Guo Chao Lining PK International Anta, Who Can Get The Top Prize?

In modern society, consumption has changed from economic concept to cultural concept. Jean Baudrillard wrote in the consumer society.

In recent years, the tide has become a new consumer choice for young people. According to the 2019 Chinese consumer trend released by the advisory body of Chi Meng, 78.2% of consumers often buy domestic products, and 44.6% of consumers at the same price tend to buy Chinese local brands.

The trend of "national tide" is becoming more and more intense, and Lining is the best among them.

According to Lining's latest financial report, revenue in the first half of the year was 6 billion 255 million yuan, an increase of 32.7% over the same period last year, and net profit of 795 million yuan, an increase of 196% over the same period last year. Net profit after deducting disposable profit and loss related to business was 561 million yuan, an increase of 109% over the same period last year, and the gross profit margin expanded by 1 percentage points.

Among them, sports and fashion category is the biggest hero of Lining's performance growth. The growth rate of water is up to 54%, accounting for 29%. The sales volume of China Lining series, which has been on the Shanghai fashion week, occupies about 10% of the sports fashion category.

Before this year's dazzling achievements, Lining has experienced a trough of sustained losses and closing stores. In 2012, Lining lost 1 billion 979 million yuan and began to close a lot of stores. After two years, he has been losing money, and the amount of deficit in three years has totaled over 3 billion 100 million yuan.

From the loss of stores to the gratifying performance and the admiration of consumers and the good fortune of capital, Lining turned to the "single brand, multi category and multi-channel" development strategy, and trained enough "internal strength". Li Ningcai was able to get out of the low loss, tear away the soil label and lead the "national tide".

At present, Lining has already had a good competitive state, but with the expansion of the sporting goods market, Lining still has many troubles in the face of Anta and other competitors.

Beyond Lining, Anta's latecomers live.

Lining started a year earlier than Anta, and was successfully listed in Hongkong in 2004, 3 years earlier than Ann.

Later, by the 2008 Olympic Games and Lining's own Dongfeng, the development of Lining was in full swing. By 2009, the revenue of Lining reached 8 billion 300 million yuan, the company's net profit was 940 million yuan, and there were more than 7200 stores in the whole country. In 2010, Lining's domestic market share had once exceeded that of ADI to 9.7%, and it had a huge gap with Anta at that time.

The outbreak of Anta was in the trough of Lining's loss in 2011. Mantis finance saw that before that, Anta had been in power for many years and made several major changes.

First, establish a cooperative relationship with the Chinese Olympic Committee. "Domestic consumers are more concerned about China's national team, and the choice of the Chinese Olympic Committee is more beneficial to the domestic market development." In 2009, when the domestic market was not yet mature, at the same time, Lining and PEAK chose to cooperate with the foreign Olympic Committee. Anta chose Adidas Adidas to win the contract at 600 million yuan and establish cooperation relationship with the Chinese Olympic Committee. After that, Anta has gained the right to develop Chinese market in all major Olympic Games.

Second, take over FILA from BELLE international. The incorporation of FILA can be of great help to enhancing the brand image of Anta's internationalization. When BELLE took over FILA, FILA has been a continuous loss. Anta has positioned FILA's brand as sports fashion, focusing on young users. At the same time, in order to protect the brand, Anta has transformed FILA stores into direct businesses. These two initiatives have benefited FILA and Anta. By the end of 2018, Anta had operated more than 1600 FILA stores, of which about 80% were direct outlets, with a contribution of about 35% and a gross margin forecast of 70%.

Again, from brand wholesale transformation to brand retail. In 2013, in order to create brand image, understand the sales dynamics, get feedback, and better establish the relationship with consumers, Anta transferred wholesale to agents before transferring to brand retail mode, and at the same time, set up their own retail management and sales tracking system. This initiative has enabled Anta to build a consumer centric sales channel earlier, and has become the dominant player in the competition with Lining.

Finally, stick to the middle end market. Continuity and consistency are important principles of brand building. Anta and Lining have made different choices and are heading for a different road. In the swing of abandoning the masses and abandoning the old customers to choose the young group, Lining walked into the trough of losses for three years. In contrast, Anta always adhered to the middle end market with fashionable styles and lower prices. Until today, Anta brand still attacked the low-end market, and established strong consumer stickiness in the three or four line cities.

Every step of Anta's change has gone the right way. When the domestic sports industry is in a mess, we should deepen the local market and stabilize the share of the domestic market. Before the international trend comes, we will take over the FILA and aim at the high-end market in sports fashion. As a result, from the beginning of 2011, when the entire sports apparel industry was in the downhill period, Anta still opened more than 9000 stores, and with 1 billion 730 million yuan net profit, it successfully squeezed Lining and boarded the throne of the first domestic sports brand.

Since the first throne changed from Lining to Anta, it has continued to this day. Today, Anta has grown into the largest domestic sports user brand in Keep moving. In 2018, it exceeded Andemar to become the third largest sporting goods company in the world.

PK Anta, "tide card" Lining has three worries.

