XTEP Is Not Willing To Become A "Domestic Third Generation".

After more than a month's cooperation with Mai le and San Kang Ni, XTEP is preparing to buy more sports brands. In April 11th, XTEP announced that the board would continue to explore and assess a number of potential M & A opportunities. In addition, XTEP has issued 247 million new shares, with a net income of HK $1 billion 355 million, which will be used for a potential acquisition. XTEP is expanding from a single Brand Company to a multi brand portfolio. Some experts said that at present, the market competition is intense. M & A is an effective way to enhance the market competitiveness of domestic brands. But mergers and acquisitions also have risks, and the effect after M & a still needs to be tested by the market.

　　 Force multi brand strategy

XTEP said it will continue to explore business opportunities, but has not yet disclosed the name of the brand. It is reported that XTEP aims to be an international sporting goods company headquartered in the United States.

In fact, as early as a month ago, Ding Shuibo, chairman of the board of directors of XTEP group, said that the company was aiming at potential targets in outdoor sports, water sports and ice sports. He believes that the company now has the opportunity to negotiate with potential targets for better prices. It is undeniable that many international brands have very strong brand genes and history, but the overall economic situation and consumption climate of some European markets may no longer support these brands to achieve strong growth.

Although it has not yet disclosed the target of mergers and acquisitions, it is certain that XTEP has shifted to a multi brand portfolio.

From last year's domestic sports brand revenue, we can see that XTEP has more than 361 degrees and has become the third largest sports brand in China. But China Business Daily reporter found that compared with the first and second revenue of Anta and Lining, XTEP only sold shoes as its main business. XTEP's footwear products accounted for more than 60% of the revenue last year. Anta and Lining are mainly clothing sales.

"Because XTEP's brand positioning is the field of running shoes, XTEP's income is mainly footwear." China's cultural, educational and sporting goods association said. "Careful analysis can be seen that Lining landed the international fashion week well, showing the" chao chao "clothing so as to achieve a successful spanformation and occupy the young consumer market. And to help Anta improve its performance and popularity is its acquisition of sports brand FIE, the brand is mainly clothing. The experts said.

The experts also said that Anta and Lining raised their brand value last year because of their clothing, and gained the growth of their performance. Therefore, XTEP did not rule out the above brands and made more efforts in clothing. "In particular, Anta has succeeded in becoming the engine of growth, and XTEP will learn and learn from it." He said.

According to Anta's earnings report, last year, Fiat sales reached 10 billion yuan, the growth rate was 80%, accounting for 10.7% of Anta's total sales, the largest contribution to Anta's growth.

　　 Can Anta replicate successfully?

Last year, XTEP's performance was very bright. Its annual operating income was 6 billion 383 million yuan, its revenue grew by 25%, and its net profit increased by 61%. Analysts at CITIC said that XTEP is trying to speed up the M & a process with its own good momentum of development, which is understandable. But in his view, XTEP is still "a little anxious".

The above analysts believe that mergers and acquisitions of an enterprise need to integrate the enterprise, in order to establish a stable and orderly whole, this process takes a long time. Although Anta has successfully reversed the loss of FIE, it can not be overlooked that this process also took Anta ten years, "success is not so easy to copy." He said.

In addition, he believes that mergers and acquisitions will impact the company's ownership structure, workflow and organizational structure, and the company's main energy will be dispersed, which may affect the development of new markets, and even the original market may be eroded by competitors.

Lining has been frustrated in the multi brand strategy. Lining bought the brand name of Italy in 2008 and held high the banner of "internationalization". Unexpectedly, he fell into an awkward position. He finally contracted the international front in 2012 and refocused on the domestic market.

However, experts from the China Association of cultural, educational and sporting goods said that under the situation of intensified market competition, a single brand strategy is more dangerous. If a strategic mistake occurs, it will easily lead to the "complete destruction of the brand". Multi brand strategy can help enterprises to diversify risks.

"Fei Le's success stems from the rise of sports and leisure, and what is the draught under the sports market? This is a test of XTEP's sensitivity to sports trends and its own strength and brand positioning." The experts said.