Anta Sports 2020 Net Profits More than 5.1 billion yuan

‚óŹ Our reporter Ren Mingjie

March 24th, Anta Sports Disclosure 2020 Report. The company achieved 35.51 billion yuan in 2020, net profit 5.162 billion yuan, and focusing on the DTC mode transformation while the performance continues to grow.

Anta Group Executive Director, president Zheng Jie said when accepting China Securities Journal reporter, behind 2020, it is a steady advancement of the company’s multi-brand strategy, and the continuous creation of multi-brand business capabilities, and Focus on the transformation of business model.

Performance continued to grow

Financial report showed that in 2020, the company achieved operating income 35.551 billion yuan, an increase of 4.7% year-on-year, and continued to grow in seven years. The gross profit margin increased by 3.2 percentage points to 58.2%, which is the highest in the industry; the cash and cash equivalents, the total deposits are 20.3 billion yuan, and the cash flow continues to be strong.

Branch, Anta and FILA continue to maintain strong growth, while other brand revenues exceeded 35% year-on-year. The company’s brands have a significant trend.

From the market, Anta Sports and Nike, the gap between Adidas is shrunk. Third-party data shows that in the domestic sportswear market, the amount of peaceful sports market has increased to 15.4%, only 25.6%, 17.4% of Nike, Adidas. Since 2017, Anta Sports and Adidas’s market share have continued to shrink, and there is a great potential.

From the city’s share of the two major categories of sports shoes and sportswear, Nike, Adidas, is still dominant, and the market share of 2020 has reached 32.5% and 15.8% respectively, and the Anta sports improved to 10.4%; sportswear market Anta Sports 2020 city share reached 22.3%, beyond Nike and Adidas, ranking first.

\”In the domestic market, we are in the first camp with Nike, Adidas and have a great progress in 2020. This is from three efforts: adhere to the multi-brand development strategy, multi-brand business ability The business model can match market demand very well. \”Zheng Jie said.

-depth implementation of multi-brand strategy

behind the steady development of ANTA Sports, multi-brand strategy has played a crucial role.

In 2009, FILA Anta bought the right to use trademarks and franchises in China from the hands of Belle International, FILA or an annual loss of more than 3,000 yuan brand. In operation Anta, 2014 FILA profitability. Today, only the FILA ANTA Sports has been leading other domestic sports apparel brand.

In recent years, ANTA Sports replicate the successful experience of FILA, through a series of strategic acquisitions, adhere to the \”single focus, multi-brand, all-channel\” development, ANTA and FILA is two main brands, multi-brand differentiated layouts are basically mature, realizing consumer full coverage and channel full coverage, forming unique integration competitive advantages, including Anta’s technology leads \”mass professional movement\” positioning Innovative growth curves, high-quality high-speed growth curves of FILA, Descente, Kolonsport focused on high-end consumption demand high potential growth curves, forming matrix development trends, meeting consumer demand in different sports scenes.

At the same time, Anta Sports continued to force in multiple tracks.

Take FILA as an example, which hatched FILAKIDS and FILAFUSION two major growth, depth layout, second-tier cities. At the same time, FILA’s shoe products have become new business growth points, and the annual sales exceeded 10 million pairs.

Di Soutt is positioned as the first sports brand in three fields of high-end training, skiing, and iron, and the young membership grows more than 20% in 2020.

Push business model transformation

In 2020, Anta Sports changed the wholesale distribution mode, launched DTC mode (face consumer) transformation.

Guolk Securities pointed out that the initial development of development is to achieve market infiltration as soon as possible, and the domestic sports and apparel industry uses multi-level distribution, and the order will be unified. Due to the lack of control of terminal consumer demand and channel stock, the industry is always facing the risk of goods unbales and channel inventory accumulation. As the underlying information technology advances and consumer online shopping habits, the industrial pain point is possible in DTC transformation.

Annual report showed that in 2020, Anta Sports launched a hybrid operation mode in Changchun, Changsha, Chengdu and Chongqing, and about 3,500 Aven stores involved. Among them, about 60% direct, 40% is operated by franchisees in accordance with new operations. As of the end of 2020, the DTC transformation of Anta Sports was progressing smoothly and is expected to be completed in advance in 2021.

\”DTC mode transformation has achieved good results.\” Zheng Jie said that \”For example, the FILA brand has achieved 100% direct camp, which makes we can master the overall development dynamics, understand Consumers’ demands, make the most accurate judgment, do product and marketing programs, precisely match market demand. \”

Anta Sport pointed out that the focus of DTC transformation is to face consumers, open\” people, Goods, fields, create value for consumers in a more effective way. DTC business model allows direct retail stores to directly use logistics centers to make fleeration and reassign inventory with larger collaborative effects, and utilize large data analysis capabilities provided by digital platforms, realize the flexibility of direct storage store inventory distribution, and deepen members Value.

\”2021 is the 30th anniversary of the establishment of Anta Group, we must strengthen the development of strategy, caught the opportunities of sports years; adhere to globalization thinking andPattern, driving the company to achieve globalization.\”Chairman and CEO CEO of the Anta Group, said.

This article is from China Securities

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