Chen Shixin: Top Student Anta And Underachievers Lining

Anta passed through the calculation of "(1+1) x 2".

In December 11, 2018, FILA brand sales exceeded 10 billion, plus the main brand, Anta successfully realized the dream of "1+1"; in March 12, 2019, the completion of the acquisition of Amer Sports, 2018 Amer Sports revenue of 2 billion 678 million euros, in theory, Anta group's revenue can exceed 40 billion.

The 2018 earnings and oversized international acquisitions are enough to give readers a thumbs up for this top student.

Anta group's operating income in 2018 was 24 billion 100 million yuan, an increase of 44.4% over the same period, with a net profit of 4 billion 100 million yuan, an increase of 32.9% over the same period last year.

By the end of 2018, there were more than 10000 Anta brand stores (including children), 1652 FILA stores and 117 Dizon stores.

Amer Sports is headquartered in Finland and has international famous brands such as eBird. Anta's acquisition of a consortium involving 4 billion 600 million euros is known as "the largest overseas acquisition of Chinese capital in 2018".

A company's behavior has evolved into an industry's great progress, which is for brand influence.

"Put all your weight on" and start again.

A few years ago, Mr. Ding's video interview said that Anta's internationalization was more considered through mergers and acquisitions.

In 2018, Anta's business is running smoothly, and it can be described as surpassing itself.

Transcendence also implies three great challenges, the growth of Amer Sports in the Chinese market, the effective management of overseas markets and the pressure of M & a funds.

One of Mr. Ding's acquisition logic is that "we buy the core of the company is very important is to value their space in the Chinese market".

In 2018, Li Shufu, an enterpriser with high spirits, was on the list. Volvo's revenue rose 23.6% in the first half of 2018, reaching 122 billion 900 million kronor, with a profit of 7 billion 800 million kronor.

At the beginning of Geely's acquisition of Volvo, the Chinese market and made in China were the main contents of Li Shufu's strategic investors, but...

Volvo revival relies on the formulation of the umbrella strategy of 10 years, the organizational structure and management reform, the heavy construction of SPA platform and the optimization of layoffs. Before and after CEO Stephen Jacobs and Han Ke Samuelson are the helmsman of this great change.

(interested readers can refer to "the latest model of Chinese companies to create world-class brands: Volvo").

In 2018, the sale of Amer Sports in the Chinese market was 150 million euros, and the 1 billion class sales volume was lightweight in the Chinese sports and outdoor products industry.

The acquisition of FILA China has made brilliant achievements, which has given Anta great confidence. However, it does not mean that Amer Sports's lucky and easy to play again in China.

First, the brand of Amer Sports is low in China, while FILA has poor performance in BELLE operation, but this brand is widely recognized in China. It is a high-end high-end sports brand recognized by consumers.

Second, the long incubation period, FILA from acquisition to luminescence, incubation period of 5-8 years, breeding period requires heavy investment and patience.

Managing a global company is a very big proposition. For the Chinese market, Anta group has proved itself well, but for overseas market management and empowerment, it is not easy and needs time running in.

Overseas markets are very broad. Europe, the Middle East, Africa, the United States, Asia Pacific sales channels, product preferences, language communication, culture and customs have their own characteristics. For the Anta team in China, if they want to empower overseas teams, they first learn (Ya Mafen) and listen to (consumers).

Chip Wilson, which has rich experience in brand operation in the European and American markets, shows that the company is worried about the lack of international brand operation.

After the acquisition, Anta has Arc'teryx, Salomon, Wilson and other brand formation, plus Anta, FILA Dizon super brand, more than 10 brands.

The efficient collaboration among enterprise groups has always been one of the difficult problems in enterprise management. Anta faces many challenges in the face of N multi brand internal synergy integration and global market management integration.

Big acquisitions are equivalent to big spending.

The acquisition of amamfin involves 4 billion 600 million euros (about 35 billion yuan). According to the data of Lok bear sports, "the source told Reuters that Anta will get a stake in Amer Sports58% in the acquisition." after the completion of the acquisition, the buyout consortium will also assume the debt of about 1 billion euros owed before Amer Sports.

Roughly calculated, Anta needs to pay about 20 billion 300 million yuan in the early stage, and the net profit of Anta in 2018 is 4 billion 100 million yuan. By the end of 2018, Anta group had held nearly 10 billion cash - although Anta had found 3 acquisition partners.

Taking Anta's revenue and profit volume to acquire amamin sports is really "pressing all the players".

On a comfortable day, however, it has chosen to toss. If the merger is successfully pferred, integrated and integrated, Anta group will be promoted to a world-class sporting goods group. This is the most convenient and efficient way to go.

The unknown means risk, exploration and challenge, which means control, honor and spirit.

