The Secret Behind Anta'S "Never Stop"

According to the world clothing shoes and hats net, in recent years, sports fashion brands

Who concentrated on the major business circles, who thought that the high-end FILA was Anta.

It is no longer the traditional localization of the three or four line cities.

Instead, it has formed a multi brand layout of high and low end, and has earned many brands such as FILA, DESCENTE and KINGKOW.

Anta sports "never stops" is not just buying and selling, but also rising stock prices.

In the 2013-2018 year, the stock price of Anta sports rose sharply from HK $6.9 to nearly HK $40, and realized six consecutive years of rising. Its market value reached HK $100 billion, becoming the third largest sporting goods company in the world after Nike and ADI.

Next, let's take a look at the secret behind Anta's "never stop".

Anta is leading the domestic sports brand.

In 1991, Anta shoe factory started in Jinjiang, Fujian, initially undertaking overseas OEM orders.

The competition in the foundry market is fierce. In order to share the domestic market proceeds, Anta founder Ding Shizhong set up Anta's own brand and set up a distribution network. With the big hand marketing investment, it gradually became the leading brand of the Chinese sports industry and landed at the Hong Kong Stock Exchange in 2007.

In 2011, the sportswear industry faced a crisis of overstock.

Domestic brands are closing stores and scaling down inventory.

When the industry is in a predicament, Anta opens up retail reform, strengthens retail management, monitors sales data, helps dealers clean up inventory and optimize orders.

In 2014, Anta took the lead in stepping out of the adjustment and resumed growth, becoming the first domestic brand in China's sporting goods industry, second only to ADI and Nike.

Not only that, but with Anta's cost control and efficient operation, its net interest rate is also much better than that of Lining, 31st degree and other domestic brands.

In 2017, Anta sports revenue and net profit had reached more than 5 times that of 2007.

In the semi annual report of 2018, Anta sports continued to grow at a high speed. The battalion included 10 billion 500 million yuan, an increase of 44.1% over the same period, and a net profit of 2 billion 2 million yuan, an increase of 35.1% over the same period last year.

Keep pace with market trends and achieve efficient operation management.

The steady and high-speed growth of performance and the net interest rate of leading peers are inseparable from the efficient operation and management of Anta sports.

Anta sports implements the strategy of "consumer orientation and retail orientation". It always keeps close to consumers, keeps pace with market trends, helps retailers increase profits and reduce inventory pressure.

According to the information disclosed in the earnings report, Anta can monitor the retailers' sales data in real time through the ERP system, so as to enhance the efficiency of products in the design and development, production replenishment, and so on, so as to improve the operation ability.

Turnover data is the main index to measure the operation capacity of retail enterprises.

The smaller the turnover days of accounts receivable, the faster the repayment and the stronger bargaining power; the smaller the inventory turnover days, the faster the inventory turnover and the less stock backlog.

On these two indicators, Anta has been significantly better than its peers for many years, indicating that its retail management has been effective.

According to the 2017 earnings report, Anta sports accounts receivable turnover days were 40 days, and inventory turnover days were 73 days.

Multi brand strategy, comprehensive coverage of market segments

In addition to efficient operation and management, "multi brand" strategy is also an important reason for Anta's steady growth.

The main brand Anta is mainly located in the mass market, deep ploughing three or four line cities and main performance price ratio.

In view of the high-end market, Anta sports has achieved the layout through the acquisition of overseas brands.

At present, Anta sports has gathered a large number of sports brands, such as sports fashion FILA, professional ski brand DESCENTE, fashion casual shoes Sprandi, outdoor sports KOLON, high-end children's wear KINGKOW.

These brands help Anta sports cover all sportswear segments from children to adults, from the public to the high-end, from fashion to professional.

The most popular among them is the sports fashion brand FILA. As early as in 2009, Anta was in the loss of FILA China business income pocket.

After nearly ten years of operation, the FILA retail store in China has increased from 60 in the acquisition period to 1248 in the first half of 2018, and is mainly located in a second tier city to expand the high-end market for Anta.

The successful experience in FILA brand operation can help Anta achieve the "multi brand" strategy better.

In the third quarter 2018 business performance announcement, Anta sports's non Anta brand recorded an increase of 90% to 95% over the same period.

Investing in marketing and constantly consolidating the leading position

The sale of clothing and shoes is inseparable from large-scale marketing.

In recent years, the sales cost of Anta sports has maintained a rapid growth, and its investment in marketing is obvious.

In the first half of 2018, the sales cost of Anta sports was as high as 2 billion 765 million yuan, and the sales cost rate was 26.2%.

Anta's main brand continues to consolidate its leading position in China's mass sports brand through cooperation with the Chinese Olympic Committee and sponsoring the national team.

In 2009, Anta was a partner of the Olympic Organizing Committee of China, sponsoring 24 national sports teams.

In 2017, Anta won the highest level partner of the Beijing Winter Olympic Games in 2022 to open a new round of Olympic marketing cycle.

In addition to cooperating with high-end sports institutions, Anta actively develops brand spokesperson marketing, including athletes familiar with Zhang Jike and Zou Shiming.

In 2015, Anta signed a contract with NBA star Klay Thompson.

With its team winning the NBA Championship for two consecutive years, Klay has brought remarkable marketing results to Anta, while the joint issue of KT basketball shoes breaks the pricing ceiling while sales are unusually hot.

The future is available to pay attention to major takeover risks

At present, Anta sports fundamentals remain good, and its performance has maintained steady growth.

The efficient operation efficiency, the strategic layout of the whole brand and the outstanding marketing ability make us have more expectation for the future of Anta sports.

However, the risks arising from major acquisitions can not be ignored.

In December 2018, Anta sports announced that it would buy Finland Amer Sports group for 4 billion 600 million euros. The acquisition is not yet landing, and the relevant uncertain risks need to be vigilant.

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