2015 Anta's Revenue Billions Of Secrets. Why?

On the afternoon of February 23rd,

A number of indicators were better than market expectations in Hongkong's 2015 performance announcement.

Anta 2015 has successfully broken billions of dollars to become the first billion sports brand in China. During the reporting period, Anta's revenue increased by 24.7% over the same period, reaching 11 billion 126 million yuan, a record high. It became the first Chinese sporting goods company to enter the "billion club" and announced that its sales of sports shoes exceeded Nike's.

Today brings a comprehensive analysis, why is Anta so cattle? "Do not do China's Nike, to be the world's Anta" is how to move forward step by step toward the goal.

Billions of Secrets

1, the proportion of scientific research investment is 5.2%, and the profit of innovative products is 50%.

It is surprising that Anta's strides are striding forward, because they were Nike, Adidas and even Lining's followers a few years ago.

But Ding Shizhong's Anta brand positioning is very clear: "do not do China's Nike, but to do the world's Anta."

In terms of operation mode, Anta's approach is different.

Nike and Lining use light asset operation mode to outsource product design, retail and distribution business, and focus on design, research and marketing.

Anta has adopted a vertically integrated business model, and its design, development, manufacturing and marketing are all done by itself.

For the sporting goods industry, product innovation and product research is a top priority. Whether a pair of shoes sells well depends on whether it has high technology content, which makes users comfortable and able to improve athletic performance. For this reason, Anta is willing to lose heavily.

In 2005, Anta set up the first sports science laboratory in China's sporting goods industry at a cost of 30 million yuan.

From 2012 to 2015, the proportion of Anta's research investment in sales cost was 3.8%, 4%, 4.3% and 5.2% respectively, and the proportion of investment increased year by year.

It is understood that Anta group has set up a number of R & D design institutes in the United States, Japan and South Korea. Through the establishment of an international R & D and design team, the competitiveness of products has been greatly enhanced.

Revenue rose 1/4, sports shoes sales exceeded Nike

In fact, before the announcement of the earnings report, investors have 5 questions for Anta, the leading enterprise in the core sector: 1, whether the annual income can break through the 10 billion mark as expected; 2, the sales situation of basketball shoes Klay Thompson listed at the end of last year; 3, the proportion of future spending on R & D; 4, the proportion of expenditure on strategy and publicity in the Olympic year; 5, the progress of the acquisition of Sprandi.

Although not every question has been answered in the final earnings report, the 142 page and heavy financial report has greatly strengthened people's confidence.

Anta sports released 2015 performance report shows that the company's revenue increased by 24.7% compared with last year's 8 billion 923 million yuan, reaching 11 billion 126 million yuan, becoming the first domestic sales scale to break through 10 billion yuan.

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Gross profit reached 5 billion 185 million yuan, an increase of 28.8% over the same period, gross profit margin increased 1.5 percentage points to 46.62%, operating profit of 2 billion 697 million yuan, an increase of 33.6% over the same period last year.

In addition, in 2015, Anta's same store sales recorded 12 consecutive quarters of growth, and Anta orders increased for 11 consecutive quarters.

2015 earnings, Anta is the highlight.

Anta's gross profit margin of up to 46.62% in 2015 was even more than 4 at the time of the market downturn, which is rather rare in the industry.

Capital markets once reacted strongly to this.

Anta's market value was once equivalent to the total value of four brands listed in Hongkong, Lining, XTEP, PEAK and 331 degrees.

From the number of stores, as of the end of 2015, the number of Anta stores, Anta children sporting goods stores and FILA stores was 7031, 1458 and 591 respectively. In addition, FILA also opened about 50 FILA KIDS stores.

Judging from the category, Anta sports footwear revenue in 2015 was 5 billion 74 million yuan, an increase of about 23.5% compared to the same period last year. The clothing revenue was 5 billion 592 million yuan, an increase of about 25.6% compared with the same period last year, and the accessories income was 460 million yuan, an increase of about 27.4% over the same period last year.

In addition, the data provided by Anta show that in 2015, Anta sports shoes sold more than 40 million pairs, more than Nike's sales of sports shoes in the Chinese market.

Changes in the pattern of domestic sports products, Anta boss

Over the past decades, China's sports brands have sprung up, and Anta, Lining, XTEP, 361 degrees, PEAK and Jordan have emerged, competing with Nike, Adidas and other industry giants to a stage. However, the development scale of domestic sporting goods companies has never been able to break through the threshold of 10 billion yuan.

Lining, who was once closest to this goal, was in the 2010 fiscal year, when Li Ning Co ranked first in the domestic sporting goods industry, with an annual revenue of nearly 9 billion 480 million yuan.

But in the next few years, because of internal and external reasons, Li Ning Co has gone downhill, but it has been followed by Anta.

Since 2011, the annual revenue of Anta sports has been close to the Li Ning Co and began to surpass the latter in 2012.

In the past 2010-2014 years, the annual revenue of Li Ning Co was 9 billion 478 million yuan, 8 billion 929 million yuan, 6 billion 739 million yuan, 5 billion 824 million yuan and 6 billion 730 million yuan respectively, and the annual revenue of Anta was 7 billion 410 million yuan, 8 billion 905 million yuan, 7 billion 623 million yuan, 7 billion 281 million yuan and 8 billion 923 million yuan respectively.

Although it was reported that Lining had regained power after 2015, the Li Ning Co successfully turned around the deficit in 2015, but the financial report has not yet been released, and it is hard to surpass the 10 billion mark.

Tang Shen's KT1

Over the past 4 years, China's sporting goods industry has gone through a special period. It experienced stagflation and recession in the past 2012-2013 years, and the recovery period from 2014 to 2015.

In addition to factors such as Lining's industry leading companies' performance degradation, China's sporting goods industry has also experienced important stages of the impact of the electricity supplier's impact, industry development adjustment and so on.

After the completion of the adjustment, the domestic sports brands have come out of the bottom, but the industry seating table has changed its appearance.

Anta, which has achieved billions of revenue, has secured the position of China's sporting goods brand. Besides the industry's rebound, Anta's self adjustment has played an important role.

Ding Shizhong, chairman and CEO of Anta's board of directors, said in an interview that from 2013 to 2015, Anta used three years to upgrade the store structure, and the number of stores decreased compared with the peak period, but the business data increased significantly.

In the electricity supplier revenue level, Anta has also achieved rapid growth, in the future, Anta business will occupy a larger proportion of electricity business.

"Anta will not take the number of stores as its goal, but take store efficiency as a measure."

It is estimated that by the end of 2016, the total number of Anta stores, Anta children's sporting goods stores, and FILA and FILA KIDS stores will be 7000-7100, 1700-1800 and 650-700 respectively.

From the above data, we can see that Anta brand stores will maintain the existing number, even the existence of closed shop may shrink, while Anta children and high-end brands FILA and FILA KIDS will further expand.