Anta 2020 Overseas Expansion

After the acquisition of Amer Sports, Anta handed over its transcript in 2019. In March 24th, Anta group released the announcement of group performance in 2019. The first annual profit of Anta group reached 30 billion yuan, reaching 33 billion 930 million yuan, an increase of over 40% over the same period last year. It increased by nearly 10 billion yuan compared with the 24 billion 100 million yuan in 2018, and the net profit was 5 billion 425 million yuan, up 32.2% over the same period last year.
Behind the beautiful performance, Anta's strategy of "single focus, multi brand and all channels" is being effective. However, compared with the growth of the two pillar brands of Anta and FILA, Anta's contribution to Anta has not been reflected. According to Anta's amamwin sports growth plan, in 2025, amamin sports will achieve five euro 1 billion development goals. Now, in the face of the global outbreak of the new crown pneumonia epidemic, the prospects for overseas sports market are not optimistic. On the basis of 34 billion yuan income, whether Anta can achieve the next 10 billion yuan growth in 2020 still faces the test of the market.

　　 Multi brand strategy assignment
In March 24th, Anta group released 2019 fiscal year results show that the annual operating income increased 40.8% to 33 billion 930 million yuan, net profit increased 30.3% to 5 billion 340 million yuan, operating profit increased 52.5% to 8 billion 690 million yuan.
For the growth of performance, Anta group said that in 2019, Anta Group continued to deepen the development strategy of "single focus, multi brand and all channels", promoted the process of globalization, created the mode of "three brand groups" and "three big sharing platforms", so that many brands of their brands were improved in brand power, commodity strength and retail power, and the multi brand hatching ability was prominent, which promoted the whole group. The rapid growth of sales.
It is worth noting that after ten years of FILA rights, Anta released its complete annual report for the first time. In 2019, the FILA brand achieved 12 billion 770 million yuan, an increase of 73.9%, and the group's revenue contribution rate was 43.5%. During the period, FILA contributed to the increase in gross profit margin of the group. Gross profit rose 75.4% to 10 billion 400 million yuan, and operating profit increased 87.1% to 4 billion yuan.
The head of Anta group told the Beijing Commercial Daily reporter that FILA has successfully hatched two sub brands of over 1 billion grades of water, including children's brand FILA KIDS running for over 3-15 years old, over 2 billion yuan, and the trend brand FILA FUSION running water for Z generation 95 over 1 billion yuan.
Under the multi brand strategy, Anta has divided its brand into three categories: Anta, Anta, Sprandi and AntapluS, and FILA, FILA FUSION, FILA KIDS and Kingkow. Among them, the main brand Anta revenue in 2019 achieved 17 billion 450 million yuan, an increase of 21.8%, accounting for about 51% of total revenue, operating profit increased 26.2% to 4 billion 670 million yuan, the performance is still robust.
In contrast, for the outdoor sports brand group, Anta group did not mention too many numbers. According to the financial report, the DESCENTE brand introduced by Anta at the end of 2016 increased by 75% in 2019 compared with the same period last year.
In addition, in 2019, Anta led consortium acquired amamin sports, Anta group also did not reflect in the earnings report, only mentioned in 2020 1-2 business plan as planned.
In response, Zheng Jie, executive director and group president of Anta group, said in reply to an interview with the Beijing Commercial Daily reporter that Anta group has yet to have a financial merger plan, but the profits will be reflected. The two groups will still operate relatively independently.
According to the financial report, in 2019, Anta led Mascot JVCo became an AMF sports holding company. At present, the shareholding ratio of Anta group to the joint venture company is 57.95%. Among them, during the reporting period, Mascot JVCo revenue amounted to 17 billion 500 million yuan.
　　 Five small targets of 1 billion euros
Despite the growth of performance, Anta is firmly in the "top three world" position, but as the first camp brand in China, there is still a big gap between Nike and Adidas.
According to the 2019 fiscal year report released by Nike, the annual revenue of US $39 billion 117 million is about 276 billion 600 million yuan, while Adidas's income in the 2019 fiscal year is 23 billion 640 million euros, or about 180 billion 800 million yuan. Anta still has a distance of more than 100 billion yuan with the top two.
To this end, Anta group proposed to achieve sales target of two billion yuan by 2025, cum existing brand 100 billion yuan, and amamin sports brand 100 billion yuan.