Anta's boom has put pressure on Lining. Fortunately, this pressure did not disturb Lining's footsteps against both "light merit" and "internal strength".

In 2018, Lining landed in New York fashion week.

After that, Lining's series of urban cultural themes quickly exploded. With the brand new image, Lining captured young consumers and succeeded in getting rid of the "local flavor" in the fashion brand.

"People are identified by what they consume." Advertising semiotics Judith Williamson said. This shows that the brand image after Lining's metamorphosis coincides with the needs of the current consumers.

Unlike Lining, although FILA2018 also boarded the fashion week in Milan, Anta did not take the "tide card" route. Nevertheless, these two brands, which belong to the second echelon of sports shoes and shoes for many years, can not get rid of the comparative fate.

From the point of view of revenue, Anta's revenue began to surpass Lining and become the leader of the new domestic sportswear brand from Lining's attempt to change into a loss in 2011. In 2018, Anta's revenue rose 24 billion 100 million yuan, an increase of 44.4% over the same period, and Lining's revenue grew 10 billion 500 million, an increase of 18.4% over the same period last year.

From the perspective of market share: from 2018, the market share of domestic sportswear brands, the market share of Anta and Lining was 8% and 5% respectively, and Anta's market share was second only to Adidas and Nike.

From a market value perspective: Anta has maintained steady and rapid growth. Although Lining's business situation is gradually improving, its growth rate is still less than Anta. As of August 20th, Anta's market value has exceeded HK $165 billion 100 million, while Lining's market value is HK $50 billion 500 million, which still has a big gap from Anta.

Mantis finance believes that despite the good reputation of beautiful financial reports and national tide, the capital market is very optimistic about Lining. But Anta's strength should not be underestimated. Lining, who wants to consistently win the reputation of performance capital, has several troubles.

First of all, in terms of the environment, the "national tide" is cyclical. Whether the previous international brand fever or the current "national tide" is in the ascendant, the trend of any trend is cyclical, and this periodicity will change with the change of the domestic and international economic environment. Many years ago, when I wanted to become Lining of the 1990s, I got a loss. In the past two years, Lining was younger. It happened to be a good time to grasp the "national tide". To overcome the cyclical nature, Lining needs to focus more on the style, function and price of the product. "Tamping the professional performance of the product is the moat of the brand, and it is also the consensus of the sports industry."

Secondly, in terms of business, the pace of internationalization has not kept pace with landing fashion week. In 2017, Anta put forward the slogan of "globalization" in its annual report. After 2018, it began to globalize strategy and surrendered 24 billion 100 million yuan of revenue. Lining, who frequently landed in the international fashion week, has welcomed a good momentum of development in China, but the overseas market is still short board. At present, although Lining's overseas marketing resources include retired star Dwyne Wade, international fashion week and Disney IP, the income from the international market is only about 73 million 640 thousand yuan in the first half of last year, compared with 91 million 468 thousand yuan in the same period last year, the drop is about 19.5%.

Finally, in terms of strategy, single brand ceilings are low. Lining's development strategy has always revolved around the development of "single brand, multi category and multi-channel". However, focusing on the limited market coverage of the main brand, the product can easily bring about a situation of "prosperity and prosperity, and all losses and losses". If consumers buy basketball shoes for several times, they will start to glue, and when they want to buy running shoes, it will be very difficult for them to have a sense of trust. Although Lining launched the two sub cards of "Lining YOUNG" and "China Lining", the contribution of the Deputy cards to the revenue has yet to be worked out. In 2009, when Anta obtained the right to use and operate the FILA trademark in China, the FILA and Anta double brand strategy was adopted. In 2018, Anta accounted for 60% and FILA accounted for 35%.

As China's senior sports brand, Lining has taken off in the "national tide". At present, compared with Anta, there is still a certain gap. But in the future, with the expansion of China's sports apparel market and the further upgrading of the "national tide", Lining, who has both practiced "light work" and "internal strength", will still have much room for imagination if he can only make products as moat and tide on the trend, and at the same time, give the brand more storytelling and continuously improve the product premium capability.

After all, the new story of chao chao Lining has just begun.

　　 epilogue

Lining has been transformed for several years before he won the champion moment of both performance and share price. This financial report, whether it is for capital, the most consumer or Lining himself, has made a good transcript.

But this is just the beginning of a race that has just adjusted itself to the track.

"In the process of gradual optimization of consumption structure, we expect people's consumption demand to become more sophisticated and diversified. In order to adapt to industry trends and create successful business opportunities in a changing market environment, we will continue to take product as the core, consolidate brand power and deepen Lining style experience value. In the future, we will continue to devote major resources to sports knowledge learning, research and development of sports technology and create Lining brand experience, and actively seek and expand more business development space. In the future, Mr. Lining said so.

The trend is cyclical, the culture is local, and the movement is professional. How to integrate these three perfectly and win the overseas praise while capturing the local consumers is something Lining should think about.

What's more, competitors' footsteps will not stop. The competition of the two sports brands in the second half must be very exciting.