FILA'S Revenue Exceeded Anta For The First Time!

On August 25, Anta sports (HK: 02020) released the interim performance announcement for 2020. In the six months to June 30, 2020, the group's overall revenue slightly decreased by 1% to RMB 14.4669 billion compared with the same period in 2019, of which Anta brand decreased by 10.7% to RMB 6.777 billion, and FILA brand increased by 9.4% to RMB 7.152 billion, surpassing Anta for the first time.

The group's overall gross profit margin was 56.8%, a record high and ahead of its major competitors, an increase of 0.7% over the same period last year. The increase was mainly contributed by FILA brand. Affected by the epidemic, the profit attributable to shareholders (excluding losses of the joint venture company) was 2.377 billion yuan, down 20.1% year on year.

The group said it would focus on digital strategy and the transformation and upgrading of direct to consumer business model in the future.

FILA leads the high-end fashion sports market, and its contribution to the Group continues to rise

In 2009, Anta announced the acquisition of FILA at a price of 332 million yuan, responsible for the promotion and distribution of FILA's Chinese trademark products in mainland China, Hong Kong and Macao. In the next ten years, Anta gradually turned FILA from loss to profit, and FILA's contribution to the group increased day by day.

In the first half of this year, FILA's revenue exceeded Anta for the first time, accounting for 48.8%

For gross profit, FILA was 5.04 billion yuan in the first half of this year, and Anta was 2.822 billion yuan. The gap between the two sides continued to expand compared with the same period in 2019

In the first half of this year, FILA was 1.766 billion yuan and Anta was 1.805 billion yuan. The gap between the two sides continued to narrow compared with the same period in 2019

During the period, FILA sub brand matrix has become more and more clear. FILA fusion fashion brand, FILA kids children's and FILA athletics professional sports bring different professional experience and brand freshness to consumers; FILA and Wilson, the world's century old brand, have gained a lot of loyal powder in the primary, secondary and third tier mainstream consumer groups With the rapid development of o2o mode, the official website has become an important channel for online direct sales; new images such as FILA 5g, FILA fusion2.0 and FILA kids3.0 have been fully implemented, and the store image has been constantly upgraded, and the store efficiency has been greatly improved; the endorsement of FILA and top-notch idol CAI Xukun has aroused heated discussions on social media.

Anta brand business model will be transformed from wholesale distribution mode to face consumers mode

Anta brand business has adopted the wholesale distribution mode in the Chinese market for more than 20 years. With the rapid change of consumption habits, Anta decided to transform the business model of Anta brand from the wholesale distribution mode to the face-to-face consumer mode. By 2025, Anta's direct to consumer business will account for 70%.

The specific work is as follows:

In China's 11 regions, including Changchun, Changsha, Chengdu, Chongqing, Guangdong, Kunming, Nanjing, Shanghai, Wuhan, Xi'an and Zhejiang, the mixed operation mode (direct + franchisee operation) is carried out, and the cooperation with distributors in these regions is terminated.

About 40% of Anta's franchised stores will be operated in batches (about 6% of Anta's brands will be operated in batches from 3 500 to 3 500)

The total amount of funds involved is estimated to be about RMB 2 billion, of which 80% to 90% are related to sales return of Anta brand products, which will be paid by the group from internal resources

According to the group, its FILA brand business mainly focuses on retail, and has accumulated rich experience in direct retail in the past years. Anta brand has transformed into a direct consumer mode, which can realize direct distribution, replenishment and allocation from the general logistics warehouse to the direct stores, which is conducive to improving the coordination efficiency. At the same time, with the help of big data analysis provided by the group's existing digital middle office, we can analyze the operation data of Anta brand's nationwide stores in real time, and realize the flexible distribution of Direct stores nationwide.

The group's online business leads the whole industry and promotes digital strategy together with IBM

From the online point of view, the e-commerce of each brand of the group has made great efforts. According to the data of tmall industry, Anta brand ranks the first in China and the third in the whole industry; the online growth rate of FILA brand is the first in the whole industry, and the total performance of the whole industry is the fifth. The growth rate of the group's overall e-commerce development is more than 50%.

Since 2019, Anta Group and IBM have been working together to carry out digital transformation strategic planning, and improve management efficiency by building a digital platform.