Jigsaw strategy and potential

"Anta's internationalization is more considered through mergers and acquisitions". This is wise. For overseas markets, the ANTA brand wants to go out and go up a long way. Takeovers are one of the shortcuts. The internationalization of ANTA brands should be accompanied by (mergers and acquisitions), starting from developing countries, Chinese gathering countries, or following the "one belt and one way" route.

So what is the problem of M & A?

Of course, the answer has been announced today, the answer is Amer Sports.

However, the reaction of my mind at that time was: FILA.

In 2009, Anta took a little cost from BELLE to take over FILA's Greater China's rights and interests (the Greater China). After years of nurturing, it glittering.

So outside FILA China, there must be FILA America, FILA India, FILA Germany and so on.

Anta, which has accumulated considerable wealth, has invested a lot of money to buy all the markets and trademarks of FILA, and to collate them together, and eventually get a world map of FILA.

There are three small considerations. The FILA brand's "high-end fashion sports shoes and apparel" is clear and stable, a wide range of market and consumer demand, and Anta has the initial experience of FILA operation.

The above is just a business assumption.

In fact, whether it is the acquisition of Amer Sports or the choice of "jigsaw puzzle strategy", the internationalization of ANTA brand will be weakened, considering profits, too many brands scattered resources, and no focus...

In the future of Anta group, no matter how wonderful or complex and changeable, there is a main thread that must be run through it. It will continue to push ANTA brand out of China to the world and eventually become a world-class brand.

Let's turn our attention to amamin and focus on a big M & A case. We should not only pay attention to the buyer's unlimited vision, but also care about the seller's idea.

Prior to Anta's acquisition, the company was not well known - Arc'teryx, Wilson and other brands were very famous.

A sports circle professional commented that "historically, amamin is not lack of forward-looking vision and decisive nature."

Amer Sports is somewhat similar to a Asset Management Co, and its acquisition and sale is the core of its brand.

According to relevant information, amamfin predecessor was founded in 1950, the main business is tobacco, and later entered the shipping, printing and other fields, in 2004 officially changed its name to Amer Sports.

In 1974, the company acquired an ice hockey equipment manufacturer and began to enter the sports industry.

Then gradually entered Wilson, ski equipment and other fields, and expanded the brand in these two fields. Around 2005, amamfin bought Salomon, which was a milestone acquisition, and it brought many brands including the original bird.

At the same time, it constantly divestiture the assets of non sports industry.

Amafen, who bought the company, did not make every deal go smoothly. In 2011, the Nikita, a high priced female skiing brand, was sold to a company in Singapore after four years with Bonfire.

From the sales revenue of the company in 2016, outdoor products and ball games accounted for about 60% and 25% respectively, and outdoor business in 2018 exceeded 60%.

In 2016, sales of shoes and clothing for non durables were about 1 billion euros, accounting for 40% of total revenue, and the proportion of durable consumer goods was larger.

Take a look at the dry goods in the past 3 years of AMF, 2016, 2017 and 2018 operating income are 2622.1, 2574.6 and 2678.2 respectively.

There are, of course, other "problems": durable consumer goods occupy the largest sales force of amamfin, and the life span restricts the increment. This is why it emphasizes the promotion of the proportion of non durable consumer goods. Ski equipment is an important product category of amamin. In recent years, global warming has slowed down the sales of skiing equipment in Europe after winter time.

Federer, the Wilson spokesman of the core brand, is getting older. Does his retirement affect the financial performance of the brand?

The world is changing rapidly, the traditional channels are becoming weaker, the diversified business channels are rising, APP shopping, the emergence of intelligent equipment, and the complex and increasing post-90s market growth.

All brand operation companies face many challenges.

As a Asset Management Co's amamin group, it chose to sell assets in 2019 as a whole. "In 2018, the total return of our shareholders is 66%" - this should be the most perfect outcome.

After the Anta led consortium announced its takeover, the price of amamin shares rose sharply, which is an important reason for the high rate of return of shareholders.

Deeply intervene in sports industry

Lining, the gymnast prince, has created two legends: one is a sports event, and his sports career has won 106 gold medals at home and abroad (14 of the world champions), and has been selected as "the 25 greatest athletes in the world in twentieth Century".

The other is "save" the Lining brand. In the 2012-2014 year, Li Ning Co lost a huge sum of more than 3 billion 100 million yuan. Mr. Lining returned to business, lost the deficit in 2015, and broke through 10 billion in 2018.

In the Chinese market, a consumer product brand has experienced "decline again after the rise" is rare.

In late March 2019, Lining released the annual performance in 2018: group revenue reached 10 billion 511 million yuan, an increase of 18.4% over the previous year, the first time to break through billions of dollars, gross profit reached 5 billion 53 million yuan, an increase of 21% compared with the same period last year, and the profit of equity holders was 715 million yuan, an increase of 38.8% over the same period last year.

