It’s time to take stock of another year. With the end of 2019, looking back at the performance of 257 textile and apparel companies in the Shanghai and Shenzhen stock markets, Hong Kong stocks and the US stock market this year, we noticed that the market value of Anta Sports and Shenzhou International has jumped to the top five, and Li Ning has also It surpassed Skechers and was only one step away from the top ten.
According to statistical data, as of December 31, 2019, the total market value of 257 textile and apparel companies in the Shanghai and Shenzhen stock markets, Hong Kong stocks and US stocks In the first half of 2019, these companies achieved a total operating income of 843.316 billion yuan and a net profit attributable to the parent company of 70.104 billion yuan.
In terms of market value rankings, Nike still ranks first with a market value of 11018.37 trillion yuan. As the sports and leisure market continues to expand globally, In terms of growth within the scope, Lululemon, an international sports brand originated from yoga, ranked third with a market value of 199.330 billion yuan. Chinese companies Anta Sports and Shenzhou International ranked fourth with market values of 168.819 billion yuan and 153.373 billion yuan respectively. fifth place.
China’s Li Ning surpassed Skechers with a market value of 48.437 billion yuan, closely following Levi’s.
Observing the classification of the rankings, it is found that benefiting from consumers’ vigorous enthusiasm for sports, the sports sector has become the main driver of performance growth in the textile and apparel industry driving force.
Industry insiders also believe that the sporting goods industry has a good opportunity to develop vigorously in the context of rapid economic growth. When the economy enters a stage of stable growth, the industry can still maintain transcendent growth. A high-quality consumer goods track with long-term growth potential.
With the improvement of people’s consumption and living standards, the increasing awareness of fitness and sports, and the successive launch of large-scale sports events, the enthusiasm of Chinese residents to participate in sports activities continues to increase. Take marathons as an example. In 2014, there were only 51 marathon events in China, with 900,000 participants. By 2018, these two figures had reached 1,441 events and 7.3 million people respectively, showing rapid growth momentum. At the same time, resident fitness has become more popular. From 2014 to 2018, the number of fitness clubs and members in China increased at an average annual compound growth rate of about 15%. By 2018, the number of fitness club members nationwide had reached 47.5 million. According to Frost & Sullivan statistics, each of the mainstream sports activities such as football, basketball, table tennis, running, and fitness walking has an audience of 200-300 million people in China.
In recent years, with the improvement of my country’s residents’ consumption level and sports enthusiasm, the sporting goods market has shown rapid growth. According to Frost & Sullivan statistics, my country’s sports shoes and apparel market reached 235.7 billion yuan in 2018, with a compound growth rate of 12.8% over the past five years; my country’s per capita sporting goods consumption reached 169 yuan in 2018, an increase from five years ago Nearly 60%.
In terms of sales volume, sports shoes/sportswear reached 530 million pairs/890 million pieces respectively in 2018, and the total sales volume of shoes and clothing reached a compound growth rate of 8.6% in five years; in terms of unit price, sports shoes/sportswear in 2018 Reached 231/129 yuan respectively, with a compound growth rate of around 3.3% in the past five years.
Wang Xueheng, an analyst at Guosen Securities, said that the concentration of leading sporting goods brands is high, and the upstream and downstream of the industry chain are also in the process of leading the concentration. Nike and Adidas account for 16.1% and 11.5% of the global sporting goods market respectively, and in terms of brands, they account for 15.2% and 11.3% respectively; upstream clothing manufacturer Shenzhou International and shoe manufacturer Yue Yuen Group, one year The output is approximately 400 million pieces of clothing and 330 million pairs of shoes respectively; the downstream channel distributors Tabo and Baosheng have approximately 15.9% and 11.6% of the Chinese sports retail market respectively. Sports brands have built deep barriers by continuously investing resources in R&D and marketing, and they have also built resource barriers in the industry chain. For a brand to reach world-leading size, it needs the support of world-class leading suppliers, and sales around the world also require cooperation with leading channel vendors in various regions; similarly, leading upstream suppliers and leading downstream channel vendors also tend to In order to cooperate with leading brands with long-term growth prospects, strong alliances are the way for leading enterprises in the industry chain to maintain long-term competitiveness.
After the 2008 Beijing Olympics, Chinese residents’ demand for sporting goods increased day by day. However, brands also faced fierce competition. Rapid expansion and extensive management led to the industry’s collapse in 2011-2012. Inventory crisis. Since then, international brands have adjusted relatively rapidly, while domestic brands have entered an adjustment period ranging from 3 to 5 years. It was not until 2014 that Anta took the lead in achieving sustained growth in revenue and profits. Subsequently, Li Ning and Xtep completed adjustments and achieved recovery in the past two years.
In Wang Xueheng’s view, in the ten years since 2009, leading international brands have grown rapidly. Until 2018, Nike (including AJ), Adidas, Skechers, New Balance and PUMA occupied 49.6% of the Chinese market. Share, domestic leading brands (Anta, Li Ning, Xtep, 361 Degrees and FILA acquired by Anta) maintained a relatively stable share after adjustment, reaching 22.6%, and the shares of other international brands were also relatively stable.�7%, and the market space that is squeezed is mainly small and medium-sized domestic brands and unbranded products. The combined share of the two dropped from 40% in 2009 to about 20% in 2018.
From the perspective of financial reports, Wang Xueheng analyzed that Nike and Adidas’ Greater China regions continue to perform well, and both have achieved double-digit growth for more than 20 consecutive quarters. In recent years, some leading domestic brands have also resumed rapid growth momentum after undergoing transformation and adjustment. The latest quarterly operations show that Anta’s main brand and FILA brand achieved mid-double-digit and 50%-55% revenue growth respectively, Li Ning achieved low-end revenue growth of 30%-40%, and Xtep achieved approximately 20% Against the background of the steady slowdown in the overall social consumer goods retail sales growth, leading body brand brands have shown better growth than most other retail industries.
Wang Xueheng said that after nearly a century of development, the international leading sports brand has formed a deep brand moat with the continuous accumulation of marketing and R&D resources. Enterprises have formed long-term cooperative relationships and created deep industrial chain resource barriers. The concentration of leading brands has become more and more significant, with the Top 2 brands accounting for 27% of the world’s share, and the remaining leading brands also showing rapid growth momentum. At the same time, Wang Xueheng also pointed out that the trend of leading brands is spreading from the brand end to the upstream and downstream of the industrial chain. Enterprises have mutually supported each other through their own core competitiveness and leading brands, and jointly achieved long-term transcendent growth. It is foreseeable that as leading companies demonstrate excellent competitiveness, brands will present a “double super and multiple strong” pattern in the Chinese market in the future. At the same time, upstream manufacturing leaders and downstream retail leaders will also continue to achieve excess growth. </p