On the marketing side, it comprehensively plans the contact points of interactive connection with consumers, finely operates private domain traffic, enlivens hundreds of millions of consumer big data assets deposited, and provides the basis for rapid and accurate marketing.

At the production end, the company worked with BCG to formulate the development strategy of the group's supply chain and create a flexible supply chain. Through the three major measures of digitization, technology breakthrough and material breakthrough, product design, development and production were accelerated to enable the development of various brands, and effectively control inventory and maintain a reasonable inventory level.

At the logistics end, the o2o mode is established to realize the integration of online and offline inventory. The retail direct distribution capacity is increased by 35%, reducing goods allocation, reducing operating costs, maximizing inventory efficiency and greatly saving expenses.

At the same time, the second phase of the group's integrated logistics base is planned and constructed, and the central warehouse built in the future will achieve the goal of omni-channel, systematization, automation and high-income.

Taking advantage of the Winter Olympic Games, the group promotes the specialization strategy

With the in-depth promotion of the preparations for the 2022 Beijing Winter Olympic Committee and the winter Paralympic Games, the development of winter sports in China continues to heat up, and 300 million people are expected to participate in ice and snow sports.

In October 2019, the International Olympic Committee announced that Anta has become the official sports clothing supplier of the International Olympic Committee. By the end of 2022, Anta is also the first Chinese sports brand to cooperate with the IOC. (for details, please refer to the report of gorgeous records: Anta has become the official sports clothing supplier of the International Olympic Committee, and has made all-round preparations for the 2020 Tokyo Olympic Games.)

In January this year, Anta officially opened its uniform equipment research and development laboratory for 2022 Winter Olympic Games, and cooperated with Beijing Institute of fashion to test uniform equipment through a series of ice and snow events and Olympic test events.

In July this year, Anta released the 2022 Beijing Winter Olympic Games licensed national flag sportswear, which combines the latest technological achievements of Anta brand and the highest quality goods, becoming the unique brand commanding point of Anta.

In addition, during the period, the group has reached an agreement with Descente global, which will inject 90% of China's trademark and other related intellectual property rights into dishant China, which will accelerate Descente's expansion in the Chinese market.

The group said that under such favorable conditions, Descente is bound to focus on the fast-growing winter sports market with its pioneer advantages, strive to grasp the huge business opportunities of winter sports, and become one of the most successful sports goods brands in China before the Beijing Winter Olympic Committee and winter Paralympic Committee in 2022.

The 9th generation stores expand to more cities to optimize the shopping experience

Anta Sports launched a new ninth generation store in May 2019, and it has been established in Chongqing and Shanghai. Among them, Anta's ninth generation store has a business area of 2000 square meters. The ninth generation store has upgraded its brand image, store image and consumer experience, and has adopted self-service cash register system, cloud shelf and digital consumption scene function, greatly improving the shopping experience of consumers.

In June this year, Anta flagship store, which adopted the design of the ninth generation image store, opened in Wangfujing pedestrian street in Beijing, covering an area of about 400 square meters. The store not only combines the local elements of Beijing, but also adds Winter Olympics materials, and has a special "private customized" experience area. Consumers can print white T-shirts with Beijing flavor such as iced sugar gourd, Beijing landmark, "dejiner" and "Jiaoban" A plain pattern or text. In addition, the store also installed a face recognition video system, which can judge consumers' shopping habits through big data such as passenger flow statistics and hot area analysis.

The group said that the sustainable development of the distribution network and the quality of the stores, i.e. location, size, efficiency and interior decoration, were more important than the number of stores. Therefore, we will close smaller and less profitable stores and continue to open larger and more attractive stores in superior locations to improve the overall store efficiency.

? ? ? As of June 30, 2020, the number of Anta stores (including Anta children's independent stores) in mainland China and overseas countries is 10197 (end-2019: 10516), the number of FILA stores in mainland China, Hong Kong, Macao and Singapore is 1930 (end-2019: 1951), and the number of Descente stores in mainland China is 145 (end-2019: 136), which is larger than that in China There are 155 Kolon sport stores in mainland China and Hong Kong (185 at the end of 2019).