Anta Sports Products

Sector: Apparel and footwear Countries of operation: China, Singapore and the US Key product categories: Sports accessories, footwear and apparel Annual Metrics [caption id="attachment_148659" align="aligncenter" width="700"] Fiscal year ends on December 31[/caption]   Summary Founded in 1991 and headquartered in Jinjiang, China, Anta Sports Products designs, manufactures and sells sports accessories, apparel and footwear. Anta Sports owns brands including Anta, Fila, Descente and Kolon Sport, as well as Amer Sports (which itself owns Salomon, Arc’teryx, Peak Performance, Atomic, Suunto and Wilson). The company targets both mass and high-end sportswear markets. As of December 2021, Anta operates 9,403 ANTA stores, 2,054 FILA stores, 182 DESCENTE stores, and 152 KOLON SPORT stores. Company Analysis Coresight Research insight: Anta’s revenues grew with a CAGR of 30.0% from fiscal 2016 to 2021, driven largely by the company’s strong brand positioning and third-tier city expansion strategy. Anta also has strong e-commerce, with its sales up by 61.6% for fiscal year 2021, accounting for 34.2% of the company’s total sales. Although Anta is expanding its own e-commerce stores, we expect the company to continue to utilize the traditional e-commerce platforms including T-mall, JD.com, Pinduoduo and VIP.com. The company also says it has fine-tuned the mix of the exclusive online products and in-season products among various e-commerce channels according to the features of the channels to optimize the merchandise selection mechanism, which we believe will fuel its product sell-through and revenue growth in fiscal year 2022.

Tailwinds	Headwinds
Consumer’s growing interest in sports and fitness Major leagues and tournaments around the world are resuming normal operations The Chinese government’s policy to expand domestic apparel production and demand	A challenging overall environment as the pandemic continues to disrupt operations and manufacturing velocity Pressure from competitors, including Adidas, Li Ning, NIKE, Puma and other growing athleisure brands

  Strategy In December 2021, ANTA Sports released its new 10-year strategy, “Single-focus, Multi-brand, Globalization”, which focuses on three core areas: 1. Single-focus: Focus on the sportswear industry and consumer value creation

• Make every effort to produce quality apparel and footwear and continue to invest in product innovation. For example, the company set up a sports science laboratory in Jinjiang, China, in early 2021, featuring a team of designers from across the world, including Japan, Korea and the US.

2. Multi-brand: Attract consumers using a multi-brand strategy

• Develop brands using different strategies. For instance, the Anta brand will continue to execute its development strategies “Rooted in and Known for Performance Sport” and “Brand Transformation and Growth” in 2022 and 2023, reinforcing its leading position among Chinese sportswear brands, while also accelerating its global expansion initiatives.

3. Globalization: Create Chinese brands with a global footprint

• Unlock global brands’ growth potential in the China market, while also making Anta a representative Chinese sportswear brand with a global footprint.
• Leverage Anta and Amer Sports to achieve globalization in terms of brand portfolio, market position, value chain composition and governance structure. Brands under Amer Sports will strengthen developments in three major markets: China, Europe and North America.

Revenue Breakdown (FY21) [caption id="attachment_148660" align="aligncenter" width="700"] Source: ANTA Sports[/caption]   Company Developments

Date	Development
May 18, 2022	Anta releases its Environmental, Social and Governance Report 2021.
December 18, 2021	Anta releases new 10-year strategy, “Single-focus, Multi-brand, Globalization,” aiming to become a leading multi-brand sportswear and equipment group worldwide.
September 30, 2021	Anta wins two industry awards in a row—the company is ranked first in the Apparel, Footwear and Hat category in “China Brand Top 500,” while its 2020 annual report is awarded “Best of Cover Design—Abstract/Graphics” at the ARC Awards International 2021.
June 29, 2021	Anta unveils the “Champion Dragon Outfit” and launches a range of competition sports equipment for the Chinese sports delegation at the Tokyo Olympics.
March 30, 2020	Anta announces a partnership with World Wildlife Fund, committing to protect wildlife and the environment.

  Management Team

• Shixian Lai—Executive Director and Chief Financial Officer
• Shizhong Ding—Chairman, Executive Director and Chief Executive Officer
• Shijia Ding—Executive Director and the Board Deputy Chairman
• Yonghua Wu—Executive Director
• Jie Zheng—Executive Director

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Source: Company reports