Lululemon Founder Subscribe Anta Shares

In June 26th, Anta sports announced that DennisJ.Wilson subscribed for about 0.59% of Anta's issued share capital and the subscription amount was HK $778 million. The proceeds from this transaction will serve as general working capital for Anta sports.

According to the announcement, the Anta sports subscriber Dennis J.Wilson is the chairman of Hold It All Inc., and is the founder of Lululemon athleticainc. (Lululemon brand).

The founder of such a large hand to subscribe for Chinese sports brand stocks, many domestic apparel industry has begun to pay attention to the Lululemon this yoga clothing known for "small and beautiful" brand.

If you only look at the number of stores and marketing exposure, few people can guess that the market value of Lululemon now exceeds 20 billion dollars. We should know that the total market value of MichaelKors was up to $5 billion 697 million as of Friday (June 28th), while that of jewellery giant Tiffany was 11 billion 369 million dollars in the same period.

But if we look at the growth momentum, we can understand why Lululemon is so popular in the capital market. In June 13th, the first quarter of Lululemon2019 fiscal year showed that in the three months ended May 5th, the group's global revenue grew by 20% to 782 million US dollars, while the same store sales volume increased by 14%, achieving 9 consecutive quarters of profit. Lululemon also raised its annual performance expectations. It expects revenue to reach 3 billion 730 million -37.7 billion in fiscal year 2019. In addition, Lululemon plans to double its male and Internet sales in the next five years, and retailers plan to quadruple international revenues by 2023.

Forbes magazine has commented that as the Lululemon strategy extends beyond yoga clothing, the traditional sports giants need to be vigilant in the future or directly participating in the competition of sports brand giants such as Nike, Adidas and Andrew.

No traffic star, not large scale shop expansion, the growth rate of Lululemon in recent years has made many people in the clothing industry feel puzzled.

Excellent international CEO Yang Da Jun analysis pointed out that unlike other sports brands, Lululemon can have a large number of "iron powder", relying on grass-roots and community marketing methods to promote. And the market reaction of Lululemon can also prove that there is still potential for sports products in the field of subdivision.

DennisJ.Wilson has summed up the Lululemon brand tonality as "functional fashion tide card", which is a special "brand story" in the field of sportswear, and even in the field of clothing. Buying and owning it, making the middle and advanced consumption level of women group get a certain identity resonance.

In addition, unlike Adidas, Nike and other hundreds of millions of dollars to hire sports stars to promote the difference, Lululemon is taking the idea of "promoting the user community through opinion leaders". Lululemon will make efforts to create a kind of community atmosphere for customers through the cooperation with yoga instructors, and accumulate a large number of fans in a short time. Over time, these communities have become part of the Lululemon experience marketing. Consumers who buy yoga clothes can also establish contacts with the good communities in the local area and get the circle of communication.

"Lululemon wins consumers' love by product design and function. Big enterprises, big markets, small businesses and small markets, although big brands are omnipotent and cover a wide market, personalization is always their pain point. " Yang pointed out that as long as customers have personalized pursuit, any niche market will have an opportunity.

However, there are also people in the industry who believe that the strong product line of Lululemon is still relatively simple. Although they are involved in footwear and personal care, the contribution rate of these products to brands is limited. In the long run, it is still necessary to expand the scope of business and achieve scale effect if we want to achieve the brand of whole category sports, such as Nike.

At present, the outside world has different judgments on whether Lululemon can continue to grow in high terms. UBS, an analyst at JaySole, thinks that although Lululemon has growth potential, its price has risen, while Wells Fargo is more of a "Five Year Plan" for Lululemon to expand to men's and overseas markets. They predict that if Lululemon's plans are effective, they will at least guarantee that they will continue to grow well within 5 years, and their share price will also outperform in the short and medium term.