Anta Ding Shizhong: Local Sports Brands Are Facing Great Opportunities For Demand Side.

Affected by the epidemic, the production and operation of global sports brands are facing serious challenges. Beijing's thirteen session of the three session of the National People's Congress, chairman of the Anta group and chairman of the board of directors of the Anta group, Ding Shi Zhong, said that the epidemic only accelerated the arrival of the "coming". He was confident of the recovery of the sports market after the end of the epidemic, and believed that the local sports brands were facing great opportunities at the demand side.

Issuing consumer coupons to middle and low income groups

The sudden outbreak of the new crown pneumonia has a serious impact on the global economy. Under the severe and complicated situation, "six stability" and "six guarantees" have become one of the core concerns of the two sessions this year. As a representative of the National People's Congress from the economic circle, Ding Shizhong put forward two proposals to promote market recovery and restore economic vitality. It is proposed to gradually increase the disposable income of residents in the medium and long term through the discovery of gold consumer vouchers to the middle and low income families, and further promote consumption recovery. Payment of social insurance premiums, financial and industrial support policies will further reduce the burden of small and medium-sized enterprises.

At present, some consumer policies have been issued in some areas. Ding Shizhong suggested that the issuance of consumer coupons should be further tilted to the middle and low income groups. On the basis of the current consumption coupons such as catering and daily necessities, a certain amount of cash coupons should be issued to the middle and low income families, and the relevant government departments such as the local poverty alleviation office can be combined to ensure that the local key families are covered.

Ding Shizhong believes that in addition to effectively guiding consumption expectations in the short term, we should gradually reduce the burden on residents and families, raise household disposable income, and continuously release the potential of social consumption. He suggested that we should expand the scope and amount of personal income tax deduction and increase tax deductible items, such as commercial health insurance. At present, based on the basic system of personal expropriation, we should study the transformation from family to family, such as the special deduction for serious illness, so as to lighten the family burden.

The small and medium-sized enterprises are facing severe challenges. For this reason, Ding Shizhong suggested that enterprises with difficulties in production and operation due to epidemic situation may apply for delay in payment of social insurance premiums according to the actual situation, appropriately reduce the proportion of deposit and payment of housing provident fund, and extend the levy period within a reasonable scope. At the same time, we should increase financial and industrial policy support to further reduce the burden of small and medium-sized enterprises.

The epidemic only accelerated the arrival of the "coming".

Sports industry has been developing vigorously in recent years, but the sudden epidemic shock has brought heavy losses to the related industries. As a leading brand of China's sports brand, Anta's influence is unprecedented. In February, nearly 13000 shops in the Anta group were closed almost completely until the first half of March. In the first quarter, the retail sales of Anta brand products also appeared negative growth of 20%-25% compared with the same period last year.

In addition, the international epidemic continues to spread, leading to the global sports industry chain multi link production, the Tokyo Olympic Games postponed, many major sporting events have been suspended, resulting in a series of chain reaction.

However, Ding Shizhong believes that the epidemic is only to speed up the arrival of the "coming" speed. Anta actually welcomed the change five years ahead of schedule.

"Without this epidemic, there may be some management problems that will not be noticed and valued for many years." Ding Shizhong, for example, did not thoroughly study the efficiency and cost of the enterprise in the past. But the epidemic was discovered and solved ahead of schedule. In a sense, the epidemic brought more value to them.

"Every crisis, enterprises have the opportunity to see problems that have not been valued in development and seize new opportunities. So is the epidemic crisis we face today. " Ding Shizhong said, according to past experience, people will pay more attention to their health after the occurrence of major epidemics, and consumers will have more strong desire to exercise and fitness. The epidemic is only temporary. It will objectively accelerate the release of the long-term development potential of the sports and health industry, and bring historic opportunities to the reform and innovation of the industry.

As a representative enterprise of the internationalization of Chinese sports brand, Anta acquired the famous sports brand amamfin in Finland in March 2019, which caused a sensation. Ding Shizhong said that despite the constant changes in the international epidemic situation, Anta will adhere to the strategy of globalization unchanged.

"A lot of people recently asked me about the situation of amamin, and worried about our business under the severe epidemic situation in Europe and America. I said, be sure to stay calm and look at the long term. " Ding Shizhong said that the group's acquisition of amamin, the initial intention is to carry out "long-term behavior". If there is no long-term strategic plan and no long-term investment preparation, there is no way for any brand to do it.

Local sports brands are facing great opportunities for demand side.

Although the epidemic has brought great challenges and impact to the production and operation of enterprises, Ding Shizhong is still very optimistic about the sports market after the resumption of the epidemic.

"From the perspective of market potential and consumer demand, the sporting goods industry is still a leading industry in the consumer goods market. It can be judged that there will be further rapid development in the post epidemic era. China's local sports brands are facing great opportunities from the demand side. According to Ding Shizhong analysis, from the scale of target consumers, the proportion of sports population in China now exceeds 40%, and the layout of urbanization is further enlarged, and the new consumer market is being activated. This has much room for improvement compared with the level of 60%-70% in developed countries in Europe and America.

From the perspective of target consumers' preferences, in recent years, people are becoming more and more inclined to leisure in dressing habits, and the expansion of sports apparel consumption scenes has promoted the improvement of consumption frequency.

From the perspective of target consumers' structure, the younger generation of "Z generation" after 95 is becoming the main consumer group of sports brands.

"The Chinese culture of their generation is confident that the dividends of brand choice will be released for local enterprises." Ding Shizhong said that from the sales situation of Anta group during the May 1 holiday period, the total water quality of each brand online and offline has achieved rapid recovery and growth compared to the same period last year. Through the analysis of big data of e-commerce platform, the proportion of consumers after 95 increased by 10% during the epidemic period, and the preference for Chinese brands was particularly obvious. This is a huge driving force for the growth of Chinese brands.

In recent years, the domestic sporting goods industry is increasingly showing the characteristics of scale, branding and technology. Ding Shizhong believes that this epidemic crisis will further urge industry head enterprises to increase investment in innovation and research and development, continuously improve product technology content, enhance supply chain control, digital transformation and Internet sales capabilities, and the overall transformation and upgrading process will speed up.