In 2018, the proportion of Li Ning Co direct sales and e-commerce sales exceeded 50%, and the retail pformation was effective.

In recent years, there are two key words in Lining's brand strategy, one is focus, the other is national tide.

Focus is the so-called "one Lining" strategy.

"A strategy" has been used in many big brands. For example, in 2006, Ford motor was on the brink of life and death. The Ford family invited the former Boeing leader. After investigation and research, the man made a Ford strategy, selling Jaguar, Land Rover, Volvo and other brands, concentrating the core resources on the few models sold worldwide.

In recent years, the success of Anta's multi brand strategy has stimulated the ambition of some shoe and clothing enterprises.

However, since 2018, Lining has firmly pursued the strategy of "one Lining" - "single brand, multi category and multi-channel", with remarkable results.

In fact, apart from the Lining brand, it also has several brands with different positioning, such as red double happiness, Kasen and AIGLE, but their contribution is very small.

Lining once told the media, "when a brand's core competence is not mature, it is more inefficient to disperse and copy other brands, and the possibility of failure is greater, and it also disperses its resources and energy".

From the perspective of a single brand, Lining's influence and revenue are equivalent to that of Anta, and its popularity may still be smaller than Anta's.

The advantage of focusing is to consolidate Lining's brand as the core and consolidate the domestic market, and then push forward the internationalization of Lining with a unified brand. Anta brand in the multi brand Anta group, "a Lining" strategy can get "relative advantage", in fact, the international sporting goods giant has done the core brand globalization.

At this point, the acquisition of several brands of XTEP, Menswear brand J, for multi brand strategy should be cautious, not radical.

The prominent highlight of Lining's brand management in recent years is that he has successfully created the image of "national tide".

Taking New York and Paris fashion week as an event carrier, combining traditional Chinese culture with fashion and fashion, stunning product innovation design and massive online communication, "China Lining" has touched the hearts of Chinese people. Last year, Tmall 618 Lining's fashion show in New York fashion week was basically on the second shelf.

The "national tide" label gives Lining the brand a greater tolerance. Innovative design products enrich the new sports and fashion categories.

Focus and tide are just the changes in Lining's brand. The key word that Lining deeply involved in the sports industry is that the sports park and electric competition help it fall on another platform, especially China.

According to the annual report, China's revenue in 2018 was about HK $1 billion 130 million, an increase of 85.2% over the same period last year, and equity holders should account for HK $77 million in profits.

The sports park may be Lining's "unintentional" work.

In 2009, Lining launched a sports community in Nanning, Guangxi, which was a good response to Lining's sports park.

"China Enterprise News" in the "upgrading of consumption to bring sports industry upgrading" pointed out that one of the two trends of sports industry upgrading is "from the sports industry to the market to participate in the evolution of the market. This trend is brought about by the upgrading of sports equipment market and the outbreak of sports service industry".

In 2014, the State Council issued the "opinions on accelerating the development of sports industry to promote sports consumption". The document put forward that China's sports industry should reach 5 trillion by 2025.

Extraordinary China seems to step on the beat of the new industry, cooperate with other governments to establish Lining Sports Park, export brand, operation and sports training, while running active crowd gathered by sports park while running sports consumer goods.

By the end of 2018, 3 Lining sports parks in Linyi, Ningbo, Hangzhou Bay and Yangzhou have made contributions to the extraordinary China, and Nanning, Nanyang, Yangzhou, Linyi, Ningbo and other sports parks are advancing.

China has promoted investment in more cities and duplicated sports parks in the form of PPP and sports culture industry fund.

Nearly 500 million yuan price acquisition of Snake, let Lining, extraordinary China cause industry attention.

In 2017, nephew Li Qilin told Lining that extraordinary China could consider doing electric bidding.

In 2018, Lining and EDG electric Club launched a joint venture and sold it well, and Lining became a sponsor of the 4 electric club.

According to the competition report released by Penguin think tank, the number of Chinese competition users has exceeded 300 million in 2018.

The competition has gradually formed from the club, the game operators, the alliance, the competition experience hall, the home team, and the fans, practitioners, sponsors and other industrial chains.

Li Qilin is a veteran hero League player who dominates the acquisition of Snake. Lining asked his nephew Li Qilin, "are you sure?"

Li Qilin answered, "I take the lead, I will take responsibility."

Li Qilin said.

Entering the competition industry, communicating with young people by means of electric competition is the opportunity for extraordinary China to grasp the new format of sports events. Lining is the favorite and purchase of sporting goods for more new generation.

In an interview with Mr Lining, you have revealed the strategic planning of Li Ning Co, which focuses on the sporting goods market; the special consumer goods in China's operations and health, sports and leisure, and the sports park.

The article is written by Chen Shixin.