How did Nike and Adidas lose to Anta?| Data Report

This original article comes from WeChat public account: DT Finance (ID: dtcaijing); text: Awen, Editor: Tang Yeqin, Visualization: Qi Tongzheng, Yunying: Su Hongrui, Supervisory System: Tang Yeqin.

At the end of August, Anta released a semi -annual financial report. In the first half of 2022, revenue reached 26 billion yuan, far exceeding the 12 billion yuan in Adidas Greater China in the first half of the year, and exceeded the total revenue of Nike's 2022 fiscal year in fiscal year.

For a while,#Anta sold 1.1 Nike 2 Adidas ## Anta revenue is Adi's 2.13 times#一 一 一 一, Anta's scenery is unlimited.

It can be found that the time range of each revenue in hot search topics is not uniform. Due to different fiscal years, Nike's performance statistics time is from December last year to the end of May this year. However, this does not affect the Anta's market in the Chinese market.

How exactly became the first? What challenges are still facing?

How did Anta become the number one in the Chinese market?

Compared with the changes in the revenue data of Anta, Li Ning, Nike China and Adidas China, we can see that Anta's realization of transcendence is the past two years: 2020 surpass Adidas China, and in 2022 more than Nike China.

From the perspective of pure data performance, Anta's energy surpassed, and the efforts of their own revenue curve continued to rise, and they were inseparable from the sharp retreat of the two giants of Nike and Adidas in the Chinese market.

In the first half of 2020, affected by the epidemic, several major sports brands revenue declined. Nike China, Anta, and Li Ning were relatively small, and the decline was only a single digit -but Adidas' revenue declined by 33%year -on -year, Let Anta go smoothly.

The epidemic in 2021 has improved, and all sports brands have ushered in a wave of performance rebounds. In the first half of the year, revenue increased by more than 30%. Anta Li Ning was leading the growth rate. Li Ning reached 65%.

In the first half of 2022, the epidemic was repeated. Nike China revenue fell 11%year -on -year. Adidas China fell 35%year -on -year. Although Anta (13.8%) and Li Ning (21.7%) were not as fast as last year, they still maintained positive growth.

The decline in international sports giants in China is even more serious. On the one hand, it is because the epidemic has a greater impact on the multinational supply chain. For example, 97%of Adidas' sneakers in 2020 were produced in Asia. On the other hand, the Xinjiang cotton incident in March 2021 triggered Chinese consumers' resistance, which brought a significant negative impact on brands such as Nike and Adidas.

Of course, the revenue of sports brands has a bigger background: Chinese consumers love to buy domestic goods.

In short, Anta's energy became the first, because of its own growth, but also because of the decline in international giants -the dilemma of supply chain, the misconduct of public events, and the rise of domestic goods, eventually led to a significant shrinkage of giants in China.

It is worth noting that in the first half of 2022, Anta became the first in the Chinese sports market with 26 billion revenue. This number exceeded Nike this year, but it has not caught up with Nike's results in the same period last year.

We can understand that Anta took the first class this year. One of the important reasons was that the first place in the past was seriously retired, but how did Anta learn how to learn the test paper and analyze it.

How did Anta do?

Back to Anta itself, DT Finance disassembled the key data of several Anta revenue from the financial report.

In the past few years, the Anta Group of Anta grew from the multi -brand of different positioning.

In addition to the main brand of the public, Anta Group also has high -end leisure brand FILA, outdoor brand Kolon Sport, and high -performance sports brand Descent. In 2019, Anta also acquired Amer Group, including Salomon, Arc’teryx, Wilson, Peak Performance and Atomic.

Among the many brands, FILA is the great hero of Anta in the past few years.

In the first half of 2018, the main brand Anta accounted for more than 60%of the overall revenue, and FILA accounted for only 34.4%. In this year, Anta expanded FILA's target population from 35 to 45 to 25 to 45 years old, and successively launched "daddy shoes" and "cat claw shoes", becoming a red -seeking net red shoes everywhere.

FILA has grown rapidly, and its proportion of Anta Group's revenue is increasing. In the first half of 2020, it has reached 48.8%, which is 2.6 percentage points higher than the main brand Anta.

From the growth rate, it can be seen that FILA's outstanding contribution in the past few years.

In the first half of 2019, FILA's revenue increased by 79.9%year -on -year. In the same period, Anta Group's revenue increased by 40.3%year -on -year. In the first half of 2020, the revenue of various sports brands was declining, and the Anta brand also recorded a negative growth of 10.7%, but FILA achieved a good result of 9.4%year -on -year revenue.

However, since 2021, the growth rate of FILA began to slower than the Anta brand. In the first half of 2022, FILA revenue fell 0.5%year -on -year. The Ana Group's explanation was that the store was seriously affected by the epidemic. In order to alleviate the impact of the epidemic, FILA increased product discounts, and the gross profit margin and operating interest rate in the first half of the year also declined by 3.7 and 6.5 percentage points, respectively.

At this time, it is necessary to mention the multi -leg walking strategy that Anta Group upholds. One leg is not enough for various reasons, so it relies on different other legs to support the edges of different legs. During the Winter Olympics, the Anta brand with a lot of sound volume became the pillar of the Group in the first half of 2022 with a growth of 26.3%. Judging from the financial report data and the group's caliber explanation, the revenue of the Anta brand has increased mainly because the DTC sales model changes in the past two years have achieved results. In the first half of 2022, the proportion of DTC channels in Anta brand revenue was nearly half.

What is the DTC sales model change?

In the past, Anta used a large number of wholesale distribution models, that is, uniformly sold the goods to the dealer by the wholesale price, and then sold it to consumers. There are many benefits of this model. For example, you can quickly expand the market through broad dealers' channels to open the store to all parts of the country. Anta does not have to worry about trivial store operation affairs.

