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    The Military Tactics Of The "Three Giants" Of Fujian Shoes And Shoes Are Discussed From The Medium Term Performance.

    2019/9/16 14:40:00 0

    Fujian Style Shoes And Clothing

    In August 26th, Anta released its first half financial report. So far, three Anta, XTEP and 360 degrees have been released in Jinjiang, Hong Kong shares listed in the domestic sports brand has released all the interim results. The "big three" is the three largest model in Fujian footwear enterprises. From the earnings report, "three giants" period revenue and net profit have doubled. Among them, Anta's revenue grew year-on-year (the following are "year-on-year") 40.3% to 14 billion 810 million yuan, an increase in the same industry in the first place in China; XTEP's revenue grew 23% to 3 billion 357 million yuan; and the revenue of 31st degree increased by 7.29% to 3 billion 237 million yuan.

    The disclosure data show that Fujian sports brand leader performance growth is good. Take Anta as an example, many of its core indicators are high. Operating profit increased by 58.4% to 4 billion 260 million yuan; profit attributable to shareholders was 2 billion 480 million yuan, an increase of 27.7%; gross margin increased 1.8 percentage points to 56.1%; net operating cash inflow amounted to 3 billion 440 million yuan.

    The overall growth of sports brand in Fujian province has benefited from the positive impact of economic and policy levels. On the one hand, despite the uncertainty of the external environment, the domestic economy is still developing steadily. Consumption has become the main engine of the traditional "three carriages" driving economic growth, and sporting goods is the most resilient plate. On the other hand, in recent years, the relevant departments of the state have promulgated a number of policies to promote the development of sports industry. In July, the opinions on the implementation of healthy China have been issued, and there are three specific 15 specific actions, of which 5 are involved in sports.

    In addition to the macro level, we can see the similarities between the three giants' long-term development strategies.

    First is the multi brand strategy. The so-called multi brand refers to the multiple brands created for the market segments, forming a comprehensive layout covering all grades. Each brand has different personalities and interests. Different positioning can attract different consumers, increase the probability of being selected, and finally make profits in filling the market gap.

    Anta adheres to the development strategy of "single focus, multi brand and all channels", and divides its brands into professional sports brand groups mainly based on Anta and spendy, with a group of fashionable sports brands mainly composed of Fei le and Xiao Xiao Niu, and outdoor sports brands represented by amifen sports, Desanto and Kalong Sports. XTEP followed closely to acquire Mai Le, San Kang Ni, Gai Shiwei, Paladin and "Supra" brand. 31st degree has launched 360 degree children's wear and 331 international line, and joined the Nordic veteran movement Brand Company ONEWAY to set up a joint venture brand.

    The construction of multi brand matrix brings great benefits to enterprises. Anta's earnings report showed that the first half revenue increased by 79.9% to 6 billion 540 million yuan, accounting for 44% of the total revenue, gross profit margin as high as 71.5%, gross profit increased by 79% to 4 billion 670 million yuan, and the contribution rate of the company's revenue to Anta's main brand. And Desanto is expected to become another brand that runs over 1 billion yuan a year. XTEP and 31st degree are also exploring the market potential in the rich product portfolio.

    Next is the value retail strategy. According to the three stage theory of Philip Kotler's consumption behavior, consumption can be divided into three stages: quantity consumption, quality consumption and perceptual consumption. After meeting the most basic requirements of quantity and quality, consumers will focus on emotional experience and pursue products that best represent their personality and value. According to the analysis of the industry, domestic consumers have gone through the consumption stage, and are in the transition stage from qualitative consumption to perceptual consumption. In the field of sports goods, regardless of R & D design and technological innovation bring high quality, high sense of value, innovative cross-border products, or IP hot, especially the rise of the rise of the national tide triggered panic buying, is one of the most intuitive manifestation.

    The tide refers to a phenomenon that takes the domestic brand as the carrier and the Chinese traditional culture as the language. The rise of national tide is not the hype of enterprises and brands, but the projection of national pride in the field of consumption after the economic development and the improvement of people's living standards. The performance of Jinjiang's domestic sports brand has improved, and sales volume has been driven by the tide of the tide. For example, Anta and the Imperial Palace joint Olympic winter sports shoes, the introduction of "Olympic and national team elements" products, 360 degrees to launch the traditional Chinese ceramic culture "building" as the theme of basketball shoes series, loved by consumers.

    Thirdly, the new retail strategy. From the perspective of sales channels, the downward trend of low tier cities and towns and rural markets is the trend under the premise of the market saturation of the second tier cities. Take Anta as an example, the key markets of 10223 Anta and Anta children's stores are located in the low line area. From the perspective of consumer structure, young people have taken the key position. Anta signed Clay Thompson and Gordon Hayward, launched the KT4 "reward" basketball shoes, Coca-Cola joint running shoes, "go crazy" series, XTEP signed Jeremy Lin, 360 degrees to build up to the joint series, through the fire line "gun shoes" series products, the main are young brand. From the market perspective, it is also an important attempt for enterprises to shift from mass market to high-end professional market. For example, Anta's Desanto and klong sports became the choice of outdoor and ski enthusiasts, while XTEP focused on marathons and began to expand the basketball market.

    Domestic sports brands produce beautiful transcripts and will not stop there. J.P. Morgan gave Anta "overweight" rating, raised its target price to HK $74, and held constructive views on Anta's prospects. Tianfeng securities research report pointed out that sports shoes and clothing will be one of the fastest growth industries in the next ten years. Guoxin Securities believes that the consumption of sports goods per capita is less than 1/2 in the United States, and the main consumption group is 14~65 years old, which accounts for a far higher proportion than the United States. Generally speaking, the per capita consumption of sports goods in China will still have great growth potential in the future.

    However, it should be pointed out that although sporting goods industry and enterprises are facing huge opportunities, they are also facing some problems. From the perspective of enterprises themselves, local enterprises need to have matched management and management strategies to avoid conflicts between management concepts and operation mechanisms, which will lead to the decline of brand market power. From the industry perspective, many enterprises have homogenization problems in brand positioning and operation mode. Only by solving these problems, can the domestic sports brand go steady and take the pace of globalization, and the international brand will be higher in the tide of market competition.

    Source: Fujian daily writer: Pan Shujie

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