Who Is The King Of Domestic Sports Brand, Anta VS Lining?

After 2008, China's sports industry entered a period of rapid development. According to Euromonitor data, in 2018, the scale of China's sports footwear industry reached 264 billion 760 million yuan, an increase of 19.52% over the same period, and the scale growth rate increased year by year. At present, China's sports shoes and clothing account for 12% of the global total, becoming the second largest market in the world after the United States.

Most of the domestic sporting goods brands were originally processed for the world famous enterprises such as Nike and Adidas, and then gradually formed their own brands. These enterprises caught up with the draught of the industry, developed rapidly in the early days of the brand establishment, and ushered in a wave of market listing in 2008. It can be said that these early domestic brands are still at the same level, and the strength is comparable.

Lining, a brand built on the image of champion Lining, has become the darling of fashion vouchers nowadays. In the fashion week of Paris, it became a frequent visitor to the fashion week and brought the tide to the world.

Anta, the world's 50 most valuable clothing brand in 2019, is ranked twenty-first in Anta, the world's most famous Brand Puma. It has surpassed Puma (twenty-fourth place) in one move and third in the global sports brand. It is the only Chinese clothing brand selected after Nike and Adidas.

The two brands have their own characteristics. Who are the king of the domestic sports brand, Anta and Lining?

ROUND1: Li Ningsheng

Lining was founded in 1990 and established his own brand as early as Jinjiang shoe enterprises. The founder Lining created the myth of World Gymnastics history and won more than 100 gold medals. The scene of lighting the sacred flame at the 2008 Beijing Olympic Games has become an eternal memory of a generation. Officially because of the unique background of the founders, Lining has become the most famous sports clothing company in China.

During the 30 years of Lining's development, he experienced difficulties and adjustments in the development and prosperity of Chinese national enterprises. After the success of China's bid for the Olympic Games, Lining ushered in the golden development period of ten years and was successfully listed in Hongkong in 2004. In the 2012 year of the transformation from wholesale mode to retail mode, the inventory crisis broke out, resulting in financial losses. In 2014, founder Lining returned and the company started the road of recovery.

Compared with Lining, Anta can be described as "poor children". Founded in 1991, Anta was one of the many OEM shoe factories in Jinjiang, Fujian. Beginning in 1993, the production of Chan Dai sports shoes represented by Anta shifted from "inside" to "outside", and began to produce sports shoes for multinational corporations OEM. Overseas orders allow many Jinjiang sports shoe manufacturers to complete their original capital accumulation, but Anta is not outstanding during this period. Unlike many shoemaking companies in Jinjiang, Anta not only undertakes overseas orders, but also focuses on domestic market and devotes itself to developing domestic market distribution channels.

After 20 years of development, Anta Sports Products Limited has become the largest comprehensive sporting goods Brand Company in China and listed on the HKEx in July 2007.

ROUND2 than profit: Anta wins

2018 was the year when China Lining became famous. In 2018, the total sales volume of the "China Lining" clothing series exceeded 5 million 500 thousand, and the sales volume of shoe series exceeded 50 thousand, and the new products sold out more than 70%. Under the "Chinese Lining" series, Li Ning Co realized 10 billion 511 million yuan in 2018, up 18.45% from the same period last year. This is also the first time that Li Ning Co has made tens of billions of sales revenue since its establishment, and realized 715 million yuan in net profit and 6.81% in net interest rate. In the first half of 2019, Li Ning Co's operating income reached 6 billion 255 million yuan, an increase of 32.72% over the same period in 2018, and the company's profitability has been steadily improving.

According to Anta earnings data, in 2018, the company achieved operating income of 24 billion 100 million yuan, an increase of 44.38% over the same period, a record high operating income, and double-digit growth for 5 consecutive years. The operating profit was 4 billion 103 million yuan and the net interest rate was 17.57%. Among them, the retail sales of Anta brand increased by 10% to 20% compared to the same period, and the retail sales of other brands based on FILA increased by 85% to 90% over the same period. Anta's international brands in China have the sports brand FILA, the Korean outdoor brand Kolon, the mountaineering brand Sprandi, the winter sports brand Descente and the children's wear brand Kingkow, etc. the multi brand strategy keeps Anta's business income growing at a high speed.

Two the company's comparison shows that although Lining's performance has been increasing continuously in recent years, he is lagging behind Anta in terms of business income or net profit.

ROUND3 than market capitalization: Anta wins

In October 16, 2019, Anta's market value exceeded HK $200 billion for the first time. By comparison, Adidas's market capitalization was about $15 billion 598 million (about HK $122 billion 363 million) at the end of October 16th. Anta has greatly surpassed ADI, becoming the second largest brand in sports apparel industry after Nike.

As of November 26, 2019, Anta's total market value was 203 billion 582 million yuan, 3.4 times the market value of Lining, and about 2.8 times the total market value of Lining, XTEP and 331 degrees.

ROUND4 than channel: Anta wins

From the point of view of stores, as of June 30, 2019, the number of Lining sales points (excluding Lining YOUNG) totaled 6422, representing a net increase of 78 over the end of 2018. With a net sales increase of 78, retail sales decreased by 127 and wholesale business increased by 205.

As of June 30, 2019, the number of Anta stores in China (including Anta independent children's shops) was 10223. Compared with 10057 at the end of 2018, there was a net increase of 166.

From the perspective of e-commerce channels, the electricity supplier has become one of the important engines of Anta growth. Anta's product design, procurement and cross-border cooperation on the electricity supplier has formed a unique "online business mode" that integrates online and offline, bringing about the rapid growth of e-commerce business, while online business has also promoted the participation of offline businesses in marketing. At the same time, to speed up the layout of the supply chain, Anta deepened the "fast reverse mode" to quickly meet the changes in consumer demand.

Data show that in 2019, Tmall double 11, Anta group 1 minutes sales broke 100 million; 5 minutes break 200 million; 11 minutes 300 million; 41 minutes over 500 million, double 11 whole day sales of 1 billion 830 million yuan, an increase of 63% over the same period, leading the sporting goods footwear industry.

Lining electric business has made further breakthroughs in the "self media" operation of digital operation and shops. A relatively complete data operation model system has been established. At the same time, a large number of contents can be built to make the electric business shop not only a sales platform for products, but also a platform for users to interact with brand products, market activities, stars and events through the online platform.

Lining double 11 opening 1 hours and 30 points in 2019, Tmall Lining flagship store sales broke 300 million, total sales was 540 million, compared with 2018 double 11 growth 50%. Lining's double 11 in 2019, with the tide of "haunt" as the direction, has launched a double 11 custom gift box to attract consumers with personalized products.

Therefore, both online and offline channels, Anta's sales situation is better than Lining.

ROUND5 ratio design: Li Ningsheng

Lining has always insisted on his original design, and its design level is also in the leading position in the domestic sports brand. In February 2018, Lining burst red in the fashion week of New York, and the 4 words of "China Lining" were repeatedly spread on social media such as micro-blog, WeChat and Instagram. Lining's series of "Wade's way", "Enlightenment" and "China Lining" have made Lining's design a pronoun of national tide.

Contrary to Lining, although Anta has begun to transform, it is still dominated by fast consumption. Moreover, the main consumers of Anta are targeted at low and middle end consumers. At first, Anta imitated the big name products directly in design. But in recent years, the Anta Thompson series blaze indicates that Anta's design ability has been improved. But compared with Lining, there is still a certain gap.

On the whole, Anta is still the leader of domestic sports brands, but Lining's recovery rate is accelerating this year and the future trend is improving.