However, this model also has relatively obvious disadvantages. The brand does not directly contact consumers and cannot obtain their universal real feedback and needs; it is difficult for stores to manage uniformly, and the brand image is uneven.

Anta has changed the DTC (Direct To Consumer) reform in 2020, adjusts the original store to reduce stores with poor sales performance. Some stores are compiled as direct stores. The adjustment part is a franchisee store. Stores are also managed by Anta's store operation standards -these stores are called DTC stores, and the headquarters directly conducts management of distributing goods, stores, and sales services.

In the 2020 Anta DTC model, there were 3,500 stores. In 2021, this number was already 6,000, accounting for 64%of the total number of stores.

At this stage, it is impossible to see whether the DTC model has enhanced Anta's understanding of consumers, but it can indeed effectively increase the revenue number of the Anta brand in the short term.

If the wholesale price of a pair of shoes is 80 yuan, the consumer purchase price is 100 yuan. In the past wholesale distribution model, only the wholesale 80 yuan was included in Anta's revenue. In the DTC model, all the 100 yuan paid by consumers could be included in the revenue.

In other words, in the stage of transition from the wholesale distribution mode to the DTC mode, even if the sales have not increased, the revenue number will increase.

It can be seen that the revenue of the Anta brand's single store has grown rapidly from 460,000 in the first half of 2020 to 950,000 in the first half of 2022. Because of the modes mentioned earlier, it is difficult for us to use the increase in revenue numbers to derive the degree of improvement of the outlets.

Another point worthy of attention at the financial report is that the increase in revenue does not mean that the Anta brand's ability to make money has become stronger.

We still use selling shoes to simply give examples. The brand's production of a pair of shoes requires investment costs such as raw materials. The selling price minus production costs is the gross profit brought by the brand. However, a pair of shoes can not be sold automatically when they are born. They need to advertise for marketing. They also have to pay store rent, salary of employees, transportation, etc. Essence

Under the change of DTC model, the Anta brand has recovered a part of the revenue from the dealer, and the gross profit margin has risen; but because of the recovery of the store, various fees such as rent, employee salary are required. It is not difficult to find that in Anta's operating expenditures in recent years, advertising and publicity expenditure account for about 10%of the revenue, R & D expenditure in 2-3%, and employee expenditure has gradually increased. In the mid -term financial report in 2018, the employee expenditure of Anta Group accounted for 11.3%, and the number in 2022 was 15.3%.

Therefore, it can be seen that in Anta's financial report, the number of business premium rates on behalf of the group's profitability has declined slightly.

The challenge of Anta

Anta became the number one in the Chinese market. Li Ning maintained a high -speed growth and told us that the domestic sports brand came to the best time.

But from the current revenue and profit figures, they are a little far away from China's own "Nike". As the previous analysis, Rowke and Adidas lost to Anta, it was better to lose to Chinese consumers. Many Anta who have won many preferences are not Nike Adi, but consumers.

We believe that Anta’s DTC transformation is not only for the good revenue, but also the consideration of more consumers, digital management and unified branding -no matter how channels and the environment change The improvement of brand power up.

In the past few years, regardless of Nike China, Anta or Li Ning, the proportion of shoes in revenue has been increasing. Nike, with a decline in performance, the proportion of shoe revenue also increased by 3.4 percentage points, reaching 73.4%, and shoe sales can still be played.

Lululemon, who breaks through sportswear, has now begun to expand the sports shoe category.

The competition of sports brands' product strength is largely reflected on sports shoes.

DT Finance simply counts the popular shoes of several major sports brands' official flagship stores. It can be seen that the price of hot -selling products of domestic brands is significantly more affordable. In terms of types, domestic brands are mainly concentrated in running shoes and sneakers. The hot -selling is basketball shoes.

The stronger the functionality of the sports, the higher the technical requirements. In this regard, domestic brands have made some progress. Anta and Li Ning now have some techniques that can be used, but there are still gaps. With Nike as a reference, Nike's investment in R & D is between 5 and 10%, while Anta and Li Ning's R & D expenditure in the first half of 2022 accounted for 2.3%and 1.9%of revenue, respectively. In addition to the brand's willingness, this long -term investment also needs strong money to make support.

And this is also a dominant brand that was originally positioned for the public. Compared with Nike China, Anta, and Li Ning, before 2021, Nike China ’s operating interest rate was maintained above 35%, and his performance was frustrated in the first half of 2022, but it still reached 29.4%, which was higher than Anta's 22.3%and 21.3%of Li Ning.

The business premium requires brand power. It can be seen that in recent years, Li Ning's ability to make money has been improved by virtue of the national tide and professional steering, but it has only been promoted to an Anta level.

With the evolution of sports life, consumers' demand for sports equipment is becoming "fine" and "fine".

On the one hand, they demand professional. The research data of iResearch consultation shows that nearly 90%of consumers tend to choose professional products when buying, and 7.4%of young people only buy professional products; on the other hand Lifetime and fashionable attitude.

At the time that the scale has surpassed the giant, how to deeply understand consumers, and then make better money by virtue of solid product power and brand power, is the next step of Anta Li Ning.

(Source of Title: Anta Official Weibo)

references:

1. Foresight Industry Research Institute, foreseen 2022: "Panorama Map of Chinese Sports Shoes Industry", 2022

2. Iri Consultation, "White Paper Development of the Movement of the Chinese Young People in 2022", 2022

3. Magic Mirror Market Intelligence, "2022 618 Complete Restart Report", 2022

4. Grow the black box, "12000 words interpret Anta: DTC Sinicization of" Blood Battle ", 2022

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