Textile And Garment Industry Weekly: Sports Brands Show Domestic Glory, 21Q1 Shows Strong Growth

Domestic sports brands released 2021q1, showing strong growth. Anta Sports: the retail sales of Anta's main brand 21q1 increased by 40% - 45%, FILA achieved 75% - 80% growth, and other brands (including Descente, Kolon, etc.) achieved 115-120% growth. Li Ning: in 21q1, the whole platform retail flow increased by 80% - 90%, while the offline channels increased by 80% - 90%. Among them, the retail channel increased by 90% - 100%, the wholesale channel increased by 80% - 90%, and the e-commerce business grew by about 100%. Tebu International: 21q1: 55% year-on-year (20q1: - 20% ~ - 25%, 19q1: low double-digit growth), retail discount of 7-75% (20q1: 65-70%, 19q1: 7.5%), retail inventory turnover: 4.5 months (20q1: 5.5 months, 19q1: 4 months).

In the short term, Xinjiang cotton incident has shifted consumers' demand for some overseas brands. In the long run, it will encourage consumers to consider domestic brands in the same way, and enhance consumers' sense of national self-confidence through wearing domestic brands. High quality domestic sports enterprises will fully benefit from this trend.

Anta Sports: the main brand shows the glory of domestic products, and multiple brands continue to be strong potential. We believe that the high growth of Anta's main brands is mainly due to the low base of the epidemic situation in 20q1, the power provided by the rapid online growth, and the acceleration of the recognition and recognition of high-quality domestic brands by the Xinjiang cotton incident. According to the official account of the elite community of apparel, the "2021 world's 50 most valuable fashion brands" released by brand Finance

Anta ranked 17 in the list, ranking the highest among Chinese sports brands. We expect that FILA in 2021 is expected to maintain a high-speed growth of more than 30%. The main reasons include: (1) expanding market influence. According to Euromonitor data, FILA's sports apparel market in China will account for 6.4% in 2020, with a year-on-year increase of 0.9 PCT, ranking the fifth. The growth rate is the highest among the top ten brands. ② the channel still has room for expansion; ③ diversified product lines cover high-end customers of all ages. We believe that the company has established a clear strategic thinking of "single focus, multi brand and omni channel", and created three growth curves with strong competitiveness.

Li Ning: strong growth in the same store under the background of closing stores. By the end of 2021q1, there were 5784 stores in Li Ning, a net decrease of 128 compared with the beginning of the year, and 1015 stores in Li Ning young, a net decrease of 6 compared with the beginning of the year. We believe that the same store is the main driving force. The strong potential of the same store is mainly from the fertile soil of Li Ning's design, while the Xinjiang cotton incident accelerates its market recognition and recognition as a domestic top brand. ② Xiao Zhan became the global spokesperson of Li Ning in March, with a total of more than 1 million tweets, 5.48 million articles were praised, and the effect of carrying goods was significant. ③ the influence of 20q1 low base number. The company focuses on the strategy of single brand, multi category and multi-channel. In recent years, through the reform of commodity operation mode and the enhancement of retail operation ability, the company has achieved remarkable efficiency improvement effect. We are optimistic about its development potential as a top quality domestic sports brand.

Tebu International: competitive products show strong strength and gradually consolidate the position of running circle. According to Euromonitor data, in 2020, Tebu's brand share in China's sports shoes market was 4.7%, ranking seventh, ranking third among local brands, and the only sports brand with running as its core field. We believe that Xinjiang cotton event accelerated its recognition in the field of running. In the 4 / 10 Xiamen marathon, the wearing rate of the special step 160x series was 51%, ranking the first. In the 4 / 11 Xuzhou marathon, 7 of the top nine runners wore the special step 160xpro, and the competitive products played a strong role. In 2015, the company promoted the rapid growth of the enterprise from three aspects of [brand positioning], [product innovation], [retail network and operation management], and consolidated its leading position as one of China's top three local sporting goods brands and one of the top five global sporting goods brands.

It is suggested that attention should be paid to high-quality domestic sports objects. We believe that the sports industry in the national economy, youth education and infrastructure level have national policy support, long-term steady and sustainable development. Globally, we believe that greater China will still be the region with the leading growth rate of sportswear market in the next three years, with the highest growth rate of professional sports shoes and the largest scale of sports fashion market. Euromonitor data shows that the compound growth rate of China's sportswear market from 2021 to 2024 is 12.2%, while that of Japan / USA / UK is 2.9% / 6.5% / 5.4%. It is suggested to pay attention to the high-quality domestic sports standards: Anta sports, Li Ning, Tebu international.

Risk tips. Consumer preferences changed, industry competition intensified, economic downturn, and the retail environment was weak.