Quanzhou Local Sports Brands Set Foot In The Middle And High-End Consumer Market

The layout of high-end consumers, Quanzhou local sports brands have their own different paths, or a variety of sports industry forms coordinated development, or cooperation with foreign high-end sports brands. Recently, many local sports brands in Quanzhou have taken frequent actions: Anta acts as the agent of Korean high-end outdoor sports brand Kolon, and Guirenniao plans to acquire 100% equity of Weikang Fitness. On March 12, Guirenniao announced the plan of the board of directors to acquire 100% equity of Weikang Fitness. The company plans to acquire 100% equity of Weikang Fitness by issuing shares and paying cash, and the transaction price is initially determined to be 2.7 billion yuan. The company purchased 75% equity of Weikang Fitness held by Weikang Holdings by issuing shares and 25% equity of Weikang Fitness held by Shanghai Yuyu by paying cash.

It is understood that Weikang Fitness was founded in 2007, and its audience is relatively high-end white-collar workers and a considerable number of young people. At present, the number of members exceeds 800000. The fitness clubs under Weikang Fitness are mainly distributed in Shanghai, Beijing, Chongqing, Hangzhou and other domestic first and second tier core cities. As of December 31, 2016, Weikang Fitness and its subsidiaries had 97 subsidiaries in total, of which 82 had opened. Guirenniao said that through this transaction, the company's business scope was expanded to the field of sports and fitness, which is a key measure to achieve strategic upgrading.

in fact, Quanzhou Local sports brands are continuously expanding the market of middle and high-end consumers. At the end of February 2017, Anta announced that its wholly-owned subsidiary had entered into a joint venture agreement with the Korean high-end outdoor sports brand Kolon. The business of the joint venture is to exclusively operate and distribute Kolon brand products in mainland China, Hong Kong, Macao and Taiwan. It is understood that Kolon ranks the second in the outdoor products market in South Korea. In the past three years, its sales have shown double-digit growth. Anta said that the agency Kolon is to promote brand diversification and strive for high-end consumers.

After two consecutive years of negative growth in revenue and net profit in 2013 and 2014, Guirenniao Strategic upgrading has begun, from "traditional sports shoes and clothing industry operation" to "sports industrialization group based on sports clothing products manufacturing and coordinated development of various sports industry forms". Previously, Guirenniao invested 240 million yuan in Hupu, acquired Mingxie Warehouse with 383 million yuan, increased capital of Xingyou Technology with 100 million yuan, represented AND1 with 26 million dollars, and this acquisition of 100% equity of Weikang Fitness with 2.7 billion yuan was all in the process of implementing the above strategic upgrading.

According to the analysis of insiders, from the financial performance over the years, the investment layout of Guirenniao has not yet been fed back to the company's performance statement in time, and the above transformation action has also led to the rising asset liability ratio of listed companies. From the third quarter of 2015 to the third quarter of 2016, the company's asset liability ratio has increased by about 15 percentage points, reaching 61.6%, which is at a high level in the industry. And the valuation of Weikang Fitness this time has far exceeded the company's asset level, so for the noble bird buy Whether it is valuable to the company remains to be seen.

Compared with Guirenniao's distribution of various formats in the sports industry, Anta's agency and M&A activities are mainly focused on cooperation with other sports brands and the construction of new stores and channels. At the end of 2009, Anta acquired the Chinese business of Italian high-end sports and fashion brand FILA. Now FILA has nearly 800 stores in mainland China, Hong Kong and Macao. In addition, Anta established a joint venture with Japanese high-end ski sports brand Di Sante last year, opening 6 stores in China. In view of the good operation of FILA's business in China in recent years and the driving force of the brand to promote Anta's performance, the industry is also optimistic about Anta's acquisition or agency of medium and high-end sports brands, and believes that it has expanded Anta's business in China's sports goods market, especially in the field of medium and high-end sports goods.

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