Jinjiang Department Sports Brand Revival, Anta How To Survive?

Anta's major shareholders and executives choose to sell shares at the time when the company's performance and NBA are positive, which can alleviate the impact of reduction.

In October 16th, Anta announced that its main shareholder, Anta international and associated anda holdings and anda investment, had placed 70 million shares in the market through Morgan Stanley, accounting for about 2.8% of the total share capital and the placing price of HK $16.32, a discount of 8.2% from the previous day's closing price of HK $17.78 and a cash dividend of HK $1 billion 142 million.

Anta shares fell 10.91% on that day, closing at 15.84 yuan.

After the sale was completed, Anta international and associated anda holdings and anda Investment Holdings fell from 68.89% to 66.09%.

The holders include Ding Shizhong, executive chairman and controlling shareholder, executive director and controlling shareholder Ding Shijia, Wang Wenmo and Wu Yonghua.

The announcement indicated that the board did not anticipate that the placement would have a significant impact on its daily operation or would change its top management, but aimed at broadening the company's investor base and improving its liquidity.

On the 17 day, Anta told our reporter that the management of the company was confident that it would continue to maintain the status of the major shareholders and not affect the controlling rights of the major shareholders.

Analysts at Deutsche Bank said that management still had confidence in the company's prospects, and Anta was still the first choice for sporting goods in the mainland, predicting a 20.2% compound profit growth of 2014-2016 years.

The rights issue will result in short term pressure on the share price, and it is believed that it can provide a good market entry opportunity and maintain a buy rating with a target price of HK $17.8.

Recently, a number of international investment banks such as Deutsche Bank, Goldman Sachs, Bank of America and Merrill Lynch have increased the valuation level of Anta.

Anta's share price has risen nearly 30% since August.

Anta is warming up frequently for being a "second child" in China.

In October 13th, NBA China and Anta grew partners. Anta officially became the official NBA market partner and NBA authorized business.

In the past 7 years, NBA's partners are also from the "Jinjiang Department" PEAK sports, which claims to be the first Chinese basketball shoe market share for 6 consecutive years. Anta wants to replace PEAK's position in two years.

In the past, sponsorship was generally driven by the use of LOGO trademarks, which indirectly led to the growth of sales from the level of communication.

Anta's signing of NBA, including licensed products and joint trademark sales, will bring more direct growth.

The key road CEO Zhang Qing told reporters.

"After two months or so, we made the relevant decisions. I believe that through this cooperation, Anta can also become a leader in the domestic basketball industry."

Ding Shizhong said cooperation with NBA was not a fever. There was an anecdotal rumour that NBA sponsorship fees amounted to two hundred million yuan per year.

Prior to this, Anta's series of actions also included 8 years of strategic cooperation with the Chinese Olympic Committee, sponsorship of China weightlifting team and so on.

In early August, Anta signed a contract with the Chinese gymnastic team to end Lining's sponsorship cooperation with him for more than 20 years.

In 2012, Anta's revenue exceeded Lining for the first time.

In 2013, the revenues of the two companies were HK $7 billion 280 million and $5 billion 820 million respectively, and the gap between the two companies widened.

Anta's next catch up goal is Nike or Adidas, an international brand (thematic reading).

In 2013, Nike and ADI's Greater China revenues were 2 billion 450 million US dollars and 1 billion 655 million euros respectively.

"We are going to do second in 2020. We don't mean to be boss, but we need to do second from third. If Adidas does better than Nike, I will do better than Nike. If Nike continues to lead, I will win Adidas."

Ding Shizhong said.

"In a year and a half or 2 years ago, Anta may not have the bottom line," he said.

A veteran in the industry told reporters this.

Anta is reversing the brand awareness of consumers, eager to become the spokesman of Chinese sports shoes and clothing brands.

Anta is catching up with the industry's chance of recovery and making strategic layout ahead of schedule.

The company's performance in this year's report exceeded the market expectations, operating income of 4 billion 120 million yuan, an increase of 22.4% over the same period last year, and the profit attributable to shareholders was 803 million yuan, up 28.3% over the same period last year.

Anta has become the first company in the sporting goods industry to make a positive turnover.

Confidence comes from two years of retail pformation.

Through the measures such as flat organization, retail monitoring and inventory management, Anta's flexible supply chain management has been strengthened, and its ability to make up orders has been improved.

Since the order began in the first quarter of 2014, Anta's six consecutive quarterly orders have been growing steadily, while double-digit growth has been going on for three quarters.

"In fact, several points of the core are our strategic pformation and business mode change, and at the same time, we need to store some resources around strategic matching.

When others are not able to do well, you may not be able to do it. If you have the ability, do not keep it.

Ding Shizhong explained the main reason for Anta's frequent marketing behavior.

Including "Jinjiang Department" XTEP international, 31st degree, PEAK sports and other brands have increased to varying degrees of recovery.

At this point, the revival of the industry should welcome the support of industrial policies.

In September 2nd, Premier Li Keqiang chaired a State Council executive meeting to accelerate the development of sports industry and promote mass consumption of sports.

It is reported that the national planning of the sports industry is about to be introduced, and the size of the future sports industry will reach a number of trillions of levels.

In 2013, the added value of China's sports industry was 313 billion 600 million yuan, GDP accounted for only 0.6%, and the difference between the 2% and the developed countries was very large.

Favorable policies will promote the sales of sports footwear industry.

"One is the habit of sports consumption influenced by various competitions, the two is the sales of related products, such as running experience, participatory sports consumption, such as running, outdoor, fitness and so on.

Zhang Qing said that in 2014, "the first year of sports industry", he is optimistic that there will be more large-scale sports brand enterprises in the next 10 years.