Does FILA really support the future of Anta?


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Text | Financial Hoe

In the sports shoes and clothing industry, the European and American brands such as Nike and Adidas have long been entangled in the leading position of the industry. Both performance and brand influence have made domestic brands not be able to reach.


However, some time ago, Anta Sports (02020.HK) announced its 2020 financial report. In that year, net profit was 5.162 billion yuan, and for the first time, it exceeded Adidas’ profits of 429 million euros (equivalent to RMB 3.314 billion).


Anta’s performance allows consumers to see the possibility of surpassing domestic brands, but we must first understand what it brings Anta’s growth, and can this growth support Anta in the future to truly surpass Adi and Nike?

To answer this question, we need to analyze the three overall financial performance.


1. There is still a gap between the scale of revenue, FILA supports Anta’s performance

First of all, from the perspective of revenue, Anta’s revenue in 2020 was 35.5 billion yuan, Adidas was 19.84 billion euros (equivalent to about 154 billion yuan), Nike was US $ 37.403 billion (equivalent to about 245 billion yuan), although although Anta sat in the third place in mainstream brands, but the scale gap between the size and the first two was still obvious.

Secondly, looking at the profitability of sales, maybe we will think that Nike and Adidas with higher products have higher gross profit margins, but at a glance of data for nearly two years, we will find that from gross profit margins, operating profit margins, and even net profit for sales In terms of rate, Anta Sports is significantly higher than Nike and Adidas.

This is related to the operating strategy of the three. Anta adopted a combination of distribution and direct operations, and even began to try the full -operated model. Nike and Adi’s domestic stores were mostly agents from Taobo International instead of direct -operating, which led to a considerable part of Mao’s profit entered the intermediate link. In addition, there will be differences in operating costs in different markets, and Nike and Adi, which are operating worldwide, will inevitably face the relative increase in operating costs.

(Data source: snowball)

In summary, Anta Sports still failed to catch up with Nike and Adi in the scale of revenue, but the profit margin was significantly higher than these two. Therefore, under the influence of the 2020 epidemic, Anta’s profit surpassed Adidas.

Although Anta is going beyond Adidas in terms of revenue, there is a certain distance. After all, Nike and Adi’s revenue come from the global market, but the rapid growth of Anta in the domestic market in recent years is obvious to all.

Anta’s profits began to increase from 2017, and operating profit growth between 2017 and 2019 has never been 30%. In 2019, the profit growth rate of Anca’s operating profit was as high as 48.76%, reaching a new high of 8.591 billion. In this year’s annual report, Anta announced the brand structure of revenue.


Among the revenue composition of Anta in 2019, the two brands of Anta and FILA (File) accounted for 51.4%and 43.5%, respectively. They are the main forces of revenue contributions. The gross profit increased by 75.4%, and operating profit increased by 87.1%. The rise of the FILA brand has become the main driving force for Anta sports growth.

Looking at the revenue structure in 2020, FILA’s revenue contribution rate is 49.1%, which has completely exceeded 44.3%of the main brand Anta. In terms of operating profit, FILA’s contribution of 4.494 billion yuan has been equivalent to Anta’s 4.449 billion yuan.

(Source: Anta Sports 2020 Financial Report)

It can be said that the net profit of Anza Sports surpassed Adidas in 2020, of which FILA contributed half of the credit.


2. How did FILA support Anta’s performance

In 2009, Anta acquired FILA China business from Belle Group and began to actively expand the brand. From the performance, Anta’s acquisition of FILA was a cost -effective business.

First of all, the successful operation of FILA in China is inseparable from the retro trend of the entire sports clothing from around 2015. The early performance of FILA China was not so dazzling in the early stage of Anta’s acquisition, but the rise of the retro style made FILA, an Italian century -old brand to regain its vitality worldwide.

FILA South Korea’s sales reached US $ 2.495 billion in 2018, an increase of 206 % within two years. Fashion trends spread very quickly in the information age, and FILA China has also begun to have synchronous results.


Secondly, Anta positions FILA in the field of high -end brands. It focuses on young sports styles, and opens stores in first -tier and second -tier cities. The price of single products is even more expensive than South Korea and North America. Rate.

Anta also took advantage of the FILA brand’s global recovery rapid expansion. In 2016, Anta owned only 802 FILA stores (including mainland China, Hong Kong, Macau and Singapore). It has reached 2006 in 2020, and the expansion trend is rapid.


Third, can FILA really support the future of Anta?


In the past few years, FILA’s growth has supported the half of Anta’s profit, providing funds and time for Anta’s transformation, and this acquisition has also become a textbook case for multi -brand strategy. Can FILA still bring such a high growth in Anta in the future?


