Anta Group internally implements the development strategy of “single focus, multiple brands, and omni-channels”, with the two major brands of ANTA and FILA as the core, and multi-brands as new growth points, clarifying the role of various brands in the group different growth directions within.
On the afternoon of March 24, ANTA Sports Goods Co., Ltd. (stock code: 2020.HK; and its subsidiaries collectively referred to as “ANTA Group” or the “Group”) released its 2020 results announcement. The announcement showed that Anta Group’s revenue increased by 4.7% year-on-year to 35.512 billion yuan (the same below); operating profit margin increased by 0.2 percentage points year-on-year to 25.8%, operating profit increased by 5.3% year-on-year to RMB 9.152 billion, and gross profit margin increased year-on-year. 3.2 percentage points to 58.2%.
In early March, Adidas released its full-year results for 2020, showing that the net profit from continuing operations for the year was 429 million euros ( (approximately RMB 3.3 billion), a year-on-year decrease of nearly 77%. Anta’s net profit is nearly three times that of Adidas.
Although global offline operations and events have been affected by the epidemic, Anta has still achieved growth against the trend. In the past year, its stock price has risen from 70 Hong Kong dollars per share at the beginning of 2020 to At the end of the year, it was HK$124 per share (December 31, 2020), and the market value exceeded HK$300 billion.
Anta Group Executive Director and Group President Zheng Jie said that Anta’s performance in the past year has proved three things: First, the strategy is correct. Second, the group’s multi-brand operation capabilities. Third, the current business model matches the demands of the entire market.
1 Multiple brands in parallel
At the beginning of 2020, Anta responded to the impact of the epidemic on the offline and sports markets and set a The management mechanism throughout the year is to ensure health, stabilize growth and improve management and control. Therefore, cost reduction, inventory clearance and channel upgrading have become the key tasks of Anta Group.
Anta Group internally implements the development strategy of “single focus, multiple brands, and omni-channels”, with the two main brands of ANTA and FILA as the core, and multi-brands as the core. New growth points clarify the different growth directions of various brands within the group: Anta’s main brand is innovation-driven growth; FILA is the main brand focusing on high-quality high-speed growth curve; outdoor high-end majors are mainly Descente, Colon, etc. A sports brand with a high-potential growth curve that is in line with high-end consumer demand in the market.
Anta’s brand matrix has formed various subdivisions and specialized brands from mass, mid-to-high-end to high-end, fashion and leisure, fashion sports, comprehensive/professional sports to professional sports, and Each company’s growth logic is different.
In terms of brands, in 2020, affected by the optimization of channel layout and changes in the direct operation model, the Anta brand earned revenue of 15.749 billion yuan, a year-on-year decrease of 9.7%; the revenue of the FILA brand 17.450 billion yuan, a year-on-year increase of 18.1%; the revenue of all other brands was 2.313 billion yuan, a year-on-year increase of 35.4%.
FILA has become the number one contributor to Anta Group’s revenue. Last year, FILA began to incubate super single products and sub-brands under the big brand. For example, by introducing the resources of international design masters and breaking the circle of marketing, FILA’s annual sales of shoe products exceeded 10 million pairs, and it also incubated FILAKIDS FILA children and FILAFUSION FILA trend. Brand two sub-brands.
Other brands, such as DESCENTE, KOLONSPORTS, ARCTERYX, etc., are segmented brands for Anta’s differentiated positioning and are gaining strength.
For example, DESCENTE is positioned as the number one sports brand for high-end comprehensive training, skiing, and triathlon. It plans to penetrate deeply into first- and second-tier cities, and accounts for tens of millions of stores in terms of channels. More than 30%, online business has grown rapidly, Tmall category ranking has improved by 6 places, and young members have increased by more than 20%. According to Anta Group’s plan, the target time to achieve profitability is 3 years.
The Amer Group, represented by brands such as ARCTERYX, SALAMON, and WILSON, has increased its overall self-operated ratio from 25% to 60%, and its retail sales have increased. It exceeds 10 billion yuan and is expected to achieve the goal of 1 billion euros in 2025.
“As you can see, during the epidemic last year, the discounts in the entire industry were much lower than before, whether offline or online. In fact, the discounts of this kind The impact has had a relatively large impact on the health of the industry. From the perspective of Anta Group, the overall performance of each of our brands should be within our control. Especially high-end sports products, Disun The discount rates of Te and Arc’teryx are all above 80%. FILA is not much different from 2019, and Anta has almost maintained the same level.” Zheng Jie said.
2 Overcoming the plateau period
Judging from the disclosed financial reports, the performance of the Anta brand last year was weak. Anta stated that this was due to The impact of channel changes, and the brand is in a plateau period of transition between old and new growth drivers.
“Anta brand did encounter some challenges in 2020. In fact, the core of these challenges is the business interruption caused by the epidemic in the first half of the year. Most of our stores are In street shops. Since the entire flow of people and street shops were closed for a period of time at the beginning of the epidemic, including department stores, the impact was relatively large.” Zheng Jie explained that the Anta brand has improved in the second half of the year. of recovery.
In 2020, Anta will establish a new business model that faces consumers (DirecttoConsumer). This is the main brand of Anta in 2010.�Another upgrade after the important transformation from wholesale to retail.
Zheng Jie said in an interview with reporters that Anta has fully acquired 11 dealer branches since September last year, and nearly 3,500 stores have returned to Among the direct operations of Anta Group.
“Among the 3,500 stores, 60% are self-operated by us, and 40% have franchise business through the Anta brand management team. The entire process is expected to be completed within this period. Quarter, it should be fully completed by the end of March.”
In terms of funds, Anta Group has received an inflow of 6.2 billion yuan in 2020, so DTC’s pressure on cash flow is generally controllable.
In terms of branding, Anta started a brand remodeling at the beginning of the year and established its positioning as a new domestic product of “mass professional sports led by technology”. On the one hand, it strengthens channel reform, digests bad channel assets in advance, and reduces the number of stores by more than 5%; on the other hand, it promotes the ICU rectification plan for inefficient stores and creates new products to meet the market needs of different levels. The new store model improves the efficiency of direct business and increases profit margins.
In terms of channels, while taking back dealer rights, Anta has entered shopping malls and outlets, increasing its e-commerce platform, live-streaming e-commerce and private traffic platforms.
During the reporting period, Anta brand’s online business accounted for more than 20%, with a growth rate of more than 30%. Zheng Jie said, “In 2021, we will continue to invest in ‘full coverage’ and promote both online and offline engines at the same time. For online business, the goal is to account for 40% of the overall business in the next five years. ”
Next, Anta will also deepen the operations of each brand in 2021.
“For example, when ANTA and FILA are in the brand maturity stage, how can we find opportunities to give the brand better power and continue to play a driving force in its rapid growth? How can emerging brands create more A good platform can occupy its market segment more quickly, which is the direction we should strive for in the future,” Zheng Jie said. </p
