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    Not Satisfied With The World'S Third Largest Sports Brand, Anta Also Needs To Occupy The Minds Of Consumers.

    2019/1/31 10:43:00 22

    FILA

    In January 21st, the "joint incubation value retail" - the 2018 annual Anta ten annual summary meeting was held in the Xiamen International Convention and Exhibition Center BRICs hall.

    Ding Shizhong, chairman of the board of directors of Anta group and CEO, delivered a keynote speech entitled "collaborative incubation, value retailing", announcing that Anta group entered the "collaborative value year".

    2018 is the best year in Anta's history.

    Anta group has implemented the strategy of "single focus, multi brand and all channels". In the first half of 2018, it had over ten billion revenue and more than 10000 terminal stores, and handed in the best report card since 11.

    Strengthening acquisition and integrating FILA "test field" to open up multi brand strategy

    In addition to delivering a good pcript in 2018, Anta's acquisition took on a new leaf.

    In December 7, 2018, Anta sports announced in the official website that Anta sports and Fang Yuan capital and Tencent investment consortium, through the newly established company MascotBidcoOy, formally purchased amamin sports company.

    The total price of 4 billion 660 million euros (about 37 billion 100 million yuan) business has become the largest foreign mergers and acquisitions in China's apparel industry.

    As the largest shareholder, Anta will become the third largest sports Brand Company in the world after acquiring amamin sports.

    Anta has a wealth of acquisition experience.

    In 2009, Anta Group acquired the right to use and operate FILA trademark in China from the price of HK $600 million from BELLE international.

    Unlike the popular sports market that Anta focused on in the three or four tier cities at that time, the Centennial fashion brand FILA, founded in Italy, mainly opened up high-end high-end consumers.

    However, at that time, FILA was still in a state of loss, and the recognition degree in China was not high, so the industry did not look good.

    After nine years' efforts, in 2017, FILA business accounted for more than 20% of the total revenue of Anta group, and its growth rate was as high as 50%, higher than the overall growth rate of Anta group.

    As of June 30, 2018, there were 1248 FILA stores in mainland China, Hongkong, China, Macao and Singapore (including FILAKIDS and FILA FUSION independent stores), an increase of 162 from the end of last year.

    The increasingly important revenue share and strong growth rate have made FILA gradually become the best model of Anta's "multi brand" strategy from Anta's "multi brand" layout test field.

    In recent years, Anta has launched the strategy of "single focus, multi brand and all channels", and has continued to lay out multi brand matrix. Now it has many brands such as Anta, Anta children, FILA, FILAKIDS, DESCENTE, SPRANDI, KINGKOW, KOLONSPORT and NBA.

    In December last year, the acquisition of yamamin sports further expanded Anta's multi brand territory, making it the third largest sports giant in the world.

    A staff member from Anta Beijing Sales Department told the China Commercial Daily reporter that Desanto, an outdoor high-end brand purchased by Anta, has also maintained a high-end brand positioning and has entered the high-end shopping malls in China, which exceeds 100. Anta children grow at an annual rate of around 50%. In terms of basketball shoes, Anta's KT3-Rocco has also been selling well in the United States.

    "The growth rate of Anta's main brand needs to be improved, and we need to continue to deepen reform. We need to see the potential risks behind the rapid growth of FILA brand, and maintain the long-term competitiveness of FILA brand. Anta group is still in the domestic market and the international market has not yet been opened." Ding Shizhong said that future competitors may come from different industries, Anta still has a long way to go from "Anta of the world".

    Acquisition of amamin to occupy the "consumer mind" gamble

    Ding Shizhong said at the opening meeting of the summing up conference that the company that striving for excellence not only depends on the results of the figures, but also on what values it has created for the consumers.

    The value of Anta is "consumer oriented".

    If Anta wants to become a brand that consumers want to buy, we must study how to occupy the minds of consumers.

    Who can create consumer value in terms of commodity strength, brand power and retail power? Who will win? "

    He said.

    In fact, this is why Anta insists on acquiring amamin sports.

    The consortium led by Anta bought amamfin with a premium of up to 43% (40 euros per share) because it had a large number of high premium brands.

    These brands with "European and American ancestry" are high-end brands in the minds of consumers, and consumers are willing to pay a high price for them. This is what Ding Shizhong called "occupying the minds of consumers".

    The lack of "mental resources" is a great obstacle to Chinese enterprises going to the international market.

    Take Lining as an example, Lining has been investing internationally. He has sponsored the Olympic delegation of Sweden, Spain and India under the name of "Lining", and even ran to Nike's base camp in Portland.

    But Lining's interim results in 2018 showed that international sales contributed only 1.6% of sales.

    "The lack of development in the past is largely due to the fact that amamin is not familiar with the Chinese market and is insufficient in the operation and development of the Chinese market."

    Experts from the industry department of China Garment Association said.

    In addition, China's demographic dividend and the trend of consumption upgrading in the Chinese market provide space for the development of high premium brands such as the original bird.

    "China's huge demographic dividend enables every subdivision to have the potential to create and achieve strong brands. Rather, Anta's strong market operation capability is enough to drive China's demographic dividend. China's huge demand has made more room for its brand.

    The successful experience of acquiring FILA and making it profitable quickly proves this. "

    The experts said.

    In addition, acquisition can produce "synergy".

    As Ding Shizhong said, Anta's ideal acquisition target is excellent brand in sporting goods, sports shoes and clothing and sports equipment. The purchase target can supplement the original brand needs in the business and consumer groups, so as to realize the "sharing" of resources in the channels, production and supply chain, and obtain the cost and operation advantages.

    Obviously, amamin sports just meets the above requirements.

    "If the local brand is hard to occupy the high end of the domestic market, there will be great room for growth through the acquisition of foreign high-end brands for layout, and tap the potential of the local market. But we must also pay attention to the cost control, and the pressure on the operation and storage of the outdoor stores under the offline stores is also great."

    The experts said.

    Source: China business network: Xie Yu Xing

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