According to Anta sports's plan for amamin sports, under the strategy of big brands, big channels and big markets, shoes and clothing, direct business and Chinese business will become the focus of future development. At the same time, the three brands of Arc teryx, Salomon Salomon and Wilson Wilson were built into "1 billion euro" brand respectively, and the Chinese market and direct business plan achieved 1 billion euros in revenue.
In the view of economist Song Qinghui, from the perspective of Anta's transformation of FILA, it is not without chance to achieve the goal of five euro 1 billion euro by means of the global market, but the premise is whether the amamin brand as a high-end outdoor brand can maintain an annual growth rate of 30%.
According to the data of the China Academy of industry research, the overall market scale of the domestic outdoor sports industry reached 53 billion 700 million yuan in 2018, of which the core outdoor market reached 20 billion 400 million yuan, but in the outdoor sports industry, there were 490 domestic brands and 445 foreign brands.
Anta group forecast that because the main products of amamin sports are autumn and winter products, accounting for more than 65%, if the global epidemic is effectively controlled before autumn and winter, the company is confident that its impact on the annual performance of the AMF can be kept within the controllable range.
Zheng Jie said Anta group has formulated a five year development strategy, and hopes that in the next five years, the development goals of amamin sports management can be achieved smoothly according to plan and step by step. This is the future focus of the group.
Ding Shizhong, chairman and CEO of Anta group's board of directors, also said in the earnings report, "Anta has been the first to recover from the inventory crisis of the whole industry in 2012. Anta has accumulated rich practical experience in enhancing its ability to resist risks and quick adjustment strategies under uncertain circumstances. The epidemic will accelerate the long-term development potential of the sports and health industry objectively, and will bring historic opportunities for the transformation and innovation of the industry. The goal of the group to achieve 200 billion yuan in 2025 will not change.
　　 Overseas expansion
In fact, Anta's retail plan has also been hit since the outbreak of the new crown pneumonia outbreak. By the end of 2019, the number of Anta brand channels was 10516, and the number of FILA brand stores was 1951.
Anta said in its earnings report that Anta has shifted its focus to the Internet from the beginning of the epidemic. By the end of January, it had pioneered the "full retail" innovation project in the industry, involving more than 60 thousand employees and partners to revitalize the private sector traffic. Up to now, the recovery rate of its own factories has reached 100%, and the outsourced factories have resumed more than 90% capacity; the group's stores have basically resumed their business.
However, in the textile and clothing brand management experts, Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., it seems that the main brand Anta accounted for only 51.4% of the revenue in 2019, far down 8% compared to 59.4% in 2018. We can see that the Anta (including children) more than 10000 stores' efficiency is declining, while the operating efficiency is decreasing, we have to worry about the future of the main brand. Exhibition.
Anta revealed in its earnings report that in 2019, the company had invested 200 million yuan in advance in the layout of digital transformation and the construction of big data platform. In 2020, the group's digital strategy will be developed from three aspects, namely, intelligent commodity, CRM platform of all channels, and full operation of the whole value chain.
Obviously, Anta has made preparations for the high growth in 2020, and has seen changes in the industry and consumption environment under the epidemic as a good opportunity for the company to promote efficient transformation.
Cheng Weixiong believes that from now on, once the epidemic is over, Anta will soon return to the right track of high growth, but as a multi Brand Company focusing on sporting goods, Anta's R & D cost will only account for 2.3%, which will undoubtedly become a soft spot hindering its operation and development.
In response, Anta pointed out that in order to reduce its dependence on the Chinese market, Anta has pushed its business to the global market and implemented cross brand retail sharing platform within the channel. By the end of 2019, the ANTA SPORTS CAMPUS, the global headquarters of Anta group, has been established in Shanghai. It will serve as the future global innovation and integration base of Anta group, and the important platform for the global talent development center and global resources linkage SPORTS.
In addition, Anta will also actively layout the 2022 Winter Olympic Games and the winter Paralympic Games, supporting China's national team's equipment support and research and development, and will seize the explosive growth and huge business opportunities of the sporting goods market in the coming years.
However, affected by the epidemic, the overseas market of amamin sports is really not optimistic. Cheng Weixiong said that the key to Anta's strategic adjustment is the potential of amamin sports. He hoped that yamamin sports will achieve the goal of 1 billion euros in the future, not only to increase the income of Anta, but to truly reflect the strategic upgrading of Anta from the slogan "single focus, multi brand and all channels", and implement the operation mode of "collaborative incubation, value retail and internationalization".