Anta Sports, Which Is Difficult To Fully Operate Under The Line, Can Achieve New Growth In Performance Through Many Other Channels.

Along with the pace of conditional resumption, Anta sports announced in February 19th that as of February 14th, about 40% of Anta's sports brands in mainland China had resumed business, and their factories will gradually resume production this week. It is expected that the epidemic will inevitably affect the industry and the company's financial performance in the first half of this year, and will return to normal level in the second half of the year.


According to the development trend of the epidemic situation and the policies of various governments, Anta sports will resume business when deciding on the temporary closure of stores.


It is understood that in January, Anta group's electricity business has overfulfilled its target, and sales in February are expected to reach expectations. CITIC Securities analyst Feng Zhongguang also introduced that at present, Anta sports at the group level through the retail support and commodity department actively guide regional distributors to expand sales, one is online sales, drainage and marketing guidelines; two is group technical staff 24 hours online, ready to provide corresponding technical support. According to tracking and research, online WeChat mall has achieved good sales results. Judging from this, after the end of the epidemic, such as micro mall, vip.com, and many other new channels may become a new growth point of Anta sports. These platforms and channels have played a positive role in replenish online consumption, drain line consumption and open up new customers, and have gradually attracted the attention of the company. The future is expected to become an important potential consumer channel with increased investment and deeper cooperation.


From the industry point of view, Feng Zhongguang believes that under the impact of the black swan incident, the whole sports industry is in the face of impact, and the industry is expected to accelerate the shuffle. At this stage, companies with comprehensive capabilities are expected to stand out. Observation, Anta sports after years of operation precipitation, has built up a deep barrier in product building, brand power, supply chain integration, channel control and other aspects, but also has abundant cash flow and capital reserves. It also accumulated certain industry crisis response capabilities in 2013-2014 years of adjustment, and has relatively higher risk resistance capability, and is more likely to benefit from the industry. Industry consolidation intensified, constantly evolving ability, accelerating the upgrading of share.


Hou Zhenzhen, a commercial and credit rating company limited, also said that during the outbreak of the outbreak, people's consumption abroad has been greatly reduced, and the "holiday consumption" driving effect has dropped significantly. But in the long run, whether it is optional consumer goods or consumer goods, the impact of the retail industry will gradually weaken over time.


Hou Zhenzhen combined with the impact of the SARS epidemic in 2003, said SARS epidemic occurred at the beginning of December 2002. In 2003 3-5, the outbreak period reached the peak in May. Traffic control began to take place, and major tourism and gatherings were stopped. The epidemic situation was gradually controlled in June and ended in mid and late 7. In the first quarter of 2003, the total retail sales of consumer goods in China increased by 9.3% to 4.3% in May. Then, with the gradual improvement of the epidemic situation, the depressed consumer demand has been greatly released. The growth rate from June to the four quarter has increased significantly. Overall, the impact of the epidemic on short-term consumption is very obvious. In the long run, consumer behavior is likely to be postponed, whether necessary consumer goods or optional consumer goods, and the impact of the industry will gradually weaken over time.


Hou Zhenzhen said frankly, compared to 2003, the proportion of the third industries in China is bigger than before. The adverse effects of the overall economic situation are more obvious. The small consumption of grain, oil, food and beverages is maintaining a high growth rate, and the consumption elasticity of clothing, shoes, hats, household appliances, 3C and gold and silver jewelry is relatively greater. But at the same time, thanks to the vigorous development of electricity providers in recent years, online shopping, offline distribution to the new consumption mode to make up for many gaps. The data also show that in 2019, the proportion of electricity business physical transactions accounted for 20.7% of the total retail sales. As the epidemic tends to ease, the impact of the epidemic on the retail industry will gradually decrease, and there will be a peak load of depressed consumer demand in the early stage. On the whole, the retail industry has been greatly adversely affected during the epidemic, and the extent of the impact will ultimately depend on the progress of the epidemic. The slower the time of epidemic control, the greater the negative impact.


Orient Securities analyst Shi Hongmei pointed out that, in the case of adequate prepares for epidemic prevention, the downstream retail outlets of the downstream brand retail stores have a low rate of return due to the sharp shrinking of passenger traffic and the need for epidemic prevention and control. The demand for offline transfer to online sales is urgent. In the face of the decline in profitability and the pressure of cash flow, it is expected that the brand enterprises will increase their inventory recovery and handling products later. Measures such as extending the account period, negotiating the rent reduction and other measures to tide over difficulties.