On October 15, ANTA Sports announced its brand growth rankings for the third quarter. In the third quarter of 2020, the retail sales of Descente and other brand products achieved positive growth of 50%-55% year-on-year. The retail sales of FILA brand products achieved a positive growth of 20%-25% year-on-year. The retail sales of Anta brand products achieved low single-digit positive growth year-on-year.
Although Anta has not disclosed specific revenue amounts, it is estimated based on Anta’s half-reported performance that the performance of Anta’s main brand is still far behind that of the FILA brand.
The semi-annual report shows that FILA’s revenue was 7.152 billion yuan, an increase of 9.4%, accounting for 48.8%. Anta’s main brand revenue was 6.777 billion yuan, a year-on-year decrease of 10.7%, accounting for 46.2% of total revenue. The total revenue of DESCENTE and KOLON SPORT was 740 million yuan, a year-on-year increase of 8.3%.
In fact, for Anta, the switch to the main C position has already quietly begun. In 2009, Anta took over FILA from Belle Group for 332 million yuan and owned the franchise rights in Greater China. In the 10 years since the acquisition, Anta has not disclosed the operating conditions of FILA.
Until September 2019, Anta’s semi-annual report announced FILA’s revenue for the first time, with gross profit margin as high as 71.5%. In 2019, sales revenue exceeded 17 billion yuan, reaching 17.45 billion yuan, surpassing Anta’s main brand, and the number of stores reached 1,951.
FILAChina’sdirectoperationexperiencehaspavedthewayfortheoveralltransformationoftheANTAGroup,includingtheANTAbrand.AntastatedthattheAntabrandbusinesshasadoptedawholesaledistributionmodelintheChinesemarketformorethan20years,butconsumptionhabitsarechangingrapidly.Inordertoachievesustainablehigh-qualitygrowth,theAntabrand’sbusinessmodelwilltransformfromawholesaledistributionmodeltoadirect-to-consumermodel..
Inthefirstphase,ANTAwilllaunchamixedoperationmodel(directlyoperatedANTAbrandstoresandfranchisee-operatedANTAbrandstores)in11regionsincludingChangchun,Changsha,Chengdu,Chongqing,Guangdong,Kunming,Nanjing,Shanghai,Wuhan,Xi’an and Zhejiang. brand stores) and terminate cooperation with distributors in these regions. There are approximately 3,500 ANTA brand stores involved in this matter, accounting for approximately 35% of the total number of ANTA brand stores in China as of June 30, 2020. The work related to the termination matter will take about 6-9 months to complete in batches.
Can the direct operation model reverse the decline of Anta’s main brand? According to economist Song Qinghui, direct operation is a double-edged sword. On the one hand, the direct operation model can form an efficient closed loop of consumer insight, product planning and operation, and precision marketing, further improving the efficiency of operation and management; on the other hand, the direct operation model’s staffing, fund management, quality control, etc. will increase the company’s Operational pressure.
Inaddition,eagertocopyFILA,AntaofficiallylaunchedArc’teryx.AntaemphasizedthatitwillacceleratethedevelopmentofAmerSports’brandsintheChinesemarket,increasingitsshareoftheChinesemarketfrom5%to15%in2018,especiallyfocusingontheChinesemarketbusinessofArc’teryx,SALOMONandotherbrands.ItishopedthatThenumberofArc’teryxstoreshasexpandedfromtheexistingmorethan100to300-400.SALOMON’sbusinesshasalsoextendedtothefieldofshoesandclothing,andexpandeddirect-operatedstoresintheChinesemarket.
ItisworthmentioningthatAnta’sthirdquarterperformanceannouncementdoesnotincludeAmersportsbusiness.TheannouncementshowsthatthedisclosureinthisannouncementisonlyrelatedtotheGroup’s ANTA, FILA, DESCENTE, KOLON SPORT, SPRANDI and KINGKOW brand businesses, and does not include the Amer Sports Corporation business.
Industry insiders analyze that Anta encountered the impact of the epidemic after acquiring Amer Sports, which may put pressure on the group. At the same time, Anta’s main brand shows weakness compared with FILA’s Chinese business, so the group must accelerate its own transformation and layout in Asia. Muffin Sports business in response to external uncertainties.
Regarding the reasons why Amer Sports business has not been merged into the performance and Anta’s future development plan, the reporter sent an email to interview Anta, but as of the time of publication, no reply was received.
</p
