On July 8, Anta Group released its operations in the second quarter and first half of 2021. In terms of brands, in the second quarter, the retail sales of Anta’s brand (calculated in terms of retail value) increased by 35%-40% compared to the same period last year; and throughout the first half of the year, this number also increased by 35%-40% year-on-year.
According to the company’s brand matrix, it is not difficult to see Anta’s ambition and layout. At present, Anta’s brands cover the mass market and high-end market vertically, and are subdivided horizontally into fashion sports brands and professional sports brands represented by skiing, outdoor, ball games, and bicycles, forming a market-wide, multi-category, and multi-brand crossover. cover.
Currently, professional sports brands include the main brands ANTA, ANTA Kids, and Sprandi; fashion sports brands include FILA, FILA Fusion, FILA Kids, KINGKOW, etc.; outdoor sports brands include Disun Te, Kolon, and Amer’s Arc’teryx, Salomon, etc.
In addition, Anta Group said when releasing the group’s Anta brand’s strategic goals for the next five years and the rapid growth of the “LEAD TO WIN” plan for the next 24 months, “In the next five years , the goal of the Anta brand is to achieve a compound annual growth rate of 18%-25%.” Specifically, in terms of products, Anta will continue to focus on core categories of running, basketball and women’s categories; in terms of research and development, the Anta brand will continue to expand in five years. More than 4 billion yuan has been invested to improve the global R&D system; in terms of channels, the store efficiency of Anta brand DTC stores will increase by more than 40% in the next 24 months, and DTC sales account for 70%. In the next five years, Anta plans to invest more than 4 billion yuan in research and development costs to increase the proportion of high-end products through core technology.
In the opinion of industry insiders, this time the Anta brand has made concerted efforts in products, research and development, channels, etc., and strives to grow revenue, mainly because of Anta Anta, the group’s main brand, has shown that it cannot keep up with the group’s development. In addition, Anta Group’s multiple mergers and acquisitions in recent years have caused its asset-liability ratio to remain high. It urgently needs to boost the performance of the main brand to improve capital turnover.
According to the 2020 financial report, the Anta brand achieved revenue of 15.749 billion yuan, a year-on-year decrease of 9.7%; the FILA brand achieved revenue of 17.450 billion yuan, a year-on-year increase of 18.1%. Of Anta’s total revenue of 35.512 billion yuan, FILA accounted for 49.1%, while Anta’s main brand accounted for only 44.3%.
Judging from the latest semi-annual report released by Anta Group, the growth rate of Anta brand still lags behind that of FILA brand. Data shows that in the first half of 2021, the retail sales of ANTA brand products achieved a positive growth of 35%-40% compared with the same period in 2020; the retail sales of FILA brand products achieved a positive growth of 50%-55% compared with the same period in 2020; The retail sales of other brand products have achieved positive growth of 90%-95% compared with the same period in 2020.
In the view of Cheng Weixiong, a textile and apparel brand management expert, in recent years, the development of the ANTA brand has been stagnant, and has long shown its weakness in keeping up with the group’s development, and has even dragged down the group’s overall performance growth. . Now, after several huge acquisitions, Anta Group’s financial pressure has emerged. Therefore, Anta Group urgently needs to boost the performance growth of its main brand and improve its cash flow.
In addition, according to a report issued by JPMorgan Chase, the Anta brand plans to achieve an average annual compound growth rate of 18% to 25% in revenue in the next five years, compared with the bank’s earlier forecast of 21%. %; I believe Anta is on the right track to achieve its goals, thanks to product improvement and channel optimization. Xiaomo pointed out that in the second quarter of this year, the Anta brand recorded strong sales performance, while the Fila brand decelerated on a higher basis. The full-year retail sales guidance will continue to be maintained, and the Anta and Fila brands are expected to grow by more than 20% and more than 30% respectively. The bank raised its profit forecast from 2021 to 2023 by 0% to 2% due to higher sales assumptions and increased investment in the Anta brand. </p
