The Rise Of Domestic Products Is Out Of Control

Mr. Lu Xun once said, "only the national is the world".

The rise of domestic products is out of control. For a long time, Chinese goods are basically synonymous with "cost performance". For most Chinese people, choosing to buy domestic products is based on a "compromise" on the price.

Now, the times have changed, and Chinese products are gradually getting rid of the label of "cost-effective". More and more young people begin to choose and spontaneously sell all kinds of domestic products to Amway. In this era, it can also be called "national tide era".

On August 24, Beijing time, Anta Group, a domestic sportswear brand, released its mid-2021 performance announcement. In the whole ups and downs of the first half of the year, Anta's performance?

Through this financial report, we may be able to find out why domestic sportswear brands can achieve the business logic of overtaking on the curve.

Anta's "fast running"

The rise of domestic products has become a trend.

On the one hand, the domestic economy rebounded after the epidemic, and residents' willingness to consume increased; On the other hand, consumers tend to be rational in brand choice, and no longer blindly pursue overseas brands.

Under the joint action of the two, it has brought broad development opportunities for domestic brands. In Anta's semi annual report, the performance is more prominent.

According to the data of China Daily News, Anta achieved RMB ￥ 22.81 billion in the first half of 2021, with a year-on-year rebound of 55.5%. Even in 2019, affected by the epidemic situation, Anta also achieved a growth rate of 54%. Among them, Anta Anta's gross profit margin increased significantly by 11.2 percentage points to 52.8%, and * * increased by 56.1% to a new high of 10.58 billion.

In contrast, Adidas's Greater China sales fell 16% to 1 billion euros (about 7.9 billion * *) year-on-year, although its second quarter revenue grew more than 50% year-on-year and its net profit was higher than market expectations.

At a time when Anta's revenue rose rapidly, Adidas, as the second largest domestic sports brand, declined in revenue, which obviously reflected the rise of domestic products, which was constantly impacting overseas brands.

Adidas is in the same situation with the brand Nike. Nike's revenue in Greater China in this quarter was only $1.933 billion, up 17% year-on-year and down 15% month on month.

The decline of Adidas and Nike gives Anta the opportunity to surpass. In terms of revenue only, as the industry leader of China's sporting goods enterprises, Anta's volume is equivalent to Li Ning, the second in 2.2 industries, and the third special step in 5.5 industries.

In addition to the domestic competitive products, it can be seen from the above table that Anta has surpassed Adidas in the Chinese market in the first half of this year. In terms of scale, Anta's revenue in the first half of the year has been 1.25 times that of ADI China in the same period. In addition, several major performance indicators, such as gross profit, gross profit margin and operation, are also better than ADI China.

According to Euromonitor data, the market share of Anta and Adidas in China will be 15.4% and 17.4% respectively in 2020, with a difference of only two percentage points. Judging from the development momentum of both sides, Anta has a great opportunity to increase the market share of China's market from the third to the second this year, and continue to press Nike while shaking off ADI.

You may as well imagine that the rise of domestic products has become an indisputable fact, and Anta, if it can continue to maintain a steady growth rate, may have the opportunity to impact the leading position of Nike and truly become China's sportswear.

But why can Anta run so fast?

ADI and Nike "fall behind", Anta seizes "opportunity"

Chinese brands are ushering in an era of ＂.

According to the insight report of generation Z in 2020 released by questmobile, by November 2020, the number of active users of generation Z has reached 320 million, accounting for 28.1% of the whole network. Their consumption capacity and willingness to consume are far beyond the average level, and their spending in a single year is more than 4 trillion yuan.

There is no doubt that the material wealth gives the Z generation more choices in the process of consumption. They no longer blindly choose foreign brands like the previous generation of consumers.

But if you want to reach them, the easiest choice is to launch different products to go out of the differentiation route and cater to the novelty loving generation Z. Now, Anta's multi category strategy is gradually beginning to play a role.

In the first half of the year, Anta's Anta brand grew by 56.1% to a new high of 10.58 billion, while that of another brand, FILA, also increased by 51.4% to 10.82 billion.

