Anta Sports's "Multi Brand Breakthrough"

"We are conducting second wars. Ding Shizhong, chairman of the board of directors of Anta (China) Limited, said during the interview.

this moment Chinese sports brand Businessmen are going through extremely difficult years. High inventory and order slipped into a sharp sword hanging on their heads. They may fall at any time.

The 2012 annual report released by Anta group led by Ding Shizhong in January 25th showed that the net profit and operating income of the company were 1 billion 359 million yuan and 7 billion 623 million yuan respectively, down 21.5% and 14.4% respectively from the same period last year. This is the first time that since its listing in Hongkong in 2007, the net profit has declined for the first time.

Prior to that, from 2008 to 2011, Anta's turnover increased from 4 billion 627 million yuan to 8 billion 904 million yuan, and net profit increased from 895 million yuan to 1 billion 730 million yuan.

With the opportunity of the 2008 Beijing Olympic Games, the Chinese sports brand has been expanding crazily. In order to compete with international brands for market space, they have speedily expanded their horse race enclosure in a few years, achieved rapid growth, and completed the upgrading of capital level through listing in Hongkong.

All over the country, bustling areas and shopping centers, even small cities with limited consumption capacity, can see their shops everywhere.

Behind the rapid expansion is oversupply, backlog and management lag. In 2012, these hidden problems began to concentrate on fermentation.

According to statistics, in 2012, Lining, Anta, 361 degrees, XTEP, PEAK and China moved six of the total stock to 37. 2 billion 100 million yuan. "The first thing to do to survive and maintain market competitiveness is to get rid of the burden. Hou Lidong, who was once the brand director of PEAK sports, said.

At the beginning of last year, the major brands announced the closure: Lining closed 1200 stores in the first half of 2012, closed 1067 in the first three quarters of the year, and closed 569 stores in China in 2012. XTEP has closed more than 200 so far, with 361 at least and 96.

　　 Anta No escape. In 2012, its series of shops were 8075, compared with 2011 less than 590. The annual report shows that the company expects the total number of shops to be 7500~7600 this year, which means that it will continue to shut down 475~575 stores.

"We must carry out business transformation. One of the most important means is to upgrade stores and end the extensive way of opening stores. Before it was a conquering territory, and now it should be the result management after fighting, which is market integration. "Ding Shizhong said," if anyone fails in the second war, it means that he will always be eliminated. "

　 "Wholesale" era ends

In Ding Shizhong's view, behind this wave of shop closing, it means the end of the era of "wholesale sale" of sports brands, which is also a change of business mode. "Wholesale" means the traditional business mode, that is, brand operators do not control the retail channel, and sales performance depends on agents. In this mode, they are often sold out of products, mediocre products are backlog and inventory management is difficult.

But Ding Shizhong thinks that the biggest disadvantage of this brand plus wholesale mode is the lack of information. "In the past, our practice was to provide only a set of standards for goods, and the rest to wholesalers and franchisees. "

For brands, as long as they go wholesale, sales have already been formed, but they can not feel the changes in the market and retail terminals.

This model has been brilliant. Taking China's trend as an example, in the 2009 and 2010 years, its net profit has exceeded 1 billion 400 million yuan, and the average profit per employee has reached 1 million 500 thousand yuan.

In fact, when China's economic development slowed down in 2009, the sporting goods industry problem already existed, but the Beijing Olympic Games delayed the exposure of the problem.

According to the study, the Olympic Games can generally stimulate the sports consumption of a few people in the host country, so according to the usual practice, Adidas calculates that the growth rate of the Beijing Olympic Games in mainland China will reach about 40% in that year.

But this estimate is too optimistic. After Adidas and Nike rushed to the first, second industry, stocks began to backlog.

The more influential brands are local brands, and the sale of Adidas and Nike, the second tier international brands and the sales of local brands in China are even worse.

The way to resolve the crisis is to change the traditional channel mode of "brand plus wholesale", and draw lessons from it. clothing The business model of "brand + retailer" of retail brand UNIQLO.

"In the 10 years of Japan's economic downturn, UNIQLO came to the fore. It broke the situation of Japanese integrated commerce control clothing industry, and vertically integrated all aspects of its product chain. "Hou Lidong said.

Zhang Bingliang, founder of Shanghai lion consulting, believes that ZARA, H&M, UNIQLO and Muji are popular with Chinese consumers because the supply chain system is short and the circulation of commodities is fast. Every week, new products can be seen on the market.

"More emphasis should be placed on Retailing in future management. Who can manage the store better in the future market competition, and who will survive. "Ding Shizhong said," for this reason, we put forward a new viewpoint: only one party B is the consumer. "

　 Multi brand breakthrough

"Now that Anta wants to develop, it can not be just an independent brand. "Ding Shizhong said this is the second front that Anta is trying to break through.

Anta's multi brand road actually started 4 years ago to buy Italy brand Fila China Trademark and operation business.

After the 2008 Beijing Olympic Games, the Chinese people knew more clearly about the two concepts of sports and sports. Before that, local brands almost used the concept of "Universal Sports" to guide consumers, and that sportswear was actually a casual fashion product.

A typical example is that outdoor activities such as climbing, cross-country, mountaineering, skiing and so on have become the lifestyle of urban white-collar workers. According to public data, over the past 10 years, China's outdoor products market has increased by more than 40% per year, and has formed a market scale of more than ten billion yuan.

This let Ding Shizhong see a "blue sea" --2013 Anta outdoor sports series is expected to be released, and is expected to reverse the trend.

Other Chinese brands are also targeting the outdoor sports market. According to an industry insider in Quanzhou, Fujian, 361 degree is planning to buy a bicycle manufacturer to build a high-end bicycle brand, but the news has not been confirmed by 361 degrees.

Sports brand is keen on outdoor sports market. The most direct motive force is outdoor unit price is obviously higher than the average level of sporting goods. However, consumers of outdoor sports products are relatively rational. So far, foreign brands are still dominant in this market.

This is obviously a great challenge for Anta.