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Surpassing FILA and Anta: Descente becomes the dark horse of Anta brand growth!



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 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 did not disclose the specific revenue amount, Anta’s main brand is estimated based on Anta’s half-reported performance There is still a big gap between performance and FILA brand.

The semi-annual report showed 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.

FILA China’s direct operation experience has paved the way for the overall transformation of the ANTA Group, including the ANTA brand. Anta stated that the Anta brand business has adopted a wholesale distribution model in the Chinese market for more than 20 years, but consumption habits are changing rapidly. In order to achieve sustainable high-quality growth, the Anta brand’s business model will transform from a wholesale distribution model to a direct-to-consumer model. .

In the first phase, Anta will launch a mixed operation model (direct operation) in 11 regions including Changchun, Changsha, Chengdu, Chongqing, Guangdong, Kunming, Nanjing, Shanghai, Wuhan, Xi’an and Zhejiang. Anta brand stores and Anta brand stores operated by franchisees), and terminated 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.

In addition, eager to copy FILA, Anta officially launched Arc’teryx. Anta emphasized that it will accelerate the development of Amer Sports’ brands in the Chinese market, increasing its share of the Chinese market from 5% to 15% in 2018, especially focusing on the Chinese market business of Arc’teryx, SALOMON and other brands. It is hoped that The number of Arc’teryx stores has expanded from the existing more than 100 to 300-400. SALOMON’s business has also extended to the field of shoes and clothing, and expanded direct-operated stores in the Chinese market.

It is worth mentioning that Anta’s third quarter performance announcement does not include Amer sports business. The announcement shows that the disclosure in this announcement is only related to the Group’s ANTA, FILA, DESCENTE, KOLON SPORT, SPRANDI and KINGKOW brand businesses, and does not include the Amer Sports Corporation business.

Industry insiders analyzed 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 China business. , therefore the group must accelerate its own transformation and layout of Amer Sports business to cope with 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 no reply was received as of press time.

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Author: clsrich

 
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