Anta Betting "Two Child Bonus" Market To Accelerate The Realization Of Multi Brand Structure

According to the world clothing shoes and hats net, recently,

Sports (02020.HK) has completed the acquisition of famous.

All rights and interests of KingKow business were founded in 1998.

And sell 0 to 14 year old babies and boys and girls children's wear and accessories.

In recent years, the performance of domestic sports brand enterprises has been growing rather slowly, but the performance of Anta sports has soared.

Up to now, the market value of Anta sports has exceeded 90 billion Hong Kong dollars, which has become the largest apparel retailer in the market.

Bet on the "two child bonus" market

The rise of the domestic children's clothing market has benefited from the "balbala" brand children's clothing operated by Semir group's virtual model in 2002. At that time, the brand achieved more than 1 billion yuan annual sales in the market, and accelerated the influx of domestic adult shoes and clothes.

Founded in 2008, Anta children is the first sports brand to enter children's field in China.

Anta children's products cover 0 to 14 years old children, currently has more than 2000 stores and millions of members in the country.

According to Roland Begg's data, with the liberalization of the second child policy in China, the population of the 0 to 14 year old population will continue to grow at a high speed, which will bring more room for children's wear market.

In 2015, the scale of children's wear market in China reached 180 billion yuan.

With the opening of two children and upgrading of consumption, it is estimated that by 2020, the size of children's clothing market in China will exceed 280 billion yuan.

Ding Shizhong, chairman and chief executive of Anta sports, has said that after the implementation of the two child policy, he is optimistic about the development potential of children's clothing.

IDG Capital Partners Yan Yi Sheng told reporters that the major sports brands into the children's clothing market, also very optimistic.

Anta sports told reporters that this year Anta and Anta children's shop increased to 9200 to 9300, FILA increased to 950 to 1000 homes.

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 throughout the country. There are 21 stores in the country, including 21 stores in the country.

At present, Anta sports, as the largest apparel retailer in China, seems to be not satisfied with the market of adult products, but has begun to exert itself in the market of children's wear.

Although all sides are optimistic about children's wear market, we must face an undeniable fact that the demographic dividend is declining.

According to the "green paper on population and labor: China's population and labor report" published by the social sciences literature press, No.17 shows that the baby boom is in the short term, but there will be no serious birth and accumulation.

The green paper believes that a comprehensive liberalization of the two child policy will not bring about a sharp increase in birth rate and a sharp rebound in population.

According to the data, the possibility of a total two child policy to increase the birth population to 8 million or more is very small, and the probability is 4 million 300 thousand.

It is worth noting that the green paper also points out that even if we relax the childbearing policy, it is difficult to change the overall trend of "demographic dividend" disappearing.

Accelerate the implementation of multi brand architecture

According to Anta sports 2017 China Daily, the operating income reached 7 billion 320 million yuan, an increase of 19.2% over the same period last year. Net profit was 1 billion 481 million yuan, an increase of 27.46% over the same period last year. Meanwhile, the gross profit margin exceeded 50%, from 47.9% to 50.6%.

In addition, Anta's brand matrix includes location Anta, sports fashion FILA, high-end ski DESCENTE and professional outdoor Kolon.

According to Anta's third quarter 2017, the retail sales of non Anta brand products increased by 40% to 50% compared with the same period in 2016, far exceeding the growth rate of Anta brand 20%-30%.

The growth rate of Anta sports seems to be benefited from the strategy of increasing the number of brands in recent years.

Ding Shizhong once said in the interim results conference that based on the market space of sports products and the realization of group multi brand strategy, Anta had the chance to achieve the target of 100 billion in 2025.

Anta sports in the continuous search for mergers and acquisitions at the same time, but also will be M & a brand reconstruction and upgrading.

For example, FILA was bought by Anta sports and began to return to fashion.

Shortly after Anta sports entered FILA's China business, FILA welcomed the 100th anniversary of its campaign in 2011. FILA first moved the brand's global centennial celebration from Italy to China.

One obvious sign is that the Chinese market that has not been really taken before is still a highly valued brand in Italy.

Anta sports pformation of FILA seems to have a similar effect with Italy's sports brand Kappa, which has had a history of nearly a hundred years.

Back to back LOGO has been popular for a while, and has been in a state of low temperature.

The Italians can't imagine that the Ultimate Nirvana of Kappa is in China.

In the early days when Kappa entered China, the whole market was still in the age of traditional professional sportswear, and Kappa successfully molded into a sports brand with the concept of fashion movement.

Its unconventional product completely subverts the original traditional product structure, and its performance is strikingly red.

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In the late period, the situation that Kappa was very popular ended abruptly.

At present, the Kappa positioning crowd is 22-35 years old young people, but due to age, pursuit of taste, adaptation to the occasion and other factors, Kappa fancy fashion form is no longer suitable for the original consumers, and the original young consumer group seems to be gradually losing.

Industry analysts told reporters that Anta's fashion line for FILA should learn from Kappa's past experience and find a more robust path.

To take care of consumers, brands must start with products.

To make a more fashionable product, we must mix the elements with fast fashion products and integrate them into their products.

In recent years, Anta sports has been making efforts to acquire famous brands, and the acquisition of Italy brand FILA is a masterpiece of Anta sports.

In August 2009, Anta purchased HK FILA's franchise and trademark rights in HK $600 million for the promotion and distribution of FILA products in China.

Before being bought by Anta, FILA was weak in China and its development was unfavourable. After being acquired, FILA began to return to the fashion line.

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

Anta sports told reporters that through different brand combinations and market layout for different customer groups, Anta will cover from the public to the high-end market, from functional to fashionable leisure sports goods, from adults to children of different ages, to meet the specific needs of various sub markets, and will not rule out more brands joining Anta in the future.

In April of this year, Francois-Henri SA Pinault, chairman and chief executive officer of Kering SA (Kai Yun group), the internationally renowned sports brand Puma (Puma), announced that it would withdraw from the Puma board, which gave the market a lot of imagination for the sale of Puma that had been rumored for many years.

Puma2016's net profit increased by more than 65% over 2015, and its share price reached its highest level in 10 years.

Two years ago, the biggest acquisition of rumors about Puma was Anta sports.

Anta sports said, do not know where the market rumors come from.

We need to find a target that meets Anta's development and strategy. We are looking for high-end high-end brands with a certain reputation and complementary with Anta.

Insiders told reporters that if Anta sports wanted to catch up with Adidas and Nike, and completed the performance target of 100 billion yuan, it would also need to continue to find suitable international brands for mergers and acquisitions, thus forming a brand scale matrix.

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