Anta Wants To Be A Trillion Billion Companies In Ten Years.

Recently, some media reported that the market positioning of high performance price ratio is very important. Anta Anta became the first domestic sporting goods company to be over 100 billion. However, Anta has a higher goal. According to the speech made by Anta chairman and CEO Ding Shizhong, the next step is to become a billion billion companies in the next stage. There are only 100 billion companies in the sporting goods industry. Nike and ADI 。 Nike's revenue in the 2015 fiscal year was $30 billion 600 million (about 199 billion 742 million yuan). If you want to compete with these international brands, it means that Anta should not only be cost-effective, but also have higher brand power.

According to Anta's 2015 annual performance report, its revenue reached RMB 11 billion 126 million yuan. But Anta also frankly, the domestic sporting goods market is huge, consumer demand is increasingly diversified, it is difficult to meet the needs of consumers at all levels by a single brand. Therefore, the future development needs to be covered by multiple brands to segment the market. Anta hopes to achieve the layout of the high-end market through acquisitions.

However, reporters here also learned in the interview that the actual consumption of footwear products in China is relatively low. According to the data of the National Bureau of statistics and Euromonitor, China now consums 2.6 pairs of shoes per person per year, much lower than that of nearly 4 or more in Europe and America, or even lower than those in Thailand and Indonesia. However, analysts say that with the process of urbanization and the improvement of residents' consumption ability, then considering the number of our population, the future growth prospects of China's footwear industry will be enormous. As consumers pay more and more attention to the taste of life, good brand image is becoming more and more concerned. Brand and quality are important factors for enterprises to gain competitive advantages.

It is reported that in recent years, consumer consumption presents a trend of increasing consumption structure and increasing proportion of non shopping consumption. Correspondingly, the channels are changing faster and more diversified, and there are emerging shopping centers, multi brand joint stores, experiential stores, etc. the channels on the line are developing rapidly, including the recent popularity of net red traffic realisation and live broadcast. Therefore, the entire footwear market is faced with the rapid change of channels and the enormous challenges brought by the transformation of consumer behavior patterns.

The data obtained here also showed that 2016 quarter Anta retail sales growth slowed to the number of units (excluding Fila), mainly due to abnormal weather and economic weakness, which caused retailers to increase retail discounts from 30% in the fourth quarter of 2015 to 2016 in the first quarter of 32-33% to clean up inventories. 2016 in the first quarter, the growth of Anta (adult and children) retail sales was low, the retail sales of Anta children increased to 50-60%, the electricity business growth was 50-100%, Fila growth was the same as expected, the sales rate of offline outlets reached 70%, and the sales cost was 4-5 months. The sales growth of 2016Q1 is not disclosed. The sales growth is due to the renovation of 20-30% stores (upgrading from sixth generation to seventh generation), coupled with the strong growth of e-commerce. Therefore, the disclosure of retail sales growth can better reflect the company's performance in 60-70%. As a matter of fact, wholesale volume and retail sales growth are consistent, but retail discount increases make 2016Q1 retail growth lower than the increase in the order amount. 2016 the same store growth is still positive in the first quarter.

Anxin Securities researcher Ke Jian believes that as the weather began to normal in April, retail sales improved and sold out to 60-70%. It rains more in May, and the central region is colder, and sales performance is worse than that in April, but better than in March. In April and May, the Treasury sales ratio stayed at 4-5 months, with an average retail discount of 30%, while the discount in the 2012-2013 years was 35%. In order to prepare for ordering summer products, retailers will generally increase their discounts in June to clear up inventories. It is expected that Anta will not perform well in June.

Reporters also learned that in 2016, the number of Anta stores was flat at 7031, and the number of children's stores in Anta increased by 200 to 1658. Anta also wants to maintain the high-end image of Fila. It plans to open dozens of Fila stores every year (all self run). It expects to reach 800 by 2018, and the number of restrictions will be at that level.

It is reported that Anta (adult and children) is a wholesale mode (1/3 is a distribution shop, 2/3 is a franchised store); Fila70% stores are self retailing, 30% of which are sold by distributors (not very profitable); the proportion of self retailing of e-commerce providers is 70-80%, and the proportion of distributors is 20-30%. The gross profit margin of retail is higher than that of wholesale, but the profit margin of retailing is lower than that of wholesale. The profit margin of Anta adult wholesale business is 20-30%, and the profit margin of wholesale business of children and electricity providers is similar to that of Anta adults. The profit margin of Fila self operated retail business is double-digit, and the profit of self retailing business is 10-20%. The company plans to gradually increase the operating profit margin of Fila self retailing to near Anta retail level.

Aforementioned Securities researcher Ke Jian also said that because of the increase in NBA basketball shoes, football shoes and Olympic Games this year, Anta advertising and promotion sales will increase to 12-14%. According to 2016Q1-Q4's order performance and about 0-10%'s supplement, it is estimated that Anta's adult brand income will grow by 10%- double digits in 2016, Anta's children will grow by more than 30%, FILA's growth will be 20-30%, and the electricity supplier's growth will be 50-60%. It is expected that in 2017, the number of Anta adult brand income growth units, Anta children and FILA will grow 20-30%, and the electricity supplier will grow 50-60%.

Cohen said that Anta's earnings will continue to benefit from Fila, the rapid growth of Anta's children and electricity providers' income and the improvement of Fila's operating margin. Although the number of Anta stores will tend to be stable, sales of functional products, NBA basketball shoes and football shoes will increase the growth of Anta's main brand. With a large amount of cash in hand, the company also needs to acquire the brand of outdoor sports and other market segments to cushion the slow down of Anta's main brand, and it is also a necessary means to strengthen its main business.