Children’s clothing business, the secret to attracting money from sports brands
If the performance of 361 Degrees, Anta Sports and others continues to grow, can the layout of children’s clothing become the password for each brand’s performance growth? On October 18, multiple sports brands released third-quarter operating data. Among them, the main brand of 361 Degrees achieved double-digit growth; the main brand of Xtep increased by 20%-25%, and Anta Sports achieved positive growth. Behind the collective growth in performance, the strong growth of the children’s business may be one of the influencing factors. However, with the influx of sports brands, casual clothing and other companies into the market at the same time, each brand will also face increasingly fierce market competition.
Transform into a performance growth engine
Many sports brands achieved growth. On October 18, sports brand 361 Degrees released its operating summary for the third quarter of 2022, stating that 361 Degrees’ main brand achieved mid-double-digit growth compared with last year; 361 Degrees’ children’s clothing brand grew by 20%-25% compared with last year; E-commerce business retail sales increased by approximately 45% year-on-year. At the same time, Xtep International announced that in the three months ending September 30, 2022, the retail sales of Xtep’s main brand (including online and offline channels) increased by 20%-25% year-on-year, and the retail discount level was 70-75% off. Retail inventory turnover is four and a half to five months.
The night before, Anta Sports also disclosed operating data for the third quarter of 2022. The retail sales of Anta brand products achieved positive single-digit growth year-on-year; the retail sales of FILA brand products increased by 10%-20% year-on-year. Positive growth in the low segment; the retail sales of all other brands, including Descente, Colon, etc., achieved positive growth of 40%-45% year-on-year.
In recent years, domestic sports brands have achieved rapid development and achieved good profits. In the first half of 2022, 361 Degree’s revenue and net profit increased by 17.59% and 37.24% respectively; in 2021, its revenue and net profit increased by 15.73% and 44.97% respectively. In the first half of 2022, Anta Sports’ revenue increased by 13.82%; in 2021, revenue and net profit increased by 38.91% and 49.55% respectively. In the first half of 2022, Li Ning’s revenue and net profit increased by 21.69% and 11.57% respectively; in 2021, its revenue and net profit increased by 56.13% and 136.14% respectively.
Although in the latest operating data report, each sports brand did not disclose detailed data of each business, it is not difficult to see from the first half financial report that children’s business has become a strong growth part of each sports brand.
In the first half of 2022, 361 Degrees’ children’s business increased by 37.1% year-on-year to 683 million yuan, a growth rate much higher than its revenue growth of 17.6%. Xtep Children’s revenue grew by 83.7%, which was also higher than the company’s total revenue growth of 37.5%. In addition, in 2021, the net increase in the number of children’s clothing sales points of Li Ning, Xtep and 361 Degrees has exceeded that of the main brands.
Regarding issues related to the layout of children’s clothing, reporters from Beijing Business Daily interviewed Li Ning and Anta, but did not receive a reply as of press time.
Cheng Weixiong, an independent analyst in the footwear and apparel industry, said that in the past two years, sports brands have been at the forefront, and the performance of all sports companies has been good. Among them, with the promotion of the “two-child” and “three-child” policies, the children’s clothing business is becoming an important derivative and supplement to the business of these enterprises, and it also plays a certain role in promoting the improvement of performance.
Intensified competition is inevitable
In recent years, domestic sports brands have stepped up their efforts to expand their children’s business. In 2021, Li-Ning’s children’s clothing brand “Li-Ning YOUNG” further clarified its future business development goals and business plans, positioning itself as a “professional and fashionable sports children’s clothing brand originating from China.” At the same time, Li-Ning announced that it will continue to expand investment in children’s professional sports categories, and at the same time accelerate the opening and layout of large stores and high-quality benchmark stores to promote “Li-Ning YOUNG” to become the preferred professional sportswear brand for Chinese children. In addition, during March 2022, Li Ning established a children’s clothing company to accelerate the development of the children’s business.
361 Degrees is not far behind. 361 Degrees stated externally that the children’s clothing brand continues the professional sports genes of the main brand, and its business has continued to grow steadily in the past two years, becoming the second growth curve of the group. In the future, 361 Degrees Children will continue to support the professional functionality, health technology and fashion elements of the products (IP joint series will continue to be launched), layout the field of youth campus sports, continue to enrich product series, and strengthen product innovation. Data shows that as of June 30, 2022, 361 Degrees’ fourth-generation children’s image stores have reached 1,258.
Anta Sports also attaches great importance to the layout of children’s business. It is understood that Anta Kids has made plans for emerging sports fields such as cycling, balance bikes, basketball, skateboarding, hip-hop, outdoor, Frisbee, and rugby. At the same time, Nike Kids and Adidas Kids are also developing children’s business.
In addition to sports brands, casual clothing is also stepping up its efforts in the children’s clothing business. For example, Semir Apparel continues to expand the proportion of children’s clothing business; Jiangnan Buyi promotes the layout of children’s clothing business, which is becoming Jiangnan Buyi’s fastest growing business; Peacebird, Meibang Clothing, etc. are also promoting the layout of children’s clothing business.
Wu Daiqi, CEO of Shenzhen Siqisheng Company, said that for clothing companies, laying out the children’s clothing business is laying out the future. Children are the consumers of adult clothing in the future, so this approach has locked in the future in a sense. of consumers. In addition, the children’s clothing business has high profits and good profitability, so it is natural for companies to lay out children’s clothing.
When�, more entrants means that market competition continues to intensify. From the perspective of market share, although Anta Children’s has surpassed Adidas Children’s and other brands in the sports market with a 2% share to occupy the first position, in the overall children’s clothing market, Anta Children’s competitiveness is slightly insufficient. Data shows that Balabala, a children’s clothing brand owned by Semir Clothing, occupies the first place among children’s clothing brands with a market share of about 7%. In the ranking of the top five children’s clothing brands, apart from Anta, there are no such figures as Li Ning, Xtep and 361 Degrees.
Public information shows that Semir Clothing, Anta, Adidas, Uniqlo, and Piggy Banner rank among the top five in the domestic children’s clothing market.
Cheng Weixiong said that with favorable policies and rising consumption levels, the children’s clothing business does have some room for development. However, due to the diversification of channels, the user circle in this market is relatively scattered. Although many brands have layouts, they have not formed a large-scale market. As a leading brand, with the entry of some leading companies, it is inevitable that competition will intensify.
AAA
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.
AA