In addition to the two core brands, the "third growth curve" hatched by the multi category strategy has also been activated.

In the first half of this year, the number of outdoor sports brands including desant and Kelong sports increased by 1.1 times compared with that in 2019 before the epidemic; The global market business of yamafen group, an international outdoor sports giant acquired in 2019, has significantly improved. In the first half of the year, its revenue has exceeded 1 billion euro, and its gross profit and operating costs have been greatly improved.

In particular, the three major brands of amafen, Archaeopteryx, Salomon and Wilson, have doubled their performance in the Chinese market, showing a strong upward momentum. With Anta Anta and FILA as the core brands, combined with the outdoor sports brands such as dishant and Kelong sports, it is obvious that Anta is building its own brand camp.

Nowadays, Anta is gradually attacking the sports apparel brands in the Chinese market.

According to the data of tmall platform, from January to July, the total turnover of Anta Group's brands was calculated in terms of enterprise dimension. In the category of "sports outdoor", this is also the number one of the category in which the Chinese enterprises occupy the first place. These new brands have gradually risen and become the power engine of performance growth, which fully verifies the success of Anta's multi brand incubation ability and the strategy of laying out small market segments in advance.

On the other hand, Anta can still maintain a high growth rate of more than 50% on a very large base in the first half of the year. In addition to making correct strategic decisions, Anta is also inseparable from its exploration of improving the efficiency of the whole value chain.

Anta's choice is a way of joint linkage of supply chain platform, retail operation platform and sharing support platform.

In the supply chain, Anta optimizes the operation process of the whole supply chain through fine management. According to the semi annual report, Anta's own shoes and clothing accounted for 27.2% and 12.4% respectively, while FILA's own shoes and clothing accounted for 28% and 3.7% respectively.

Through the introduction of high-quality product suppliers, the production tasks are planned to use internal production and outsourcing production. This mode can obviously effectively help Anta to better respond to market demand.

In terms of retail operation, Anta has upgraded its retail channels to embrace e-commerce business.

With the help of digital management system, Anta forecasts the products before and after the launch according to the wave band and scene series before and after the launch of the products, so as to achieve accurate replenishment, distribution and distribution. At the same time, it also launched private domain traffic system to promote the integration of online and offline services.

The effect is obviously very obvious. According to the semi annual report, Anta's e-commerce business revenue increased by 61% in the first half of 2020 compared with the first half of 2020, which clearly proves that the digital and e-commerce strategy is effective.

In terms of sharing support, Anta uses digital system to conduct unified management and control of distribution network and supply chain, help retail sales to manage commodity operation and distribution, improve the operation efficiency of offline stores, accelerate the circulation of products in the channel, and realize the operation efficiency of the whole company.

Through the three platforms to achieve refined operation and control, deepen the ability of digital driven decision-making and comprehensively promote the DTC mode (facing consumers), the efficiency of supply chain, production and manufacturing, commodity planning, member management and retail channel has been improved, thus greatly reducing the cost of intermediate links.

As a result, the gross margin of Anta's major sub brands has reached a record high, and the group's gross profit rate has increased by 6.4% in the first half of 2021. From the business level, behind the high growth of Anta's semi annual report, it is the correct strategic choice of Anta Group and the efficiency improvement of the whole value chain, which ultimately creates more value for the promotion of brand value.

epilogue

Compared with international giants, VF took 120 years, Adidas 68 years, Nike 46 years, and Anta only 29 years. But for Anta, this is an era of democracy.

Nowadays, more and more consumers begin to choose domestic products, believe in domestic products and recognize them. Domestic brands are ushering in the "golden age" of development, but this is not only an era of ＊ but also a "worst" era. All brands want to create their own world in this era, which has high requirements for the development decision-making of enterprises.

Anta, which has begun to lay out the "three major brand groups + three platforms", has started from the supply chain, retail management and digital management, and combined with the three major brand matrix to explore its own space.

With the accelerated improvement and strengthening of the future strategy, Anta, which is already in the leading position of domestic clothing brands, is expected to climb the top of the country and rush to the world. picture