Billion Target Anta Needs More Mergers And Acquisitions

According to the world clothing shoes and hats net, in the 80s and 90s of last century, a large number of

Manufacturing plants have sprung up in coastal areas such as Fujian and Guangdong.

After twenty or thirty years of development, some factories have established their own brands.

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Many sports stars enterprises came into being.

However, with the changing times, the domestic sports brands are facing new problems and challenges.

This newspaper launched a series of 2017 sports brand reports, hoping to find the pain spots and new highlights of the development of sports brands in China.

In the first half of the year, Anta, which achieved 7 billion 300 million yuan in revenue, showed stronger confidence.

A few days ago, Anta CEO Ding Shizhong said that Anta had the chance to achieve the target of 100 billion in 2025.

In recent years, Anta has acquired the operation rights of FILA brand and DESCENTE in China for a long time, but the industry believes that from Anta's current performance, there is still a way to go to achieve the goal of 100 billion annual sales.

In order to achieve this goal, Anta should not only ensure the stable and rapid growth of the main brand, but also need to merge more international brand expansion matrix.

Billion goals

As the first domestic sports brand with revenues of tens of billions of dollars, Anta delivered a brilliant report card in the first half of this year.

According to the financial report, in the first half of this year, Anta realized operating income of 7 billion 320 million yuan, an increase of 19.2% over the same period last year, and realized a net profit of 1 billion 451 million yuan, an increase of 28.5% compared with the same period last year. At the same time, the gross profit margin exceeded 50%, from 47.9% to 50.6%.

Based on this pcript, Anta CEO Ding Shizhong said, "based on the market space of sports products and the implementation of group multi brand strategy, Anta has the opportunity to achieve the goal of 100 billion in 2025."

In 2015, Anta's revenue was broken for the first time.

According to the plan, by 2020, Anta will achieve a compound annual growth rate of over 15% of the group's sales and water sales, and the compound annual growth rate of Anta sales will reach double digits. The annual growth rate of FILA sales will exceed 30%.

In terms of sales volume, footwear sales target is 100 million pairs, and clothing sales target exceeds 130 million.

In terms of channels, the number of shops will exceed 11 thousand, and electricity providers account for 20% of retail sales.

Water is expected to exceed 30 billion yuan in 2017.

It is understood that Anta launched a eighth generation store with its new decorations and merchandise display. As of the end of June, Anta stores, including Anta children's independent shops, had 9041 stores, including FILA stores including FILA KIDS independent stores, and DESCENTE has entered more than 10 core city shopping centers nationwide, and there are 21 stores in the country. There are 21 stores in the country.

In addition, in terms of e-commerce channels, in addition to operating official online mall, Anta also stationed in Tmall, Jingdong, vip.com and other electronic business platform.

Meanwhile, Anta's new logistics center is expected to open early next year.

More mergers and acquisitions are needed

At present, Anta's brand matrix includes positioning Anta, sports fashion FILA, high-end ski DESCENTE and professional outdoor Kolon.

Anta disclosed the latest two quarter operating data show that the growth rate of non Anta brand retail sales is 50%-60%, far exceeding the growth rate of Anta brand 20%-30%.

In August 2009, Anta acquired the franchise and trademark rights of BELLE International's sports brand FILA in HK $600 million, and was responsible for promoting and distributing FILA products in China.

Before being bought by Anta, FILA began to return to the fashion line after its performance was weak and its development was weak. After being bought, Gao Yuanyuan invited celebrities such as Mr. Gao Yuanyuan to expand their influence.

At present, FILA has grown from a loss making business to one of Anta's most important performance drivers.

But Anta brand, which accounts for nearly 70% of revenue, is still the largest source of Anta group's revenue.

In the sales channel, besides the traditional street shop sales channels, Anta brand has gradually increased the proportion of shops in shopping centers and department stores, and the proportion of electricity providers will gradually increase.

Anta expects that the proportion of Anta's electricity supplier is expected to reach 20% in 2020.

Industry analysts believe that in the current performance and brand matrix, to achieve 100 billion performance goals, Anta needs to buy more brands.

Ding Shizhong also said that through different brand combinations and market layout for different customer groups, Anta will cover consumers from the public to the high-end market, from functional to fashionable leisure sports products, from adults to children of different ages, to meet the specific needs of various market segments. In the future, more brands will be excluded from joining Anta.

Expansion pressure

According to Anta's multi brand strategy, in addition to keeping a cost-effective market, Anta's high-end brand layout is completed through acquisitions.

In the first half of this year, Anta announced that it raised HK $3 billion 790 million for future acquisitions, while the target of acquisition was international sports brand.

Earlier, it was reported that Anta might buy the sporting goods brand PUMA sold by Kai Yun group, but Ding Shizhong denied this in the 2017 interim results conference.

Ding Shizhong said that he is actively looking for acquisitions targets, mainly in high-end positioning, a well-known international brand, and Anta complement each other.

For Anta, which has been buying and buying, retail consultant Min Guangya said that Anta had to acquire more overseas brands to achieve 100 billion performance targets.

However, in the context of the majority of the market share of sports brands like Adidas and Nike, Anta should pay attention to segmentation and market, and strengthen differentiated operation. The new brand should be complementary to existing brands instead of competition.

Cheng Weixiong, an apparel industry observer, said that in recent years, Anta has gradually pformed its channel mode into a direct retail mode, and has worked with agents to manage the channels in a way that Anta controls all the "Princes". This approach has greatly promoted the company's backstage.

But relatively speaking, direct battalion is more heavy asset mode, but also need to bear the enormous pressure of team, store rent, inventory and so on.

For related issues, the reporter sent an outline to Anta, but as of press release, official reply was still received.

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