I think that although FILA currently achieves surpassing Anta’s main brand in revenue, if Anta Sports wants to march into the industry leaders, there are still three main reasons for the main brand Anta.

First, compared to FILA, the audience of the Anta brand is wider

FILA’s gross profit in 2020 was 1.7 times that of Anta, but the operating profit was almost almost the same as Anta. According to financial data, it can be observed that the operating cost of the Anta brand is about 16.4%of the revenue, but FILA is as high as 43.5%, resulting in the comparable operating profit of the two.

This shows that the actual profitability of the Anta brand is not bad compared to the high unit price and high gross profit.


In the case of similar profitability, FILA is positioned as a mid -to -high -end fashion sports brand. Anta focuses on the popular professional sports brand. FILA’s audience aimed at the young fashion group, and Anta explained in the 2020 annual report that the Anta brand was significantly wider in the audience.

When the market was attracted by the high growth of FILA, Anta continued to tap another market by providing sponsorship to many domestic events -the professional movement field occupied by Adi and Nike, and the current “domestic goods heat” provides a breakthrough timing. Essence

Second, FILA cannot participate in the current “domestic goods fever”. Local brand Anta is the domestic product in the minds of consumers.

First of all, how can FILA be on the side of domestic goods, and Anta, as a native brand, has been sponsoring official events. It is easier to accept for consumers who pursue domestic goods. Therefore The optimization of the image has become a key hand to further seize the domestic market, and the core positioning instructions of “new domestic goods” also want to break through.

However, product quality, design sense and brand connotation are also the three important indicators of the new generation of consumers. Anta had been disliked because of designing “ugliness”, which also formed a certain blow to the brand connotation. When consumers generally improve their aesthetics, even as Anta, as a Chinese goods, need to be improved in design and quality, in order to help them catch this outlet.

Of course, Anta did not sit back on it. He adopted the joint design, star endorsement, and patent research and development. He tried to fade away his original image of “old spirit, ugliness, and earth”, and entered the market with both young, professional and trendy brand image.

(Naming Name of the Forbidden City of Anta)


In addition, as the official partner of the Beijing Winter Olympics, Anta won a series of products for the launch of the national flag, and based on high -quality and sharp goods. This is unique in the current market. It is not only conducive to the shaping of the image of “new domestic goods”, but also further promotes the optimization of the main brand marketing. Anta is quite careful.

(Anta flag sweater)

After all, there is still a Li Ning under the “new domestic goods” signboard. Except for FILA’s contribution, the Anta brand is comparable to Li Ning’s revenue. “It has not yet been determined, and FILA basically can only observe the battle in the competition of domestic goods, and even in marketing is a state of completely cutting with the Anta brand.

Third, FILA’s overseas business does not belong to Anta. The internationalization of Anta Sports cannot rely on FILA.

The global recovery of the FILA brand makes it difficult for Anta to win its overseas business at a lower cost, and the risk of high -cost acquisitions is too large, which causes FILA to contribute to Anta’s revenue mainly in the Chinese market.

In Anta’s brand matrix, there are two high -end professional sports brands Kolon Sport and Descente. The two contributed 230 million yuan in 2020, an increase of 35.4%. A total of 332 stores were all in Mainland China and Hong Kong. Although the growth is very good, the overall strength and strategic layout make these two more unlikely to become the main force of Anta Sports.

(Anta’s main brand positioning)

It seems that only the biological Anta brand can be able to go to the sea. Ding Shizhong, chairman of the Board of Directors of Anta in 2019, said that the biggest dream is to turn Anta from Chinese companies into a global company. Although the current overseas market accounts for less than 5 %, the future goal is 40 % of overseas markets.

According to the annual report, Anta’s overseas business is distributed in more than 30 countries in the four continents. The specific overseas stores are unclear, but it is certain that the Anta brand has overseas stores. It is hoped that the day when Mr. Ding Shizhong dreamed of his dream, Anta could generously brighten the data.

Anta was founded in 1991. Compared with Adidas in 1949 and Nike in 1972, it is a young brand. However, in the fierce competition, Anta, after experiencing the inventory crisis and transformation pain, has become the latter in the Chinese market in the Chinese market Do not ignore opponents.

However, although Anta has become the third in the industry and has entered a period of transformation in a strategic layout, the domestic market is fiercely competitive, and its overseas layout has not yet achieved results. Whether the main brand can transform successfully is the key to future growth.

It can be said that FILA supports Anta’s current performance, but in the future, Anta still depends on its own brand support. The “Chinese Style” is popular, and now the wind is coming. Can Anta catch it?

(Source: Anta Sports 2020 Financial Report)