industry through the analysis and comparison.

    Data show that in 2017, Anta sports achieved 16 billion 690 million yuan in revenue, 49.4% in gross profit margin, and 1 billion 769 million yuan in advertising and publicity expenses.

    Compared to the same period, Lining, 361 degree, XTEP International's revenues were 8 billion 874 million yuan, 5 billion 158 million yuan, and 5 billion 113 million yuan, while the expenses for advertising and publicity expenses were 980 million yuan, 510 million yuan and 660 million yuan. The net interest rates of Anta sports, Lining, 361 degrees and XTEP international with gross profit margins all above 40% were not more than 20%.

    The independent shoe clothing commentator Ma Gang Xiang indicated that for sports sponsors, the most important factor to choose to invest heavily in investment events is the dissemination effect. Generally speaking, sports marketing accounts for about 10% to 15% of annual sales of enterprises, which in turn is a manifestation of sports brand influence.

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